This is not investment/trading advise. Will not hold accountable for loss
- #1
- First Post: Edited Aug 14, 2017 11:25pm Jun 15, 2017 3:20am | Edited Aug 14, 2017 11:25pm
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
- #3
- Edited 10:41am Jun 15, 2017 3:29am | Edited 10:41am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The soul of this indi is the ZIG-ZAG.
Without it, it's nothing.
So how does this Indi plot the zig-zag.
The zig-zag is based on oscilator indis or moving averages. There are several options you can choose in this indi.
You can select which music score you want to use in order to plot the zig-zag
1. MACD
2. Stochastic
3. Double_MA_Xover
4. Double_EMA_Xover
5. EMA_Price_Xover
So let say you select Double_MA_Xover of 5 and 10. 5 MA is the fast MA and 10 is the slow MA. Make sure you select the tempo to "Custom" as seen in the screenshot. In this example you input 5,10 into the tempo field as seen in the screenshot
Bullish crossover is whenever the fast MA is higher than the slow MA.
Bearish crossover is whenever the fast MA is lower than the slow MA.
so when ever there's a bullish crossover, the price will look for the lowest point between the previous crossover until the recent (new/fresh) crossover.
This logic is apply to the bearish crossover, but it will look for the highest point.
Correction to the screenshot -_-
Sorry
Without it, it's nothing.
So how does this Indi plot the zig-zag.
The zig-zag is based on oscilator indis or moving averages. There are several options you can choose in this indi.
You can select which music score you want to use in order to plot the zig-zag
1. MACD
2. Stochastic
3. Double_MA_Xover
4. Double_EMA_Xover
5. EMA_Price_Xover
So let say you select Double_MA_Xover of 5 and 10. 5 MA is the fast MA and 10 is the slow MA. Make sure you select the tempo to "Custom" as seen in the screenshot. In this example you input 5,10 into the tempo field as seen in the screenshot
Bullish crossover is whenever the fast MA is higher than the slow MA.
Bearish crossover is whenever the fast MA is lower than the slow MA.
so when ever there's a bullish crossover, the price will look for the lowest point between the previous crossover until the recent (new/fresh) crossover.
This logic is apply to the bearish crossover, but it will look for the highest point.
The soul of this indi is the ZIG-ZAG. Without it, it's nothing. So how does this Indi plot the zig-zag. The zig-zag is based on oscilator indis or moving averages. There are several options you can choose in this indi. You can select which music score you want to use in order to plot the zig-zag 1. MACD 2. Stochastic 3. Double_MA_Xover 4. Double_EMA_Xover 5. EMA_Price_Xover So let say you select Double_MA_Xover of 5 and 10. 5 MA is the fast MA and 10 is the slow MA. Make sure you select the tempo to "Custom" as seen in the screenshot. In this example...
Sorry
This is not investment/trading advise. Will not hold accountable for loss
- #4
- Edited 5:53am Jun 15, 2017 3:52am | Edited 5:53am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
Second component of this indi is the FIBEX or MOM (Momentum).
Each ZigZag point has 2 FibExes; top and bottom. In the screenshot below the FibEx is highlighted in black circle
This act as a fence of a particular move.
Let say the fibex is set to 1.382.
The market moved 10 pips to the upside. So the FibEx is 10*1.382 = 13.8 pips or 0.00138 pips.
So what does Fibex do?
Fibex is a great way to identify breakout. This is very important to master because market doesn't always trending. Most of the time it moves sideway. So therefore you need a tool that you can rely to identify a breakout.
Fibex is similar to bollinger band does. It has contraction and expansion. When there's expansion that mean the momentum is big. When there's contraction that mean the momentum is decrease.
When there's a contraction in FibEx, that mean there is no clear up/down trend. We could be in a reversal or a trend continuation. This is a great opportunity to take side.
I recommend to use 1.382, you can decrease or increase the FibEx to your own. Make sure it is set bigger than 1.
Each ZigZag point has 2 FibExes; top and bottom. In the screenshot below the FibEx is highlighted in black circle
This act as a fence of a particular move.
Let say the fibex is set to 1.382.
The market moved 10 pips to the upside. So the FibEx is 10*1.382 = 13.8 pips or 0.00138 pips.
So what does Fibex do?
Fibex is a great way to identify breakout. This is very important to master because market doesn't always trending. Most of the time it moves sideway. So therefore you need a tool that you can rely to identify a breakout.
