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Trendindicator

How to Build a Forex Trading Indicator How to Build a Forex Trading Indicator In the dynamic world of financial trading, understanding how to build a trading indicator is a valuable skill. This article is designed to navigate you through the essential steps of creating your own trading indicators, offering a blend of technical and practical insights to potentially enhance your market analysis and trading decisions. Understanding Trading Indicators Trading indicators are essential tools in analysing financial markets, offering traders valuable insights into market trends and potential trading opportunities. These mathematical calculations are applied to various market data points like price, volume, and sometimes open interest. In forex trading, indicators play a crucial role in analysing currency pair movements. There are several types of indicators, each serving a specific purpose: - Trend indicators help identify the direction of market movements. - Momentum indicators gauge the speed of these movements. - Volume indicators look at trading volumes to understand market strength. - Volatility indicators provide insight into the stability or instability of currency prices. While there are hundreds of indicators to choose from, some traders choose to develop their own based on their unique market observations. Basic Components of a Trading Indicator The core components of a trading indicator are price, volume, and time. These elements are fundamental in analysing market data and building various tools. - Price: The most critical component, price, is used in almost every trading indicator. It includes open, high, low, and close prices of trading instruments. Price data is essential for constructing trend-following tools like moving averages and oscillators like the Stochastic RSI. - Volume: Volume indicates the number of contracts traded in a given period. It provides insights into the strength or weakness of a market move. Volume-based tools, like the Volume Oscillator or On-Balance Volume (OBV), help traders understand the intensity behind price movements. - Time: Indicators use time periods to analyse market trends. This could be short-term (minutes, hours), medium-term (days, weeks), or long-term (months, years). Time frames influence the sensitivity of an indicator, with shorter periods typically offering more signals. Choosing the Right Data and Tools Selecting appropriate data and tools is a critical step in building effective trading indicators. For data, accuracy and relevance are paramount. Traders typically use historical price data alongside volume data. For tools, traders consider user-friendly platforms that offer robust functionality for creating and testing tools. Platforms like TradingView and MetaTrader offer extensive libraries and community support, facilitating the development of customised indicators. Additionally, programming languages like Python, C# and R, known for their data analysis capabilities, can be powerful tools for creating more complex indicators. FXOpen’s TickTrader, for instance, supports custom C#-based indicators and offers powerful backtesting tools. How to Build a Trading Indicator: A Step-by-Step Walkthrough Developing an indicator involves several key steps, each crucial to ensure the final tool is effective and aligns with your trading strategy. 1. Define the Objective Begin by clearly defining what you want your tool to achieve. Is it to identify trends, pinpoint entry and exit points, or gauge market volatility? Your objective will guide the type of indicator you develop, such as trend-following, momentum, or volatility-based. 2. Select the Formula Choose or develop a mathematical formula that your tool will use. This could be a simple moving average, a complex algorithm involving multiple data points, or something entirely unique. The formula should reflect the market phenomena you aim to capture. 3. Coding the Indicator Translate your formula into code. If using platforms like TradingView, MetaTrader or TickTrader, their scripting languages (Pine Script for TradingView, MQL4/5 for MetaTrader, C# for TickTrader) are designed for this purpose. Ensure the code is clean, well-documented, and easily adjustable. 4. Incorporate Visualisation Decide how the indicator will visually appear on the chart or in a separate window. This could be in the form of lines, bars, dots, or other graphical representations. The visual aspect should make it easy to interpret signals at a glance. 