Community. StockSharp

What is William's %R Indicator similar or different to Stochastic Indicator? And overbought and oversold signals

2023-01-05T18:49:05Z

💥Williams %R, also known as Williams Percent Range, is a technical indicator used in financial analysis to measure oversold or overbought conditions of an asset. It was developed by Larry Williams and is similar to Stochastic oscillator in its calculation and interpretation.

Williams %R is calculated using the following formula:

%R = (Highest High - Close)/(Highest High - Lowest Low) x -100

💥Where Highest High is the highest price in a certain period, Lowest Low is the lowest price in the same period, and Close is the closing price.

💥Like the Stochastic oscillator, the Williams %R fluctuates between 0 and -100. When the indicator is above -20, the asset is considered overbought, and when it is below -80, it is considered oversold. Traders may use these signals as a potential time to sell or buy respectively.

💥One key difference between the Williams %R and the Stochastic oscillator is that Williams %R is a momentum oscillator that reflects the level of the close relative to the high-low range over a certain period, while Stochastic oscillator compares the closing price to the range of prices over a certain period of time. Additionally, the Williams %R is considered to be more volatile than the Stochastic oscillator, meaning it can provide signals for more frequent price reversals.

💥The Stochastic Indicator is a technical analysis tool used to measure the momentum of an asset's price relative to its price range over a given period of time. It compares the current price of an asset to its price range over a specified period of time and generates signals based on overbought and oversold conditions. The Stochastic Indicator consists of two lines: %K, which measures the current price in relation to the high and low range over a specified time period, and %D, which is a moving average of %K. It is similar to William's %R Indicator in that they both measure overbought and oversold conditions, but the Stochastic Indicator is based on the idea that closing prices tend to close near the high of the price range in an uptrend, and near the low of the price range in a downtrend, while Williams %R is based solely on the high-low range.

💥Williams %R and Stochastic Indicators are both momentum oscillators used to identify overbought and oversold conditions in the market.

💥The main difference between the two is in the way they are calculated. Williams %R uses the highest high and the lowest low of the last n periods, while Stochastic uses the current closing price in relation to the high-low range of the last n periods.

💥In terms of overbought and oversold signals, both indicators use the same threshold levels of 20 and 80. When the Williams %R or Stochastic value falls below 20, it is considered oversold, and when it rises above 80, it is considered overbought.

💥However, Williams %R tends to be more volatile than Stochastic, which can sometimes result in more false signals. It is also known for its ability to identify divergences between the indicator and the price action, which can be useful for predicting potential reversals in the market.

💥This indicator is named after its inventor, Mr. Larry Williams, and is based on the same concept as the Stochastic indicator. However, the graph is inverted, with the scale climbing from 0 down to 100 or a small value above it. Therefore, the overbought area is above the 20 line and the oversold area is below the 80 line. Instead of measuring the current price in relation to the high-low range of the last n periods like the Stochastic indicator, Williams %R measures the distance between the closing price and the high in N days, usually 10 days.

💥William's %R indicator is almost the same as the Stochastic indicator, so some people refer to William's %R as the 10-day Stochastic. However, William's %R uses the 80, 20 line instead of the 70, 30 line of the Stochastic indicator because it is more sensitive and prone to false signals. In fact, William himself suggested using a buy signal below 95% and a sell signal above 10% (keep in mind that the values run upside down from 0 to 100).

💥Unlike the Stochastic indicator, William's %R does not offer a moving average as a signal. Some analysts use a moving average, but because William's %R is a Stochastic, it runs very fast and can sometimes give an error signal. Therefore, some technical analysts use it only in combination with other technical tools.

💥Using William's %R for stock prices can be seen in the example image below. An arrow below or equal to 95 represents a buy or hold moment, while an arrow equal to 10 represents a sell or drain moment. However, it should be noted that William's %R adjustment sometimes does not correspond to the share price, as seen in the example around numbers 1, 2, and 3. William's %R can also show divergence with the price, which makes the signal more significant. You can learn more about William's %R indicator from Terminal.

Stochastic indicator for sideways market What is signals showing buy and sell points?

2023-01-02T18:00:29Z

💥The Stochastic indicator is commonly used to identify potential buy and sell signals for traders in a sideways market. In a sideways or ranging market, the price tends to move within a relatively narrow range, and the Stochastic indicator can help identify overbought and oversold conditions within that range.

💥For a buy signal, traders will look for the Stochastic indicator to cross above the oversold level, which is typically set at 20. This suggests that the price may have reached a support level and could potentially reverse direction and start moving higher. Traders may then look for confirmation of the buy signal through other technical indicators or price action before entering a long position.

💥For a sell signal, traders will look for the Stochastic indicator to cross below the overbought level, which is typically set at 80. This suggests that the price may have reached a resistance level and could potentially reverse direction and start moving lower. Traders may then look for confirmation of the sell signal through other technical indicators or price action before entering a short position.

💥It is important to note that while the Stochastic indicator can be a useful tool in a sideways market, traders should still consider other factors such as trend, volume, and support/resistance levels before making trading decisions.

💥Stochastic is a very popular tool, especially for sideways markets and those who prefer fast-paced trading. Although many people believe that George Lane invented it, this indicator has actually been around for decades. In the 1960s, it was presented in an article titled "Stochastic Process" by the Investor Educators Company, which explained both the theoretical stochastic process of prices and the indicator itself. Despite not being directly related to the theoretical process, the title of the article became part of the indicator's name.

💥Stochastic is based on the observation that when prices are rising, the closing price tends to move closer to the high or upper boundary of the price range. Conversely, when prices are falling, the closing price tends to move closer to the low or lower boundary of the price range. The tool measures the ratio of the closing price's distance from the low to the total spread from high to low over the last N days, usually 5 (N = 5).

💥For example, if the calculated %K value is 0.38, it means that today's closing price is 38% relative to the 5-day trading session.

💥The threshold lines that define the overbought and oversold zone in the Stochastic indicator are typically set at 80 and 20, respectively. As for the Stochastic readings, the best buy signal is said to occur when the %D line is between the 10-15 range, while the best sell signal is formed when the %D line is between the 85-90 range.

⚡️There are 7 popular methods for determining when to buy or sell using Stochastic:

👉Buy when the oscillator drops below the level 20 and resumes above it, and sell when it retraces above level 80 and reverses above it in a downward direction.

👉Buy when %K cuts %D up and sell when %K cuts %D down. This case can also be separated into 2 sub-cases. %K cuts %D where %K (which is faster) crosses first. (So crossing the left side of the %D line is called Left Crossing) and if %K crosses %D, it's true, but %D (which is slower) crosses the head first (so %K cuts %D on the right side of the line). The %D line is called Right Crossing. In both cases, they read the same value, but the latter is more certain than the former, since the %D is overturned first, indicating a quick change of direction. It's sweeter and more stable.

👉A divergence can occur when %D is above the 80 line but cannot create a new higher top while the price continues to follow the uptrend. It happens while the %D line is below the 20 line and creates a new higher bottom. This is an early warning. The price may run in that direction. So hurry up and look for an opportunity to sell (when there is a divergence at the top) or buy (when there is a divergence at the bottom) because soon there may be a reversal. This style is also known as a setup.

👉A sharp drop in %K or %D (which George Lane called Hinge) shows that the market is weak. It's a signal to be careful that tomorrow's market may change direction.

👉A rapid (faster) and severe (2-12%) deflection of %K is a warning sign that the market is almost exhausted. The original direction of the price can stand well for no more than 2 days.

👉The %K value ranges from 0 to 100, and when %K reaches both extremes, it's often a signal to collect (%K=0) or drain (%K=100). The price must close at the highest or the lowest for at least 5 consecutive days (see the formula of %K to understand), and the number of days may need to be more if we use the slower Stochastic.

👉If %K crosses %D and tries to turn around to find %D again but does not reach it (or maybe just touching, but not breaking) %D, this confirms a clear signal that it had just intersected a while ago. It's a sure sign.