Fibex is similar to bollinger band does. It has contraction and expansion. When there's expansion that mean the momentum is big. When there's contraction that mean the momentum is decrease.
When there's a contraction in FibEx, that mean there is no clear up/down trend. We could be in a reversal or a trend continuation. This is a great opportunity to take side.
I recommend to use 1.382, you can decrease or increase the FibEx to your own. Make sure it is set bigger than 1.
This is not investment/trading advise. Will not hold accountable for loss
- #5
- Jun 15, 2017 3:57am Jun 15, 2017 3:57am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The soul of this indi is the ZIG-ZAG. Without it, it's nothing. So how does this Indi plot the zig-zag. The zig-zag is based on oscilator indis or moving averages. There are several options you can choose in this indi. You can select which music score you want to use in order to plot the zig-zag 1. MACD 2. Stochastic 3. Double_MA_Xover 4. Double_EMA_Xover 5. EMA_Price_Xover So let say you select Double_MA_Xover of 5 and 10. 5 MA is the fast MA and 10 is the slow MA. Make sure you select the tempo to "Custom" as seen in the screenshot. In this example...
Well I set it to invisible. If you want to make it visible you should open the indi setting and go to the color tab.
In Row #0, select the color option you want. Row #0 is for the zigzag graphic.
This is not investment/trading advise. Will not hold accountable for loss
- #6
- Jun 15, 2017 4:09am Jun 15, 2017 4:09am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 3rd component of this indicator is the FRAME OF REFERENCE.
Basically it's a zigzag and drawn square between each point. Simple as that.
Here's how to enable it
So what's the function of it?
This is a powerful tool to identify elliot wave manually.
It is far more powerful when you combine it with a 2nd zig charm like in the example below
In this example I combined a slow zigcharm (using MACD music score and set its tempo to MACD_MEDIUM) and fast zigcharm (using MACD music score and set its tempo to MACD_SOFT). Template attached. Please note that, you have to know the basic of elliot wave so that you can plot it manually.
Basically it's a zigzag and drawn square between each point. Simple as that.
Here's how to enable it
So what's the function of it?
This is a powerful tool to identify elliot wave manually.
It is far more powerful when you combine it with a 2nd zig charm like in the example below
In this example I combined a slow zigcharm (using MACD music score and set its tempo to MACD_MEDIUM) and fast zigcharm (using MACD music score and set its tempo to MACD_SOFT). Template attached. Please note that, you have to know the basic of elliot wave so that you can plot it manually.
This is not investment/trading advise. Will not hold accountable for loss
- #8
- Jun 15, 2017 4:25am Jun 15, 2017 4:25am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 4th component of this indi is the Volume.
Here's how to enable the volume drawn into the chart
Make sure "Draw Frame of reference" set to true (#1)
Then you have to set "Draw volume on Frame of reference" to true (#2)
When you scroll down little bit lower, you will see options where you can set the color of each particular volume
1. Bullish with high volume
2. Bullish with low volume
3. Bearish with high volume
4. Bearish with low volume
Volume in action
Here's how to enable the volume drawn into the chart
Make sure "Draw Frame of reference" set to true (#1)
Then you have to set "Draw volume on Frame of reference" to true (#2)
When you scroll down little bit lower, you will see options where you can set the color of each particular volume
1. Bullish with high volume
2. Bullish with low volume
3. Bearish with high volume
4. Bearish with low volume
Volume in action
This is not investment/trading advise. Will not hold accountable for loss
- #9
- Jun 15, 2017 4:47am Jun 15, 2017 4:47am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 4th component of this indi is the Volume. Here's how to enable the volume drawn into the chart Make sure "Draw Frame of reference" set to true (#1) Then you have to set "Draw volume on Frame of reference" to true (#2) {image} When you scroll down little bit lower, you will see options where you can set the color of each particular volume 1. Bullish with high volume 2. Bullish with low volume 3. Bearish with high volume 4. Bearish with low volume {image} Volume in action {image}
1. Bullish with high volume
2. Bullish with low volume
3. Bearish with high volume
4. Bearish with low volume
First we have to understand how it is calculated.
Volume = SUM(Accumulation/Distribution indi + On Balance Volume) of that particular frame. Let say there are 15 candles. The indis will sum all 15 candle's AD and OBV indi value. HOWEVER, if the value of A/D or OBV value is <0 or in a negative value, it will be multiplied by -1 in order to get the positive value.
Let say there's a candle A/D indi value is -60000. Zigcharm will multiply it by -1 = 60000.