5. Backtesting Before applying your indicator in live trading, it’s crucial to backtest it using historical data. This topic is expanded on below. Testing and Refining Your Indicator Testing and refining your trading indicator is a critical phase in its development, ensuring its potential effectiveness and reliability in real market conditions. - Backtesting: This is the process of testing your indicator against historical data. Backtesting helps evaluate how it would’ve performed in different market scenarios, revealing its strengths and weaknesses. It's essential to test over various time frames and market conditions to ensure robustness. - Analysing Results: Assess the indicator's accuracy, consistency, and responsiveness to market changes. Look for patterns in its performance, such as frequent false signals or lag in response to price movements. - Refinement: Based on the backtesting results, refine your indicator. This could involve tweaking the formula, adjusting parameters like time periods or thresholds, or enhancing the visualisation for clearer signals. - Forward Testing: After adjustments, conduct forward testing in a simulated or live trading environment with real-time data. This helps verify its performance in current market conditions. Remember, no indicator is perfect; the goal is to develop a tool that consistently aids in your trading outcomes. The Bottom Line The journey of building an indicator is both challenging and rewarding. From selecting the right data and tools to carefully coding and testing your creation, each step plays a vital role in crafting an effective aid for trading decisions. For those looking to integrate their custom indicators into a professional trading environment, opening an FXOpen account offers the opportunity to leverage your unique tools in the dynamic TickTrader platform. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Trend Direction and Trading Indicator TutorialThe Tenoris Trend Indicator determines support and resistance using a proprietary method that I've not seen in other indicators. Over the last 10 days a potential gain of 15% on Bitcoin is shown on the chart. The key is knowing which Red and Green arrows are most likely to indicate the reversal of the price trend from short to long or long to short (red to green or green to red arrows and boxes). The arrows are used for trade entries and exits and the boxes in relationship to the price of a closed candle are used to predict price direction. The time frame of the chart is critical for maximizing the accuracy of the indicator. In general a 7D candle on crypto and a 30 day candle on stocks and a quarterly candle on indexes like the S&P provides the most accurate trend direction. On Bitcoin a 4H candle chart can be successfully used to determine entires for short term trades lasting a few days. In extensive back testing and live trading a gain of 10% a month or more is consistently possible. The key to using the indicator is knowing which arrows are the most indicative of a trend change. When a green candle closes above the red boxes it's likely that price is going to go from trending down to up. When a red candle closes below a green box it's likely that price will trend down. Compared to moving averages, and other directional trend indicators the Tenoris Trend Indicator is superior in detecting trend changes much earlier than other methods of technical analysis commonly used.
BITSTAMP:BTCUSDEducation
by TrendGuruX
📊 Best Beginner Technical IndicatorsTechnical indicators are mathematical calculations based on an asset's price and/or volume that are used to analyze market trends and identify potential trading opportunities. 📍Trend indicators: These indicators are used to identify the direction of the market's trend over a given time period. Some popular trend indicators include moving averages, trendlines, and the Average Directional Index (ADX). 📍Relative strength indicators: These indicators compare the strength of a security's price action to the strength of a market index or another security. They are often used to identify potential buying or selling opportunities based on whether a security is overbought or oversold. Examples of relative strength indicators include the Relative Strength Index (RSI) and the Stochastic oscillator. 📍Momentum indicators: These indicators measure the rate of change in a security's price over a given time period. They can be used to identify potential trend reversals or confirm the strength of a current trend. Examples of momentum indicators include the Moving Average Convergence Divergence (MACD) and the Rate of Change (ROC). 📍Volume indicators: These indicators measure the trading volume of a security over a given time period. They can be used to confirm the strength of a trend or identify potential trend reversals. Examples of volume indicators include the Chaikin Oscillator and On-Balance Volume (OBV). 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
6
