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Recent Strength indicator

  • #421
  • Dec 26, 2011 9:27am Dec 26, 2011 9:27am
Quoting hanover
Mat,

Sorry about the belated reply, I am having internet problems.

This should be a once only process. However, if you shut down MT4 for a long time (several days, weeks), then it will likely take several minutes, when you next restart it, to 'catch up' while the RS indicator collects the data that occurred during the timeout. The more currencies and timeframes the indicator is plotting, the longer the process. If you find it taking hours rather than minutes, then it might be better to exit/restart MT4 and perform the manual cycling process again.

The...
Hi David

Merry Xmas too.

Yes I thought that was the case just wanted to check.

I think I am getting the hang of your indicator

You mentioned before that you are most interested in the slope of the last two data points to give you the relationship of strength/weakness. Does that mean form the current forming data points or the last two fully completed data points? (In my case the last two fully completed days). The current forming day is always fluxing around as it receives new data.

I only trade daily charts so would it be a viable solution to look at just the daily and weekly recent strengths to give me the momentum, is there a need to look at any lower? The weekly strength/weakness confirmed with the daily strength/weakness of course with the right signal and the right area should provide for a good entry.

When I first started to use your indicator I had them all up on my screen but it became quite confusing, especially the lower time frames.

Regards, Mat
  • #422
  • Dec 26, 2011 2:15pm Dec 26, 2011 2:15pm
Quoting a_angmoh
Hi David

Merry Xmas too.

Yes I thought that was the case just wanted to check.

I think I am getting the hang of your indicator

You mentioned before that you are most interested in the slope of the last two data points to give you the relationship of strength/weakness. Does that mean form the current forming data points or the last two fully completed data points? (In my case the last two fully completed days). The current forming day is always fluxing around as it receives new data.

I only trade daily charts so would...
Hi Mat,

I don't use the strength indy to provide signals. Instead, I simply look at the D1/W1 plots to give me an idea as to which currencies are strong, and which are weak. Pairing the strongest against the weakest ensures that I trade pairs which have recently been exhibiting the strongest, cleanest trends. I don't use the slope of the last 2 points, just the slope over the last few data points to give me a rough idea as to which pairs to trade. It is a discretionary process.

All of my entries are based around basic VSA, and support and resistance confluences, on predominantly the M15 timeframe. If the D1/W1 trend is up, then I'm looking to try to find potential intraday (session) lows as buy points (i.e. buying on dips), with tight stoplosses. Then if the uptrend resumes, I can close out any positions opened over subsequent days/weeks, for high RR trades.

Vice versa for sells.

In the attached screenshot, AUD (green) and NZD (blue) are rising, and USD (white) and JPY (purple) are falling, most obviously in the D1 plot. What's especially significant - and very unusual - is that EUR (salmon pink) and CHF (yellow) are falling along with USD and JPY. Hence I would be looking to buy AUDUSD rather than EURUSD, for example. CAD (brown) is also strong, hence selling USDCAD is another possibility. Next I would go to the D1 charts of these pairs to confirm the trends, wait for trend continuation candles, and then finally down to the M15 to time my entries.

However, this is just one possible way to use the indy. There are many other ways. If you have a look at other strength indy threads, you'll find traders using intraday plots as possible signal generators. Each to their own.

Keep in mind that the plots are nothing more than weighted moving averages of all of the pairs that contribute to each individual line, e.g. if you took all of the GBP-based pairs (GBPUSD, GBPJPY, etc) and averaged them, the result is the GBP (red) strength line. Being derived from the constituent pairs, the strength lines will fluctuate exactly as the price of each pair fluctuates. Hence the strength indy is no more leading or lagging than price itself. In the same way, looking at all of the different stringth plots (different timeframes), in the hope of establishing an overall direction, will likely confuse you - as you have said - just as looking at all of the different timeframes of any one pair would be equally confusing.

If you're using daily charts to time your entries, then it would make sense that shorter timeframe plots of the indy are irrelevant. Same logic applies, i.e. just as the price movement on the lower TFs of a pair would likewise be irrelevant.

