Mechanical trading systems
The system of "three screens" Al. Elder
The first screen defines the main trend. It does this based on the weekly chart of the MACD-Histogram. If the histogram is reduced, then only consider options for sale. A sell signal would be stronger if the histogram is below zero. When does the upward movement of the histogram, in comparison with the previous - buy. The purchase will be more reliable at a value of the histogram above zero. The tendency to "first screen" like a tide. A tidal wave against better not to swim.
The second screen defines the medium-term trend by using oscillators. Stochastic oscillators are, RSI and other indicators, built on the daily chart. If the first screen shows a bull market, and oscillators are oversold, it is a good signal to buy. By contrast, the weekly bearish trend in the overbought oscillators on the daily chart we see the possibility of selling. Signals a "second screen" - the wave. The system of "three screens" considers only those waves that do not conflict with the tide.
The third screen identifies short-term trend, fixing the price breaks for highs or lows of the previous day. If the price of a new high compared to the previous day, week-long trend of increases, and daily oscillators dipped into oversold territory, it enters a buy signal. If the price makes a new low when compared to the previous day, week-long trend of declining and daily oscillators have risen in the overbought zone, it's time to order the sale. "Third screen" defines the swell of the market.
If you made a deal with the trading system "three screens", but profits are not getting - perhaps the fundamental conditions have changed. Then quickly come up with a recommended market to clarify the situation.
Cautious traders encouraged to keep open lucrative position as long as a week-long tendency to not make the turn. For aggressive traders may also further open positions with each new signal buy / sell on the second screen to the moment of turning a weekly trend.
MTS is also a necessary condition for the "three screen" is a system of risk management. Rule of thumb - place protective stop orders, protecting against loss and to preserve the potential profits of a few pips below the minimal price of the day or the day preceding, if you bought, or a few pips above the very highest prices of the day or the previous day, if you sold it.
"Ray Elder" or "X-ray Market" (Elder-ray)
"Ray Elder" is a development of the "three screens" and uses the principles laid down in it. "Ray Elder" is a system that is designed to measure the strength of bulls and bears at one time.
Calculation of "Ray Elder" is based on the following principles:
price is an agreement on the cost between the three groups of traders - the seller, buyer and free traders;
moving average is the averaged value of the agreement;
highest price is the maximum power of bulls during the analyzed period;
lowest price is the maximum power of bears during the analyzed period
Elder-ray is composed of three horizontal panels, the first of which shows a graph of prices built on it an exponential average with a 13. When the average is increasing - a sign of the bull market. When decreasing the SS - the trend bearish.
In the second graph is constructed Bullish Force as a histogram. The formula for calculating the strength of bulls:
Bulls Strength = High - EMA, whereHigh - the maximum price for the period;EMA - exponential moving average.
When the maximum price is above average, then Bullish Force is above zero, which confirms the bullish trend. Otherwise, the bulls are weak.The third graph is determined by the strength of the bears (as well as a bar chart):
Force bears = Low - EMA, where Low - the lowest price for the period.
If the minimum price is below the SS, this is a signal of a strong bearish trend. Otherwise, the power of the bears is minimal.
Two types of solutions:
The period of purchase. CC needs to grow and bear power indicator is below zero. The best time to buy is the period when the bears first power indicator falls below zero, and then immediately got up. If the top of the price confirmed by new peaks Bullish Force, it is a good confirmation of the bullish trend. Strong signal will also be bearish convergence.
Period of sale. Sell when the SS is reduced, and Bullish Force is above zero. Bearish trend is confirmed by a parallel decline in bottom prices and an indicator of strength of bears. Strong signal will also be a bullish divergence.
The direction of motion tells us the average of the strategy and approach to the median price - the time of transaction.
The system of "three screens" Al. Elder
The first screen defines the main trend. It does this based on the weekly chart of the MACD-Histogram. If the histogram is reduced, then only consider options for sale. A sell signal would be stronger if the histogram is below zero. When does the upward movement of the histogram, in comparison with the previous - buy. The purchase will be more reliable at a value of the histogram above zero. The tendency to "first screen" like a tide. A tidal wave against better not to swim.
The second screen defines the medium-term trend by using oscillators. Stochastic oscillators are, RSI and other indicators, built on the daily chart. If the first screen shows a bull market, and oscillators are oversold, it is a good signal to buy. By contrast, the weekly bearish trend in the overbought oscillators on the daily chart we see the possibility of selling. Signals a "second screen" - the wave. The system of "three screens" considers only those waves that do not conflict with the tide.
The third screen identifies short-term trend, fixing the price breaks for highs or lows of the previous day. If the price of a new high compared to the previous day, week-long trend of increases, and daily oscillators dipped into oversold territory, it enters a buy signal. If the price makes a new low when compared to the previous day, week-long trend of declining and daily oscillators have risen in the overbought zone, it's time to order the sale. "Third screen" defines the swell of the market.
If you made a deal with the trading system "three screens", but profits are not getting - perhaps the fundamental conditions have changed. Then quickly come up with a recommended market to clarify the situation.
Cautious traders encouraged to keep open lucrative position as long as a week-long tendency to not make the turn. For aggressive traders may also further open positions with each new signal buy / sell on the second screen to the moment of turning a weekly trend.
MTS is also a necessary condition for the "three screen" is a system of risk management. Rule of thumb - place protective stop orders, protecting against loss and to preserve the potential profits of a few pips below the minimal price of the day or the day preceding, if you bought, or a few pips above the very highest prices of the day or the previous day, if you sold it.
"Ray Elder" or "X-ray Market" (Elder-ray)
"Ray Elder" is a development of the "three screens" and uses the principles laid down in it. "Ray Elder" is a system that is designed to measure the strength of bulls and bears at one time.
Calculation of "Ray Elder" is based on the following principles:
price is an agreement on the cost between the three groups of traders - the seller, buyer and free traders;
moving average is the averaged value of the agreement;
highest price is the maximum power of bulls during the analyzed period;
lowest price is the maximum power of bears during the analyzed period
Elder-ray is composed of three horizontal panels, the first of which shows a graph of prices built on it an exponential average with a 13. When the average is increasing - a sign of the bull market. When decreasing the SS - the trend bearish.
In the second graph is constructed Bullish Force as a histogram. The formula for calculating the strength of bulls:
Bulls Strength = High - EMA, whereHigh - the maximum price for the period;EMA - exponential moving average.
When the maximum price is above average, then Bullish Force is above zero, which confirms the bullish trend. Otherwise, the bulls are weak.The third graph is determined by the strength of the bears (as well as a bar chart):
Force bears = Low - EMA, where Low - the lowest price for the period.
If the minimum price is below the SS, this is a signal of a strong bearish trend. Otherwise, the power of the bears is minimal.
Two types of solutions:
The period of purchase. CC needs to grow and bear power indicator is below zero. The best time to buy is the period when the bears first power indicator falls below zero, and then immediately got up. If the top of the price confirmed by new peaks Bullish Force, it is a good confirmation of the bullish trend. Strong signal will also be bearish convergence.
Period of sale. Sell when the SS is reduced, and Bullish Force is above zero. Bearish trend is confirmed by a parallel decline in bottom prices and an indicator of strength of bears. Strong signal will also be a bullish divergence.
The direction of motion tells us the average of the strategy and approach to the median price - the time of transaction.
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