The lines of support and resistance trend lines

The lines of support and resistance trend lines

The lines of support and resistance. The lines of resistance and support are the foundation of classical trend analysis, moreover, they are used to analyze the differences and shozhdeny some indicators. In a graphic analysis of all technical trend lines, models and figures are only ¾ combination of lines of resistance and support. The emergence of these lines is the next logical explanation.

The line connects the resistance of important market peaks or ridges. It occurs at a time when more buyers either can not or do not want to buy this valuable paper at higher prices. Simultaneously with each upward movement of prices is increasing the resistance of sellers and increased sales, which also has a downward pressure on prices. The trend upward stoporitsya and how depends on an invisible ceiling, to break that currently can not. If the bulls gather forces and bears weaken acumen, the price is likely to probet previous resistance level. Otherwise, prices will inevitably regress.

The line connects the important support minimums or bottom market. The emergence and existence of lines of support, directly opposite the lines of resistance. Here, the bulls switch places with the bears. Dealers are active players in the market, which pushed the price down, and buyers with ¾ the defending side. What would be more than passive sellers and buyers, the more likely it is that the line will support to break the price will go further down.

If the line of resistance and support line is strong and long enough withheld, depending on the combination creates various images and associations, which give the name of trend models and figures.

The lines of resistance and support better than through the best prices on the tops of emissions and nizah, and through the zone congestion pricing. Massive congestion pricing shows that it is the behavior of determining the number of traders changes direction, and the maximum emission prices in these places showed panic behavior of the weakest market participants, quickly closing its loss-making positions. The method of lines of resistance and support helps traders monitor changing trends ¾ her turn or acceleration. These levels are particularly important for the production of protective stop orders.

Support and resistance owe their existence past experiences of people etched in their memory. The memory of the past turn at this level encourages dealer make the purchase or sale. Their mass action and create a support and resistance. Bearing in mind that the price reached a certain level, have stopped falling and they went up, Throgmorton Street, probably will buy when prices are once again down to that level. Bearing in mind that the market, rising to a certain ridge, turned, Throgmorton Street will be inclined to sell and play for a fall, when prices are again close to the ridge.

Support and resistance exist because a lot of stockbroker sokrushayutsya about everything. Suffer Throgmorton Street, which kept losing position. They are just waiting to get out of the game, when the market will return to the level where they opened the position. Kruchinyatsya Throgmorton Street missed a chance to buy and they are waiting for a wind. These feelings are not very strong in a narrow range of gaming, where the fluctuations are small and the losers are not particularly uyazvleny. But breakthroughs abroad playing band cause acute pain and frustration.

When the market is kept at a level to become familiar dealer buying at the bottom of the range and sell at the top. When prices move up, sold for a fall bear muchimy pain; bulls same sadness, that does not have bought more. And both groups are waiting for opportunities to buy if you get a new ¾ chance, that is, when prices are close to previously known levels of support or resistance. By this decision, they pushed the emotions: some ¾ pain and other ¾ disappointing. Support consists of regrets about missed opportunities for bulls and bears the pain.

Resistance ¾ an area of pain bulls, bears and regrets the willingness of both groups to sell. When prices fall below the range of the game, it bought before the bulls see that lose money. They feel as trapped and waiting for recovery, just to get out of the game without a loss. Bears also grieve that poorly played down, and waiting time of recovery, to sell more. The pain of the bulls and bears unfortunate represent resistance ¾ ceiling above the market rates. The strength of support and resistance depends on the strength of massive emotions stockbroker.

The longer prices stay in the area of dense hatching, the stronger the emotional involvement of the bulls and bears in the area. When prices fall into it, it supports, and when raised to the ¾ resistance. Area dense shading can change their role, turning it into support, then in opposition.

The strength of each area of support or resistance is dependent on three factors: it is its length, height and volume of its transactions. Spatially, these parameters can be thought of as the length, height and width of the zone dense hatching.

The greater the length of support or resistance ¾ that is, the greater the length of time or the number of aged strikes, so it is stronger. The longer the duration of support and resistance, the more votes dealer "was filed in favor of the market situation, that is, the more the dealer meets this year. When two-week range is formed only minimal support or resistance when they dvuhmesyachnom range average power, because the players have time to adapt to the situation, but with two-year, cost-established as a standard, they are very high.

But the years of support and resistance levels are gradually fading. Defeated fly from the stock market game, and their successive newcomers have no emotional involvement in the old prices.

Support and resistance intensified whenever prices fall in these zones. Seeing that at some point prices are deployed, Throgmorton Street are beginning to rely on that turn, when prices again approaching that mark. This is a constancy of some exchanges and performed postulate of technical analysis, "history is repeating itself."

The greater height of the zone of support and resistance, so it is stronger. High resistance zone shows a strong reluctance and resistance to bear the recent increase in prices and weakening of the bulls. The height of the zone of support and resistance for each of the securities market is different: the height of this can vary from 1% to 7% or more of the level of prices. What a great height is a zone of support and resistance, the greater the pressure on the head of bears and bulls, respectively, it can stop.

The higher volume of transactions in the area of support and resistance, so it is stronger. The abundance of deals in the area of dense shading indicates activity stockbroker ¾ as a sign of their strong emotional involvement in this price level. The low level of transactions showed reluctant speculation dealer at a given price level ¾ it is a sign of weak support or resistance.

For the lines of resistance and support provided for the next game tactics.

