The Xena Exchange experts have developed several proprietary indicators. You can find them on the left side of the terminal.


A planimetric diagram is a set of moving averages with a period between 2 and 1000 marked on the same graph. These moving averages create a sort of surface along which the price moves. The large value range allows the diagram to cover the entire period chosen for the analysis: short-term averages respond to short-term movements, and as the forecasting horizon increases, longer MAs come into play.


The indicator's value can be interpreted in different ways. Some traders look for support and resistance levels, others try to determine channels, and others yet seek to identify a specific point that the price will reach after a certain amount of time. However, far from all interpretations have a sound base in mathematical theory. When using the planimetric diagram, it's important to consider the following:


- When many MAs move towards each other and form a kind of a thick-twisted “rope,” it means that a flat area has formed on the market.

- The higher the number of the MAs used, the more precisely you can determine the trend's direction in any time frame.

Trends

The trends tool is a preset consisting of two indicators:


Trend power

This indicator shows how much the price has diverged from its average over a certain period. This value should be interpreted within the current market context, taking other factors into account. For instance, trend power can provide a quick and precise evaluation of the volatility and strength of the price movement, filtering out market noise.


MACD divergence

This indicator is based on the difference divergences between the values of two moving averages with different periods. While the shorter (faster) MA defines the short-term trend, the longer (slower) average allows for a long-term forecast. Thus, the difference between them shows how the price is behaving within the global trend. By calculating the average of these differences, we get the signal line. When the MACD crosses up over the signal line, it’s a buy signal. If a fast MA crosses down over the signal line, it means that the market is entering a bullish phase.


Together, these two indicators provide a more comprehensive outlook on market trends and their potential.

Corrected Average

The corrected average is a modified version of the simple moving average. The main advantage of this indicator is that it takes volatility into account. The calculation includes a volatility threshold, which doesn’t allow the corrected average line to change its value if the market is considered non-trend. Therefore, the corrected average changes only if the market is volatile.

Parameters:


  • ColorMode – changes the colors of the lines (uptrend: green, downtrend: red, flat: white) 

  • Period – the lookback period of the CA

  • PriceType – the type of price to be used in the calculations (open, high, low, or closed) 


ColorMode on



ColorMode off



Formula:

  1. Calculate the squared volatility (standard deviation) of the instrument for the period of the indicator.

  2. Calculate the threshold, which is equal to the square of the difference between the current SMA and the corrected average value (for the first candle, the corrected average is equal to the value of the selected candle parameter – high, low, closed, or open).  

  3. Calculate the k-coefficient, which is  (1 - squared volatility / squared SMA-CA difference).

  4. If the value of the squared volatility is greater than the difference of the squared SMA-CA, then we can add the k-coefficient to the corrected average; otherwise, the CA is equal to its previous value.


Tips:

  • The corrected average may be used for both trend and flat markets. In trend markets, it should be used as a trigger for trend reversal. If the value of the indicator remains unchanged for a long time, it means the market is in a flat state.  

  • CA may be a great choice to filter counter-trend trades, if you prefer trend strategies.

Xena corrected average


The Xena Corrected Average is a modified version of the moving average. The main feature of the indicator is that it adapts to counter-trend movements. It simply changes the candle source of calculation to high during downtrends and low during uptrends.


Parameters:

  • ColorMode – changes the colors of the lines (uptrend: green, downtrend: red, flat: white) 

  • Period – the lookback period of the CA


ColorMode on



ColorMode off


Tips:

  • Switching the calculation source helps avoid false signals and gives the trader a bit more time to make an appropriate decision.


Ribbons

This preset comprises the simple moving averages for three oscillators calculated over a large number of different periods, which allows for more objective forecasting and helps you avoid designing a strategy that only works for a certain period.


Range – Williams Percent Range


This indicator shows the position of the closing price relative to the highest and lowest price for a certain period. It helps you evaluate overbought and oversold levels and understand the potential of market movements.


When the indicator's value is in the middle of the range or even close to the area opposite the direction of the price movement, and at the same time the price graph demonstrates large volumes and strong growth (or a strong decline), then the trend is likely to reverse, with the opposite side coming to dominate. This happens because all market movements have a limited supply of “fuel” (trading volume), and trying to drive a long distance on an empty tank is an unreasonable idea. The nearest gas station is located beyond the highest (or lowest) price for a certain period, represented by the stop orders placed by bears (high) and bulls (low).


Channel – Commodity Channel

This index shows how much the price has diverged from its average over a certain period. Extremely high or low values point to overbought or oversold conditions. These areas of high or low readings can be used as sell or buy signals, respectively. The indicator is also often used to find divergences:

- If the graph reaches a new local maximum but the indicator doesn't, then a correction is likely to happen soon. The same goes for new price minimums.


Strength – Relative Strength Index


This oscillator determines overbought and oversold areas. Its formula includes a sum of the growing and declining candles for the selected period. Their relative number indicates the momentum of the trend. If there are few declining candles and many growing ones, the indicator's value will be close to 100, and if the declining candles predominate, the indicator will be close to 0. This means that overbought and oversold areas are located near the maximum (100) and minimum (0) values of the indicator, respectively. Usually, these values reflect a prolonged and strong price growth or fall without pullbacks, which can point to an upcoming trend change or local reversal.


Trend power indicators

Below the trading analytics in the terminal, you can find the trend power indicators (they are also represented in the portfolio). Trend power is a proprietary tool that uses three indicators – CCI, EMA,  and RSI – to help you quickly generate new trading ideas.

CCI, EMA, and RSI are powerful technical indicators that indicate whether an asset is overbought or oversold and make signals based on this data. The CCI and RSI indicators are called “oscillator indicators,” and as with other oscillators, if the value is below the oversold threshold, a buy signal is generated. If it is over the overbought threshold, the signal is to sell.


EMA is used to produce buy and sell signals based on crossovers of the moving average and the actual price of an asset. A buy signal is generated if the EMA is below the last price, and a sell signal occurs when the EMA is above the last price.


For more information about trend power indicators, read this article.