David
Attached Image (click to enlarge)
Click to Enlarge Name: 2011-12-27_0911.png Size: 78 KB
  • #423
  • Dec 26, 2011 8:39pm Dec 26, 2011 8:39pm
Thanks very much for this very informative post. I would be most grateful if you could post a link to the above post in post1, page1. None knows this indicator better than you (since you created it) and IMHO how you use it is the best possible use of the recent strength. I notice you mentioned VSA as well. I tried learning VSA but found it too complex and needing more time devoted to it than I could spare. I wonder if you have a good resource for learning VSA.

Kind regards
  • #424
  • Dec 27, 2011 1:11am Dec 27, 2011 1:11am
Quoting hanover
Hi Mat,

I don't use the strength indy to provide signals. Instead, I simply look at the D1/W1 plots to give me an idea as to which currencies are strong, and which are weak. Pairing the strongest against the weakest ensures that I trade pairs which have recently been exhibiting the strongest, cleanest trends. I don't use the slope of the last 2 points, just the slope over the last few data points to give me a rough idea as to which pairs to trade. It is a discretionary process.
Hi David

Ok that's great! I have been using it exactly as you've just explained. Not for a signal but for the correct pairs before I look for the signal or to confirm a signal I have already seen. Thanks for such a great explaination and indicator.

Regards, Mat
  • #425
  • Jan 20, 2012 3:21am Jan 20, 2012 3:21am
CSM (for more info, see post #398) now has the capability to output values to a CSV file. Set the OutputFilename parameter to the name of the file. It will be created/overwritten in the ..../experts/files folder, every time the indy refreshes itself (RefreshEveryXMins setting). If you set OutputFilename to blank, then no output will occur. The matrix-like output format of the file should be self-explanatory; here's a sample:

Inserted Code
[font="Courier New"]TF , AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD
M1 , 2.6, 7.6, 0.0, 1.9, 5.3, 6.7, 6.0, 6.0
M5 , 6.3, 4.6, 4.4, 5.9, 6.1, 2.4, 3.6, 2.4
M15, 6.3, 4.6, 4.4, 5.9, 6.1, 2.4, 3.6, 2.4
M30, 4.9, 6.4, 7.0, 6.6, 2.4, 3.0, 5.8, 1.6
H1 , 4.9, 6.4, 7.0, 6.6, 2.4, 3.0, 5.8, 1.6
H4 , 3.3, 5.4, 4.0, 2.9, 4.1, 6.4, 4.0, 5.9
D1 , 4.3, 4.2, 3.8, 3.0, 4.9, 5.7, 3.4, 6.1
W1 , 4.1, 3.6, 7.2, 6.6, 5.9, 2.1, 3.4, 3.3
MN , 5.6, 4.6, 6.8, 5.0, 3.6, 2.0, 6.4, 3.3
[/font]

Note: while the file is being written to, it is locked by MT4. You'll likely need to wait for it to unlock, before you can import the values to another app that also locks the file, e.g. Excel. If you want a solution, please contact either MetaQuotes or Bill Gates.

David
Attached File(s)
File Type: mq4 CSM.mq4   101 KB | 2,128 downloads
  • #426
  • Jan 25, 2012 11:20pm Jan 25, 2012 11:20pm
The calculation is based on that provided in the XLS provided by Giraia in post #54. In posts #54 and #56 I converted the XLS directly into a MT4 indy.

The original formula worked only on the D1 TF, and the currently forming candle. It checked where price currently was, in terms of the candle high and low, expressed as a percentage. For example, if price was currently at the high, the value returned was 100%; at the low, 0%; three quarters of the way up the candle, 75%; and so forth.

