Compare Price against its' MA
sample 1 - EUR and GBP
Note the difference in points on Eur/Gbp:
First we look at EUR to see where price is relative to the MA (21 in this case).
EUR has 0
Then we look at GBP, now same chart has 1 point.
The reading is: GBP is stronger than EUR
Now we have gathered some information:
EUR = 0 = weak
GBP = 1 = weak
USD = 4 = neutral
JPY = 9 = strong
It could help traders to stay out of bad trades, in this example a bad trade would be buying EUR/JPY. Or EUR/USD.
A good trade would be short on E/J or G/J.
Hi Freewheelin,
Please look at this indicator made by Kalenzo for our forum https://www.mql5.com/en/forum/general
There are few more versions of this indicator in elite section (Kalenzo posted in elite section).
It is about the price which is above or below 2 MA indicators (any mod - ema, lswma etc) in separated window in MTF case.
Hope it willl help.
Just for information.
I am using those MTF indicator in my trading as informational indicators.
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Hello Traders,
is there somewhere an indicator which allows me to do the following:
1. when applied to chart it shows me, where (close) price is compared to a given moving average (sma and ema).
2. multi time frame - to see on one chart different time frames
I tried this with MACD (1,21,1), but for some reason it doesn't work. Although it should, in my opinion. Maybe it is the code of the indicator, don't have a clue.
3. It could look like a histogram, where the zero-line represents the moving average, for price the histogram.
Would be great to find something like this or to find one to code this. Is there someone out there, please?
You may ask for what is it good for.
Many traders are focused on one currency pair on different time frames to determine trend and, more important, the strength of a pair. But this is only a small part of the puzzle:
You may sell EUR and buy USD. Your E/U chart shows you a perfect entry signal.
But what if EUR is strong against all other (major) currencies, and only against Dollar it is weakening? And the USD is weak against all other majors, except EUR? It could mean that shorting E/U isn't a good idea because it would go against the overall trend of EUR and the "relative" strength of the leading currency (in this case EUR; leading means the first currency of the pair).
This leads us to the question how to read the information of that indicator and suggestions for additional features:
4. Let's say we want to see how EUR is doing. We apply the indi on any EUR cross we can find. If the histogramm is above 0 then EUR is doing fine, and vice versa. For any pair, let's say we have 8, you check the histogramm. Above zero-line EUR gets one point, below the line nothing = 0.
You count the points, the result could be anything between 0 and 8.
Then, if you consider to go short on E/U you do the same for the USD.
The result in points could be EUR=6, USD=0. Euro is strong relative to other pairs and the Dollar. Dollar is weak against all other pairs.
5. Some pairs must be reversed for a proper reading - if you want to see how the pound is doing, you also want to check it against the EUR. But in MT4 the cross is EUR-GBP. So, if the histogramm is above the zero line that would mean one point for the EUR, not for the pound. The histogramm on this cross pair should be under the zero line when GBP is above MA - if you check GBP against EUR.
Note, that if you compare EUR against GBP and price is above the MA then histogramm should be above zero line.
6. In addition it would be great to be able to weight some crosses: Not for any currency only one point. It makes more sense to give more point for USD, EUR and JPY.
EUR against USD = 3, against JPY = 2 points.
JPY against USD = 3, against GBP (!!!) = 2 points
USD against JPY = 3, against EUR = 2
Only examples.
I'll post a layot of my charts later this day. Don't hesitate to ask questions.
Any help and improving is much appreciated
Greetings