Description
Accumulated index fluctuations, based on fluctuations in the index, is a system of vibrations or waves, used to make effective use of graphic models breakthroughs. Accumulated index fluctuations is usually used to confirm the trend line break on price charts.
Introduction
Accumulated index variations was designed Vélez Vaylderom younger as simple oscillations (even if the calculation is relatively complex), with signals from the last break with the previous maxima or minima of the index. Trend line based on the indicator accumulated index fluctuations are also used to confirm or reject the trend line on the price chart. Any divergence between the index and the price should also be taken into account.
Breakthroughs of recent previous maximum and minimum indicator signals provide purchase (green arrows) and selling signals (red arrows), especially when combined with breakthroughs trend lines on the price chart.
Interpretation
In his book "New concepts technical trading systems", describes the efficiency of accumulating Vaylder index fluctuations as follows:
"When the index is built on the same timetable as the price graph, trend lines, carried out on the indicator can be compared with the trend lines constructed on the price chart. For those who know how to conduct meaningful trend lines, the development index fluctuations can be a good tool to confirm the trend line break. Often a false trend line break, held on the price schedule will be confirmed by trend lines, built on the accumulated index fluctuations. Since the accumulated index fluctuations strongly depends on the closing prices, the sharp movement in the displayed time period ( bar) does not affect negatively on the behavior index. "
Vaylder use the following terminology when explaining the use of the indicator accumulated index fluctuations:
? The maximum point fluctuations (HSP) - a day (for daily schedule), when the accumulated index fluctuations is higher than the previous day and in the subsequent day.
? Minimum Fluctuations point (LSP) - a day (for daily schedule), when the accumulated index fluctuations is lower than the previous day and in the subsequent day.
Vaylder also developed a system of sliding stoporderov for the index, which he called the Index SAR (Stop and Turn). For those who want to get acquainted with the system in detail, it is necessary to refer to his book "New concepts technical trading systems."
Alerts
These rules apply only to the accumulated index fluctuations, and should correlate with points of price movement.
Alert shopping: Breakthrough top - accumulated index fluctuations much higher than the previous maximum point fluctuations.
Alarm sales: Breakthrough down - accumulated index fluctuations is reduced significantly below the previous minimum point fluctuations.
Accumulated index fluctuations, based on fluctuations in the index, is a system of vibrations or waves, used to make effective use of graphic models breakthroughs. Accumulated index fluctuations is usually used to confirm the trend line break on price charts.
Introduction
Accumulated index variations was designed Vélez Vaylderom younger as simple oscillations (even if the calculation is relatively complex), with signals from the last break with the previous maxima or minima of the index. Trend line based on the indicator accumulated index fluctuations are also used to confirm or reject the trend line on the price chart. Any divergence between the index and the price should also be taken into account.
Breakthroughs of recent previous maximum and minimum indicator signals provide purchase (green arrows) and selling signals (red arrows), especially when combined with breakthroughs trend lines on the price chart.
InterpretationIn his book "New concepts technical trading systems", describes the efficiency of accumulating Vaylder index fluctuations as follows:
"When the index is built on the same timetable as the price graph, trend lines, carried out on the indicator can be compared with the trend lines constructed on the price chart. For those who know how to conduct meaningful trend lines, the development index fluctuations can be a good tool to confirm the trend line break. Often a false trend line break, held on the price schedule will be confirmed by trend lines, built on the accumulated index fluctuations. Since the accumulated index fluctuations strongly depends on the closing prices, the sharp movement in the displayed time period ( bar) does not affect negatively on the behavior index. "
Vaylder use the following terminology when explaining the use of the indicator accumulated index fluctuations:
? The maximum point fluctuations (HSP) - a day (for daily schedule), when the accumulated index fluctuations is higher than the previous day and in the subsequent day.
? Minimum Fluctuations point (LSP) - a day (for daily schedule), when the accumulated index fluctuations is lower than the previous day and in the subsequent day.
Vaylder also developed a system of sliding stoporderov for the index, which he called the Index SAR (Stop and Turn). For those who want to get acquainted with the system in detail, it is necessary to refer to his book "New concepts technical trading systems."
Alerts
These rules apply only to the accumulated index fluctuations, and should correlate with points of price movement.
Alert shopping: Breakthrough top - accumulated index fluctuations much higher than the previous maximum point fluctuations.
Alarm sales: Breakthrough down - accumulated index fluctuations is reduced significantly below the previous minimum point fluctuations.
Forex Magazine
based on www.chartfilter.com
based on www.chartfilter.com
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