ETH Targets/Predictions! Currently on my chart you can see horizontal support/resistance lines as well as trends lines all based off of the 4h Binance ETH timeframe. I also have my Trend Fusion indicator overlaid as well. The huge breakout on ETH occurred whenever it retested its trendline support on Sep 29th and also formed a double bottom. This is when we knew we were started a bullish trend. Based off of the current price action, I'm looking for ETH to retest support at $3,343. This is strong historical support because it also coincides with the trendline support I drew in pink. If it breaks that support then I'm looking to retest micro support at $3,130 then strong support at $2,965. For a bullish case, I'm looking for ETH's next target of $3,570 before encountering any resistance. If you have any questions about the lines I drew or my indicator, please comment below or DM me :)
BINANCE:ETHUSDLong
by CryptoScripts
2
Bitcoin (BTC) Decision Points! Where's it Going?I currently have the 4hr Bitcoin chart up with major support and resistance lines, along with trend lines. I also overlaid it with my Trend Fusion indicator. As you can see, the major trend line along with the resistance line intersect at $44,654 (circled in green). I believe this will be an important point for Bitcoin. We'll need to at least hold above its previous swing high at $45,443 if we want to have any chance of regaining that bullish momentum. If not, then we'll look to test our bearish scenario. For the bearish scenario, we have major support at $42,213 (where I have the trend line support and major horizontal support). If we can't hold this level then we're going down to $41,067 and going to retest our swing low at $39,863. I HIGHLY believe if we can't hold that support level then we're going a lot lower and will have officially entered a bear trend. If you have any questions on the trend lines/horizontal S/R lines I drew, or my indicators, please feel free to comment below or DM me :)
BINANCE:BTCUSD
by CryptoScripts
$CBLICleveland BioLabs, Inc., a biopharmaceutical company, develops novel approaches to activate the immune system and address various medical needs in the United States and Russia. Its proprietary platform of toll-like immune receptor activators (TLR) has applications in mitigation of radiation injury, radiation oncology, and immuno-oncology. The company's product candidate is entolimod, an immune-stimulatory agent, which is used as a medical radiation countermeasure and other indications in radiation oncology. It is also developing Mobilan, a recombinant non-replicating adenovirus that directs expression of TLR5 and its agonistic ligand; and CBL0137, a small molecule with a multi-targeted mechanism for the treatment of various types of cancer. Cleveland BioLabs, Inc. has strategic partnerships with the Cleveland Clinic, Roswell Park Cancer Institute, Rusnano, and Everon Biosciences. The company was incorporated in 2003 and is headquartered in Buffalo, New York.
CLong
by UnknownUnicorn19246015
VUZIX- AR smart glasses/wearable to displace the smartphone?AR smart glasses hype fizzled out after the colossal failure of Google Glasses years ago. However, according to BTIG, wearable technology's potential TAM could be $100B after accounting for the recent advancement in mobile technology, edge computing and 5G networks. Furthermore, the adoption rate is accelerating because of the rising trend and demand for virtual healthcare, remote training and service calls for overstretched field technicians as a result of on-going pandemic. Based on these factors, BTIG assigns VUZIX a buy rating and $30 price target. Back in December, VUZIX revealed that Plug Power had been using VUZIX's smart glasses for its remote onboarding and training program and so did Euvirotainer. Yesterday, Vuzix announced that the company's Vuzix M400 Smart Glasses were featured in the American Medical Association's Special COVID-19 Edition and ARK invest scooped up 292K shares for its ARK Autonomous Technology & Robotics ETF. Undoubtedly, the momentum and short/long-term catalysts are on VUZIX's side, but the profitability and value leave much to be desired. VUZIX's growth depends on how well it can position itself to grab a slice of the pie in the massive wearable device market. There might be a temporary pullback to the bottom of channel as the price seems slightly overextended judging from bearish divergences and trend indicators. However, volume seems healthy and I place more emphasis on volume analysis vs technical indicators. Either way, I treat it as an asymmetrical bet with the massive upside potential hinged upon the convergence of multiple technological breakthrough and enterprise adoption. I would open up a small position and put in 1/2 market buy and put in the rest at the bottom of the channel with the stoploss placed directly below the channel. This swing/intermediate setup can turn into the long-term holding if fundamental plays out in the long run. Do your own due diligence. Not the investment advice.