💥 The example presented below demonstrates the use of Stochastic to determine the timing of entering and exiting trades with the SET index. A downward arrow indicates a buy signal or to hold more, while an upward arrow indicates a sell signal or to gradually make short-term profits (depending on the case). Beside the arrow, there will be the word "Buy" or "Sell." It may be noticed that there are moments to buy or sell more than once, which may prompt the question of why there are multiple points. The answer lies in the principle that the tool is only used to find a cutting rhythm (as mentioned earlier), as some people only see an upward trend (without confirmation from another stroke), leading to a possible loss. Due to the quick movement of the pointer, false signals may appear, so some people prefer to use the line crossing rhythm to gradually buy or sell stocks, similar to signaling in terms of moving averages.

What is the difference between the Relative Momentum Index (RMI) indicator and the Relative Strength Index (RSI) indicator when overbought and oversold?

2023-01-01T16:09:19Z

💥The Relative Momentum Index (RMI) and the Relative Strength Index (RSI) are both momentum indicators that are commonly used to analyze financial markets. However, there are some differences between the two indicators when it comes to overbought and oversold conditions.

💥The RSI indicator is typically used to identify overbought and oversold conditions in a market. It oscillates between 0 and 100 and is considered overbought when it reaches 70 or higher, and oversold when it reaches 30 or lower. When the RSI is in overbought territory, it suggests that the market is overextended to the upside and may be due for a correction. Conversely, when the RSI is oversold, it suggests that the market is oversold and may be due for a rebound.

💥On the other hand, the RMI indicator is a more recent innovation that aims to improve on the shortcomings of the RSI. While the RMI also oscillates between 0 and 100, it is designed to be more responsive to changes in market conditions. The RMI uses a different calculation method that incorporates both the positive and negative momentum of price changes, as opposed to the RSI which only considers the magnitude of price changes.

💥When it comes to overbought and oversold conditions, the RMI can be interpreted differently than the RSI. The RMI is considered overbought when it reaches 70 or higher, and oversold when it reaches 30 or lower, just like the RSI. However, the RMI may reach these levels more frequently than the RSI, due to its more responsive nature. Therefore, it may be necessary to adjust the overbought and oversold levels when using the RMI in order to get more accurate signals.

💥Overall, while both the RMI and RSI can be useful for identifying overbought and oversold conditions in the market, the RMI may provide more timely and accurate signals due to its more responsive calculation method. However, traders should still use caution and look at other indicators and factors when making trading decisions.

💥Relative Momentum Index (RMI) One of the disadvantages of the RSI is that the RSI itself is not always evenly distributed between the overbought and oversold areas due to the effect of calculating the parameter and denominator in the formula, which can sometimes skew the distribution of the RSI toward the overbought or overbought areas. Too much oversold in either way, making the signal unsuitable for short-term use. Some people solve this problem by using a moving average as a supplement to send trading signals, some people use a trend line charting technique to supplement.

💥To address this disadvantage, Roger Altman proposed an idea to improve the RSI with one more parameter: instead of measuring today's price change compared to yesterday's gain or loss, it measures the change in price. Today versus 3 days ago, which is a measure of y-day Momentum. Therefore, Altman calls this updated RSI the y Relative Momentum Index (RMI) indicator.

💥We can also say that the RSI is a special case of the RMI, that is, the RSI is the RMI in case y=1. Since the RSI compares today's price with yesterday's price, the value of the RMI ranges between 0 to 100 and its interpretation or analysis is exactly the same as RSI, but has the advantage that If we choose a good y value for Momentum calculations, it will help the RMI to spread well overbought and oversold ranges and deliver a more accurate signal.

What is Short position, Long position, Stop sell order, Stop buy order in trading?

2022-12-23T19:37:38Z

👉Short position: A short position is when a trader sells a security in the hope of buying it back at a lower price in the future, thereby making a profit.

👉Long position: A long position is when a trader buys a security in the hope of selling it at a higher price in the future, thereby making a profit.

👉Stop sell order: A stop sell order is an instruction to sell a security once it reaches a certain price level. It is used to limit losses in a long position or to profit from a short position.

👉Stop buy order: A stop buy order is an instruction to buy a security once it reaches a certain price level. It is used to limit losses in a short position or to profit from a long position.

👉Parabolic SAR: Parabolic SAR (Stop and Reverse) is a technical indicator that is used to determine the direction of an asset's price movement and to provide entry and exit signals for traders. The SAR indicator is calculated based on the asset's previous highs or lows, and is plotted as a series of dots above or below the asset's price.

💥To calculate the Parabolic SAR in an uptrend, the SAR for the previous day is compared to the current day's low. If the current day's low is lower than the SAR, the SAR is adjusted to the current day's low. The SAR is then adjusted upwards based on a predetermined acceleration factor.

💥To calculate the Parabolic SAR in a downtrend, the SAR for the previous day is compared to the current day's high. If the current day's high is higher than the SAR, the SAR is adjusted to the current day's high. The SAR is then adjusted downwards based on a predetermined acceleration factor.

💥The Parabolic system is a method that uses averages, specifically another moving average invented by J. Welles Wilder. This system provides a rhythm to enter or exit the market based on the comparison between the stock price and the average price of the stock as a signal.

💥However, the average price calculated from this parabolic time/price system is based on exponential moving average principles, known specifically as the stop and reverse price (or SAR for short). It is still different in some respects from the moving average, despite being exponential type.

💥Now, let's focus on the calculated SAR value. We want traders to think of this SAR value as the price that represents it, like a way to limit the risks that can be accepted. The reason for this is that if the stock price drops more than the SAR, it indicates that the past uptrend is over and the stock is ready to be sold. This is because the trend in the stock price has changed to a downward trend.

💥On the other hand, if the stock price has risen above the SAR at any point, and the trader does not already hold the stock, or has just sold it, there may be a missed opportunity to profit. This signal indicates that the downtrend is over, and it is essential to buy back in time before the price rises any further.

💥However, before delving into SAR calculations, it is essential that traders understand four more terms: long position, short position, stop buy order, and stop sell order. Without understanding these terms, traders may not grasp the principles of SAR.

💥The term "long position" refers to buying stocks and holding onto them until it is the right time to sell, or until the upward trend in the stock's movement ends. On the other hand, a short position involves selling the stock and waiting for the right time to buy back. Why sell in the first place? Traders sell because they predict that the stock price may decline. By selling now, they can buy it back when the trend has ended, and potentially at a lower cost.

💥Moving on to the terms "stop buy order" and "stop sell order," these are used to limit risks in case the stock price does not behave as expected. For example, consider a scenario where a trader believes that the stock price will decline and sells their shares, hoping to buy them back later at a lower price. However, if the price does not decline as expected and instead rebounds, the trader could miss out on a potential profit and incur an opportunity cost. To avoid this, the trader can set a predetermined price to buy back the shares, which is known as a "stop buy order."

💥Similarly, suppose a trader expects the stock price to rise and buys shares with the intention of selling them when the price increases. If the price instead falls, the trader can set a predetermined price to sell the shares and limit their losses. This is known as a "stop sell order." By having these prices in mind, traders can manage their risks and make timely decisions to enter or exit the market.

Stop and Reverse (SAR)

👉Some traders would like to know how SAR is calculated or obtained. In principle, the first SAR value is equal to the Extreme Price (EP) of the position that was just closed, which could be the highest or lowest price, depending on the case. To determine whether to use the highest or lowest price, traders need to first distinguish the price trend as an uptrend or a downtrend. Let's first explain the calculation for an uptrend.

Uptrend

In an uptrend, the first SAR is equal to the lowest price. SAR on day 2 or later will be calculated or adjusted according to the equation below.

SAR1 = Previous Low
SARt= = SARt-1 + AF(H - SARt-1)

provided that

SARt = exponential moving average, which in this case acts as support, so if the stock price moves below the SARt value, a sell signal is generated.
SARt-1 = SARt at time t-1
AF = Acceleration factor (or exponential smoothing constant) which starts at .02 and increases by .02 increments as higher highs occur. If the price does not make a new high during a long position, the AF value will remain unchanged from the previous value.
H = the highest price in a long position (opened by stop buy order), the value of H will change when a new high is formed.