In the screenshot below you can see 2 information highlighted in black box. Those information are the sum of volume and the difference between that frame to the previous frame.
About the calculation of volume diff data window
So let's get back to the question, Bullish with high volume....?
When we have that, that mean that particular bullish frame has higher volume in relation to the previous bullish move.
In another example above. There are 2 frames labelled with A and B. Both frames are bullish but has different color. Frame B is colored in bright green which indicates a bullish with high volume. Frame A is drawn in pale green which indicate bearish with low volume.
Frame B vol = 50311036
Frame A vol = 14831973
So clearly Frame B's vol > Frame A's vol, so that is why Frame B is colored in bright green.
All of this is applied to the 2. Bullish with low volume
3. Bearish with high volume
4. Bearish with low volume
This is not investment/trading advise. Will not hold accountable for loss
- #10
- Jun 15, 2017 5:05am Jun 15, 2017 5:05am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 5th component of Zigcharm is Divergence and Hidden Divergence.
Here's how to enable the feature and change the color of it.
Divergence is very important to identify a weakness in a trend. I personally use it in a higher time frame so that I can look for a sell/buy opportunity whenever there's a divergence/hidden divergence in a higher time frame. For higher time frame, I usually use a fast period/tempo music score. Usually MACD_SOFT because of its sensitivity.
Above screenshot is an example of recent bearish divergence in the daily time frame and the Tempo is set to MACD_SOFT.
It is best to look for sell/buy opportunity after the candle close to avoid redraw.
Here's how to enable the feature and change the color of it.
Divergence is very important to identify a weakness in a trend. I personally use it in a higher time frame so that I can look for a sell/buy opportunity whenever there's a divergence/hidden divergence in a higher time frame. For higher time frame, I usually use a fast period/tempo music score. Usually MACD_SOFT because of its sensitivity.
Above screenshot is an example of recent bearish divergence in the daily time frame and the Tempo is set to MACD_SOFT.
It is best to look for sell/buy opportunity after the candle close to avoid redraw.
This is not investment/trading advise. Will not hold accountable for loss
- #11
- Jun 15, 2017 5:14am Jun 15, 2017 5:14am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 5th component of Zigcharm is Divergence and Hidden Divergence. Here's how to enable the feature and change the color of it. {image} Divergence is very important to identify a weakness in a trend. I personally use it in a higher time frame so that I can look for a sell/buy opportunity whenever there's a divergence/hidden divergence in a higher time frame. For higher time frame, I usually use a fast period/tempo music score. Usually MACD_SOFT because of its sensitivity. {image} Above screenshot is an example of recent bearish divergence in the...
Bearish divergence appears whenever we have a higher high (bullish frame is higher than the previous bullish frame).
And the latest bullish frame volume is lower (colored in pale green) than the previous bullish frame, so that mean it's a bearish divergence.
Bullish divergence is when we have a lower low and the frame color is pale red.
Bullish hidden divergence is when we have a bullsih move and followed with a correction. That correction colored in pale red, that mean we have a bullish trend continuation or bullish hidden divergence.
Bearish hidden divergence is when we have a bearish moveand followed with a correction. That correction colored in bright green, that mean we have a bearish trend continuation or bearish hidden divergence.
This is not investment/trading advise. Will not hold accountable for loss
- #12
- Jun 15, 2017 5:52am Jun 15, 2017 5:52am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 6th component of zig charm is Active S/R
Here how to enable it
What's the logic of this?
Active S/R takes the correction as the S/R.
Let say we have an zigzag points of A,B,C,D or 1,2,3,4
Wave A,D and 1,4 are the impulse move.
point B,C are the correction of A,B.
So that mean, S/R will be drawn on point B and C
Regarding the candle strength is based on how many candles are there between B and C.
The higher the candle the stronger it is (Theoretically). In screenshot above the, resistance strength is set to 20, so the indi will look for B-C that has greater than or equal 20 candles in between B-C.
Here are examples of Active S/R where there are >=20 candles between B and C
Here how to enable it
What's the logic of this?
Active S/R takes the correction as the S/R.
Let say we have an zigzag points of A,B,C,D or 1,2,3,4
Wave A,D and 1,4 are the impulse move.
point B,C are the correction of A,B.
So that mean, S/R will be drawn on point B and C
Regarding the candle strength is based on how many candles are there between B and C.
The higher the candle the stronger it is (Theoretically). In screenshot above the, resistance strength is set to 20, so the indi will look for B-C that has greater than or equal 20 candles in between B-C.