NASDAQ:VUZILong
by Libratus
2
LAZR- Increasingly crowded LiDAR spaceWhile VLDR focuses more on LiDAR's robotics and industrial application, LAZR is solely focusing on LiDAR's application in the automobile sector. According to Orlando news, LAZR has rapidly gained 50 industry partners, including 7 of the top 10 global automotive OEMs, and has received minority investments from the world’s largest commercial vehicle manufacturer, Daimler Truck AG and Volvo, a global leader in automotive safety, to bring autonomous trucks and cars to highways, respectively. MobileEye's potential plan to build its own LiDAR, along with LAZR's lofty valuation compared to its peers, may negatively affect LAZR's price in the short run. However, Volvo's plan to roll out a level 3 car in 2022 using Luminar's LiDAR, Mercedes's partnership and LAZR's singular focus to build LiDAR that is commercially viable for mass-produced consumer cars should keep LAZR's share price afloat in the foreseeable future. In the short-term, I expect some lvl of price uncertainty as Innoviz has already gone public and so will Aeva in the near future in this increasingly crowded LiDAR space.
NASDAQ:LAZR
by Libratus
PLTR- More than just data analytics companyPLTR's narrative and story align well with the overarching theme and development of big data, AI, deep analytics and cybersecurity. Yes, it is a story-driven stock and it is clearly overvalued. However, I'm betting on its long-term potential and am willing to take a risk by market buy 1/2 of the positional size and put in the rest on the retracement as I think the short-term bottom is already in. Stop loss placed below $20 DYOR. Not the investment advice.
PLong
by Libratus
1
Interesting asset to watch: Baltic Dry Index (BDI)INDEX:BDI Baltic Exchange Dry index is showing some signs of bullish reversal. Despite the fact that Buy/Sell Zones on a weekly chart is in the red zone, historically this setup led to a increase in price. First Long trade target may be 1600 and up to 0, 0,5 and 1 Fib. I may assume, that some selling pressure may be met near 0 Fib, so be sure to place your Stop-loss in the safe zone, if anticipated uptrend is legit. Invalidation may be crushing the 900 zone. Disclaimer: This article should not be considered as financial or investment advice. Trading digital assets involve risk and may resolve in the loss of your capital. Always be sure to understand the amount of risk involved and do your research before taking any trading/investment steps.
INDEX:BDILong
by randomname11
Stock to watch: Daiichi Sankyo (TSE:4568)TSE:4568 An interesting stock to trade short-term and to hold long-term. The asset had already showed almost +35% growth this month and is still on the move. Both Buy/Sell Zones and EMA Cross indicate an uptrend. Short-term trade target is 0,5 Fib. For the long play may be held up to 4.236 (more as an investment). Invalidation: breaking the 3500 level and staying there. Disclaimer: This article should not be considered as financial or investment advice. Trading digital assets involve risk and may resolve in the loss of your capital. Always be sure to understand the amount of risk involved and do your research before taking any trading/investment steps.
TSE:4568Long
by randomname11
GOLD RUNNING + 500 PIPS / 3% GAIN OFF 15M STRAT The entry price, SL and multiple TPs are shown on the chart. Our back testing and money management strategy itself is holding until a reverse signal to ride a big trend, but as you will not see the next signal - manage the trade as you wish should you decide to enter. What is our strategy? Our strategy is a trend following strategy, can be used on any instrument and time frame. However, we have hard coded specific parameters for when trading the H1 time frame, so we can back up over 4200 previous trades to confirm our edge from previous data. This gives us confidence in execution and belief in our trading strategy for the long term. The strategy simply sits in your trading view, so you will see exactly what we see - the trade, entry price, SL and multiple TPs (although we hold until opposite trade as this is the most profitable longer term plan), lot size, etc. This could be on your phone trading view app, or laptop of course. The hard work is done, so we have zero chart work time, no analysis, no time front of the chart doing technical analysis - technical analysis is very subjective - you may see different things at different times - how do you have a rigid trading plan on a H&S shoulder pattern? Your daily routine, diet, sleep, exercise can affect what you 'see' and your decision making, this doesn't happen when a strategy is coded like this; what we do have is a mechanical trading strategy... What does this mean? It means, we are very clear on our entry and our exit and use strict risk management (this is built in - put in your account size, set your risk in % or fixed amount and it will tell you what lot size to trade!) so we have no ego with our position and we are comfortable with all outcomes - its simply just another trade. This free's our mindset from worry and anxiety as we take confidence from knowing our edge is there and also that we have used sensible risk management. The strategy itself can be used as a live trading journal too - how cool is that? The strategy will confirm and support every open and closed position - so its quite easy to follow. We just have to do what Percy does. Please see our related ideas below for more information to explain what we do and how it can help you.