Downtrend

In case of a downtrend (negative side), the initial SAR is equal to the highest price of the recently closed long position.

SAR1 = PreviousHigh
SARt = SARt-1 - AF(L-SARt-1)

provided that

SARt = exponential moving average, which in this case acts as resistance, so if the stock price moves through SARt up, it is a buy signal.
SARt-1 = SARt at time t- 1
AF = Acceleration factor (or exponential smoothing constant) which starts at .02 and increases gradually by .02 as a lower low occurs. If the price does not make a new low during a short position, the AF value will remain unchanged from the previous value. However, the AF value in this case will be limited to 0.2, as in the case of Uptrend.
L = the lowest price during a short position (opened by the stop sell order), this value of L will change when a new lowest price is formed.

💥💥Now, it is expected that traders know enough. (or even more confused) where does the SAR value come from? However, nowadays there are programs that can plot SAR values at the touch of a finger. Which helps to shorten the set time And don't have to have a headache with the above formula because the important points that traders want to know Probably more of a trading signal, right? But given in order to obtain It's only more complete in the content!

Indicator Moving Average Convergence Divergence (MACD) support and resistance trading signals.

2022-12-22T20:21:26Z

💥The Moving Average Convergence Divergence (MACD) is a technical analysis indicator that helps traders identify potential buying and selling signals. It is based on the difference between two exponential moving averages (EMAs) of different periods, typically 12 and 26 days.

💥The MACD has a signal line, which is typically a 9-day EMA of the MACD line. When the MACD line crosses above the signal line, it is considered a bullish signal, indicating a potential buying opportunity. Conversely, when the MACD line crosses below the signal line, it is considered a bearish signal, indicating a potential selling opportunity.

💥Another way to use the MACD is to look for support and resistance levels. When the MACD line crosses above the zero line, it indicates that the short-term moving average is above the long-term moving average, which can be seen as a bullish signal. The zero line can also act as a support level, as prices may find it difficult to break below this level. Conversely, when the MACD line crosses below the zero line, it indicates that the short-term moving average is below the long-term moving average, which can be seen as a bearish signal. The zero line can also act as a resistance level, as prices may find it difficult to break above this level.

💥In fact, the MACD is another type of indicator that should be categorized as such. However, due to its close relationship with the moving average system, it is brought together in this chapter.

💥As mentioned earlier, the system uses two moving averages, which usually give a slower signal, but because the average movement is smoother, it makes it possible to filter false signals well with less error. Gerald Appel tried to find a system that would play a good part in filtering false signals while giving a faster signal than the two moving averages, which eventually became the source of the MACD.

💥Appel noted that in the two moving average system, before the two mean lines close to intersect (that is, before it sends a buy or sell signal), the two lines will run closer together until they finally intersect. As the two lines approach each other, the distance between them shrinks by default. Therefore, he proposed to plot the distance between the two moving averages as the MACD line when the moving averages cross. When the short moving average line crosses the long moving average upward (Buy Signal in a two-line average system), the MACD crosses the 0 line upward, and when the short moving average line crosses the long moving line downward (Sell Signal), the MACD crosses the 0 line down.

💥Appel proposes using the 12-day EMA (smoothing constant = 0.15) as the short-term average and the 26-day EMA (smoothing constant = 0.075) as the long-term average.

MACD = EMA(12)-EMA(26)

💥The MACD can be expressed by the formula EMA(12)-EMA(26). This MACD is a special case of the previously mentioned price oscillator. By plotting the MACD line, traders can see that it changes trend in certain situations. For example, sometimes the price is still rising but the distance between the two moving averages has decreased, causing the MACD to trend downward. This creates a divergence between the price and the MACD, indicating a potential change in direction.

💥Traders can also use the principle of moving average to generate trading signals based on the MACD. Appel suggests using the dotted line of the 9-day MACD with a smoothing constant of 0.2 as a signal. When the MACD crosses its 9-day EMA upward, it is a buy signal. Conversely, when the MACD crosses the 9-day EMA downward, it is a sell signal.

💥Therefore, the MACD provides two levels of trading signals. The first level is a fast signal level based on the intersection of the MACD line with its 9-day moving average. The second level is a slower but more reliable signal: when the MACD crosses the 0 line, just like the two moving average lines in the system.

💥The zero line can also be used as a support or resistance level. If the 10-day EMA does not fall through the zero line, it can bounce up and act as a support level, indicating that a sell signal may not occur. If there is buying pressure or another support, some traders use it as an opportunity to buy stocks again. However, if the MACD falls through the zero line, it becomes a resistance level.

How to finding buy and sell points with the Price Oscillator, an indicator that works with moving averages?

2022-12-20T17:20:37Z

The formula used to calculate the Price Oscillator is: short-term MA minus long-term MA.

💥The Price Oscillator is a type of indicator that helps to determine whether the price has crossed the moving average. This tool can be found in the indicator section, but it is mentioned in this section because it is related to identifying potential buy and sell points.

💥Sometimes, the price and the moving average line are very close to each other, making it difficult to determine whether the price has crossed the moving average or vice versa. This can be confusing, but using the Price Oscillator can help to clarify the situation.

💥To use the Price Oscillator, you need to know its formula and shape. As shown in the example above, the Price Oscillator is typically displayed as a histogram, with bars above the zero line indicating a bullish trend and bars below the zero line indicating a bearish trend.

💥In the lower frame, we can see the price oscillator which is created by taking the difference between two moving averages with different periods. The two periods used in this case are 10 and 25 days to match the lower frame's comparison of the stock price movement with a 20 and 5 day simple moving average. The program needs to be instructed to calculate these moving averages in a simple way to complete the image creation. The resulting oscillator has a squiggly line representing the 5 day moving average (SMA) and a zero line representing the 20 day SMA. However, the zero line is not a 20 day SMA in this case, but rather a straightened version of the 20 day SMA, placed at the center to let the 5 day SMA wobble instead. The distance between the 5 day SMA and the zero line is still equal to the distance between the 5 day SMA and the 20 day SMA in the upper frame.

💥Therefore, the buy and sell points will be the same on both the lower and upper frames. However, determining whether they intersect or not is easier because the machine will calculate positive, zero, or negative values clearly. We can retrieve this information because if the value is positive, it means that the 5-day SMA line crosses above the 20-day SMA line. If it is negative, it means that the 5-day SMA line crosses below the 20-day SMA line. The distance between the 5-day SMA line and the zero line can indicate support and resistance levels. For example, around the first ellipsis line, it represents a resistance level. It is also important to note any actual stock declines in the top frame.

💥The Price Oscillator is an indicator that works with moving averages to identify potential buy and sell points. Here are the steps to find buy and sell points using the Price Oscillator:💥

👉First, calculate the short-term and long-term moving averages of the price. The short-term moving average is usually calculated over a period of 12 days, while the long-term moving average is calculated over a period of 26 days.

👉Calculate the difference between the short-term and long-term moving averages. This is called the Price Oscillator.

👉Plot the Price Oscillator on a chart. The Price Oscillator is usually displayed as a histogram, with bars above the zero line indicating a bullish trend and bars below the zero line indicating a bearish trend.

👉Look for crossovers of the Price Oscillator with the zero line. When the Price Oscillator crosses above the zero line, it is a bullish signal indicating a potential buy point. When the Price Oscillator crosses below the zero line, it is a bearish signal indicating a potential sell point.

👉Look for divergence between the price and the Price Oscillator. If the price is making higher highs but the Price Oscillator is making lower highs, it is a bearish divergence and could signal a potential sell point. If the price is making lower lows but the Price Oscillator is making higher lows, it is a bullish divergence and could signal a potential buy point.

👉Use other technical indicators and fundamental analysis to confirm your buy and sell signals before making any trades.

💥💥Remember that no indicator is 100% accurate and it's important to use multiple indicators and analysis to make informed trading decisions.

Shift is called Displaced Moving Average and what kind of signal is Double Repenetration?

