Two Ways Signal
This indicator works based on an improved system of triple moving averages (MA). In conjunction, this system is able to deliver impressive results in trading. The indicator is easy to use. It represents 2 arrows which are automatically drawn after a bar is closed, showing where the price is likely to move in the nearest future based on the combination of the signals from all MAs.
What is Moving Average (MA)?
It is one of the most popular, proven and efficient methods for Forex trading. Its primary objective is to average the price values by smoothing the local movements, thereby helping the trader to focus on the main price movements.
For ease of perception, users are shown only the arrows with sound notification about the appearance of a new arrow.
- Never redraws arrows, shows the arrows after a bar closes;
- Simple and easy-to-use indicator;
- Works great with any strategy;
- Works with any indicator;
- Works equally well on any timeframe;
- Work in any currency pairs.
- FasterMode 0 = sma, 1 = ema, 2 = smma, 3 = lwma (default = 0) - the mode that is applied to the fast moving average. Each mode is described below the parameters;
- FasterMA (default = 5) - settings of the fast moving average which averages the price for the last 5 bars;
- MediumMode 0 = sma, 1 = ema, 2 = smma, 3 = lwma (default = 0) - the mode that is applied to the slower moving average. Each mode is described below the parameters;
- MediumMA (default = 20) - settings of the slower moving average which averages the price for the last 20 bars;
- SlowerMode 0 = sma, 1 = ema, 2 = smma, 3 = lwma (default = 0) - the mode that is applied to the slow moving average. Each mode is described below the parameters;
- SlowerMA (default = 34) - settings of the slow moving average which averages the price for the last 34 bars;
- SoundAlert 0 = disabled 1 = enabled (default = 1) - enable/disable audio alerts about the appearance of a new arrow.
What are SMA, SMMA, EMA and LWMA
- Simple Moving Average (SMA) is the arithmetic mean of n values from k-n+1 to k. In other words, the 5-day moving average for the current day is calculated by adding the previous five prices (i.e. current day plus four previous days) and dividing them by 5. That is, if the price were: 9, 8, 8, 9, 10, then the simple moving average will be equal to (9+8+8+9+10)/5=8.8. Consequently, at the current price of 10, the moving average will be equal to 8.8;
- Smoothed Moving Average (SMMA) is calculated using all prices available on the chart. It considers the "candles" (bars), which are located beyond the specified period, but with a decrease in the "weight" of each bar as the distance increases. Due to this, SMMA has a very low sensitivity to the price changes;
- During the calculation of the Exponential Moving Average (EMA) the earlier prices have less importance, while the later price have greater impact;
- Linear Weighted Moving Average (LWMA), similar to the exponential one, gives more "weight" to the more recent data, but it does so more pronounced and simpler. During the calculation of the 5-day weighted moving average, the current price is assigned five times the weight, the yesterday's price - four times the weight, the day before yesterday - three times, and so on. After that, the sum of all products is divided by the sum of the added weight. That is, (1·8+2·8+3·9+4·10+5·11)/(1+2+3+4+5) = 146/15 = 9,73.
- Works perfectly in strategies with Fibonacci lines;
- You can modify the modes and the number of scanned bars in the indicator settings, perhaps you will be able to find a better balance;
- Works great in "breakout" strategies;
- Do not go too far away from the figures set by default, otherwise, the indicator will work incorrectly.