What about joining your market expertise and intuition with algorithms coded as visual maps?
The discovery power: in our opinion, the best strategies are created when traders see what other traders don't see. So, the concept of these visual maps is bringing new trading vision and ideas to improve your market and strategic vision.
The core system of force maps are price detection and detection algorithms, that will show different information for price and market trends using areas for up and down trends.
There is no paradigms about the indicator interpretation, and you can use other indicators together, anyway the maps algorithm logic is map colors for bulls and bears scenarios in graph area, instead of traditional indicators based on lines and/or histograms.
It's very relevant to define the best period (indicator setup) for the timeframe and the instrument you are used to trade.
Examples of visual information to trading analysis and decision support, based on this indicator:
- Volatility: long areas can indicate high volatility.
- Lateral Movement: several mix of colors can indicate that market is not trending.
- Trend Force: just one color can indicate that market is trending.
- Divergence: start of new colors can indicate a market divergence and start of new trend.
- Risk: be aware about unusual maps formats since they can indicate risk market scenarios.
- Cycles: usual maps formats can indicate cycle market scenarios.
- Scenarios: pattern maps formats can indicate usual market scenarios.
- Correlations: pattern maps formats between two instruments can indicate pair trading opportunities.
- Combinations: up and down trend colors combination (new color) can indicate lateral market or trend changing to lateral.
- Support and Resistence: white areas (no color) can indicate weak to strong support and resistance areas.
You can use this indicator for any MT5 instrument and/or timeframe, and create a personal setup for these input parameters:
- Period: main indicator analysis period (default: 120)
- Up Trend Color Map: choose your preferred color for up trend maps
- Down Trend Color Map: choose your preferred color for down trend maps
About the Author
This indicator was invented and designed by Rogerio Figurelli, a quantitative and algorithmic trading solutions data scientist and researcher.
Trajecta delivers quantitative and algorithmic trading solutions to global investors, always looking for a level of innovation and return that no other quantitative system can match (complete list of Trajecta Labs market and signal products).