Here are examples of Active S/R where there are >=20 candles between B and C
This is not investment/trading advise. Will not hold accountable for loss
- #13
- Jun 15, 2017 6:24am Jun 15, 2017 6:24am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
The 7th Component is the SuperTrend.
The supertrend is always on.
If you want to turn it off, simply change the color #11 and 12 to None
Here is the logic/algorithm of super trend
1. Identify the last frame point
2. Retrieve it's MOM or the FibEx value
3. If it's bullish add the frame's+MOM
For bearish case subtract it
Bullish Dynamic SR = last frame's price - MOM
Bearish Dynamic SR = last frame's price + MOM
4. Increase the Bullish dynamic SR every time the current price close is higher than the previous candle's high.
Decrease the bearish dynamic SR every time the current price close is lower than the previous candle's low.
Bullish Dynamic SR = (Current candle close - previous candle close)+dynamic SR
Bearish Dynamic SR = (Previous candle close - current candle close)-dynamic SR
5. When a candle broke particular dynamic SR, repeat #1
What does it use for?
It is use to identify the change of trend. It complements the frame of reference when it is drawn with volume on. It also can be use as S/R like in the example below.
The example above takes the end/tail part of the supertrend as the S/R, highlighted in black circle.
Break below or close below the lowest/highest S/R of that, determine the trend. If it break the lowest part, that mean a bearish trend likely hood is higher therefore look for a short setup probably it is best to place trade after a correction.
That is just one example on how to use SuperTrend indi.
The supertrend is always on.
If you want to turn it off, simply change the color #11 and 12 to None
Here is the logic/algorithm of super trend
1. Identify the last frame point
2. Retrieve it's MOM or the FibEx value
3. If it's bullish add the frame's+MOM
For bearish case subtract it
Bullish Dynamic SR = last frame's price - MOM
Bearish Dynamic SR = last frame's price + MOM
4. Increase the Bullish dynamic SR every time the current price close is higher than the previous candle's high.
Decrease the bearish dynamic SR every time the current price close is lower than the previous candle's low.
Bullish Dynamic SR = (Current candle close - previous candle close)+dynamic SR
Bearish Dynamic SR = (Previous candle close - current candle close)-dynamic SR
5. When a candle broke particular dynamic SR, repeat #1
What does it use for?
It is use to identify the change of trend. It complements the frame of reference when it is drawn with volume on. It also can be use as S/R like in the example below.
The example above takes the end/tail part of the supertrend as the S/R, highlighted in black circle.
Break below or close below the lowest/highest S/R of that, determine the trend. If it break the lowest part, that mean a bearish trend likely hood is higher therefore look for a short setup probably it is best to place trade after a correction.
That is just one example on how to use SuperTrend indi.
This is not investment/trading advise. Will not hold accountable for loss
- #14
- Jun 15, 2017 6:26am Jun 15, 2017 6:26am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
This is not investment/trading advise. Will not hold accountable for loss
- #16
- Jun 15, 2017 7:10am Jun 15, 2017 7:10am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
This is not investment/trading advise. Will not hold accountable for loss
- #17
- Jun 15, 2017 7:11am Jun 15, 2017 7:11am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
This is not investment/trading advise. Will not hold accountable for loss
- #18
- Jun 15, 2017 7:39am Jun 15, 2017 7:39am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
All (I mean ALLLLLLLL) pro traders advise traders to buy/sell at the dip or correction. Why so? I will explain later in the next reply...
So first how do you identify a correction or a dip?
As this is a complicated subject, let me make it simple for you.
First we have to identify a breakout. Let's safe this session later.
So now let's presume that we just had a breakout of a trend reversal.
In the screenshot above pay attention to those Xs. What do they have in common?
Answer: Small frame size! It's like <=50% smaller than the previous frame.
So that mean look for a sell setup there
So first how do you identify a correction or a dip?
As this is a complicated subject, let me make it simple for you.
First we have to identify a breakout. Let's safe this session later.
So now let's presume that we just had a breakout of a trend reversal.
In the screenshot above pay attention to those Xs. What do they have in common?
Answer: Small frame size! It's like <=50% smaller than the previous frame.
So that mean look for a sell setup there
This is not investment/trading advise. Will not hold accountable for loss
- #20
- Jun 15, 2017 8:53am Jun 15, 2017 8:53am
- Joined Mar 2017 | Status: Working smart and hard | 2,949 Posts
This is not investment/trading advise. Will not hold accountable for loss