Archive for flexible forex
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 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 1:38 pm
· Filed under Sigma capital markets, automated trading, currency trading, exchange mini, flexible forex, interest rate, market rate, trading Sigma charts interest rate automated trading
Bears Power oscillator developed by Alexander Elder & it based on estimation of bears Power balance since changes in this balance initially signalize about possible trend reversal.
There is always a war between the bears (Pushing prices down) & bulls (Pushing prices up) that depend on the demand& supply in the market & at end of each day there is a result of this war (high or low prices) so during the day it’s very important to be able to estimate the reverse of the line chart.
If trend indicator is up-directed and the Bears Power index is below zero, but growing, it is a signal to buy.
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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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May 23, 2008 at 1:22 pm
· Filed under Sigma capital markets, american stock, automated trading, chart, currency trading, exchange mini, flexible forex, foreign, interest rate, leading industrial nations agree algorithmic trading, market rate, mini forex, new, trading Sigma charts interest rate automated trading, trading Sigma charts
| Commodity Channel Index (CCI) |
CCI has been developed by Donald Lambert; it designed to detect beginning and ending market trends & provides an indication of overbought or oversold markets.
The CCI indicates the increasing in the prices compared to average prices as it moves towards +100.
As the CCI drops towards -100, it indicates that the price is increasingly low compared to average prices.
It provides a warning of overbought and oversold markets when the line crosses the +100 or the -100 levels.
The actual buy or sell signal is usually provided, however, when the line then crosses back over the +100 or -100 level.
Buy signals are generated when CCI dropped below -100 & then come back up through this level.
Sell signals are generated when CCI dropped below +100 or make strong thrust above +100 & then dropped back up through this level.
Zero line crossings it confirms buy or sell signals.
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May 23, 2008 at 1:21 pm
· Filed under Sigma capital markets, american stock, automated trading, chart, currency trading, exchange mini, flexible forex, foreign, interest rate, leading industrial nations agree algorithmic trading, market rate, mini forex, new, trading Sigma charts interest rate automated trading, trading Sigma charts
J Welles Wilder has developed the Average Directional Index (ADX) to define trend force, whether the trend will develop further or will gradually weaken.
The simplest trading method based on the system of directional movement implies comparison of two direction indicators: the 14-period +DI (yellow) one and the 14-period –DI (Green). To do this, one either puts the charts of indicators one on top of the other, or +DI is subtracted from -DI. W. Wilder recommends buying when +DI is higher than -DI, and selling when +DI sinks lower than -DI.
To these simple commercial rules Wells Wilder added “a rule of points of extreme”. It is used to eliminate false signals and decrease the number of deals. According to the principle of points of extreme, the “point of extreme” is the point when +DI and -DI cross each other.
- If +DI raises higher than -DI, this point will be the maximum price of the day when they cross.
- If +DI is lower than -DI, this point will be the minimum price of the day they cross.
The point of extreme is used then as the market entry level.
Thus, after the signal to buy (+DI is higher than -DI) one must wait till the price has exceeded the point of extreme, and only then buy.
However, if the price fails to exceed the level of the point of extreme, one should retain the short position.
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