Archive for new
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.
|
Permalink
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.
|
Permalink
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.
|
Permalink
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.
|
Permalink
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.
Permalink
May 23, 2008 at 1:19 pm
· Filed under Sigma capital markets, american stock, automated trading, chart, currency trading, exchange mini, flexible forex, interest rate, leading industrial nations agree algorithmic trading, market rate, mini forex, 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.
|
Permalink