2022-12-19T19:24:12Z

💥In the previous section, we discussed shifting the moving average up and down to form a band that helps filter out false signals. Using the same idea, we can filter out false signals by shifting the moving averages, but this time to the right instead of up and down.

💥Moving the moving average to the right slows down the signals generated by the moving averages. Although this can be a disadvantage, it has a positive effect by reducing jitter and making fake crossovers of the price line with moving averages more difficult to occur. The effect is similar to filtering out false signals, so this method should be applied to moving averages with a short number of days to compensate for the slowness of the signal caused by shifting.

💥One admired technical analyst and expert in using this method is Joe Dinapoli, who named this method of shifting the moving average to the right "Displaced Moving Average." He suggests using a 25-day moving average with a 3-day shift to the right (symbolic 25x3) and a 3-day displaced 3-day moving average (3x3).

💥For trading signals, it is the same as using a simple moving average: a cut up signal indicates a buy, and a cut down signal indicates a sell, only that the signal will happen a little later, but there will be fewer false signals, which is a characteristic of the displaced moving average.

💥Dinapoli also proposed the concept of Double Repenetration (DR) as a supplement to the displaced moving average. If the price closes below the displaced moving average, then bounces back above it, and then crosses below the displaced moving average again (i.e., it crosses two times, hence the name double repenetration), it appears that the short-term trend of the price during the double repenetration is relatively flat. This is a trend change signal that is more pronounced than a normal downtrend, and in the case of an uptrend, it only changes direction. However, the double repenetration doesn't have to happen every time a trend changes. It only makes the signal stronger if it does occur.

💥However, Dinapoli noted that although the displaced moving average (even with DR) gives good signals, it is prone to errors. Therefore, it should be accompanied by signals based on Fibonacci ratios.

Release notes 4/21/2023

2023-04-21T02:04:27Z

Installer (v5.0.131):
fix run setup as admin

Release notes 4/21/2023

2023-04-21T01:20:13Z

Installer (v5.0.129):
islr-38: support update via setup.exe in installer + publisher installer automation
Logout option added.
Fix AutoRun

Let's get to know the Moving average Brand or Channel, How Shift and Envelope Formation act as support and resistance signals trend

2022-12-18T12:34:05Z

💥Moving Average (MA) is a popular technical analysis tool that is used to smooth out price action and identify trends. It is calculated by averaging a selected number of prices, usually closing prices, over a specific period of time. The Moving Average is then plotted on the price chart to provide traders with an indication of the direction of the trend.

💥Moving Average Channels are two lines drawn above and below a Moving Average line at a certain distance or percentage. This creates a channel around the Moving Average line that acts as a dynamic support and resistance zone. When prices move above the upper channel line, it suggests that the trend is bullish, and when prices move below the lower channel line, it suggests that the trend is bearish.

💥Shifted Moving Averages are Moving Averages that are displaced forward or backward in time. This means that the Moving Average is calculated using past prices, but is plotted ahead of current price action. This can be useful in identifying potential support and resistance levels that may not be visible on the price chart using traditional Moving Averages.

💥Envelope Formation is a technique that uses two Moving Averages that are shifted a certain percentage or distance away from each other. The area between the two Moving Averages creates a channel or envelope around the price action, which acts as a dynamic support and resistance zone. The Envelope Formation can be useful in identifying potential trend reversals when prices move beyond the channel boundaries.

💥Overall, Moving Averages and their variations can be effective tools in identifying trends and potential support and resistance levels. Traders should use them in conjunction with other technical analysis tools and indicators to confirm signals and make informed trading decisions.

💥Additionally, traders can also use Moving Average Shift to identify potential support and resistance levels. A Moving Average Shift is created by shifting the Moving Average line forward or backward in time. This can help identify levels where the Moving Average has acted as support or resistance in the past and may do so again in the future.

💥Moving Average Envelopes are another technical analysis tool that can act as support and resistance levels. They are similar to Moving Average Channels, but instead of being drawn at a fixed distance or percentage from the Moving Average line, they are drawn at a fixed percentage of the price. This creates a channel that widens or narrows based on the volatility of the price. When prices move above the upper envelope line, it suggests that the trend is bullish, and when prices move below the lower envelope line, it suggests that the trend is bearish.

💥Overall, Moving Averages, Moving Average Channels, Moving Average Shifts, and Moving Average Envelopes can all be used to identify potential support and resistance levels and help traders identify trends in the market.

💥💥The Moving Average line that uses a short number of days in its calculation may give false signals because it moves too quickly. To filter out these false signals, some technical analysts prefer to use a Shifted Moving Average line. In the case of a buy signal, the Moving Average is shifted up, while in the case of a sell signal, it is shifted down. Shifts are generally expressed as a percentage of the Moving Average, and they are often used with Moving Averages that use a short number of days for their calculations.

💥Another important use of shifting the Moving Average line is to create an Envelope that serves as a framework for price movements. In practice, this is often referred to as a Moving Average Channel or Band. The Envelope is used as a short-term support and resistance zone, and the price will move within this Channel or Band as long as the trend remains unchanged. To determine whether the trend is changing or not, the primary tool used is the central Moving Average. In essence, this system uses the Moving Average as a trading signal for the primary trend, while the Channel or Band serves as a secondary trend trading signal that moves along with the primary trend.

💥The upper line of the Band (Upper Channel) acts as a resistance. When the price approaches the Upper Band, it serves as a warning signal that the price has already risen too high, and traders should gradually sell some of their holdings to take profit in the short term. For the long term, it is advisable to follow the main trend using simple moving averages. On the other hand, the lower channel of the band acts as support, meaning that if the price falls close to the Lower Band, it is a warning that the price has dropped significantly, and traders should be prepared to wait for some time in the short term.

💥In practice, traders should understand the difference between shifting a moving average to filter out false signals and shifting a moving average to create a support/resistance envelope. They must always be aware of what they are doing and the purpose of their Shift.

There are several ways to create a Moving Average Channel or Band.

👉This method is built on moving average lines, with the Upper Channel calculated from the high and the Lower Channel calculated from the low. We call this band the High-Low Channel. The most commonly used values are the 10-day average of the high and the 8-day average of the low. This method is commonly used to filter out false signals, but it can also be modified to create an envelope if appropriate parameters are set.

👉Percent Shift: This method shifts the moving average up (to the Upper Channel) and down (to the Lower Channel) by a percentage of the moving average calculated from closing prices. A popular percentage shift amount is 3.5-4% for a 20-25 day moving average. This is also a way to filter out false signals. However, this method has a disadvantage, which is that the magnitude of the shift when measured in absolute terms is small when the price is low, but quite large when the price is high. Therefore, the size of the band will continue to widen as the price goes up, and gradually shrink as the price falls. This may cause traders to buy too soon (due to a low price and less shift) or sell too late (due to a high price and high shift).

👉The method of shifting to create an envelope originated from a study by John Hurst, which was conducted in the days when computers were not as prevalent as they are today. The envelope is based on the moving average, whose number of days is determined by the length of the cycle, and must be able to cover price movements in a shorter cycle. However, this is a rather subjective approach since different people may draw different images.

💥Marc Chaikin, a well-known technical analyst at Bomar Securities, suggests that using a percentage shift for the moving average may not be flexible enough. For example, at one time, 3% may be too much (for instance, when the stock is moving sideways and not bouncing anywhere, the band will be too wide), while in other cases, such as when the stock follows a steep trend, 3% will be too narrow (the stock will run through the band like a locomotive). Hurst's envelope construction is also somewhat dependent on individual thoughts, which is uncertain. Therefore, the market should help determine the percentage of the shift at any given time.

💥The concept of Bomar Bands originated from Marc Chaikin's suggestion to shift the moving average in percentage terms such that it covers at least 85% of past prices. For example, if we use a 25-day moving average, the percentage shift today should be large enough to cover 85% of the prices of the past 25 days. The Bomar Bands adjust their percentage shift depending on market conditions, indicating trend inertia. If the market moves sideways, the percentage shift is small, but it adjusts to a higher percentage when the price follows a trend. The Bomar Bands narrow when the price starts to stagnate or the sales force runs out, even if the price continues to rise or decline. The width and narrowness of the Bomar Bands can be used as signal indicators of the main trend.

