Elders market thermometer - page 2

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rchapmand:
Use it like this from the book:-

MARKET THERMOMETER

A beginner needs to learn a battery of standard technical indicators and

start tweaking their parameters. Some traders create their own indicators

to gauge different aspects of crowd behavior and identify market

moves. Let us walk through the process of creating a new technical indicator

and see how to go about building your own private indicators.

All good indicators reflect some aspect of market reality. Market

Thermometer helps differentiate between sleepy, quiet periods and hot

episodes when market crowds become excited. It can help you adapt

your trading to the current environment.

Quiet markets typically have narrow bars that tend to overlap one

another. Hot, boiling markets tend to have wide bars whose highs and

lows extend far outside the previous day�s range. Beginners jump into

trades during those wide bars, afraid to miss a runaway move. If you

enter when the markets are quiet, your slippage is likely to be lower.

Hot markets are good for taking profits because then slippage may

work in your favor.

When gold recently ran up $40 in one week, a journalist asked a

famous investor whether it was a good buy. Gold was good, he said,

but the time to get on this bus was when it stood in front of the station,

and not rolling down the highway at 40 miles an hour. Market

Thermometer helps you recognize when the bus slows down in front

of the station, picks up speed, or roars down the highway.

Market Thermometer measures how far the most extreme point of

today, either high or low, protrudes outside of yesterday�s range. The

greater the extension of today�s bar outside of yesterday�s, the higher

the market temperature. Here�s the formula of Market Thermometer:

Temperature = the greater of either (Hightoday − Highyesterday)

or (Lowyesterday − Lowtoday)

To program Market Thermometer into Windows on WallStreet software,

use the following formula:

if (hiref(lo,−1), 0, if ((hi − ref(hi,−1)) >

(ref(lo,−1) − lo), hi − ref(hi,−1), ref(lo,−1) − lo)).

It is easy to adapt this formula to other software packages.

Market temperature is always a positive number, reflecting the absolute

value of either the upward or the downward extension of yesterday�s

range, whichever is greater. Plot temperature as a histogram

above zero. Calculate a moving average of market temperature, and

plot it as a line on the same chart. I use a 22-day EMA because there

are 22 trading days in a month, but feel free to experiment with shorter

EMA values if you want to make this indicator more sensitive to shortterm

swings.

When markets are quiet, the adjacent bars tend to overlap. The consensus

of value is well established, and the crowd does little buying

or selling outside of yesterday�s range. When highs and lows exceed

their previous day�s values, they do so only by small margins. Market

Thermometer falls and its EMA slants down, indicating a sleepy market.

When a market begins to run, either up or down, its daily bars start

pushing outside of the previous ranges. The histogram of Market Thermometer

grows taller and crosses above its EMA, which soon turns up,

confirming the new trend.

Market Thermometer gives four trading signals, based on the relationship

between its histogram and its moving average:

The best time to enter new positions is when Market Thermometer

falls below its moving average. When Market Thermometer falls below

its EMA, it indicates that the market is quiet. If your system flashes an

entry signal, try to enter when the market is cooler than usual. When

Market Thermometer rises above its moving average, it warns that the

market is hot and slippage more likely.

Exit positions when Market Thermometer rises to triple the height

of its moving average. A spike of Market Thermometer indicates a

runaway move. When the crowd feels jarred by a sudden piece of

news and surges, it is a good time to take profits. Panics tend to be

short-lived, offering a brief opportunity to cash in. If the EMA of

Market Thermometer stands at 5 cents, but the Thermometer itself

shoots up to 15 cents, take profits. Test these values for the market

you are trading.

Get ready for an explosive move if the Thermometer stays below its

moving average for five to seven trading days. Quiet markets put amateurs

to sleep. They become careless and stop watching prices. Volatility

and volume fall, and professionals get a chance to run away with the

market. Explosive moves often erupt from periods of inactivity.

Market Thermometer can help you set a profit target for the next

trading day. If you are a short-term trader and are long, add the value

of today�s Thermometer EMA to yesterday�s high and place a sell order

there. If you are short, subtract the value of the Thermometer�s EMA

from yesterday�s low and place an order to cover at that level.

I had two purposes in presenting the Market Thermometer. I wanted

to give you a new indicator, but even more I wanted to show you how

to use your understanding of the markets to design your own analytic

tools. Once you understand the principles of market analysis, you can

create your own indicators. Use your knowledge, understanding, and

discipline to get on the right side of the markets.

This sounds very very good! Very true words here and there I hope to be a good indicator! Thanks to the creators of the theme and indicator!

 

Market temperature

market_temperature.mq4

Files:
market_temperature.mq4  4 kb
 

Elder mdac :

zz_yz_mdac_elder_1-1000.mq4

 

ELR indicator elr.mq4

Files:
elr_indicator.gif  26 kb
elr.mq4  3 kb
 

hi

thanks MLADEN

 
mladen:

Elders market thermometer - from "Come in my trading room" - a real classic

Mode parameter :

1 - "original" mode (picture 1)

2 - colors changed to reflect "trend" (picture 2)

3 - the so called "Silberman's and Lynch" version (picture 3)

Is there any update from This indicator?
 
NKTrade:
Is there any update from This indicator?

Here is somewhat upgraded version (made a bit more user friendly)


 
mladen:

Here is somewhat upgraded version (made a bit more user friendly)


Hello mladen.

 

Can you please provide me marketinfo indicator, i have seen on image top right side u have send 

i am attaching image of it 

i need mq4 file  

 

regards 

Files:
marketinfo.png  13 kb
 
vegadigitalco:

Hello mladen.

 

Can you please provide me marketinfo indicator, i have seen on image top right side u have send 

i am attaching image of it 

i need mq4 file  

 

regards 

That indicator was posted here : https://www.mql5.com/en/forum/178698/page9
 
mladen:
That indicator was posted here : https://www.mql5.com/en/forum/178698/page9

Very Very Thanks mladen for this indicator and quick responce

 

thanks 

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