What in reality graphics "Tic-tac-toe," "Kegi, Renco, Filtered Waves" and "zigzag" have in common? They are, in one way or another, linked with a graphical display fluctuations. A graphic depiction of oscillation is of a simple principle: the more information is added to the schedule when the new price fluctuations cross the level of prior oscillations in the same direction. The basis for this type of graphical construction of a filter. Once the price has advanced to a distance specified in this filter, a new line next to the previous one. In a nutshell, this graph, which shows the price movement up and down, exceeding the minimum size, regardless of the time required for the movement.
Another principle of scheduling fluctuations is the fact that they work like a system breakthroughs. New best done in a few time periods, is a signal of purchase. Alert sale occurs when a new was at least several time periods. They have been proposed for many years, Gannom, Merrill, Donchianom, Keltnerom and many others. All these authors have used some form of graphical display fluctuations.
Many systems based on the movement, using volatility as the main criterion for determining the parameters to filter out variations. In this case, when the current volatility increases, the number of periods used in calculating the filter oscillations decreases.
For more simple systems include four-week fluctuations Rule Donchiana. Buy signal occurs when the current price is above the previous 4-week highs. Alert sale occurs when the price falls below the minimum of previous 4 weeks. And that's all. In 1970, "Dunn and Hargitt Financial Services" to evaluate the system as the best of the most popular systems.
There are many different methods of graphical display fluctuations. Some use 3 consecutive new highs as an indicator of upward movement, which remains valid up to 3 consecutive new minima. The list is endless, but the principles the same.
Arthur Merrill first wrote about the filtered waves in his book "Filtered Waves" in 1977. His filter oscillation was a simple percentage of the price movement. This technique removes the actual value of the consideration when making decisions and can work at virtually any time period. For all periods, it is only the amplitude of the filter, which helps to remove unwanted information.
Zigzag - a term used in most graphics software for graphic display of filtered waves.
Here's a simple example, which shows the price data corresponding to the movement of more than 5%.
displays price data corresponding to the movement of more than 5%.
In the present example shows that the graph filtered out all the small changes in price and are shown only movement in the 5% or more.
Important: However, it is worth making one comment, latest zigzag motion is going to change, displaying the most recent changes in prices, yet prices are not completely changed the size of the filter (5% in the chart above). An important point is the turning point, which is the point where the price has reached at least the size of the filter, since it completely changed direction. If you see a turning point, the prices have moved at least the size of the filter in the opposite direction.
Below are the same price data, but using 10% of the filter. Please note that some of the young disappeared waves.
Below is a schedule that uses the same data, but with the filter in 15%. That is only the movement of 15% or more will be shown zigzag. Please note that a slight upward movement in the past few days in the previous charts, it was removed. This is because prices moved up by 15%, since the movement started up.
A graphic depiction of fluctuations - this is a viable tool for trading and investment decisions. It meets all the basic principles:
• stay with the trend
• to limit losses
• Follow the rules -
Another principle of scheduling fluctuations is the fact that they work like a system breakthroughs. New best done in a few time periods, is a signal of purchase. Alert sale occurs when a new was at least several time periods. They have been proposed for many years, Gannom, Merrill, Donchianom, Keltnerom and many others. All these authors have used some form of graphical display fluctuations.
Many systems based on the movement, using volatility as the main criterion for determining the parameters to filter out variations. In this case, when the current volatility increases, the number of periods used in calculating the filter oscillations decreases.
For more simple systems include four-week fluctuations Rule Donchiana. Buy signal occurs when the current price is above the previous 4-week highs. Alert sale occurs when the price falls below the minimum of previous 4 weeks. And that's all. In 1970, "Dunn and Hargitt Financial Services" to evaluate the system as the best of the most popular systems.
There are many different methods of graphical display fluctuations. Some use 3 consecutive new highs as an indicator of upward movement, which remains valid up to 3 consecutive new minima. The list is endless, but the principles the same.
Arthur Merrill first wrote about the filtered waves in his book "Filtered Waves" in 1977. His filter oscillation was a simple percentage of the price movement. This technique removes the actual value of the consideration when making decisions and can work at virtually any time period. For all periods, it is only the amplitude of the filter, which helps to remove unwanted information.
Zigzag - a term used in most graphics software for graphic display of filtered waves.
Here's a simple example, which shows the price data corresponding to the movement of more than 5%.
displays price data corresponding to the movement of more than 5%.
In the present example shows that the graph filtered out all the small changes in price and are shown only movement in the 5% or more.Important: However, it is worth making one comment, latest zigzag motion is going to change, displaying the most recent changes in prices, yet prices are not completely changed the size of the filter (5% in the chart above). An important point is the turning point, which is the point where the price has reached at least the size of the filter, since it completely changed direction. If you see a turning point, the prices have moved at least the size of the filter in the opposite direction.
Below are the same price data, but using 10% of the filter. Please note that some of the young disappeared waves.
Below is a schedule that uses the same data, but with the filter in 15%. That is only the movement of 15% or more will be shown zigzag. Please note that a slight upward movement in the past few days in the previous charts, it was removed. This is because prices moved up by 15%, since the movement started up.
A graphic depiction of fluctuations - this is a viable tool for trading and investment decisions. It meets all the basic principles:
• stay with the trend
• to limit losses
• Follow the rules -
Forex Magazine
based on www.stockcharts.com
based on www.stockcharts.com
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