This article describes our proprietary trading signals and explains how to use them.
Disclaimer: any signals and indicators presented in the platform, including Trend Power signals, are based on technical analysis and are predefined algorithms that use a history of prices, state of the order book and other reference information as defined. These tools should not be used without thorough market analysis. No tools can guarantee future profits or predict movement of markets with absolute precision. Results of trend power algorithms do not constitute an investment advice. You are solely responsible for trading and investment decisions you make.
Use the Pro Signals section in the web terminal to load presents of our custom indicators
or add them individually from the Indicators menu on the chart:
Averaging indicators are used to reduce noise in price movements and better understand trends. The corrected average is calculated as follows:
- If the price fluctuates within a standard deviation from its mean (calculated by the given averaging algorithm), the corrected average doesn't change (represented by a horizontal line on the chart)
- When the price breaks through the standard deviation corridor, the value starts following the price.
As with other averages, the buy signal is when the corrected average crosses the price line and goes under it; the sell signal is when the average crosses the price and goes above it:
The indicator has following settings:
- Length of the averaging window (35 by default)
- Type of price (open, high, low, close or their combinations, Close by default)
- Type of averaging algorithm (Simple Moving Average by default)
- Offset and Sigma required when Arnaud Legoux averaging is used
Planimetry indicator consists of multiple simple moving averages calculated over different lengths of time, starting from to and up to 1200. All moving averages use (High+Low)/2 prices.
As with other averaging indicators, a trend is detected when the price crosses the average. Many averages showing the breakthrough of support or resistance level simultaneously, decrease the probability of error in trend detection.
There are 3 ribbons that are built on the same principle, but use different underlying oscillators:
- Range ribbon (William's Percent Range)
- Channel ribbon (Commodity Channel Index)
- Strength ribbon (Relative Strength Index)
For a single ribbon, the underlying oscillator is calculated and averaged with the chosen averaging method and 10 (by default) different lengths. Bullish and bearish lines of the ribbon comprise the number of rising and falling averages. The background color indicates the direction of the trend (green — uptrend, red — downtrend), and the distance between lines (width of the colored area) displays the power of the trend. For instance, if 5 averages show an uptrend and 5 show a downtrend, the distance between the lines will be zero; if 10 show an uptrend and 0 show a downtrend, the distance will be 10.
Trend switcher is an oscillator similar to the classic RSI, but using an additional Laguerre filter to enhance the responsiveness of the indicator to the last price. As with other oscillators, the signal to buy occurs when the indicator falls below the "oversold" threshold, and the sell signal occurs when the indicators rises above the "overbought" threshold.
- Explosion (blue line) indicates the volatility
- Trend (columns) is the trend signal
The "Enter long" signal is shown when the trend signal becomes stronger than volatility.