Discussing the article: "MQL5 Wizard Techniques you should know (Part 27): Moving Averages and the Angle of Attack"

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Check out the new article: MQL5 Wizard Techniques you should know (Part 27): Moving Averages and the Angle of Attack.

The Angle of Attack is an often-quoted metric whose steepness is understood to strongly correlate with the strength of a prevailing trend. We look at how it is commonly used and understood and examine if there are changes that could be introduced in how it's measured for the benefit of a trade system that puts it in use.

We continue the series on trade setups and ideas that can be quickly tested and fool-proofed thanks to the MQL5 wizard by considering the angle of attack. Broadly, the phrase ‘angle of attack’ is associated with the ideal angle at which a fighter jet ought to take off, when optimizing for maximum air lift and minimum fuel consumption.

For traders, though, this phrase usually refers to the trajectory of a security’s price when in the midst of a trend, with the loose consensus being that a steep angle points to a strong trend. We therefore start this article by exploring not just this view, but more importantly by also adopting the means by which the indicator or price angle could be measured. We then criticize this approach by trying to point out some of the problems with it, propose a possibly better alternative, and conclude as always with test results and reports. 

We as always use an instance of a custom signal class to test our hypotheses on how to measure the attack angle, and we measure this angle not off of raw price but a moving average. We use the decaying moving average as our indicator for measuring and tracking the significance of the attack angle. Raw prices can also be used to monitor attack angles, however since they are bound to have more volatile values than an indicator buffer, we adopt the former. Any moving average could have been used as well, but we adopted the decaying moving average because it is a bit novel and may not be familiar to most traders.

Author: Stephen Njuki

 

Stephen,

I am reviewing this article as it seems to complement ideas I have had in the past.  It appears that the code referenced in the article is missing.   The <code:.../> inclusion symbols are there but the label appears to reference an unknown source file.  Is the source for the file included as Attack_Angle_cr.mq5 & Signalwz_c.mqh?


Thanks, CapeCoddah

 
CapeCoddah #:

Stephen,

I am reviewing this article as it seems to complement ideas I have had in the past.  It appears that the code referenced in the article is missing.   The <code:.../> inclusion symbols are there but the label appears to reference an unknown source file.  Is the source for the file included as Attack_Angle_cr.mq5 & Signalwz_c.mqh?


Thanks, CapeCoddah

Hello,

The code was part of the attached file. It has been included within the text and sent for publishing. 

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