💥John Bollinger further developed this concept by shifting the moving average in proportion to the standard deviation of the price, typically 11.96 (or 12) times the standard deviation calculated from the number of days used to calculate the moving average. The resulting band should cover up to 90% of the past price if the price had a normal distribution. Bands calculated in this way are called Bollinger Bands, which have the same properties as the Bomar Bands, with their width and narrowness adjusted according to market conditions. The Bollinger Bands use standard deviation, which is an indicator of the variance or volatility of the price, making it easier to calculate than the Bomar Bands, which rely on subjective adjustment of the percentage shift.

Overbought, Oversold, Divergences in Relative Strength Index (RSI) indicators

2022-12-30T21:14:51Z

💥 The Relative Strength Index (RSI) is an indicator developed by J. Welles Wilder, based on Momentum, but with improvements. With Momentum, two things usually happen:

1. If very unusual past data is used, it can cause a change in Momentum, even though there is very little movement in the current price.

2. There is a problem in finding the standard zone to capture the exact overbought/oversold zone. In Momentum, we only have a zero line, and we can only indicate a level of 1 or 100 (in the case of Rate of Change), but we can't determine how high the momentum must go up to be called overbought or how low it must go to be called oversold.

Hence, the RSI was invented to solve this problem. The calculation formula is as follows:

💥Provided that RS is the ratio between the 7-day exponential moving average of gains versus the 7-day exponential moving average of losses (regardless of the market), the number of days used. Like any other oscillator, with a small number of days, the RSI is very sensitive to changes, which is suitable for those who like to speculate on a day-to-day basis. Commonly seen values for the number of days used are 4, 9, and 14. In addition, the RSI is also a tool used to measure the strength of a stock price's fluctuation, whether it fluctuates in a way that is driven or has inertia. The RSI value is always between 0 and 100. If the RSI is high, it indicates that in the past several days, the price has moved higher than it has decreased. A low RSI value indicates that the price, in the past few days, on average, has decreased more than it has increased.

The rules that apply to the widely used RSI are as follows:

💥Overbought and Oversold levels are usually set at the RSI level of 70 or higher, indicating that the price has moved up excessively, and 30 or lower, indicating that the price has moved down excessively. Some traders wait for the RSI to cross the 30 line before buying, while others may use the moving average of the RSI as a signal and start trading when the line begins to point up in the oversold area (or pointing down in the overbought area in the case of selling). However, the past behavior of the RSI with its price during that period should also be taken into consideration as there are many instances where it may give erroneous results. Therefore, the mentioned rules should be considered together.

💥Price patterns may not be apparent in the price action but can manifest or be found first in the RSI, which can serve as an early warning signal. Resistance or support levels may also be more prominently seen on the RSI in price, which can act as support or resistance for the RSI. The RSI and price relationship can provide a useful signal for trading decisions.

💥Divergences occur when, for example, the price breaks through the previous peak, while the RSI fails to do so and remains in its original balance. This is an early warning that there is a chance that the price will decline in the future because the RSI is a measure of momentum. Even if the price continues to rise, the RSI may decline due to price inertia.

💥Divergence signals between the RSI and the price are often seen when the RSI fails or fails to swing. For example, while the RSI is in an upward direction and above the 70 line (overbought), but cannot create a new higher top and a new lower bottom. This is called a Top Failure Swing. Conversely, if the RSI is below the 30 line (oversold) in a downward direction but can create a new higher top and bottom, it is called a Bottom Failure Swing, which will be a reversal signal.

💥We can see that these important signs usually occur in the OB/OS bands. As mentioned above, the RSI performs best in this area. Another important characteristic of divergence in the OB/OS area is that the RSI fails to break the resistance from the tops or the OB/OS bands. If the old base is gone, it will warn of an upcoming reversal.

How to read Momentum and Rate of Change indicators to find buy and sell signals in uptrends and downtrends?

2022-12-28T14:42:06Z

💥The Momentum and Rate of Change indicators are both momentum indicators that help traders identify the strength of a trend and potential trend reversals. They can be used to find buy and sell signals in uptrends and downtrends.

💥💥In an uptrend, the Momentum indicator should be above its centerline and rising, indicating upward momentum. A crossover of the Momentum indicator's centerline from below to above can be a buy signal. Traders may also look for bullish divergences between the price and the Momentum indicator, where the price is making lower lows but the Momentum indicator is making higher lows. This can signal a potential reversal and a buy signal.

💥Similarly, in a downtrend, the Momentum indicator should be below its centerline and falling, indicating downward momentum. A crossover of the Momentum indicator's centerline from above to below can be a sell signal. Traders may also look for bearish divergences between the price and the Momentum indicator, where the price is making higher highs but the Momentum indicator is making lower highs. This can signal a potential reversal and a sell signal.

💥The Rate of Change indicator is similar to the Momentum indicator and can also be used to find buy and sell signals. In an uptrend, the Rate of Change indicator should be above its centerline and rising, indicating upward momentum. A crossover of the Rate of Change indicator's centerline from below to above can be a buy signal. Traders may also look for bullish divergences between the price and the Rate of Change indicator, where the price is making lower lows but the Rate of Change indicator is making higher lows. This can signal a potential reversal and a buy signal.

💥💥In a downtrend, the Rate of Change indicator should be below its centerline and falling, indicating downward momentum. A crossover of the Rate of Change indicator's centerline from above to below can be a sell signal. Traders may also look for bearish divergences between the price and the Rate of Change indicator, where the price is making higher highs but the Rate of Change indicator is making lower highs. This can signal a potential reversal and a sell signal.

💥As with any technical indicator, it's important to use these indicators in conjunction with other technical analysis tools and to consider the overall market conditions and the underlying fundamentals of the security being traded.

Indicators - TOC

2022-12-24T18:46:01Z

Let’s understanding the words Overbought, Oversold, Convergence and Divergence for basic indicator readings.

2022-12-24T18:42:34Z

💥Technical analysis has introduced various statistical and mathematical techniques to apply in analyzing stocks, which have become indicators of stock prices in many forms. In this text, we will discuss some of them, but those interested in other indices can read more as most of them use similar concepts.

💥In the use of technical tools to analyze stocks, oscillators are the commonly used instruments that measure oscillation. Among them are RSI and Stochastic, which can serve as indicators of the market direction in the short to medium term, especially during times when the market moves without direction, also known as sideways or fluctuations within a narrow band. During these times, oscillators can closely follow prices, enabling traders to use them as tools for buying or selling in the short term. Even in market conditions that are not clearly uptrending or downtrending, oscillators can help determine if the trend will continue to strengthen or weaken.

👉Introduction to Overbought, Oversold, Convergence, and Divergence👈

💥Most indicators are derivatives that measure changes in stock prices. A simple analogy is to compare the price to the speed of a car and the indicators to the car's acceleration when we press the accelerator or decelerate when we press the brakes. Acceleration increases the speed of the car, and we see the acceleration and top speed rise simultaneously.

💥When we release the accelerator, the car continues moving due to inertia, but the acceleration is zero. When we gently tap the brake, the car still moves forward, but the braking force gradually slows it down, and the acceleration becomes negative. In this case, the acceleration and velocity of the car move in opposite directions because the car continues to move forward, but with negative acceleration (becoming a deceleration).

💥Similarly, in the stock market, we may see that the price is still rising, but the market lacks momentum (which is like acceleration), and this is called overbought. This happens when traders have bought stocks to the point where almost everyone is holding stocks, but fewer people want to buy them. During a market crash, everyone rushes to sell, causing the price to drop rapidly due to strong selling pressure. But at a certain point, the selling pressure starts to decrease, and the market becomes oversold, even though the price is still declining.

💥Indicators are also used to measure buying or selling pressure, which determines the direction of the price. Therefore, during a market acceleration, indicators will move in the same direction as the price, which is called Convergence. But when the market starts to run out of acceleration, although the price is still running in the same direction, some indicators will start to move in a different direction from the price, which is what we call Divergence. This serves as a warning signal that the market is starting to run out of steam, and traders need to be careful as the direction may soon reverse (Reversal) since there is no other support to keep the market going.

