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Forex Forum → Technical Indicators → Momentum Indicator As opening and closing points of position!!!!

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Posts: 6

Topic: Momentum Indicator As opening and closing points of position!!!!

Hello
I noticed that oscillators like Momentum and Rsi cannot be used as an opening and closing points of positions  So i tryed to modify the origenal Momentum indicator  converting it to Custom indicator and added the Functions To open position when indicator cross level line upward ( As an open point of position ) and reverse for closing  but when added it to custom indicator folder it compiled fine which means no errors in syntax but when try to use it as opening or closing point it crashed   , At the same time it works fine as open logic  !!!  Any help will be appreciated

Attached here the modified MoM indicator Its name MomentumX  and the Msg received after FSB Crashed

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MomentumX-Msg.txt 10.94 kb, 9 downloads since 2010-07-12 

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Re: Momentum Indicator As opening and closing points of position!!!!

The indicator

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MomentumX.cs 15.67 kb, 41 downloads since 2010-07-12 

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Re: Momentum Indicator As opening and closing points of position!!!!

Hello
Any Help out there smile

what modifications we need to make for an indicator Using
PossibleSlots = SlotTypes.OpenFilter | SlotTypes.CloseFilter;
To be able to perform using the four slots
PossibleSlots = SlotTypes.Open | SlotTypes.OpenFilter | SlotTypes.Close | SlotTypes.CloseFilter;

Re: Momentum Indicator As opening and closing points of position!!!!

Momentum indicator is not suitable for opening / closing slot since it does not represent a price at which we can place an entry order.

Re: Momentum Indicator As opening and closing points of position!!!!

Dear Popov
Do you mean that any indicaor in separate window cannot be used as entry point or exit point because the FSB logic donor support this action or its not suitable as a general logic of trading ?

Regards

6 (edited by angat 2012-11-20 12:34:10)

Re: Momentum Indicator As opening and closing points of position!!!!

Gomaz wrote:

Yes, I think MA crossovers are good and I use them to but are you trading on a short term time frame or a longer term time frame?

There seems to be a lot of conjecture as to whether it is better to trade short time frames or longer time frames.
In fact it is often said that unless you can trade the longer time frames then you shouldn’t even contemplate trading the short time frames.

Now, I am not sure I entirely agree with this statement. Sure there is certainly a lot of “market noise” in the shorter time frames especially around news announcements and it can more difficult to clearly spot the trend on the shorter time frames. Personally, I do find the 1 minute chart challenging, as I don’t think there is enough data there to make an informed decision. A 5 minute chart is lowest time frame I would use.

When you trade the longer time frames, you have a lot more draw down before it heads in the anticipated direction. And yes, the gains will be greater when trading longer time frames, but that waiting and experiencing those drawdowns, momentarily play havoc on your account and can be a little bit stressful, especially for newer traders.

And if you are wrong, the stop losses are much greater. I have found that as a rule of thumb most good, “trading systems” systems have on average have a strike rate of about 80% That means that 20% of the time you will lose. On a daily weekly or even a 4 hour chart, OUCH!
One thing that is often over looked on small time frames….(and on the larger time frames well for that matter)…. is the amount of momentum in the actual move.

It is the rate of momentum the determines how big the movement is going to be and at what speed it will move.

Think of ten pin bowling.

Basically, the rate of momentum in which the ball is delivered down the bowling alley determines how successful it will be reaching the ten pins. If you have ever seen a little kid try bowl a bowling ball, most of the time the ball ends up in the side alley long before it reaches the 10 pins. If you use this analogy with forex trading, you want the ball to be delivered with enough momentum, that it will reach the ten pins.

But you don’t want to wait until it has actually reached the ten pins before you take some profit, you want to take some out of the middle.

If you could determine that a move has sufficient momentum then it becomes a very high probability trade and you are almost guaranteed a profit once it has cleared your spread. By using momentum angles of 4 x1, 2 x 1 and a 1x 1  most of the time you can determine if a movement has sufficient momentum to carry through.

What 4 x1, 2 x 1 and a 1x 1  means is: 4 units of price to 1 unit of time, and: 2 units of price to 1 unit of time. And of course the one with the lowest amount of momentum is: 1 unit of price to 1 unit of time.

I know this sounds complicated but in reality it isn’t, though it is limiting to explain the concept on a forum post. So if you find this interesting and would like to learn more you can register for a one time only free webinar being done for the  Forex community  on momentum in trading forex at: http://tinyurl.com/SPAM

Cheers

Good post, interesting way of putting it, shame about the link and what you're trying us to register for! lol

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