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Tampilkan postingan dengan label Forex Indicator. Tampilkan semua postingan
Exponential Moving Average (EMA)
To measure an exponential moving average you should unite a definite percentage of the actual value with an inverse percentage of the latter value of the exponential moving average (e.g., if you've given 25% weight to the actual value, you should sum up 25% of the actual value to 75% of the previous moving average to get the actual moving average). To define the corresponding weight which previous values should be given you should use the period. To determine the percentage you use the formula 2/ (period+1) (e.g., a period of 7 will result in 25% (2/ (7+1)) of the actual value and you use 75% of the previous exponential moving average value).
Caution: All previous values, even values from before the period, form an actual exponential moving average. The period is used as an approximate calculation of the time period for which values will stay essential in the estimation. At the start of a data series the value is supposed to be zero so you may pay mo attention to the values until the period is finished.
Moving Averages may turn out to be helpful for smoothing raw, noisy data, for example, daily prices. Price data can change very much from every day and still conceal if the price is growing or decreasing. You see even a more general picture of the basic trends can if you watch the moving price average.
As moving averages are sometimes applied for the trend defining, they can also be used to see whether data is opposing the trend. Entry and exit systems usually compare data to a moving average to determine if it is supporting a trend or starting a new one. That's why the exponential moving average is just one of the types of a moving average.
In an ordinary moving average, all price data has the same weight in the calculation of the average with the oldest eliminated value as each new value is added. And in the exponential moving average equation as the average is being measured the most recent market action gets greater importance. Still the oldest pricing data in the exponential moving average is never eliminated.
A sell signal occurs if the short and intermediate term averages cross from the top to the bottom the longer term average. On the contrary, a purchase signal happens if the short and intermediate term averages cross from bottom over the longer term average. If you trade only 2 exponential moving averages in a crossover system it's better to use longer term averages.
It's rather important to know that a 5-day exponential moving average usually consists of over 5 days worth of data and can comprise data from all the life of a futures contract. So such moving averages can be more successfully searched by their actual "smoothing constants," as the number of days of data in the computation remains equal for the 5-day average as for the 10-day average. Exponential calculations are held at various moving average values depending on the point you start with.
Ichimoku Kinko Hyo (IKH)
Ichimoku Kinko Hyo is translated from Japanese as "Chart Equilibrium at a glance. It is a charting technique created by Goichi Hosod, a Japanese journalist, who took the nick-name of "Ichimoku Sanjin" before the World War II.
Ichimoku Kinko lets indicate in which direction the market is moving, its entry and exit points. It is used for determining of a market trend, support and resistance levels and for creating sale and purchase signals.
The main terms of this technique are:
Kijun-sen demonstrates the average value of the price for the second period of time. Kijun-sen is a fluctuations' parameter in the Forex market. The price can grow if it's higher than the Kijun-sen. When the price crosses this line, movements in the trend are predicted. Another variant of the Kijun-sen usage is the signals' submission of. Kijun Sen resembles the Tenkan Sen but consists of more than 26 periods. (Brown)
Tenkan-sen demonstrates the average value of the price for the first period of time; defined as the sum of a maximum and the minimum for this time frame, divided by two. The purchase signal is provided when the line Tenkan-sen intersects Kijun-sen bottom-up and a sell signal is generated when the Tenkan-sen crosses Kijun-sen top-down. Tenkan-sen is used as the indicator of a Forex trend. The trend exists if this line grows or falls. When it moves horizontally, the Forex market has come into the channel. Tenkan Sen is an average of the highest high and lowest low over 9 periods. (Red) There is a signal for selling when Tenkan-sen line crosses Kijun-sen from bottom-up, the purchase signal is provided, if it moves from top to down.
Tenkan-sen is used as the indicator of a market trend. If this line grows or falls - the trend exists. When it goes horizontally - the market has entered in the channel.
Senkou Span is a shaded region between the 2 Senkou lines.
Senkou Span A - demonstrates the middle between the previous 2 lines, moved forward on value of the second time frame. Senkou Span B - demonstrates the average value of the price for the third time frame, moved forward on value of the second time frame. The area between them depicts the trend and is also used as the price's support and resistance. This leads the actual time by 26 periods. (Green/Blue shaded area) Chinkou Span demonstrates the actual candle's closing price, moved back on value of the second time frame.
A cloud is the distance between the lines, Senkou, is shaded on the schedule with other color. The market is considered without a trend and the edges of a cloud will derivate levels of support and resistance if the price is placed between these lines. If the line, Chinkou Span, crosses the chart of the price from bottom upwards, it is a signal for purchasing. And it is a signal for selling if it crosses from top downwards. Chikou Sen: the lagging price, 26 periods ago. (Pink)
Parabolic SAR (pSAR)
The Parabolic SAR (Stop and Reverse) is a system of defining the point of trend's turns; The Parabolic SAR (PSAR) indicator is based on the link between a Forex market's price and time. The basic goals of the Parabolic System is to make reverse orientation of trading positions when the ongoing trend turns. The indicator is called like that due to the fact that when charted, the pattern resembles a parabola or French curve.
The Parabolic SAR system should be used only when the market has the defined trend. When the trend is absent this system generates a lot of incorrect signals. 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.
The closing price level is measured like this (for short positions):
SARi = (Lowi-1 - SARi-1) * AF - SARi-1.
The closing price level is measured like this (for long positions):
SARi = (Highi-1 - SARi-1) * AF + SARi-1.
Herein Highi-1 - the highest value of the price in the previous period, Lowi-1 - the lowest value of the price in the previous period, SARi-1 - the value of SAR for the previous period.
AF - factor of acceleration; (step of closing price changing - Step). defines the speed of shifting the closing prices to the direction of opened position. This value depends on amount of new maximums from the moment of opening if long positions and amount of minimums form the moment of opening the short position. For the first period AF value is set to 0.02. It means that the closing price is being shifted on 2% from the distinction between the extremum point of the previous period and the current price of closing of position. The limiter value of AF is 0.2.
Alligator
This technical indicator consists of 3 lines. They are Moving Averages with various parameters. Here they are:
The First line, or the chap of alligator, is a line of balance to the considerable period of time. It's used for the chart constructing - 13 period smoothed shifting average, moved on 8 bars to the future. The Green line, or the lips of alligator, is the line of balance for the considerable period of time, which is one more step less - 5 period smoothed shifting average, moved on 3 bars to the future. The Red line, or the teeth of alligator, is the line of balance for the considerable period of time, which is one step less - 8 period smoothed shifting average, moved on 5 bars to the future.
How to interpret the lines? When all of them are jolloped, it means that the "Alligator" is sleeping, and the more it sleeps the more hungry it gets. Of course, when it wakes up after long sleep, it's very hungry and starts "hunting for food", which is price, till it is glutted. As soon as it happens, it looses interest to the food, which is price, and then the balance lines meet at the same point. It's when you should fix your profit. It's time to close all positions and wait till Alligator awakes up next time.
This indicator's aims are the following:
1. To become an easy for usage indicator to trade only in the current trade
2. To develop a reliable way of saving the money during the moving of the market bounded with the price channel
3. To represent united way for monitoring of the moving of the market
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