Modified Moving Average (for Scalping pu)
Dear Trader,
Hi.
I have an idea for a moving average indicator modification that I would like to share here. I hope it will be helpful and with your help we can improve its performance. The simple idea is described below.
Modified MA:
In MA we finally sum up the p prices and divide the sum by p (sample size). If instead we divide the sum by the value of the last price (e.g. the closing price of the last candle), then we get an oscillating MA:
OSC_MA(i) = c0 - [x(i+ p ) + x(i+ p -1) + ... + x(i+1) + x(i)] / x(i) , i = 0 : bar;
where c0 is a constant that moves the result toward zero (c0 is set to p ).
I have written an MQL4 script for this indicator and attached it.
Things to note:
1) For best accuracy and utilization, it is recommended to use this indicator on the 1 minute time frame and for scalping or day trading.
2) This indicator is best used in divergent conditions. When the indicator shows divergence , I then find that the 1 minute trend (and sometimes the hourly trend) will soon reverse or the price remains at that level (i.e. it is crucial to wait for the divergence and trade in the direction of the hourly trend).
3) When setting the default options, you need to focus on the area between 0.1 ~ 0.15 (sell area) and -0.1 ~ -0.15 (buy area) (period = 90, on the 1 minute time frame). The indicator rarely approaches 0.2 and -0.2 and above.
4) Focusing on support areas, resistance areas, and trend lines will help traders gain better entry and exit points.
5) In a short-term trend, a pullback from the "0" level may be the beginning of a subsequent wave that subsequently reaches higher highs or lower lows, and trading a pullback (from 0) in a trend appears to be a safer trade.
6) Recommended currency pair: EUR/USD.
I have attached an image showing the indicator's action on a 1 minute time frame.
Please note that indicators alone are not enough for trading, one should make use of his/her trading knowledge. Please check the indicators on the demo account!
Your comments and ideas to improve this indicator will be greatly appreciated.
Hi.
I have an idea for a moving average indicator modification that I would like to share here. I hope it will be helpful and with your help we can improve its performance. The simple idea is described below.
Modified MA:
In MA we finally sum up the p prices and divide the sum by p (sample size). If instead we divide the sum by the value of the last price (e.g. the closing price of the last candle), then we get an oscillating MA:
OSC_MA(i) = c0 - [x(i+ p ) + x(i+ p -1) + ... + x(i+1) + x(i)] / x(i) , i = 0 : bar;
where c0 is a constant that moves the result toward zero (c0 is set to p ).
I have written an MQL4 script for this indicator and attached it.
Things to note:
1) For best accuracy and utilization, it is recommended to use this indicator on the 1 minute time frame and for scalping or day trading.
2) This indicator is best used in divergent conditions. When the indicator shows divergence , I then find that the 1 minute trend (and sometimes the hourly trend) will soon reverse or the price remains at that level (i.e. it is crucial to wait for the divergence and trade in the direction of the hourly trend).
3) When setting the default options, you need to focus on the area between 0.1 ~ 0.15 (sell area) and -0.1 ~ -0.15 (buy area) (period = 90, on the 1 minute time frame). The indicator rarely approaches 0.2 and -0.2 and above.
4) Focusing on support areas, resistance areas, and trend lines will help traders gain better entry and exit points.
5) In a short-term trend, a pullback from the "0" level may be the beginning of a subsequent wave that subsequently reaches higher highs or lower lows, and trading a pullback (from 0) in a trend appears to be a safer trade.
6) Recommended currency pair: EUR/USD.
I have attached an image showing the indicator's action on a 1 minute time frame.
Please note that indicators alone are not enough for trading, one should make use of his/her trading knowledge. Please check the indicators on the demo account!
Your comments and ideas to improve this indicator will be greatly appreciated.
Attachment to original post (2)
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •