Archive for chart
May 23, 2008 at 3:13 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, interest rate, market rate, trading Sigma charts interest rate automated trading
It allows to detect the bottom or the top.
- A bearish turning point occurs when there is a pattern with the highest high in the middle and two lower highs on each side.
- A bullish turning point occurs when there is a pattern with the lowest low in the middle and two higher lows on each side.
The most common confirmation indicator used with fractals is the “Alligator indicator”, a tool that is created by using moving averages that factor in the use of fractal geometry. The standard rule states that all buy rules are only valid if below the “alligator’s teeth” (the center average), and all sell rules are only valid if above the alligator’s teeth.
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May 23, 2008 at 3:10 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, market rate, trading Sigma charts interest rate automated trading
Awesome Oscillator determines market momentum (the second of five market dimensions) at a given time on the last 5 bars, comparing them to the momentum on the last 34 bars.
Awesome Oscillator is simply the difference between the 34 period and 5 period simple moving averages of the bar’s midpoints (H+L)/2. Awesome Oscillator is displayed on the chart as:
Each bar which is higher than the preceding one is red, each histogram bar which is lower than the preceding one is green.
Signals to buy:
This is the only signal to buy that comes when the bar chart is higher than the naught line
The saucer signals generated when the bar chart reverse its direction from up to downward where the second column is lower than the first one and is colored red, the third column is higher than the second and is colored green & should have at least three columns.
Signals to sell:
Awesome Oscillator Saucer sell signal is the opposite of the Awesome Oscillator Saucer buy signal
The saucer signal is reversed and is below zero. Naught line crossing is on the decrease, the first column of it is over the naught & the second one is under it. The two pikes signal is higher than the naught line and is reversed too. |
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May 23, 2008 at 2:39 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, trading Sigma charts interest rate automated trading
Acceleration/Deceleration (AC) is introduced by Bill Williams; it measures acceleration and deceleration of the current driving force.
When the AC value of the current bar is greater than the previous bar value, the histogram bar is colored in green (and vice versa). According to Mr. Williams this indicator will change direction before any changes in the driving force, which will change its direction before the price.
The only thing that needs to be done to control the market and make decisions is to watch for changes in color. To save yourself serious reflections, you must remember: you can not buy with the help of Acceleration/Deceleration, when the current column is colored red, and you can not sell, when the current column is colored green.
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May 23, 2008 at 2:09 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, new, trading Sigma charts interest rate automated trading
| Moving Average Convergence Divergence (MACD) |
This indicator was generated by Gerald Appel as the difference between two exponentially smoothed averages (EMA).
It’s one of the simplest and most reliable indicators available.
Although there are three moving averages mentioned you will only see two lines one fast and one slow, if the faster signal line crosses above the slower line then a buy signal is generated and vice versa.
There are three techniques commonly used to interpret the MACD:
1) Crossovers, When the MACD falls below the Signal line, it is a bearish signal indicating that it may be time to sell.
2) Conversely, when the MACD rises above the Signal line, the indicator gives a bullish signal, suggesting that the price of the security is likely to experience upward momentum.
3) Divergence, when the security price moves counter to the MACD it signals the end of the current trend.
4) Zero Line Crossover, A crossing of the MACD line up through zero (the centerline) is interpreted as bullish, or down through zero as bearish. Some analysts choose to buy or sell when the MACD goes above or below zero.
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May 23, 2008 at 2:05 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, trading Sigma charts interest rate automated trading
The Ichimoku Kinko Hyo Japanese charting technique was developed before World War II with the aim of portraying in a snapshot where the price was heading and when was the right time to enter or exit the market.
Ichimoku Kinko Hyo is a phrase in Japanese language which means “Chart Equilibrium at a glance”.
It includes five curves:
1) Tenkan-Sen (Brown): Shows the average price value during the first time interval defined as the sum of maximum and minimum within this time, divided by two.
2) Kijun-Sen (Blue): Shows the average price value during the second time interval.
3) Chinkou Span (Yellow): Displays the closing price of the current candle, shifted back on value of the second time frame.