1. When the trend in the direction which the dealer is close to the area of support or resistance, it is necessary to safeguard pridvinut suspension to the line of resistance or support. Defensive suspension ¾ this order to sell at a price below the market, if the dealer has played in raising, or purchase to close a short position at a price above the market, if the dealer is playing for a fall. This suspension will protect against losses if prices turned against the trend set by dealer. After reaching the area of support or resistance, the trend has shown its viability ¾ or weakness. If it forces to penetrate this zone, it is accelerating its progress, and your stiff suspension will not be affected. If the same tendency to bounce off support or resistance zone, then it has to show weakness. In this case, you will save you a stiff suspension of the profits.

2. The significance of support and resistance zones on the schedules of the more than longer time scale. For example, weekly schedules suschestvennee day. Competent dealer always leads to an analysis of several time scales based on a larger. If the trend holds weekly path through the free zone, hitting the daily developments in the area of least resistance is already significant. If the weekly charts are approaching the area of support or resistance, should reinforce the willingness to act.

3. Levels of support and resistance levels to help determine the order of protection against losses and protect profits. The lower boundary of the area of dense hatching ¾ this support. Buying and placing the suspension below this level, Throgmorton Street prepare a good foundation for the game to increase. A more cautious Throgmorton Street to buy after the price probyut level of resistance, and the suspension placed in the middle area of dense hatching. The true breakthrough ceiling should not end with the fall back in the game range. In a downtrend must act as well, but in the opposite direction.

Lines of trends. Graphs exchanges reflect actions bulls and bears. Bottom recessions show when bears vybilis of force, and the bulls have returned to power. Ridges ups show when vydohlis bulls, bears and entered into force. A straight line connecting two neighboring donyshka shows the direction of head bulls. Direct connecting two adjacent ridge, shows the direction of head bears. These are called the direct lines of trends. Stockbroker using them to identify areas of exchange.

When the price line growth trend of the growing hold over the bottom. When prices decline line trend hold over the ridges. Continuing this line in the future, you can identify the nearest point of purchase and sale.

The most important characteristic of the line trend ¾ angle of inclination: it points to the dominant stock group. If the trend line ustremlena up: it means that the tone set the bulls. In this case it is better to buy, placing a protective suspension below the trend. If the trend line points down, set the tone for the bear. So better to sell down protective suspension above the trend.

Line trends ¾ one of the oldest tools in the arsenal dealer, and is mostly a graphical tool for technical analysis. In the modern computer means to identify trends include moving averages, the difference grid system moving averages, which will be written below.

Many analysts hold the line through the trend ends ¾ maximums and minimums. It is better to hold them over the edge of areas of dense hatching, because they show the areas in which bought and sold a majority stockbroker. Technical analysis ¾ as would an opinion poll, and they are working to identify the mood of large segments and build a line across the boundary zone pushes to bias: there is a temptation to move the line to confirm their preconceived views. We need to monitor themselves and resist the temptation.

Panic plunge in prices ¾ sell it on the bottom desperate bulls, and panic buying in the area comb ¾ is close short positions bears ¾ causes lines zashkalivaniya that the graphs look like long "tail." It is therefore better to hold the line trends at the edges of zones of dense hatching, rather than the "tail" that little is reported on the exchange contingent ¾ except that of alarmist in its ranks.

The most important trend line ¾ sending its inclination. If the line goes up the hill ¾ means to wear bull market: you pick an opportunity to purchase. If the line goes downhill, the saddle bears, and we should pick the possibility of selling short. The significance of the line trend can be assessed by five factors: the scale of time, its length, the number of strokes of tangency, angle and volume of transactions.

The larger scale of time, the higher the significance of the line. The line on a weekly schedule reflects a more important trend than at the time, etc. What is the line length, so it is important. Short line shows the steps the crowd in a short period of time. Over a long line of action noted the crowd in a short period of time. The longer the line, the greater its inertia. The powerful bull market trend lines can stick a few years.

The more strokes relate to the line, so it is important. When prices are on the rise, they decline to trend line indicates a rally bulls. If prices returned to the line, then bounce off it ¾ means that the dominant stock exchange group usmirila rebels.

The line-sketch trend held only two or donyshka ridge. The emergence of a third point reinforces the importance of the line, while the fourth and fifth point to the strength of the dominant position of the Exchange Group.

Angle to the horizontal trend line reflecting the emotional mood of the dominant stock exchange group. Steep line ¾ sign of vigorous action. The relatively flat line ¾ sign nespeshnosti. A more gentle line typically stretches longer, as the tortoise in the race with the hare.

Is useful to measure the angle of each of the lines and record them on the schedule. Comparing angles, one can estimate the effect of exchange sentiments among the dominant groups. Most trend lines are under the same angle in the same market. Perhaps this is due to the behavior of the leading players, who settled in this market. Sometimes the price of escape from their trend. Then you can build a new, steeper line. It shows that the trend is gaining progress. Build a new, more steep line, it is necessary to suspend Condense: move it directly under the line of recent trends and draw with the advent of each new stroke. Breaking steep trend line is usually accompanied by a sharp turn in prices.

With the trend towards increased volume of transactions typically rises when prices rise, and less when they fall. This shows that the rises are attracted stockbroker than downs. When trend is observed: a volume increased by a recession and decreasing during the recovery. When prices return to trend line on a large extent, this is a sign of the growing number of rebels. If the volume increases, and prices are moving in the direction of trend lines, it is a sign of stability. If the volume is declining, while prices are removed from the line, this signal opsnosti for it. If the volume increases, and prices returned to the line trend, this signal a possible break through, which shows that the dominant stock exchange group loses commanding heights. But for the more confident tone, as many dealer, after the gap from the price should move a further 2-3%.

