Trading signals

This article describes our proprietary trading signals and explains how to use them.

Disclaimer: Any signals and indicators presented on the platform, including trend power signals, are based on technical analyses and are predefined algorithms that use the history of prices, the state of the order book, and other reference information as defined. These tools should not be used without a thorough market analysis. No tools can guarantee future profits or predict the movement of markets with absolute precision. The results of trend power algorithms do not constitute investment advice. You are solely responsible for the trading and investment decisions you make.

 

Use the Pro Signals section in the web terminal to load custom indicators or add them

individually from the Indicators menu on the chart:

Corrected average

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, and the sell signal is when the average crosses the price and goes above it:

This indicator has the following settings:

  • Length of the averaging window (35 by default)
  • Type of price (open, high, low, close, or a combination, or close by default)
  • Type of averaging algorithm (simple moving average by default)
  • Offset and sigma required when Arnaud Legoux averaging is used

Planimetry

The planimetry indicator consists of multiple simple moving averages calculated over different lengths of time, starting from 2 and up to 1200. All moving averages use two prices (high and low).

As with other averaging indicators, a trend is detected when the price crosses the average. Many averages showing breakthroughs in support or resistance levels simultaneously decrease the probability of errors in trend detection.

Ribbons

There are three ribbons that are built on the same principle but use different underlying oscillators:

For a single ribbon, the underlying oscillator is calculated and averaged using the chosen averaging method and 10 (by default) different lengths. The 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 (the 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

Trend switcher is an oscillator similar to the classic RSI, but it uses 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 indicator rises above the "overbought" threshold.

Trend power

Trend power is a combination of the Bollinger Bands and MACD indicators. This indicator's plots are:

  • 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 the volatility.