TradiKator 01 MA
Q1.Why Moving Average ?
As LEI & LoneCapital explained moving average is indicating market capitalized cost moving. If you are a trend following trader, you should participate in upside while sidestepping downside. You need a indicator that help you to make money while prices are rising, then exit when they are falling.
A classical approach is the moving average strategy.
Nevertheless as efficient-market hypothesis (EMH) states that asset prices will reflect all available information.
The smart trader should focus on price moving i.s.o. reading all available information which is not practical.
Q2.What is Moving Average ?
As the name implies, the moving average is an average of a price's movement over time.
The simple moving average (SMA) is a just simple average over time.
The exponential moving average (EMA) on the other hand gives greater weight to more recent price action.
Q3.What are the Period Moving Average based on ?
The default Moving Average Period setting are based on LEI & LoneCapital defined Short term 20 (days in month), Mid term 60 (days in quarter), Long term 120 (days in half year).
We use 3 colors to represent these 3 periods.
Black as Short term , Red as Mid term , Blue as Long term
You will see same color scheme in our indicators.
Of cause you can change the default setting to switch to your favorite Moving Average Period. How to do it is listed in setting.
Function and Setting
MA period setting
"Adjust All MA Period"
Users can increase or decrease all 3 period in the same time. For example, input "-1" , you will have 3 periods as "19","59","119"
"Fix the M_MA=3*S_MA,L_MA = 6*S_MA (overwrite below 2 settings)"
It will fix the Mid period as 3 times of short, Long period as 6 times of short. Meanwhile the separated setting for Mid and long will be ignored.
"3 period separated settings"
Please disable the "fix ..." setting for individual 3 periods
Allow user switch used source from "close" to any other data source like"hl2","hlc3" and etc.
Deduction price Setting
"Show deduction price label ( Pls disable the angle)"
Will show 3 deduction price. Please disable the "Show Angle ..." before enable this switch.
"Arrow on Slope (Deduction vs Today Which is higher)"
Will show 3 arrows aim to the higher price between Deduction and Today.
Also the dashed slope line will change to solid line. It helps when Deduction is very close to Today
Angle for slope line --> Killer feature
"Show Angle ..."
As LEI & LoneCapital explained current trend can be described as "o'clock direction wise". By measuring current trend's "angle" we can has a fuzzy image about current trend.
Note: In fact there is real 12 o'clock or 90 degree, therefore we define our "90 degree" and all called value of "angle" is based on our defined metric.
Also everyone has different opinion about the start point of current trend.
We choose the 3 MA periods as the start point to measure the angles.
There are 3 mod prepared for the angle measure metrology.
Abs % --> "90 deg" = increase 100% in 20 days.
It is the most robust mod.
1Y rel % --> "90 deg" = increase 50% of 1Y Absolute price range in 20 days
It can't be used in case of minus price.(like CL future in 2020 Mar)
1Y rel log --> "90 deg" = increase 50% of 1Y log scaled price range in 20 days.
Also it can't be used in case of minus price.
Deduction price trail and Background color
"Show Deduction price trail"
Enable it to show the 3 Deduction prices' trail.
"Show trail in the coming days"
Enable : the prices' trail is showed in the coming days.
Disable : the prices' trail is showed on the MA period historical days.
"MA long term Trend Background Color"
Similar to the "fill EMA with color", fill the Background with color which represent the EMA trend.
High volume and Show gap
"High volume label"
Highlight the high volume with label.
We define the volume which is higher than percentile value of 3 MA historical volume statistical metrics.
So the black label means this volume is higher than 97 percentile value of 20 days' volume Red 60 days and Blue 120 days.
The percentile can be set by user. Also the MA period can be adjusted by user.
"Show gap"
Highlight the gap between close and next day open.
Note: We don't measure whether the gap is closed or not.
Forecast SMA --> Killer feature
As you noticed the dashed line after today, it is our killer feature: forecast SMA.
Green Dashed line: The close price according to the assumption user input.
3 colors' Dashed lines: The SMA based on the Green Dashed line's close price.
"Days to plot forecast SMA (Max=14, SwitchOff=0)"
Please decide how many days' SMA user would like to forecast.
"Mod1 Assumed chg ratio ‰ in the every days (10=1%)"
Mod1: User should give the change rate in the coming every days. For example, user's assumption is that price will increase 10% everyday.
"Mod2 Assumed chg % in the ?th day (1=1%)( Pls set Mod1 to 0)"
Mod2: User should give the change rate in the future ?th days. For example, user's assumption is that price will increase 30% in the 3rd day.
"Mod2 Need ? day to reach the chg % (tomorrow = 1 day)"
Mod2: User should give the future ?th days.
note: While using Mod2, user has to disable Mod1 by set Mod1 to 0 (default setting)
TradiKator is Traders' indicator.
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We also support Chinese.