After the gap is very steep trend to higher prices often are increasing again, reaching the crest of the old and podbirayas to its already prolomlennoy bottom-line trends. This creates an almost ideal situation for sales on the decline: it is at the same time there is a double ridge, return to the old lines, and we can not rule out the difference of technical indicators that give a signal to play for a fall. In a downtrend should act like, but in the opposite direction.

For the lines of a trend following tactics game.

1. need to work towards the trend line: if it goes up, you should look for an opportunity to buy and to avoid the game down. If it goes down, you'll need to play the game and avoid demotion to increase.

2. Line trends ¾ either support or resistance. With the growth of prices should be given orders to buy near the line trend and protective suspension set below it. When trend is necessary to do the same, but in the opposite direction.

3. The steep trend line usually ends sharp prolomami. If the steepness of the line more than 45 degrees, you need to put the suspension on the trend line and its daily draw.

4. Prolomiv steep line, prices often return to the recent ridge on the shrunken size and variances to the technical indicators. This ¾ great opportunity to play for a fall. Reduced to its previous donyshka gap after the line trend creates conditions for the purchase with a relatively small risk.

Moving averages

Moving averages (Moving average)

Moving averages.

Moving average value (HS) belongs to the category of analytic tools that follow the trend. Its purpose is to determine the start time for the new trend, but also warn of its completion, or a turn. SS are designed to track trends in their development, they can be considered as a curved trendline. But CC is not intended to predict movements in the market in the sense that it makes the graphical analysis, as it always follows the market dynamics, rather than ahead of it. This figure does not forecast price movements, but only reacts to it. He always follows the movements of prices in the market and signals the beginning of a new trend, but only after it appeared.

Construction of CC is a special method of smoothing prices. Indeed, when averaging the price indices of the curve is noticeably softened, and the trend of the market has become much easier. However, by their nature, like the HS is behind the market. Short-term HS accurately the movement of prices, longer than the longest CC. The use of short HS reduces lag time, but completely remove it by using the HS is not possible. On the market side better to use short-MOP, and trend in the effective length is less sensitive.

Type SS There are three types of MOP: MOP simple, weighted and exponential MOP MOP.

A simple moving average. Simple CC, or the arithmetic mean of the value calculated by the following formula:

where Ri-price i-th day, n-order moving average.

This type of CC is widely used by technical analysts'. But some analysts challenged his dignity, while putting forward two main arguments. The first is that the analysis takes into account only the period of time, which is covered by the CC. The second argument is that the mere fact equalized CC-biggest price of each day. For example, when using a rolling ten middle, last and first day is given equal weight ¾ 10%, like all other days of the period. Five HS, in turn, implies that the average weight of price is equal to 20%. At the same time, some analysts believe that later in prices should be given a few more important. This argument is quite logical because the new trend simply need a SS more time to turn and alarm than the weighted MOP considered below.

Weighted moving average. In order to solve such as the issue of "weight" averages of the prices, some analysts use the weighted moving average (BCC). They are calculated using the following formula:

where Wi-weight of i-component (the price).

Weights prisvaemye price in the above formula can be chosen arbitrarily. Generally, the choice of weights in prices depends on the nature of the dynamics of the investigated security. The weights may grow linearly, exponentially or in any other way. In the case of a linearly-weighted SS Wi = i.

The exponential moving average.

The exponential moving average (ESS) has a more complicated construction than simple CC or BCC, which allows the ESS to eliminate two disadvantages of a simple CC. First, the ESS gives a much more important indicators of recent days. Therefore, it is balanced. But, while the previous price is given less weight in the calculation used data on prices ¾ for the entire period of validity of the securities market. The formula for calculating this type of CC is more complex and is as follows:

where t-present, t-1 yesterday, k = 2 / (n +1), where n ¾ SS procedure.

Despite the fact that ESS does not have the shortcomings of the simple HS, it is not the best of the three HS. The following will be shown through testing the effectiveness of each CC.

Rules for analysis. General rules for the analysis of SS were as follows:

1. The most important signal, indicating the direction of the trend is the general direction of movement of the HS. When ascending the HS need to adhere to bovine market bullish. It is to buy when prices fall to CC, placing a protective suspension following the recent bottom, and pull it as soon as prices closed above the previous level. In descending MOP should play for a fall, opening a short position when prices podskochat to MOP or slightly above. In this case, the protective suspension should be placed slightly higher than the previous crest and dynamically pull it if you continue Bear trend.

2. The second signal is the intersection of the SS and the schedule price. This is a strong signal for bovine emerging markets, where prices are MOP crosses schedule above, without a positive slope, and the schedule of prices is also a large positive slope. In the case of suppression of the HS and the price schedule with a negative inclination of the first and a weak positive or negative inclination of the second, served more than a weak signal in the bullish trend is emerging, and it should get a confirmation from future additional signal. For emerging market Bear received similar signals from the opposite position and inclination of the HS and the schedule price.

3. The third is the turn signal SS to a minimum or maximum value. If the MOP is a schedule of prices and has a local minimum, a schedule of prices has a positive slope, the average signal strength of the bull market and the direction of opening up the position, but if the schedule does not have a positive slope, then comes a very weak signal, to confirm that need to use three additional signals.

