Technical analysis is research of market dynamics, which is mainly with the help of graphs and in order to predict future price growth. Technical analysis comprises several approaches to the study of price movement which are interconnected through a harmonious theory. This type of analysis studies price movement in the market through analysis of three market factors: price, volume, and, if market research futures “, a current interest (number of open positions).
Of these three factors, the main technical analysis is the price, while changes in other factors are studies mainly in order to confirm the accuracy of the trend in prices.This technical theory, as any theory has its basic assumptions.A trading system (TS) is a set of instructions which advise opening or closing trading positions based on the results of technical analysis.
A trading system allows to exclude randomness in the process of negotiation.Strict compliance with the system eliminates the emotional factor in the trade. For this reason, we must follow all recommendations of the system strictly, even if this potentially profitable position will not open.The first thing you do when you create a trading system is to select periods of time or work time, you will be working with. A large number of restrictions in this regard from the original deposit and the principles of capital management.
Long-term maturities are accompanied by other less “financial noise” than shorter periods.Technical analysis conducted for periods long term is more accurate and provides fewer false incentives.Long-term maturities are preferable in terms of successful work, but, however, they require a deposit greater departure. Shorter periods are characterized by greater noise, but, consequently, the analysis technique is less accurate and gives more false signals.
Metatrader 4 Indicators – Donchian Channel
A moving average indicator developed by Richard Donchian. It plots the highest high and lowest low over the last period time intervals.
Custom Indicator Kaufman’s Adaptive Movinge Average for Metatrader for Forex
The adaptive moving average (AMA) that was discussed in the interview with Perry Kaufman in the 1998 STOCKS & COMMODITIES Bonus Issue (the article originally appeared in March 1995) is an excellent alternative to standard moving average calculations.
Keltner Channel Metatrader Indicator
The Keltner Channel is based on the Average True Range and is sensitive to volatility. It may be used in place of standard deviation (Bollinger) bands or percentage envelopes.
The Keltner Channel is made up of two bands plotted around an Exponential Moving Average (EMA), usually the 20-day EMA.
An indicator is a result of mathematical calculation, based on prices and/or volume. The figures received are used for forecasting price changes. There is a vast number of elaborated technical indicators. Some of them are presented in MetaTrader 4.
The pivot point for MetaTrader4 is used as a predictor.If the market price the next day is less than the pivot point, it may be used as a new resistance level.Conversely, if the market price rises above the pivot point, it may act as the level of new aid. The most important task of the south tower is to determine the exit point.Any system must provide not only the signal to open a position, but estimates of profit levels, as well.Order Take Profit should be placed near this level. It is also necessary to identify the level of stop loss in case the market starts moving in the opposite direction.Place the Stop Loss order at this level. In other words, the TS must define exactly how far the position must be kept open to receive the maximum benefit, and define mechanisms for loss of arrest in case of unfavorable market.
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