Then it converted this into a value between 0 and 9, thus:
Above 97%, value = 9
Between 90% and 97%, value = 8
Between 75% and 90%, value = 7
Between 60% and 75%, value = 6
Between 50% and 60%, value = 5
Between 40% and 50%, value = 4
Between 25% and 40%, value = 3
Between 10% and 25%, value = 2
Between 3% and 10%, value = 1
Less than 3%, value = 0

It processed all of the candles for each currency pair. Let’s say the pair currently being processed is USDCHF, and price is currently 64% of the way up the candle. Then it would assign a value of 6 for USD, and 9 minus 6 = 3 for CHF. Then it would repeat the same for all currency pairs (as specified in CurrencyPairs), average the results for each currency (not pair), and plot the values.

CSM extends this concept in three different ways:

1. You can specify NumberOfCandles. If set to 1, then this would work as the Giraia indy did, i.e. operate on the currently forming candle. If set to 2, it includes both the currently forming candle, and also the one immediately to the left; and so on. It uses the highest and lowest points across the 2 candle interval as 100% and 0%, respectively. Hence the value reflects where price currently is, relative to the highest and lowest point of the last n candles, where n is the NumberOfCandles setting.

2. The above assumes that ApplySmoothing = false. Setting this to true means that the entire process will be repeated, over the last NumberOfCandles candles, and the result averaged. For example, suppose NumberOfCandles is set to 4. Then if ApplySmoothing = true, the entire calculation (as explained previously) is run for each of NumberOfCandles = 1, 2, 3 and 4, and the four results averaged. This effectively means that, if ApplySmoothing = true, there is a higher weighting applied to the most recent candles. If set to false, it is simply where price is, relative to the high and low of the last n candles.

3. Instead of being restricted to the D1 TF, separate plots may be generated depending on the user’s choice of TimeFrames. Each TF is calculated completely independently of the others.

For an explanation of how the other parameters operate, see post #398.

David
  • #427
  • Jan 29, 2012 2:53pm Jan 29, 2012 2:53pm
Excuse my question: I have set up TIB as an EA and choose Hanover "true", I have also set up Hanover and let both run. How do I know, that they interact, that Hanover is doing his thing?
  • #428
  • Edited 5:00pm Jan 29, 2012 4:38pm | Edited 5:00pm
Quoting Michael PB
Excuse my question: I have set up TIB as an EA and choose Hanover "true", I have also set up Hanover and let both run. How do I know, that they interact, that Hanover is doing his thing?
Michael,

Steve Hopwood is the programmer behind the hanover EA. I've never heard of TIB, perhaps it is one of Steve's EAs also?

The hanover EA uses an output file generated by the Recent Strength (RS) indy, that I wrote (see post #1 of this thread). I can show you how to set up and use the RS indy, how to get it to export data to a file that can be read by an EA, and also the code needed in the EA to read this data (all explained in this post, and its links). But that is as far as my knowledge extends. You would need to ask Steve how he uses this info to generate signals in the hanover EA, and/or how he has implemented any hanover filtering (i.e. to presumably determine which pairs to trade) into any of his other EAs. You should also be able to find info on the hanover EA in this thread (I see there is a PDF attached to post #1). This might seem ironic, but I don't use the hanover EA myself.

I don't think Steve posts here on FF any more. You could try contacting him via the PM or e-mail links on his profile page. In the second comment from the top of the 'Comments' section, there's a link to a website that you could try, also.

Sorry that I can't be of more help.

David
  • #429
  • Jan 29, 2012 6:12pm Jan 29, 2012 6:12pm
Quoting hanover
Michael,

Steve Hopwood is the programmer behind the hanover EA. I've never heard of TIB, perhaps it is one of Steve's EAs also?
Yes, based on NB 10.1 http://www.stevehopwoodforex.com/php...php?f=24&t=128 quite promising actually.

David, great help. I will go the way you discribe, just need some sleep now. Thanks Michael
  • #430
  • Feb 1, 2012 7:35pm Feb 1, 2012 7:35pm
Quoting hanover
Hi,


Welcome to the forum.

The CSM was originally a XLS spreadsheet that used only the D1 timeframe. I converted it to MT4 as the 'Currency Strength - Giraia' indicator (see posts #51 thru #57), and then, when I had a few spare moments, turned it into a histogram, and added a multi-TF facility.