These rules can be guided, at the market trend. In the market without a corresponding trend graphs would have Brains. Attempting to filter out these purely mechanical Brains leads typically to a loss and a useful signal.

Using several SS

To determine the plausibility of signals from CC, traders and analysts use both a combination of two or more lines of the HS. Some traders use in the analysis of one-day schedules of the combination of HS-order 5-21 or 5-13-21. In the general case, the line should provide short, medium and long term. At the same time there are such rules:

1. In absolute bull market of the most sensitive (short) line of HS is higher, but the most coarse (long) below the rest of us. In the bear market of the reverse pattern.

2. By crossing the lines can be seen to change the trend. Initially, cross the line more sensitive, followed in ascending order of more and more serious. In accordance with the line orders are crossed and how to change their relative position, it is possible to judge what is the trend, short-term or long-term change of direction.

Regulation analysis of two SS are similar to the rules of the analysis of a CC. By analysis of two secondary rules are the following:

# The point of intersection of the SS signal spread trend.

# Points of greatest divergence MOP talk of a possible imminent change of trend.

# The general direction of two MOP describes the current trend line, the MOP will be slow to show the desired direction, but more rapid ¾ signals to buy or sell a specific direction.

Trading system based on the two SS

By themselves, the two SS can work as an autonomous trading system with independent signals. There trading system based on two HS, working on the "double-crossing." The essence of this method is that the signals for buying and selling are served after a short line crosses the long-MOP MOP. In the case where a short line crosses the long HS HS bottom-up signal the beginning of bovine trend and the system for purchase orders. When short-MOP crosses the long downward signal a change in the bearish trend bovine and the system orders at the sale. This method assumes a continuous system, ie, assumes the continued availability of open positions ¾ long or short. If you are using two SS behind the evolution of prices will be slightly higher than in the case of a single SS, from this point of view, the two signals SS will be delayed compared with SS and one of the possible gains would be lost, although in this case, there is fewer false alarms. This trading system, like all the trend indicators to make better use of market trend, as a side trend system will give many false signals and would be unprofitable.

The second trading system based on two CC can provide a more simple tones. The second method of the simultaneous application of two HS space between them is seen as a sort of neutral zone. Closing price, fixed above the two lines, gives the signal for the opening of long positions if the price is fixed below the closure of both SS ¾ signal to the game for a fall. The above signals are canceled, if the closing price provided in the neutral zone. If prices are in a neutral space between the two CC, all short positions should be closed and further action should be to abstain. The advantage of this system is that it is not in the market constantly. This trading system, like the previous ones, is to market trend and use it to bestrendovyh market is not desirable.

What is Mobile Trading?

What is Mobile Trading?

Our readers will be interested to know what is happening in the market of mobile trading today. Correspondent of "FM", met with the lead programmer for mobile trading company MetaQuotes Software Corp. (Www.metaquotes.ru) Dennis Mezentseva and tried to find it otvet.Gospodin Mezentsev, what is a mobile Trading?

This new direction in the development of online trading. Modern technology makes it possible to trade operations and technical analysis, even with the help of the so-called naladonnikov - PDA connected to the Internet. It is now possible to conduct full-fledged trade from any place on Earth where you can operate a mobile phone. It should also be noted that the telecommunication services in Russia now has enough quality and the same is also have a reasonable price. And this, in turn, further contributes to the development of mobile trading.
And how do you feel the boom of mobile trading has already passed or is yet to be overcome?

Of course, as this new direction, the boom is yet to come. Some companies have yet to come to the conclusion that this is a promising direction. Others are already busy designing and developing their own systems. Still others may have something to present. However, the market is still very few players, and all of them can be counted on the fingers. Our company is one of the first to develop programmnogoobespecheniya for mobile trading and today offers the best solutions in this field.
Tell us more in detail about how it all began.

In recent years, the number of traders who have a need to constantly keep abreast of developments in financial markets started to rise sharply. Taking all this into account, in November 2002, we began the development of terminals for the CPC. We wanted to create awareness immediately Trading platform, that is, the terminal can not only provide information about the current state of the market, but also to undertake trading activities. A first software product was the terminal MetaTrader for Palm, running the operating system Palm OS. Having successfully completed and released to the market the first version of the terminal, we have begun the second product - MetaTrader CE, working under the operating system Microsoft Pocket PC. Thus, we created two programs to the two major platforms on the market of CPC, but in this work on the terminals have not ended. Since the first version did not stop work to improve the programs and the introduction of new functions.

And what happens now represent these programs?

First, it is full of information and trading terminals, that is, they can not only receive data in real time to display them in graphical form, but to make commercial transactions and manage orders. Secondly, the MetaTrader CE integrated technical analizv a set of indicators. This set is much less than that achieved in the terminal for desktop computers, but should not forget that this is not an ordinary personal computer, a pocket. Hence, together with all its advantages and limitations arise. Unfortunately, because of restrictions platforms, technical analysis has not been realized in the terminal MetaTrader for Palm. But with the development of the CPC, I think we will be able to include in its composition and technical indicators. Show it is very difficult to judge the future of computers Palm.

Summing up, I want to say that, to date, terminals for the CPC has to compete with some of the terminals for desktop computers. And given that will be further development of this class of computers, and, therefore, will increase the possibility of the software, then I think that mobile trading - a great future.

