Create and Test Forex Strategies
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fsbpro_guide:indicator_chart [2014/11/03 07:43] – [4. True Charts] Miroslav Popov | fsbpro_guide:indicator_chart [2014/11/21 14:48] (current) – Miroslav Popov | ||
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A simplified version of the indicator chart is present in the strategy editor, generator and optimizer. The black bar chart is the market price. The purple little stick chart is the tick volume. The thick volume measures the times that the price moves up and down within a given bar. There is over 90% correlation between tick volume and actual volume. | A simplified version of the indicator chart is present in the strategy editor, generator and optimizer. The black bar chart is the market price. The purple little stick chart is the tick volume. The thick volume measures the times that the price moves up and down within a given bar. There is over 90% correlation between tick volume and actual volume. | ||
- | To get to the full version | + | To get to the full view of the indicator chart you can either click on the simplified chart or choose it from the left side menu. |
===== 2. Indicator Chart ===== | ===== 2. Indicator Chart ===== | ||
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The full version of the indicator chart is using the candle chart view by default, but if you want to use the bar chart, you can switch to it by pressing the space key. | The full version of the indicator chart is using the candle chart view by default, but if you want to use the bar chart, you can switch to it by pressing the space key. | ||
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**Cross** – the cursor becomes a cross and lets you see the price, indicators' | **Cross** – the cursor becomes a cross and lets you see the price, indicators' | ||
- | **Volume** – lets you toggle the tick volume | + | **Volume** – lets you toggle the tick volume |
**Entry/ | **Entry/ | ||
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On a normal indicator chart moving average (MA) looks like a smooth line that flows from bar to bar without any rough changes. It deceivingly looks like it changes its value while it is moving throughout and between the bars and has at least a few other values while it floats trough the chart. | On a normal indicator chart moving average (MA) looks like a smooth line that flows from bar to bar without any rough changes. It deceivingly looks like it changes its value while it is moving throughout and between the bars and has at least a few other values while it floats trough the chart. | ||
- | We have to share the truth with you: moving average has only one value per bar. This means the graph should not be smooth. For example if MA’s period is 14, this means the current bar’s MA value is the average of the last 14 bars’ values. This value can be only one number. The MA value remains the same throughout the whole duration of the current bar. If represented with a smooth line it looks like MA is “moving” within the bar. 99% of the trading software out there displays MA and other indicators with smooth lines, which very often leads traders astray. | + | We have to share the truth with you: moving average has only one value per bar. This means the line should not be smooth. For example if MA’s period is 14, this means the current bar’s MA value is the average of the last 14 bars’ values. This value can be only one number. The MA value remains the same throughout the whole duration of the current bar. If represented with a smooth line it looks like MA is “moving” within the bar. 99% of the trading software out there displays MA and other indicators with smooth lines, which very often leads traders astray. |
Indicators have discrete values. Their values “jump” from bar to bar, that’s why they should not be displayed with a smoothed line on charts much like you don’t use smoothed out candles to look at market changes. | Indicators have discrete values. Their values “jump” from bar to bar, that’s why they should not be displayed with a smoothed line on charts much like you don’t use smoothed out candles to look at market changes. |