The problem with a histogram is that it's capable of showing only one discrete value, whereas a line shows a continuous stream of values. Hence I don't know how to address your request, without plotting some kind of line....... which brings us back to...
Hi David,

sorry for the late reply. I was a bit unprecise, so I try to say it in different words:

My idea is, if it would be possible to make the appearance of the "CSM"-indicator like your "Recent Strength"-indicator so it wouldn´t be anymore a histogram but a line. Now some will ask what is then the difference between the "Recent Strength" and the "CSM"-indicator?
Well, the CSM is calculated like a Stochastic Oscillator, the Recent Strength shows the recent, normalized prices (?). My point is that to use an oscillator efficiently, one need to see the past values and this is not possible with a histogram.

For example, if the histogram shows a level of "7", one do not know, if it came from an upper level like "9" (which would indicate a possible short opportunity) or if it came from a bottom level like "3" (which would indicate a possible long opportunity).

Don´t get me wrong, I really like your idea of applying an oscillator to show each currencies strength - this could just be an useful modification...
  • #431
  • Feb 9, 2012 3:58pm Feb 9, 2012 3:58pm
Quoting hanover
Pedma,

Yes, those are the correct folders, but you need to use the code from test1.mq4 in your EA, if you want the EA to automatically load the RSvalue array from the file Output---Recent Strength.csv. Then you can use the RSvalue values directly in calculating your buy/sell/close etc signals.

OK, to summarize --- here is the process, step by step (see also the flow diagram attached below):

1. Download Build Strength Preset File.mq4 script from post #1...
Perhaps it's in your description and I do not get it. Let me explain.
My Setting:
one Windows 7 vps, multiple MT4 platforms of the same broker, each with a different (SteveHopwood) EA loading RSvalue arrays.
Problem:
I wonder, whether I can set up the RSI with only one "Output---Recent Strength.csv" file for all platforms on only one MT4 platform.
Questions:
1. How do I have to configure the "test1.mq4" file?
2. My EA defines:
extern string OutputFile = "Output---Recent Strength.CSV";
How do I have to change this to tell the EA of the other platforms, where the Output file is located?
3. Is there anything else I have to consider?

Thanks for your help.
  • #432
  • Feb 11, 2012 7:40am Feb 11, 2012 7:40am
Quoting Michael PB
Perhaps it's in your description and I do not get it. Let me explain.
My Setting:
one Windows 7 vps, multiple MT4 platforms of the same broker, each with a different (SteveHopwood) EA loading RSvalue arrays.
Problem:
I wonder, whether I can set up the RSI with only one "Output---Recent Strength.csv" file for all platforms on only one MT4 platform.
Questions:
1. How do I have to configure the "test1.mq4" file?
2. My EA defines:
extern string OutputFile = "Output---Recent Strength.CSV";
How do I...
I think I found a solution at
http://www.forexfactory.com/showthre...74#post5075774
where you use "watch and copy" to copy the output file to all other platforms.
  • #433
  • Feb 11, 2012 2:11pm Feb 11, 2012 2:11pm
Quoting Strategy_xy
Hi David,

sorry for the late reply. I was a bit unprecise, so I try to say it in different words:

My idea is, if it would be possible to make the appearance of the "CSM"-indicator like your "Recent Strength"-indicator so it wouldn´t be anymore a histogram but a line. Now some will ask what is then the difference between the "Recent Strength" and the "CSM"-indicator?
Well, the CSM is calculated like a Stochastic Oscillator, the Recent Strength shows the recent, normalized prices (?). My point is that to use an oscillator efficiently,...
Hi,

I see your point, but it's not necessarily a trivial programming task, and I have a lot of other work on at the moment. The source code for CSM is available if any other programmer wants to tackle it.