Mikhail Novikov
Forex Magazine

Education MQL II Lesson number 3

Education MQL II Lesson number 3

Halhalyan Arthur
fxtest.ru
artur@fxtest.ru

Hello dear readers! Perhaps the two previous lesson was not very interesting, because could not have been to see the results of their labor. Believe me, they were necessary to further, to work. In this lesson we will learn to open positions and explain sintak-handling system to the array of quotations.
3.1. Feature SetOrder

Using the SetOrder could open positions for buying and selling at the current price or to arrange deferred warrant.

SetOrder (operation, lots, price, slippage, stoploss, takeprofit, color)

SetOrder (operation, the number of lots, the price, the maximum allowable slippage, stoploss, teykprofit, color)
3.1.1. Operation (Operation)

Transactions can be divided 2 species, the entrance to the current price, or set the pending order.

To enter the current price of the operation would take the form: op_buy or op_sell.

Op_buy-purchase contract for the current price of should be pointed .

Op_sell-sale contract for the current price of should be pointed .

To be placed pending order operation would imetvid: op_buylimit, op_buystop, op_selllimit iliop_sellstop.

If we want to put a pending warrant for the purchase, provided that the current price is below the price of the warrant of execution, the operation will look op_buystop. Ie We plan that the price will go further in that direction (naproboy, top).

If we want to put a pending warrant for the sale on condition that the current price is below the price of the warrant of execution, the operation will look op_selllimit. Ie We plan that the price spread and go in the opposite direction (turn).

If we want to put a pending warrant for the purchase, provided that the current price above the price the warrant of execution, the operation will look op_buylimit. Ie We plan that the price spread and go in the opposite direction (turn).

If we want to put a pending warrant for the sale on condition that the current price above the price the warrant of execution, the operation will look op_sellstop. Ie We plan that the price will go further in that direction (naproboy, down).
3.1.2. lots (lots)

To specify the number of lots in the warrant, you can write a specific number, for example, 1 or 2. I recommend to write reserved variable, because directly to the MT, you can put any number of lots, thus your expert will be more flexible.
3.1.3.Price (price of a warrant of execution)

To log on the current price op_buy operations or op_sell, you need to use the ask price and bid, respectively. To enter is pending order or you can write a specific price or to use an expression of this type: ask +30 * point. What does this mean?

That means the current ask (for example, 1.2800), added 30 points, ie entry price 1.2830. Point is the price point for a particular currency pair, for EURUSD point = 0.0001, for USDJPY point = 0.01. The price point to define itself, it will do for you, MT. You can write so: ask +0.0001 and it would be correct, but to connect this to the expert USDJPY it will have to redo. In order to write more flexible Experts recommend that you always use reserved variable point.
3.1.4. Slippage (slip)

If the slippage would be greater than this value, the activation order will be rejected. Most likely (if the condition of entry will not change), the expert will try to re-open position and open it only if the slippage would be less than the specified value. I use 3 or 4 points.
3.1.5. Stoploss (loss)

It should be understood that the stoploss is just a value price, which will close the position by force. Ie in the field, you can simply write a specific price.

For guidance, I recommend leaving variable stoploss, as in the creation of an expert (or cap expert) exhibit the desired amount. This will be your expert more flexible and value stoploss can be changed directly in the MP in your expert. Tribute will be kind: ask + stoploss * point. A variable is always remember! This is true for the permanent stoplossa.

If you want to have a dynamic (changing) stoploss, it can take in a variable. For example: 1]> This means that the stoploss is the minimum price last bar. Below I will discuss the details.
3.1.6. Takeprofit (teykprofit)

All that is stated in paragraph 3.1.5. fully applied and for takeprofit. More to say nothing.
3.1.7. Color (Color)

This field specifies the color, which will be painted an arrow in the quotation at the opening position. Also, the arrow will appear in front of the price of which has burst warrant. MT supports a lot of flowers, for example: gray, gray, red, blue, etc.
3.1.8 Examples of use SetOrder.

A warrant for the purchase of:

SetOrder (op_buy, lots, ask, 3, bid-stoploss * point, bid + takeprofit * point, green);

A warrant for sale:

SetOrder (op_sell, lots, bid, 3, ask + stoploss * point, ask-takeprofit * point, red);

Pay attention to the foot of the bid deemed to warrant a purchase and ask for a warrant for sale. This fact and meet the place because, to actually planted, for example, 30 points foot, it must be considered from the real price of the closure order! But do not be surprised if you see in the tool, for example, closing the position on stoplossu, not at 30 points ty loss, but at 35, spread nobody lifted.

Pending orders:

SetOrder (op_sellstop, 1, bid-50 * point, 3, (bid-50 * point) + StopLoss * Point, (bid-50 * point)-TakeProfit * Point, blue);
ho = h [1];
SetOrder (op_buystop, lots, ho, 3, ho-StopLoss * Point, ho + TakeProfit * Point, blue);
3.2. Appeal to the array of quotes.

Arrays quotations are the following names. Close (C)-closing price, Open (O)-opening price, High (H)-the maximum price, Low (L)-a minimum price, Volume (V) - the volume.

You can use these names or abbreviations, they are in parentheses. Appeals to the array of quotations carried out as to the usual array through the brackets. Index 0 is the current bar, 1 last, etc. Ie c [1], the closing price of the last bar, o [0]-opening price of the bar, h [2], the maximum price before the bar. Keep in mind that referring to the current bar (indeks0), you can be sure to change only outside its opening price, however the rest of the parameters (H, L, V, C) may change over time. The names of the arrays with the indices H, C, etc. The expert will be understood as meaning the current bar, that is, with a score of 0 (H = H [0], C = C [0]), etc.