4) Up Kumo (Green): Displays the midpoint between the previous two lines, shifted forward on value of the second time frame.
5) Down Kumo (Red): Displays the average value of the price for the third time frame, shifted forward on value of the second time frame.
The two Senkou Span (leading) lines are pushed forward in time to represent past support and resistance & the area between them is shaded to make it like a cloud. This “cloud” not only defines the trend but acts as support and resistance for price.
A very basic precept is: if price is above the cloud then the trend is higher and vice versa.
- Buy signal issued when the Tenkan-Sen (brown) crosses the Kijun-Sen (blue) from below. Conversely.
- A bearish signal is issued when the Tenkan-Sen crosses the Kijun-Sen from above.
If there was a bullish crossover signal and the price, at that time, was trading above the cloud, this would be considered a very strong buy signal.
If there was a bearish crossover signal and the price, at that time, was trading below the cloud, this would be considered a very strong sell signal.
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May 23, 2008 at 2:02 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, interest rate, market rate, new, trading Sigma charts interest rate automated trading
It was developed by Alexander Elder to measure the bull’s power at each increase & at each decrease.
It connects the basic elements of market information; price trend, its drops, and volumes of transactions.
You can buy when the forces become minus (fall below zero) in the period of indicator increasing tendency.
You can sell when the index becomes positive during the decreasing tendency.
The force index signalizes the Bears Power and continuation of the decreasing tendency when the index falls to the new trough also it signalizes the continuation of the increasing tendency when it increases to the new peak.
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May 23, 2008 at 1:59 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, trading Sigma charts interest rate automated trading
It consists of two Moving Average lines in which one to be shifted upward & the other is to be shifted downwards.
Signal to sell appears when the price reaches the upper margin of the band.
Signal to buy appears when the price reaches the lower margin.
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May 23, 2008 at 1:55 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, trading Sigma charts interest rate automated trading
Demark is based on the comparison of the period maximum with the previous period maximum If the current period (bar) maximum is higher, the respective difference between the two will be registered.
This indicator used to identifying the riskiness of the levels in which they the transaction takes place.
The indicator fluctuates from 0 up to 1that when the indicator falls below a mark 0.3 the turn of the prices upwards is expected & when the parameter of the indicator rises above a mark 0.7 the turn of the prices downwards is expected.
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May 23, 2008 at 1:34 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, trading Sigma charts interest rate automated trading
This indicator of volatility measures selling pressure and buying pressure. When the ATR rises there is more and more pressure and a strong volatility of the stock.
When the ATR decreases there is less and less pressure and a low volatility.
True range is the highest data in absolute value among:
(Today’s high – today’s low)
(Today’s high – yesterday’s close)
(Today’s low – yesterday’s close)
The last two possibilities usually arise when the previous close is greater than the current high (signaling a potential gap down or limit move) or the previous close is lower than the current low (signaling a potential gap up or limit move).
To ensure positive numbers, absolute values were applied to differences.
True Range is the greatest of the following three values:
• Difference between the current maximum and minimum (high and low).
• Difference between the previous closing price and the current maximum.
• Difference between the previous closing price and the current minimum. |
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May 23, 2008 at 1:24 pm
· Filed under Sigma capital markets, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, market rate, new, trading Sigma charts interest rate automated trading
Parabolic Stop and Release was developed by J Welles Wilder. It is made up of a series of evolving points called Stop and Reverse (SAR) points. The position is reversed when the protective stop is triggered.
Parabolic SAR is more popular for setting stops than for establishing direction or trend.
Parabolic SAR is base on the following rule: to shift the levels of closing prices only in direction of opened position. If there is a long position opened before, it is possible to increase the level of closing prices, but not to decrease it. If the short position is opened, it is possible to decrease the level of closing prices. Once a Parabolic SAR is reached, the current position is exited and a new position in the opposite direction is taken.
Signal to buy is given when the upper SAR crosses the price line.
Signal to sell is give when the lower SAR crosses the price line.
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