💥Some traders are very quick and apply other technical principles to the indicator, such as using trendline charting techniques or finding the Moving Average of the indicator as a trading signal, which can give good signals. However, the best approach is to gradually start buying or selling little by little when there is a signal, using other technical tools with the indicator, and gradually buying or selling until the actual signal is confirmed. Some traders overreact to small indicator movements and buy or sell, which is not recommended.

💥General rules for reading indicators include that if the indicator reaches the upper or lower band, known as Overbought and Oversold, it indicates that the stock is overbought or oversold. If the indicator and the price move in different directions, this is usually a warning that a reversal may follow, and an important signal will be generated when the oscillator is in the OB/OS zone. For some indicators, crossing the zero line is a signal to buy or sell according to the trend.

💥Overbought and Oversold refer to indicators used to determine periods when market prices are too high or too low. When the indicator reaches the overbought level, it means that the asset is overbought and the price may start to fall. When the indicator reaches the oversold level, it means that the asset is oversold and the price may start to rise. Traders use these signals to make buying or selling decisions.

💥Overbought and oversold refer to the levels at which an asset's price has moved too far in a particular direction, either upward or downward. Overbought conditions occur when an asset's price has increased too quickly and too far, and may be due for a pullback or correction. Oversold conditions occur when an asset's price has decreased too quickly and too far, and may be due for a rebound or rally.

💥💥Traders can use various technical indicators, such as the Relative Strength Index (RSI) or Stochastic Oscillator, to identify overbought and oversold conditions. In general, when an asset is considered overbought, traders may consider selling or taking profits. When an asset is considered oversold, traders may consider buying or taking a long position.

💥Convergence and Divergence refer to indicators used to determine trend changes. When the convergence indicator starts moving towards the X-axis, it means that the trend is starting to change and a buy can be expected. When the divergence indicator starts moving towards the X-axis, it means that the trend is continuing and a sell can be expected.

💥Convergence and divergence are terms used to describe the relationship between an asset's price and a technical indicator. Convergence occurs when the asset's price and the indicator are moving in the same direction, indicating a strong trend. Divergence occurs when the asset's price and the indicator are moving in opposite directions, indicating a potential reversal in trend.

💥💥Traders can use convergence and divergence to identify potential buy and sell signals. In an uptrend, traders may look for bullish convergence, where the indicator is rising while the price is also rising, indicating a strong trend. In a downtrend, traders may look for bearish convergence, where the indicator is falling while the price is also falling, indicating a strong trend. Conversely, traders may look for bullish divergence in a downtrend or bearish divergence in an uptrend, as these may signal a potential reversal in trend.

💥Traders should use these indicators in combination with other tools and analyze data from multiple sources to obtain the most accurate buy and sell signals.

S#.Designer syllabus.

2019-05-16T23:12:23Z

All video-lessons are available via the links below.
All samples for lessons can be installed via S#.Installer.
For Basic course you need the packet: Edu Designer Basic
For Advanced course you need the packet: Edu Designer Advanced

Basic course.

1. S#.Designer basics
The lesson covers:
- Installing the program
- Configuring the interface of the program windows
- Examines the main sections of the Program menu
- Examines the sections of the strategy tree
- Shows how to download instruments and market data for the first time
- Shows how to start testing a strategy on the built-in SMA strategy.

(The new version of the designer, like all programs, is installed through the Installer program.
The fifth version of the designer lacks the ability to select the themes of the designer, which was present in the fourth version)

2. Visual editor and strategy designer blocks - 1.

The lesson covers:
- General description of strategy cubes
- Examines the sections of the strategy cubes menu
- Examines the cube chart panel
- Examines the construction of candlestick charts
- Examines the construction of charts of the SMA and Bollinger indicator in the same window and in different windows

(In the fifth version of the program, the location of some cubes in the menu has changed.
In the fifth version, the mathematics section is replaced by a formula cube.)

3. Visual editor and strategy designer blocks - 2.

The lesson covers:
- Description of the cube Variable and examines examples of the use of the cube
- Examines the Logic cube and an example of its application
- Examines the Previous value cube and an example of its application
- Examines the Mathematics section and the use of cubes that are included in it
- Examines the Converters section (cubes "Indexer" and "Converter") and an example of sharing the cubes of the section
- Considers the cube "Opening a position"
- Considers the cube "Position" and the scheme in which it is applied
- Considers the cube "Comparison" and an example of its application
- Considered building a simple strategy:
If the closing price of the previous candle is less than the closing price of the current one, then we buy, if not, we sell.
- Considers the "Comparison" cube and an example of its application

(In the fifth version, the mathematics section is replaced by one formula cube. In the fifth version of the program, the "Position opening" cube is replaced with "Position registration")

4. Work with the strategy scheme.

The lesson covers:
- Debugger tools
- Working with breakpoints is considered on the example of a circuit
- On an example, the possibility of imposing additional conditions on triggering a breakpoints is considered

5. Visual editor and strategy designer blocks - 3.

The lesson covers:
- Considers the cube "Position protection"
- A strategy is built using the "Position protection" cube:
If the difference between the closing price and the opening price of the candle is greater than 1, then we buy.
We sell position protection through the cube, provided that:
Take Profit - the price increases by 2%
Stop Loss - the price decreases by 3%
- An example of constructing the conditions for triggering transactions has been analyzed, in which Buy and Sell transactions go sequentially one after the other (the simplest flag)
- A scheme has been built for obtaining the absolute value of a position and doubling its value
- Using the example of the scheme from lesson three and the scheme for obtaining the absolute value of the position, the following scheme is obtained:
If the closing price of the previous candle is less than the closing price of the current one, then we buy, if, on the contrary, we sell.
If the position is not equal to zero, then the trade is carried out with a double volume

6. Visual editor and strategy designer blocks - 4.

The lesson covers:
- Examines the cubes of the "Mathematics" section - formulas, including examples of their use
- Considered the construction of the scheme:
If the closing price of the previous candle is greater than the value of the SMA indicator for 20 periods plus 3 standard deviations for 20 periods, then we sell by candle open price.
If the closing price of the previous candle is less than the value of the SMA indicator for 20 periods minus 3 standard deviations for 20 periods, then we make a buy at the opening price of the candle.

(In the fifth version of the program there is no section "Mathematics", all the cubes of this section used in earlier versions of the program are replaced by one cube formula.
In the fifth version of the program, the cube "Position opening" is replaced by the cube "Order registration".)

7. More strategies.

The lesson covers:
- The construction of a diagram based on the Bollinger indicator is considered:
If the candlestick crosses the upper curve of the Bollinger indicator, then we buy.
If the candlestick crosses the lower curve of the Bollinger indicator then we sell.

- Considered the construction of the scheme based on the MACD indicator:
If the MACD curve changes its sign from minus to plus, then buy.
If the MACD curve changes its sign from plus to minus, then we sell.

- Considered a visual comparison of the results of two strategies
- Considered exporting test results to a file for subsequent analysis

8. Visual editor and strategy designer blocks - 5.

The lesson covers:
- The construction of a scheme using candles of different TFs is considered:
First branch: The strategy will buy if the closing price of a five-minute candle is greater than the maximum of 20 previous days.
The strategy will sell if the closing price of the 5 minute candle is less than the previous 10 day low.

The second branch: The strategy will sell if the closing price of the five-minute candle is less than the minimum of the previous 20 days.
The strategy will buy if the closing price of the five-minute candle is greater than the high of the previous 10 days.

(In the fifth version of the designer, the appearance of the flag cube was changed. Also, in the fifth version of the designer, the strategy was changed in terms of the appearance of 2 sell cubes and 2 buy cubes, due to a different principle of receiving a signal to the trigger.)

