Create and Test Forex Strategies
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fsbpro_guide:indicator_chart [2014/11/20 09:07] – yavor | fsbpro_guide:indicator_chart [2014/11/21 14:48] (current) – Miroslav Popov | ||
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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. |