Archive for exchange mini
May 23, 2008 at 3:34 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, market rate, trading Sigma charts interest rate automated trading
| Market Facilitation Index |
It shows the change of price for 1 tick & it is a more rigid indicator in that it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a security.
- If prices grow while MFI falls (or vice versa), there is a great probability of a price turn
- When MFI value’s over 80 or under 20, signals correspondingly of a potential peak or bottom of the market.
MFI increases and volume increases: new opened positions in the direction of bar development.
MFI falls and volume falls: the market participants are not interested anymore.
MFI increases, but the volume falls: the market is not supported with the volume from clients, and the price is changing due to traders’ (brokers and dealers) “on the floor” speculations
MFI falls, but the volume increases: There is a battle between bulls and bears, characterized by a large sell and buy volume, but the price is not changing significantly since the forces are equal.
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May 23, 2008 at 3:17 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, market rate, trading Sigma charts interest rate automated trading
It is based on the Alligator and shows the degree of convergence/divergence of the Balance Lines (Smoothed Moving Averages).
The Gator Oscillator is displayed as two histograms:
- The histogram above zero shows the distance between the blue and the red lines (between the Alligator’s jaw and teeth);
- The histogram below zero shows the distance between the red and the green lines (between the Alligator’s teeth and lips).
The Gator Oscillator clearly shows convergence and intertwining of the Balance Lines when the Alligator is asleep or awake thus helps identify a trend.
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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 3:07 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, market rate, trading Sigma charts interest rate automated trading
This technical indicator contains of three lines, which are Moving Averages with different parameters.
The blue line: (chap) is a line of balance to the significant time period, which is used for building of the chart (13 period smoothed moving averages, shifted on 8 bars to the future.)
The Red line: (teeth) is the line of balance for the significant time period, which is one step less (8 period smoothed moving average, shifted on 5 bars to the future);
The Green line (lips) is the line of balance for the significant time period, which is one more step less (5 period smoothed moving average, shifted on 3 bars to the future).
Interpretation: When the Jaw, the Teeth and the Lips are closed or intertwined, it means the Alligator is going to sleep or is asleep already. As it sleeps, it gets hungrier and hungrier the longer it will sleep, the hungrier it will wake up. The first thing it does after it wakes up is to open its mouth and yawn.
Then the smell of food comes to its nostrils: flesh of a bull or flesh of a bear, and the Alligator starts to hunt it. Having eaten enough to feel quite full, the Alligator starts to lose the interest to the food/price (Balance Lines join together) this is the time to fix the profit.
You should close all positions and wait until Alligator awakes again.
The goals of this indicator are:
- to give integrated way for monitoring of the moving of the market;
- to represent a simple indicator to trade in the current trade only;
- to create a protective way to save the money during the moving of the market limitet with the price channel.
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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 2:34 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, trading Sigma charts interest rate automated trading
It was generated by Joe Granville.
On Balance Volume is one indicator that is designed to track changes in volume over time.
On Balance Volume is a running total, volume indicator that is arrived at by adding or subtracting the day’s volume, depending on whether the closing price is higher or lower than the previous close.
On Balance Volume Indicator is to buy when the indicator breaks out from its recent range and sell when it breaks down from its range, but it might take price a day or even two to confirm the move, so patience and other supporting trend change indicators will help.
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May 23, 2008 at 2:29 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, trading Sigma charts interest rate automated trading
The Money Flow Index measures the amount of money flowing in and out of a security.
It’s a good measure of the strength of money flowing in and out of a security.
It compares “positive money flow” to “negative money flow” to create an indicator that can be compared to price in order to identify the strength or weakness of a trend.
- A divergence between price and MFI often signals an imminent reversal of the trend.
- Readings below 20 on the scale are considered oversold (bullish).
- Readings above 80 on the scale are considered overbought (bearish).
When analyzing the MFI the following should be taken into account: divergences between indicator and price movement. If prices increase and MFI falls (or vice versa), the probability of price turning is very high. MFI values higher than 80 and lower than 20 signalizes respectively about potential peak or foundation of the market. |
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May 23, 2008 at 2:26 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, trading Sigma charts interest rate automated trading
| Accumulation/Distribution (AD) |
Accumulation Distribution is a price and volume indicator.
- When the Accumulation/Distribution moves up, it shows that the security is being accumulated (Buying), as most of the volume is associated with upward price movement.
- When the indicator moves down, it shows that the security is being distributed (Selling), as most of the volume is associated with downward price movement.
- Divergences between the Accumulation/Distribution indicator and the price of the security indicate the upcoming change of prices.
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May 23, 2008 at 2:25 pm
· Filed under Sigma capital markets, automated trading, exchange mini, interest rate, market rate, trading Sigma charts interest rate automated trading
It was developed by Larry Williams. This system attempts to measure overbought and oversold market conditions.
The %R always falls between a value of 100 and 0. There are two horizontal lines in the study which represent the 20% and 80% overbought and oversold levels.
Indicator values ranging between 80 and 100% indicate that the market is oversold.
Indicator values ranging between 0 and 20% indicate that the market is overbought.
But we have to take in consideration that overbought does not necessarily imply time to sell and oversold does not necessarily imply time to buy so, it’s very important that if an overbought/oversold indicator, such as Stochastic or Williams %R, shows an overbought level, the best action is to wait for the futures contract’s price to turn down before selling.
So, you sell when %R reaches 20% or lower (the market is overbought) and buy when it reaches 80% or higher (the market is oversold). However, as with all overbought/oversold indicators, it is wise to wait for the indicator price to change direction before initiating any trade.
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