Now create the first trading expert. We are together on the steps to create an expert in the first lesson, and I think you do not have problems. If there are any, look in there.

In the settings of an expert vystavlyaem stoplos in 40 points, teykprofit 100, the number of lots 1. You can then experiment with other values. Testing for the H1, such as the euro.

/ * [[Name: = Expert2
Author: = Fxtest
Link: = forextimes.ru
Lots: = 1.00
Stop Loss: = 40
Take Profit: = 100
Trailing Stop: = 0]] * /
if totaltrades = 1 then exit; / / 1 if you already have a go (this is the number of open positions)
if c [1]-h [2]> 10 * point then SetOrder (op_buy, lots, ask, 3, l [1]-stoploss * point, bid + takeprofit * point, green);
if l [2]-c [1]> 10 * point then SetOrder (op_sell, lots, bid, 3, h [1] + stoploss * point, ask-takeprofit * point, red);

Congratulations to the first trading expert. In addition totaltrades will not explain anything, unnecessarily in this lesson is to understand all the algorithms, in order to consolidate the material urge to look. There will also be helpful if you try to remake it and poeksperimentiru-ete with the foot.

In the next lesson, we explain the cycles and write a more complex expert.

Charles Henry Dow

Charles Henry Dow 1851 -1902

Every day in the press and on television several times a current rate of the Dow Jones - the main indicator of the New York Stock Exchange. Dow Jones-core "barometer" of the state of the U.S. economy. His rise or fall causes crow or rather, the business world tremble all over the world. The journalist, who opened the American Stock

This man knows almost everyone. In doing so, not everyone knows, aware of this. How can this be? It's that simple. The most famous index of the stock market bears his name. Charles Dow, vskormivshy Stock America is one of the fathers of the Dow Jones and perhaps one of the most famous people in the world.

Charles Dow was born on Nov. 6, 1851 in a family of farmers. While the youth has reached the age of conscious and relative independence, he left his farm and tyagotivshuyu already in the 18 years he worked at a fairly major provincial newspaper. Really it is the way to the top began in 1875 when he switched to "The Providence Star".

The new newspaper he took up the economic issues. In fact, he became a genre forebear of financial journalism, not just the well-known index. Apparently, right by those who argue that a talented person is talented in everything. One discovery leads to another. And if the Dow initially wrote stories about the search and implementation of drag.metallov, then later it turned into analysis: The carousel zakrutilas.

Charles Edward partner with Dow Jones went to conquer New York. Here he settled down in the news agency, where he is not bad behavior of financial analysts share the gold mining companies. It is understandable that a man with such a vibrant and pytlivym mind, as the Dow, it was very difficult to live with their relative inactivity.

He was not only to cover developments in the market, especially knowing that his expertise in this area ukosnitelno grow. And sooner or later will grow to such an extent that would allow to enter the stock exchange as a direct party to the events. And so it happened. Dow Jones and start their own business, which makes the coup on the American Stock Exchange.

In 1883, the first bulletin goes "Customer's Afternoon Letter", which printed a summary table with the change in equity prices during the day. To the end of 19 century it was in fact nonsense. This information has been comparatively insider: smaller companies prefer more openness. While such an analysis was conducted in brokerage companies, a broad mass of players on the market access to it was closed. And the more weight they could not expect to any regularity.

But for luck, Dow changed the situation. The original information for the newsletter was extracted very romantic ways: podslushivaniem, "vtiraniem in trust for traders and the like delicacies. But over time, the great mahinatory Exchange realized profits publications: information on price developments, they could stimulate movement in the shares they need direction. And pretty soon turned into a nondescript newsletter: "The Wall-Street Journal"!

It would seem that what remains to be human: to change the basic principles of the stock market - and can live safely. But no, Charles Dow simply could not develop. In his view, comparing the information on price changes in the leading (read - emerging market) share, you can take a single index of the stock market. With Dow promptly did.

Assigning equal weight to each stock and vyschityvaya percentage price change, he gave courses in rednemu value - and has known the Dow Jones, to identify some general direction of movement of the market. Originally there were two indexes: one applied to shares of railway companies, and another - all the rest. The latter was destined to be an authoritative indicator of the financial market for many, many years:

Charles Dow - a journalist, who opened the American Stock, a man with a unique mentality, a talented economist, was one of the remarkable cohort of people who do not posedlivost, talent and innate ability to anticipate the future allow them to virtually alone change history.

Catherine Alipova
"Info Bridge Communication"

How to trade on the waves Elliott?

How to trade on the waves Elliott?


Ralph Nelson Elliott (1871 - 1948)


"... Even though many things and would seem to us extremely extraordinary and ridiculous, they nonetheless have been introduced and adopted by other great nations."

Rene Descartes, Tractate "Considerations on the method, in 1637.

In its work, "Elliott Wave Principle key to market behavior" Robert Prechter sees an interesting detail: "Elliott has never explained why the shape of the market are five waves in the development and three waves in the braking. He just presented it as an existing fact" .*

Foreign ease wave postulates attracts many beginners to learn the behavior of the market, but they were primarily studying what lies on the surface: the form of waves and their characteristics. Or, more generally, are beginning to examine the first graphic shapes, then the form of waves, and then go to study fractals Bill Williams and Professor. Mandelbrotta. And lose sight of the fact that the wave principle is the use of basic concepts of technical analysis (the momentum and a correction) that may characterize the graphs psychological condition of market participants.