9. Time Cubes.

The lesson covers:
- Considered the "Working time" cube
- Considered the "Variable" cube with the "Strategy" value
- Considered the "Converter" cube with the function of getting time
- Considered the strategy of working with the "Working time" cube with the condition:
Strategy buys a minute before the end working time.
- Considered an example of working with the "Working hours" cube:
The strategy buys at 18.00.
- Considered a 7th lesson strategy with additional conditions:
The strategy closes a position 5 minutes before the end of working hours.

(In the fifth version of the designer, for correct work with the formula that calculates the time and the cube "Working time", after importing the strategies, it is recommended to recreate them)

10. Working with market data. S#.Data (Hydra)

The lesson covers:
- Considered examples of choosing a market data store
- Considered an example of working with the S#.Data (Hydra) program
- Considered a server mode of working with S#.Data (Hydra) program
- Considered an example of using a market data transmitted through a server mode

(In the fifth server-mode version does not contain WCF mode.)

11. Backtest and optimization.

The lesson covers:
- Considered the basics of strategy optimization
- Considered strategy optimization based on changing the indicator parameter used in the strategy
- Considered the principle of portfolio optimization of a strategy on various instruments

12. Live trading.

The lesson covers:
-Example of setting up a strategy for connecting to Live mode

Advanced course.

13. Composite Cubes.

The lesson covers:
- Considered the "Union" cube
- Considered the principle of working with a compound cube using the example of creating a cube for closing a position
- Considered an example of introducing a compound cube "Closing a position" into an existing strategy from lesson 9

14. Creating candles from ticks.

The lesson covers:
- Considered how to download ticks in the program
- Considered how to build candles from the "Depth of Market"
- Considered the modes "Build", "Downloads", "Load and build" candles
- Considered an example of building volume candles
- Considered an example of plotting a Range of candles
- Considered construction of candles from Ticks
- Considered the construction of candles from candles of a smaller TF
- Considered the use of candles built in the S#.Data (Hydra)
- Considered building a volume profile

15. Building the Flag component cube

16. Strategy based on finding the price of the maximum volume.

The lesson covers:
- Considered the function of the "Converter" cube. Maximum volume
- A strategy has been built in which candlestick data is built from ticks, with the following conditions:
The strategy buys if the closing price is higher than the opening price of the candle.
The strategy sells at the sixth candlestick.

(In the fifth version, the Flag cube was changed, as well as the condition for raising the flag. In the fifth version, the formula block cubes were replaced with the formula cube.)

17. Indices and multiple security strategies - 1.

The lesson covers:
- Considered working with stock indices
- Considered working with futures on the example of a strategy with conditions:
If the index calculated by the SBER @ TQBR / SRM9 @ FORTS formula is less than the average value for 10 periods, then Sberbank shares are sold.
If the index calculated by the SBER @ TQBR / SRM9 @ FORTS formula is greater than the average value for 10 periods, then we buy Sberbank shares.
- The function of constructing a continuous futures is considered
- A strategy with a continuous futures is built with the condition:
If the current value of the SBER @ TQBR / SBER_СF @ FORTS index is 0.005 units above the average, sell the instrument Sberbank Shares and buy the instrument of Sberbank shares.
If the current value of the SBER @ TQBR / SBER_СF @ FORTS index is 0.005 units lower than the average, buy the Sberbank Shares instrument and sell the Sberbank shares instrument.
- Based on the strategy, an example of building a scheme with cancellation of an order is considered

18. Indices and multiple security strategies - 2.

The lesson covers:
- Considered a pair trading strategy based on the previous strategy.
If the index calculated by the SBER @ TQBR / GAZP @ TQBR formula grows, then we buy a cheaper asset and sell a more expensive one.
If the index calculated using the SBER @ TQBR / GAZP @ TQBR formula decreases, then we buy a more expensive asset and sell a cheaper one.
- Considered the round operator - to get an integer value

19. Indices and multiple security strategies - 3.

Lesson highlights:
- Considered a pyramiding strategy based on the previous strategy from the previous lesson.

20. Working with the editor of the program code-1.

The lesson covers:
- Considered the "Source Code" cube
- Considered the principle of creating a cube with a code
- Considered the principle of creating your own unique cube with a code

(Today the StockSharp website does not have a direct link to Github, so you need to go to it not through the website)

21. Work with the program code editor - 2.

The lesson covers:
- Considered the creation of cubes on C# in Visual Studio
- Considered the DLL cube
- Considered the principle of working with S#.API libraries in Visual Studio

22. Export and import of strategies in the program.

You can buy any course right now from our site

Release notes 4/17/2023

2023-04-17T17:53:10Z

TWIME (v5.0.139):
Spectra. v6

Installer (v5.0.128):
ProductContentTypes2. Video, Support, Development, Account, Freelance made obsolete.

Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), Data and prices for finding the moving average

2022-12-18T10:27:06Z

Simple Moving Average (SMA)

💥Moving averages are one of the most commonly used technical indicators in trading. They are used to identify trends, support and resistance levels, and potential buy or sell signals. There are several types of moving averages, including the Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average (WMA). Each type of moving average has its own unique formula for calculating the average, and traders will often choose the type of moving average that best suits their trading strategy.

💥The Simple Moving Average (SMA) is the most basic type of moving average. It is calculated by taking the average of a set number of periods, with each period representing a specific time frame (such as daily or hourly). For example, a 10-day SMA would be calculated by adding up the closing prices of the last 10 days and dividing that number by 10. The SMA gives equal weight to each period, regardless of how recent or distant it is.

Exponential Moving Average (EMA)

💥The Exponential Moving Average (EMA) is similar to the SMA, but it gives more weight to recent prices. This is done by using a weighted average formula that puts more emphasis on the most recent periods. The EMA is considered to be more responsive to changes in price than the SMA, which can make it a better indicator of short-term trends. However, because the EMA gives more weight to recent periods, it can be more susceptible to false signals.

💥The Weighted Moving Average (WMA) is similar to the EMA, but it gives even more weight to recent prices. This is done by using a formula that multiplies each period by a predetermined weight factor. The most recent periods are given the highest weight, while the older periods are given progressively lower weights. The WMA is considered to be the most responsive of the three moving averages, but it can also be the most volatile.

Weighted Moving Average (WMA)

💥To calculate moving averages, traders use data and prices from the stock or index they are trading. This data can be collected over any period of time, but the most common periods are 10, 20, 50, and 200 days. Traders will often use multiple moving averages, each with a different period, to get a better picture of the trend. For example, a trader might use a 50-day SMA to identify the long-term trend and a 10-day EMA to identify short-term trends.

💥In conclusion, moving averages are an important tool for traders looking to identify trends and potential buy or sell signals. The three most common types of moving averages are the Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average (WMA). Each type has its own unique formula for calculating the average, and traders will often choose the type of moving average that best suits their trading strategy. To calculate moving averages, traders use data and prices from the stock or index they are trading, and will often use multiple moving averages with different periods to get a better picture of the trend.

How to using two moving averages for buy and sell signals as well as acting as support and resistance in Uptrend and Downtrend?

2022-12-13T17:23:34Z

💥Using two moving averages can provide more precise buy and sell signals as well as act as support and resistance levels in both uptrends and downtrends.

💥To use two moving averages for buy and sell signals, traders often use a shorter-term moving average and a longer-term moving average. The shorter-term moving average reacts more quickly to price changes, while the longer-term moving average reacts more slowly. When the shorter-term moving average crosses above the longer-term moving average, it is a bullish signal and may indicate a buy opportunity. Conversely, when the shorter-term moving average crosses below the longer-term moving average, it is a bearish signal and may indicate a sell opportunity.

💥In an uptrend, the longer-term moving average can act as a support level, while the shorter-term moving average can act as a resistance level. Traders can use these levels to enter and exit positions. For example, during an uptrend, if the price falls to the longer-term moving average and bounces back up, it can be a buying opportunity. On the other hand, if the price rises to the shorter-term moving average and fails to break above it, it can be a selling opportunity.

💥In a downtrend, the longer-term moving average can act as a resistance level, while the shorter-term moving average can act as a support level. Traders can also use these levels to enter and exit positions. For example, during a downtrend, if the price rises to the longer-term moving average and fails to break above it, it can be a selling opportunity. On the other hand, if the price falls to the shorter-term moving average and bounces back up, it can be a buying opportunity.