David
  • #434
  • Feb 11, 2012 2:22pm Feb 11, 2012 2:22pm
Quoting Michael PB
I think I found a solution at
http://www.forexfactory.com/showthre...74#post5075774
where you use "watch and copy" to copy the output file to all other platforms.
Michael,

Unless you want to get into more complex Windows API programming (more info here and here), the MQL4 programming language is capable of writing data to files only to its own 'local' ..../experts/files folder.

As far as I know, 'Watch and Copy' is capable of copying the (changed) Output---Recent Strength.csv file to other folders. So yes, that is a good solution. Then you would have a different SteveHopwood EA running in each MT4 installation, to read this file (the test1.mq4 code can be used for this), and then making its trading decisions based on the values in the RSvalue[] array.

Hope that makes sense.

David
  • #435
  • Feb 22, 2012 12:37pm Feb 22, 2012 12:37pm
Dear David,

I have an issue while trying to use The Recent Strenght Indi,

As you can see below almost all of my pairs have *.stp extension except of EURUSD and only this one pair is taken into indi calculations.

Would you please advise if there is any chance to me to show all pairs with this extension?

thank you
Attached Image (click to enlarge)
Click to Enlarge Name: stp.jpg Size: 101 KB
“The harder you work, the harder it is to surrender.” - Vincent Lombardi
  • #436
  • Feb 22, 2012 11:29pm Feb 22, 2012 11:29pm
Quoting Jacob-
Dear David,

I have an issue while trying to use The Recent Strenght Indi,

As you can see below almost all of my pairs have *.stp extension except of EURUSD and only this one pair is taken into indi calculations.

Would you please advise if there is any chance to me to show all pairs with this extension?

thank you
Jacob,

If you post a list ALL of the pairs supplied by your br0ker (the scroll bars in your screenshot suggest that there may be more than those that are visible), then I will create and post a suitable parameter file for you.

David
  • #437
  • Feb 23, 2012 10:44am Feb 23, 2012 10:44am
Quoting hanover
Jacob,

If you post a list ALL of the pairs supplied by your br0ker (the scroll bars in your screenshot suggest that there may be more than those that are visible), then I will create and post a suitable parameter file for you.

David
Please see below David,

Thanks for help.
Attached Image (click to enlarge)
Click to Enlarge Name: stpall.jpg Size: 74 KB
“The harder you work, the harder it is to surrender.” - Vincent Lombardi
  • #438
  • Feb 24, 2012 1:46am Feb 24, 2012 1:46am
Quoting Jacob-
Please see below David,

Thanks for help.
Jacob,

Unzip the content of the attached file into your ..../experts/files folder. [NOTE: If you're running Win7 or Vista, it's possible that Windows might not allow you to unzip the file content there. If that happens, I'm sorry, but I can't help you any further.]

Then attach the RS indy to your chart, and set ParameterFile to PK

Your chart should gradually fill up with data, causing the plots to slowly appear. On some systems, this once-only setup process can take up to 30 minutes.

David
Attached File(s)
File Type: zip PK.zip   < 1 KB | 1,266 downloads
  • #439
  • Feb 24, 2012 11:48am Feb 24, 2012 11:48am
[quote=hanover;5415716]Jacob,

Thanks David,

Please see my settings below, unfortunately it doesn't work.
Attached Image (click to enlarge)
Click to Enlarge Name: pk set.jpg Size: 79 KB
“The harder you work, the harder it is to surrender.” - Vincent Lombardi
  • #440
  • Feb 24, 2012 2:23pm Feb 24, 2012 2:23pm
Quoting Jacob-

Thanks David,

Please see my settings below, unfortunately it doesn't work.
I am sorry, I don't know how to help. If you're running Win7 or Vista, I can't even attempt to reproduce the problem. All I can say is that it works fine on my computer, which is Win XP, on br0kers GoMarkets and Pepperstone. I've also had the indy work successfully on another br0ker (I think it was IBFX?) who used unconventional currency symbols, e.g. EURUSDmini instead of EURUSD. All I did was change the parameter file to list the component currencies for EUR as EURUSDmini, EURGBPmini, etc

All I can suggest is that you search the forum for another strength indy.

David
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