Markets, which can be used for the analysis of the wave theory, can be quite different, but should have a fairly large volume of transactions, a large number of participants and a long history. Forex market from this point of view is, if I may say so, the ideal market.

The complexity of the use of wave postulates is in their flexibility and subjectivity in evaluation of extreme situations on the market, and the "unpredictable" nature of the market. The vast majority of projections based on the graphic forms of identification are not wealthy. For practical trading is not acceptable.

Another point: it is impossible to master this method immediately. In the wave theory of RN Elliott, there are two aspects that do not fit into the classical, which are beginning to explore the principles of the wave, a "step-up 5 - 3 steps down." It is "bad" fifth wave and "wrong" correction (in the second or fourth wave). As shown, the elimination of trade in the fifth wave is justified **. And the use of trade situation, "incorrect" correction is certainly necessary and profitable.

Subjectivism and a lot of variability in the interpretation of the wave of market structures are negative factor for the single investment decision, it is not surprising. The external simplicity and beauty is proportional to wave signs, represented in the graphs, after everything has already happened, that is "post factum", is only the tip of the iceberg, only one of many variations in the interpretation of image patterns. Nevertheless, it should be noted that, as the ability to swim or the ability to ride a bicycle, once osvoennoe the ability to read the market situation in the schedules of ekstremumam (without intermediaries in the form of technical indicators!) Remains for life.

So how about, how to start, how to approach the technical understanding of the market? Or, the trader must leave the interpretation of the market "white noise" to share the financial and media professionals?

You can practice "look" at the market, using "Elwave", with a highlight "of the time" to "the tree of waves (Wave Tree)". Computer programs rely almost everything possible wave signs and possible targets for each option. But ...
Choosing one of many options as a worker, then there is trade, investment decision is to share the user program, which is an investor. We can say only one thing. The choice between different options is desirable to do the wave signs in favor of the option, in which there are harmonious proportional relationship between the pulses and correction at various levels (timeframe) time together. And it is quite difficult, because it is necessary to take into account the entire range of market trends.

Not recommended for beginners to learn the principles of the wave, using their own analytical wave solutions for making investment decisions.

We need some time to:
A) Vosprinyat algorithms wave analysis.
B) No special effort to see on the graphs the difference between the pulses and correct.
B) do so at different levels (timeframe) time.
D) and able to freely use the wave labeling to compare different interpretations of the same schedule and do so at different levels of time.
D) deal on the emerging new extremes schedules at the appropriate levels of time.

Each new extreme supplements and changes the picture on the schedule for the entire previous period and the amount of options, which analysts at Forekse wave of real-time "digest" for the intuitive, subconscious level, sometimes it seems incredible.

You can use a purely technical approach, and through mathematical formulas (indicators) to monitor the wave patterns. Of these formulas of mechanical trading system (MTS), and thus close the question of subektivizme, many variantnosti and responsibility for making investment decisions. Psychologically it is a justifiable approach. But ...

Technical tools for research in this situation are well represented in a computer program of Thomas Joseph "Advanced Gann-Elliott-Trade" *. The program is implemented attempt to duplicate the technical indicators of the development of wave patterns, and in my opinion, as far as possible in principle "to believe algebra harmony", it was done very well in terms of technical analysis.

From the perspective of an investor, this program is a set of technical tools to address the issue: whether to hold the position further in the development of the situation and the trend is over and the market should be close or even deploy. In other words, in my view, the issue: whether the "fifth wave", giving a new extremes in the development of current trends?.

However, whether or not to spend time on the study of any mechanical, correct, "removing" a problem many variantnosti, methods of wave analysis? In my opinion, this impasse, in this case, "along with the water spills child. The main tool of analysis is that your way of thinking and that he should be trained for many variantnosti wave interpretations.

And if you did use the technical indicators for the overlapping of wave oscillations? For many traders, this approach seems to solve the problem. The technical indicator is the mathematical formula for modifying the visual presentation of exchange rate fluctuations on the charts, that is, in essence it should be for exchange rate fluctuations, and repeats them in a modified form. This makes it possible to build, analyze and make use of new dependencies and patterns relating to technical, computerized analysis using different software. And to create mechanical trading system (MTS), allowing the trader unambiguous trading signals. It is not the wave analysis.

This approach is lost objectivity of the analysis of the market and the willingness of the trader to the alternative development of the situation. In doing so, to adjust the MTS still needs to examine the levels of time and constantly optimize the parameters of technical indicators in the market at the level of "major" waves. Methods of calculating targets also need to examine the use of wave terminology. The desire to simplify the wave analysis (through duplication of wave oscillations of technical indicators) greatly complicates the analytical process and resulting kruzhnoy road to wave analysis again.

I think you need to remember the principle of "simple to the complex."
Quote: "Elliott has never explained why the shape of the market are five waves in the development and three waves in the braking. He just presented it as an existing fact." Indeed, this is simply a fact - in that way and has a momentum of correction. In my opinion, you should use a simple approach to assess the situation on the market (or pulse, or remedial), a simple universal trading algorithm simple Fibonacci ratios. And a simple hierarchy (the Russian dolls) image structures, telling about the behavior of the market at different levels (timeframe) time.

Recommended for beginners to learn the market: at the initial stage, to use someone else's analysis or analytical services, comparing their "opinion" on the market between them and constantly monitor "their" level of time **.

And it is necessary that the wave analysis, the analysis of market opportunities, but not its liabilities. Therefore, the criterion of objective analysis (in the selection of analytical services) can serve as analysts use alternative wave signs on the same schedule.