OANDA:XAUUSDShort
by RossTyler
1
GOLD 1,100 PIPS + 8% GAIN !! AND STILL RUNNING !!GOLD / XAUSUD STILL RUNNING OFF THE 1HR CHART STRAT ! The entry price, SL and multiple TPs are shown on the chart. Our back testing and money management strategy itself is holding until a reverse signal to ride a big trend, but as you will not see the next signal - manage the trade as you wish should you decide to enter. What is our strategy? Our strategy is a trend following strategy, can be used on any instrument and time frame. However, we have hard coded specific parameters for when trading the H1 time frame, so we can back up over 4200 previous trades to confirm our edge from previous data. This gives us confidence in execution and belief in our trading strategy for the long term. The strategy simply sits in your trading view, so you will see exactly what we see - the trade, entry price, SL and multiple TPs (although we hold until opposite trade as this is the most profitable longer term plan), lot size, etc. This could be on your phone trading view app, or laptop of course. The hard work is done, so we have zero chart work time, no analysis, no time front of the chart doing technical analysis - technical analysis is very subjective - you may see different things at different times - how do you have a rigid trading plan on a H&S shoulder pattern? Your daily routine, diet, sleep, exercise can affect what you 'see' and your decision making, this doesn't happen when a strategy is coded like this; what we do have is a mechanical trading strategy... What does this mean? It means, we are very clear on our entry and our exit and use strict risk management (this is built in - put in your account size, set your risk in % or fixed amount and it will tell you what lot size to trade!) so we have no ego with our position and we are comfortable with all outcomes - its simply just another trade. This free's our mindset from worry and anxiety as we take confidence from knowing our edge is there and also that we have used sensible risk management. The strategy itself can be used as a live trading journal too - how cool is that? The strategy will confirm and support every open and closed position - so its quite easy to follow. We just have to do what Percy does. Please see our related ideas below for more information to explain what we do and how it can help you.
OANDA:XAUUSDShort
by RossTyler
4
CADJPY SHORT ALERT ! CADJPY SHORT ALERT STILL AVAILABLE TO JUMP ON ! BUY POSITION WAS CLOSED AND LOSSES CUT - LETS SEE HOW THIS ONE PLAYS OUT ! The entry price, SL and multiple TPs are shown on the chart. Our back testing and money management strategy itself is holding until a reverse signal to ride a big trend, but as you will not see the next signal - manage the trade as you wish should you decide to enter. What is our strategy? Our strategy is a trend following strategy, can be used on any instrument and time frame. However, we have hard coded specific parameters for when trading the H1 time frame, so we can back up over 4200 previous trades to confirm our edge from previous data. This gives us confidence in execution and belief in our trading strategy for the long term. The strategy simply sits in your trading view, so you will see exactly what we see - the trade, entry price, SL and multiple TPs (although we hold until opposite trade as this is the most profitable longer term plan), lot size, etc. This could be on your phone trading view app, or laptop of course. The hard work is done, so we have zero chart work time, no analysis, no time front of the chart doing technical analysis - technical analysis is very subjective - you may see different things at different times - how do you have a rigid trading plan on a H&S shoulder pattern? Your daily routine, diet, sleep, exercise can affect what you 'see' and your decision making, this doesn't happen when a strategy is coded like this; what we do have is a mechanical trading strategy... What does this mean? It means, we are very clear on our entry and our exit and use strict risk management (this is built in - put in your account size, set your risk in % or fixed amount and it will tell you what lot size to trade!) so we have no ego with our position and we are comfortable with all outcomes - its simply just another trade. This free's our mindset from worry and anxiety as we take confidence from knowing our edge is there and also that we have used sensible risk management. The strategy itself can be used as a live trading journal too - how cool is that? The strategy will confirm and support every open and closed position - so its quite easy to follow. We just have to do what Percy does. Please see our related ideas below for more information to explain what we do and how it can help you.
