Hi,
I've been really successful incorporating a center of gravity indicator into my trading style, however the only company that I can find that has this indicator is intellicharts, which is great and I love it but I was just wondering if there are any other charting platforms that have this indicator built into it's platform? Any help would be appreciated
Hi,
I've been really successful incorporating a center of gravity indicator into my trading style, however the only company that I can find that has this indicator is intellicharts, which is great and I love it but I was just wondering if there are any other charting platforms that have this indicator built into it's platform? Any help would be appreciated
I can't open those attachements that you put up. I just set up charts on metatrader but coudln't find the gravity? In my intellicharts it looks like this:
CoG1
CoG2
I played with this and came up with a trade and warning system based on the COG (center of gravity). The instructions are a simple 5 step formula on the bottom of the screen. If you follow it on any currency and 5M or higher time frame it looks very successful. You dont take every arrow or warning but if you follow the COG trend you should do well. I made some color adjustments to the COG and based it on a 12x12 MA warning system. Put the COG and 12x12 Cross MA warning into your indicator folder and the 1. center of gravity in the templates folder. To do that, turn off your MT4, click on My computer, click on local disk C,click on program files, click on your MT4 folder, click on the template folder and place the template there (1. center of gravity), use the back button and go back one folder, click on experts, click on indicators and in this folder put COG and 12x12 Cross MA warning indicators, close the screen. Turn your MT4 on, go to any currency, go to templates and click on 1. center of gravity and it is ready to go. It will play a sound and post a warning to your screen every time a possible setup is ready.
This is a 15M chf/jpy, COG is trending down so you do not take any green arrows. The first red arrow is your best trade, the second the histogram is too low. 3rd red arrow looks good for a trade because the histogram is close to the 0 line. The green arrows are ignored, DO NOT TRADE AGAINST THE TREND EVER.
The blue and yellow lines act as trend lines so you can use trendline analysis for your trades also. Your trade is safe as long as they are below the two MA lines on a sell and above on a buy. If you like scalping use the 5M, if you like day trading 15M or 30M should do. If you like longer trend, multiday trades use the 4H, 1D on up.
The last pic was a 15 M chf/jpy. This one is a GBP/USD 30M The warning system works on any time frame and currency pair. Switching TF will give you different looks and will also set off the alarm, so choose a TF you like and stick with it. You can turn off your sound system or the sound alert if you get tired of the dings when you are in your trades.
To take a trade, the COG is going down so you dont take any green arrows. The two reds in the upper left would be good because you are near the green line COG is trending down. The third red arrow would not be good because the histogram is too high and it is below the white line. The fourth red arrow could be good because the histogram is near the 0 line and it retraced above the white line. If the downtrend continues this could be a good entrance point. The fifth one and the sixth ones would be better but may not yield that many points. Obviously the first two are the best and #6 looks good but you would be cautious because price maybe changing directions. If price stays below the blue line give it a tight stop above the line and sell. Check multiple currencies and take the best trade. Also check your 1H, 4h charts to get the best trend direction.
The last pic was a 15 M chf/jpy..... #6 looks good but you would be cautious because price maybe changing directions. If price stays below the blue line give it a tight stop above the line and sell. Check multiple currencies and take the best trade. Also check your 1H, 4h charts to get the best trend direction.
With the arrow alerts, isn't it true that you will need to wait the next candle to form since an arrow may disappear dependent upon the current candle being completed?
How can you tell that #6 may be changing directions?
How can you tell that #6 may be changing directions?
When highs get higher than the previous highs and the lows are getting higher than the previous lows that is a sign of a direction change. However, this is a Friday pic and the run up could be just profit taking at the end of the week. Monday will tell. So if the price stays below the blue and yellow lines and they cross you have another great entry point.
[quote=et_phonehome_2;2056187]With the arrow alerts, isn't it true that you will need to wait the next candle to form since an arrow may disappear dependent upon the current candle being completed?
The candle has already closed and the MAs have crossed so it wont disappear. If price goes up there would be a new cross and hence a new arrow. The arrows are based on an open and a close of the MA so the arrow cannot be made until the candle is done. Once it is done and the lines have crossed the arrow is then posted. If price goes above and there is a new cross there would then be a new arrow, the old one does not disappear.
In trendline analysis, when price breaks below the trendline (blue, yellow form a rough trend line) you have an example of a trend change.The highs and lows are now below the lines. I have an arrow, I have a MA cross, I am coming out of an overbought area (near the green line) and the Histogram is approaching the 0 line, the COG is heading down on this chart. On a 4H chart I bounced off a resistance line and it has broken a support line. This is more than enough evidence to go with a sell. Trading is getting the odds in your favor and pulling the trigger. With this system your risk is small because if price goes above the lines again (continues the new uptrend) you are out with a small loss. If not you ride the trend.
On the 30M chart GBP/USD at the end of the chart, you can see price has hit near the overbought (green line), is below the blue, yellow line. I have a red arrow and it is near 0 on the histogram. If I place a trade right now for a sell, I could put my stop loss at the top of the red arrow (13 pips away) and go for the ride. If the downtrend continues and it doesnt break the trendline, I get to ride the downtrend some more, if not, my loss is small and I wait for the next entrance point. That is an example of a potential successful trade. However, it is Friday night and I know not to trade at his time. If the setup is still there by the euro open Monday then I would take that trade. But it does show a good setup trade if this was during the week.
I played with this and came up with a trade and warning system based on the COG (center of gravity).......
Bob, I realize that your post is around 2 months old, hence you might not read this. But I just wanted to say that I think youy've got a sound method for entering trend pullbacks here:
1. Slope of the white line = direction and strength of major (prevailing) trend.
2. Pullback to green lines indicates short term overbought/oversoldness.
3. Entry at arrow when major trend is looking to resume itself, while histogram near zero line confirms loss of momentum in the pullback.
I've used Bollingers (and/or MTF Stochastics) in an attempt to produce something similar, but the CoG appears to create a much clearer picture of trend, and OB/OS-ness. All of these approaches are variations on Dr Alex Elder's triple screen entry method. We could change the timing (earlier, later) of the entry signals (arrows) by using shorter or longer moving averages, respectively.
I also note that, as a bonus, changes in slope of in the white line denote acceleration/deceleration of the major trend, and that the distance between the green and white lines convey changes in volatility.
Many thanks for sharing,
David
[Edit - Footnote] Just one point - I don't think it's possible to visually back-test this method, since the CoG is a rolling 125-candle window, i.e. the curve shape X bars back on the current chart wouldn't have been the same X periods ago in real-time.
Last edited by hanover, Aug 15, 2008 9:00pm
Reason: added footnote
Center of Gravity?
Center of Gravity?
ET!
what has this thread to do with broker discussion????