In my opinion, only the market can provide answers to any questions and need to learn their language. History is made up of markets for their extreme values, which are perceived to be remembered and accounted for all the parties, be it journalists, bankers, private investors or the Head of State. The market tells its stories in the language of the dramatic surge ups and downs or catastrophic correction of long-term consolidation.

The momentum and the correction is "ABC", which takes the market to communicate with his players. The momentum correction and the zigzag is the primary language of the elements of the market. A trend, this is the first word, which hears the market participant of the market is just alternating unidirectional impulses and corrections.

_____________


* Elliott Wave Principle Key to Market Behavior ". Robert Rougelot Prechter, Jr and Alfred John Frost. Published by New Classics Library. 20 Anniversary Edition: May 1998.


** How to sell on the waves of Elliott or time to make money. Igor Malinovsky. Activ E-Book. 2004.

Material provided by: http://www.analystime.ne

Learning to write by experts for MetaTrade. Lesson 4

Learning to write by experts for MetaTrade. Lesson 4.


Hello, dear readers. Today we get acquainted with the operators of cycles. And write a new expert.



3.1. General information about the cycles

The cycle - it is the operator who repeats the fragment program, a prisoner in the body of the cycle until the work is not a condition set by the user. Cycles are often used for working with arrays, arrays vnashem case of quotations or the value of indicators.

(c [0] + c [1] + c [2]) / 3 - is a simple average of the three prices, or simply moving average with a period averaging 3. But things are much harder, if you want to take a simple average of the period 30, it is much easier to use design types:

for i = 0 to 30
(sr = sr + c [i];);
sr = sr/30;

Also, the cycles will allow you to select the desired item from a large array of data. For example, often need to find the maximum or minimum High Low, over the last few bars, to be placed stoplossa.

Find the minimum Low, to install stoplossa to Long. Search will be from the last 10 bars (formed).

MinL = L [1];
For i = 1 to 10
(If L [i] MaxH then MaxH = H [i];);

Now, while it is necessary to address in detail the cycles of vMQLII.



3.2. For Cycle

Cycle For ensures compliance with regulations, prisoners in the body of a user defined cycle, the number of times.

for i = 1 to 10 begin
/ / Body cycle
end;

I - this is a variable, which will increase by one, at each iteration cycle.

In this example, the initial value of the variable equal to 1, the final 10, that is, the cycle will be 10 times the body to perform the cycle. Initial and final value can be any, but of course there must be more. If you want to be a cycle otschityval variable in the other side (to reduce), instead of the keyword you want to use To Downto.

for i = 10 downto 1 begin
/ / Body cycle
end;

This cycle is also executed 10 times, only variable will be reduced from 10 to 1.


3.3. While Cycle

This cycle is different from the For the fact that the number of iterations is not known in advance. The body of the cycle is done until the condition cycle.

while a> b begin
/ / body cycle
end;

a> b - this is the cycle.



3.4. Instruction Break

Instruction Break prematurely terminates execution cycle For or While. This is true if the cycle is used to search for any item, and it was found. This instruction can only be used in the body of the cycle. If several cycles of investment in each other, it was suspended next cycle (a cycle in which the body of instruction attached directly).

for i = 1 to 100
(If l [i]> l [i +1] and l [i +1] 3.5. Instructions Continue

Instructions Continue prematurely terminates the current iteration and starts doing the cycle again. This instruction applies, for example, is already clear that at this stage of the desired item and no need to go further, not executing some instructions in the body of the cycle.



3.6. Expert

Today we will write an expert for the game at turning candlelight , in the most severe forms, where the opening and closing prices are equal (no body). The algorithm is not complicated. If the bovine movement we have a candle with a long upper shadow and short lower, we will wait the next bear candles and sell its closure. If, after Bear movement we have candle with a long lower shadow and a short top, then we will wait and buy a bull candles.

Stoplossy rasstavlyaem for long tenyam plus the specified number of points.

/ * [[
Name: = Expert3
Author: = Fxtest.ru
Link: = forextimes.ru
Lots: = 1.00
Stop Loss: = 20
Take Profit: = 40
Trailing Stop: = 0
]] * /

defines: tenmax1 (10), tenmin1 (5), telodo1 (5); var: tenmax (0), tenmin (0), telodo (0);

/ / domnozhaem all the variables are not the price of the item
tenmax = tenmax1 * point; / / long shadow
tenmin = tenmin1 * point; / / short shadow
telodo = telodo1 * point; / / body of the bar before turning candles
if TotalTrades = 1 then exit; / / exit if there is an open position

if ((o [4]-c [4])> telodo and (o [3]-c [3])> telodo)) or (o [3]-c [3])> 2 * telodo then (

/ / 2, or an average of 2 times the requirement for the purchase of the existence of nizhodyaschego trend

/ / 2 are not short of candles, or last longer bear

if o [2] = c [2] and (h [2]-o [2]) tenmax ando [1]> c [1] then

(SetOrder (op_buy, 1, ask, 3, l [2]-StopLoss * point, bid + takeprofit * point, green););
);

if ((c [4]-o [4])> telodo and (c [3]-o [3])> telodo) or ((c [3]-o [3])> telodo * 3) then (
/ / condition for the sale of the existence of 2 vozhodyaschego trend is not short of candles, or last long bull

if o [2] = c [2] and (o [2]-l [2]) tenmax ando [1]

Halhalyan Arthur
fxtest.ru artur@fxtest.ru