Short
by RossTyler
1
GOLD / XAUUSD + 650 PIPS !! - STILL RUNNING !! UPDATE GOLD SELL STILL RUNNING AT + The entry price, SL and multiple TPs are shown on the chart. Our back testing and money management strategy itself is holding until a reverse signal to ride a big trend, but as you will not see the next signal - manage the trade as you wish should you decide to enter. What is our strategy? Our strategy is a trend following strategy, can be used on any instrument and time frame. However, we have hard coded specific parameters for when trading the H1 time frame, so we can back up over 4200 previous trades to confirm our edge from previous data. This gives us confidence in execution and belief in our trading strategy for the long term. The strategy simply sits in your trading view, so you will see exactly what we see - the trade, entry price, SL and multiple TPs (although we hold until opposite trade as this is the most profitable longer term plan), lot size, etc. This could be on your phone trading view app, or laptop of course. The hard work is done, so we have zero chart work time, no analysis, no time front of the chart doing technical analysis - technical analysis is very subjective - you may see different things at different times - how do you have a rigid trading plan on a H&S shoulder pattern? Your daily routine, diet, sleep, exercise can affect what you 'see' and your decision making, this doesn't happen when a strategy is coded like this; what we do have is a mechanical trading strategy... What does this mean? It means, we are very clear on our entry and our exit and use strict risk management (this is built in - put in your account size, set your risk in % or fixed amount and it will tell you what lot size to trade!) so we have no ego with our position and we are comfortable with all outcomes - its simply just another trade. This free's our mindset from worry and anxiety as we take confidence from knowing our edge is there and also that we have used sensible risk management. The strategy itself can be used as a live trading journal too - how cool is that? The strategy will confirm and support every open and closed position - so its quite easy to follow. We just have to do what Percy does. Please see our related ideas below for more information to explain what we do and how it can help you.
OANDA:XAUUSDShort
by RossTyler
GBP/JPY Short Setup -Don't miss this opportunity Top down analysis Weekly timeframe we see gbpjpy forming "lower lows" and ''lower highs'' which indicate a downward trend plus more confirmation on the EMA being above the price action indicating that still we are in a downwards trend Daily timeframe we see EMA also indicating a continuation of downward trend being above the price action plus price breaking key support level around 132.500 which price have tested that level twice as resistance and we saw a good rejection H4 timeframe we see price forming similar downtrend and we see price rejecting the 78.2% fib level plus a good ema cross in the h4 timeframe which indicate bearish momentum towards downside H1 timeframe last week we saw price dropping and ema cross over indicating continuation to downside .tomorrow we shall see price probably testing 131.725 key level before continuing to downside cause we see ema are pointing sideways or test the downward channel . so hope you guys can caapitalized on setup i am looking at next week goodluck
Short
by ShinForex1
4
EURUSD : WHAT NEXT ?According to the technical analysis of the pair: Recent bullish EUR/USD movement still lacks the strong momentum in order to be able to reverse the general trend, which is still bearish. At the same time, the resistance levels 1.1020, 1.1100 and 1.1185 may be the first correction stations to support stronger bulls control over performance. On the other hand, a return to the move towards the support levels 1.0855 and 1.0790 is a confirmation of the strength of the current downtrend. Rise from 1.0768 could be a corrective pattern from 1.0635 and would target 61.8% retracement of 1.1496 to 1.0635 . On the downside, break of 1.0768 will resume the fall to retest 1.0635 low instead. Risk Warning : The risk of loss in trading Foreign Exchange (FOREX) can be substantial. You should therefore carefully consider whether trading is suitable for you in the light of your financial condition. Goodluck !
Short
by Tim298
2