💥It is important to note that using moving averages alone may not always provide accurate signals, and traders should always consider other technical indicators, as well as fundamental and market factors, when making trading decisions.

(Double Moving Average Crossover)

💥The Moving Average (MA), also known as the moving average line, appears as a line that moves according to the price of a stock or index. This is caused by calculating the average of the stock price or market index using historical data, based on a user-specified period. It is an easy-to-use tool (indicator) that is popular among investors for finding trading opportunities (support and resistance) and identifying trends. Over time, the moving average has developed into various types, including the Double Moving Average Crossover.

💥Sometimes, prices may experience false fluctuations caused by abnormal events or excessive adjustments, which can result in moving averages giving false signals. This is especially true when using a low number of days to calculate the average since it can be easily affected by small movements, making it prone to errors. One commonly used method to avoid this is to use moving averages calculated on a small number of days to smooth out the average, and then use another moving average calculated from a larger number of days as a signal. This helps to reduce the false signals caused by irregularities and smooth out normal price fluctuations. However, this method can give slower signals because the moving average moves slower than the price.

💥Reading signals from two moving averages is similar to using a single moving average. If the short-term moving average crosses down the long-term average, it is a sell signal, while if the short-term average crosses over the long-term average, it is a buy signal.

💥In addition, the moving average can act as both support and resistance. During an uptrend, the price will be above the moving average, making the moving average act as support. If the price changes direction and falls below the support moving average, it indicates a trend change (downtrend). The moving average then becomes resistance when it returns above the price line.

What is a moving average? What signals are there to buy and sell in an uptrend and a downtrend in market?

2022-12-10T17:07:46Z

💥A moving average is a commonly used technical indicator in financial market analysis that helps to smooth out price data by creating a constantly updated average price over a certain period of time. The moving average is calculated by adding up the prices of the security or asset being analyzed over a certain period of time and then dividing by the number of prices in that period. As new prices are added, the oldest price is dropped, and the average is recalculated, resulting in a moving average line on the chart.

💥Moving averages can be used to identify the direction and strength of a trend. In an uptrend, when the price is above the moving average, it is a bullish signal, and traders may look for buying opportunities. Conversely, in a downtrend, when the price is below the moving average, it is a bearish signal, and traders may look for selling opportunities.

💥The most common types of moving averages are the simple moving average (SMA), which calculates the average price over a specific number of periods, and the exponential moving average (EMA), which gives more weight to the most recent prices. Traders can choose the period length and type of moving average that best suits their trading strategy and time frame.

💥A moving average is a smoothing tool used for tracking price trends that are almost over or about to enter a new trend. Its main purpose is to help remove anomalies from price information, such as sudden price rises or drops that may not have a specific reason behind them. By averaging out these prices, the moving average line becomes smoother.

💥During an uptrend, prices tend to rise, causing the moving average line to move higher. However, because the moving average is calculated using past data, it will always be lower than the current price. This is because the previous day's price is lower than today's, as per the definition of an uptrend.

💥In a downtrend, the price falls, but the moving average falls more slowly due to its weighted average nature. Once the price falls below the moving average, it confirms the trend change from an uptrend to a downtrend.

💥Buy signals occur when the price crosses its moving average from bottom to top or when the shorter moving average crosses the longer moving average from bottom to top. Sell signals, on the other hand, occur when the price crosses its moving average from above to below or when the shorter moving average crosses the longer moving average from top to bottom.

Trend line drawing Price Targets and Technical Analysis that traders should know in the diagram Point-and-Figure

2022-12-05T19:41:23Z

💥The Point-and-Figure diagram is a popular tool among technical analysts and traders for charting price movements in financial markets. It is a type of chart that uses X's and O's to represent upward and downward price movements, respectively, and is widely used for identifying trends and patterns.

💥One of the key techniques that traders use in Point-and-Figure charting is drawing trend lines to identify support and resistance levels. A trend line is a straight line that connects two or more points on a chart and can help traders identify the direction of a trend and potential price targets.

💥To draw a trend line in Point-and-Figure charting, traders must first identify two or more significant highs or lows on the chart. These points are then connected using a straight line, with the line being extended to the right to identify potential price targets.

💥When drawing a trend line, it is important to ensure that it is not drawn too steeply or too shallowly. A steep trend line may not provide reliable support or resistance levels, while a shallow trend line may not accurately reflect the direction of the trend.

💥Traders can use trend lines in Point-and-Figure charting to identify potential price targets. When a trend line is broken, it can be an indication that the trend is reversing and that a new price target may be emerging. Traders may use other technical analysis tools, such as moving averages or momentum indicators, to confirm the trend and identify potential entry and exit points.

💥In addition to trend lines, traders can also use other technical analysis techniques in Point-and-Figure charting to identify potential price targets. These include identifying patterns such as double tops or bottoms, triple tops or bottoms, and bullish or bearish flags.

💥Double tops or bottoms occur when two consecutive columns of X's or O's reach the same level and fail to break above or below it. This can be an indication of a potential trend reversal and may be used by traders to identify potential price targets.

💥Triple tops or bottoms occur when three consecutive columns of X's or O's reach the same level and fail to break above or below it. This can be an even stronger indication of a potential trend reversal and may provide traders with more reliable price targets.

💥Bullish or bearish flags occur when there is a sharp price movement followed by a period of consolidation. These patterns can be used by traders to identify potential price targets once the price breaks out of the consolidation phase.

💥💥Drawing trend lines and identifying potential price targets is an essential part of technical analysis in Point-and-Figure charting. Traders should use a combination of tools and techniques, including trend lines and pattern recognition, to identify potential entry and exit points and manage their risk. While no single technique can guarantee success, combining multiple techniques can increase the likelihood of making informed trading decisions.

👉Trend Lines👈

💥In addition to the above, trend lines at a 45-degree angle are also introduced in point-and-figure charting to help determine the current trend. These lines can be used as filters in providing trading signals. Here's how to draw them:

💥In an uptrend, the trend line is called the bullish support line and is drawn at a 45-degree angle up to the right. Start from the square below the end of the O symbol and move down one square, as shown in the example picture. As long as the price stays above that line, the trend is still considered bullish.

💥Conversely, in a downtrend, the trend line is called the bearish resistance line and is drawn at a 45-degree angle down to the right. Start from the box that is above the top of the X symbol and move up one box, as shown in the example picture. As long as the price is below the downtrend line, the trend is still considered bearish.

👉Price Targets👈

💥Although the above studies have led traders to various buying or selling signals, a trader may wonder where the buy or sell signal is, and where to enter or exit to make a profit before the trend changes. One method that can be used to solve such problems is to set price objectives, which can be done in two ways:

1. Horizontal count: The basic principle behind this method is that the time interval a stock takes to consolidate is important in determining its potential move. Therefore, the spread width is used to forecast price levels for an upward or downward movement. To adapt to the test, the formula for finding price targets in the event of a rising price is:
Hu = PL + (W X RV)

Where:

Hu = target price level
PL = the lowest price (from the O symbol) used as the basis for the calculation
W = the number of columns used as the basis for the calculation
RV = reversal value = (box size X the number of boxes)

The price level used as a base must be clearly identified. The column count or W value excludes the breakout column. RV is the minimum reversal.

The formula used to find the target in the event of a declining price is:

Hd = PH - (W X RV)

Where:

Hd = target price level
PH = the highest price (from the X symbol) used as the basis for the calculation
W = number of columns used as a basis for the calculation
RV = reversal value

2. Vertical count: This method is simpler than the first method. The formula used to find price targets for an upward movement is:
Vup = minimum base price + (number of boxes in the first reversal X RV)

The formula used to find price targets for a downward movement is:

Vdown = highest base price - (number of boxes at first reversal X RV)

💥With the principles mentioned above, whether it's about creating a diagram or the form that will give a buy or sell signal, this technical analysis tool called Point and Figure charting should provide beginner traders with the right methods and strategies to reduce risk before entering the market to trade seriously.