Category Archives for "Indicators"

DeMarker Indicator: Better Than RSI?

The DeMarker indicator is an oscillator that estimates overbought and oversold conditions by relating resenting price action to recently closed prices.

As an oscillator, it fluctuates between the values of 0 and 1, or in some cases 0 to 100, and is calculated over a predetermined period. It is therefore similar to the Relative Strength Index (RSI) indicator as it identifies potentially overbought and oversold conditions.

Unlike the RSI however, which is calculated based on closing prices, the DeMarker indicator can be calculated based on opening, high or low prices as well.


PPO Indicator: This is why I hate the MACD now

The PPO indicator (Percentage Price Oscillator) primarily measures price momentum.

It can be displayed in the form of a signal line or a histogram, with both versions including a center line.

Like the MACD indicator, the PPO tracks the distance between two moving averages. As market prices trend with increasing momentum, the distance between the two moving averages increase, and the further the PPO indicator moves away from its center line.

The PPO is also similar to the MACD in that they are both indicators assessing the difference between a 26 and 12 exponential moving average.

However, while the MACD indicates the absolute difference between the exponential moving averages, the PPO reports this difference as a percentage of the longer-term EMA. This is a crucial difference that I’ll talk more about later.


MetaTrader 4 Indicators: A Quick & Dirty Guide

With all the fancy MetaTrader 4 indicators available today it’s easy get overwhelmed.

Which indicators should you use? And in what combination (and with what settings) should you use them?

The first thing to remember is that there is no perfect indicator. All MetaTrader 4 indicators like the popular MACD, RSI and Stochastic oscillator are simply mathematical formulas derived from market prices. They all occasionally give false signals… so there’s really no such thing as an indicator that can predict the future.

The trick thus, is to learn the strengths and weaknesses of each indicator, and to combine them so that the weakness of one indicator will be covered by the strength of another.

That being said, you probably shouldn’t use more than 4 to 5 indicators at the same time, because that would over-complicate your trading.​


How To Setup Renko Charts on MT4

Originally developed in Japan, Renko charts have gained popularity all over the world and can now be set up on the MT4 (Metatrader 4) platform. 

Named after the Japanese word for bricks, "renga", these charts can be considered pure price action charts since 'price' is the only dimension that's displayed on it.

The main thing you need to know about Renko charts is that they are only updated when the market price moves by a certain number of pips. Thus, when the market price is moving in a tight range, a Renko chart will not print new bricks.

Depending on your trading method, this can be a good or bad thing.


How To Install Expert Advisors In MetaTrader 4

The ability to run expert advisors (EAs) are one of the best things about using the MetaTrader (MT4) trading platform.

While the default MT4 platform runs with basic features that the majority of traders use, it does not support automatic trading or automatic trade modification functions. That's what expert advisors are for.

If you have a non-discretionary trading system, you can get it coded into an EA by an MQL programmer for a relatively low fee.

After adding the EA to your MT4 platform, it will then perform its functions on autopilot as long as the MT4 platform is open.


How To Add Custom Indicators To MT4

One of the best things about the MetaTrader 4 (MT4) platform is the ease of which you can add custom indicators to it.

Another big advantage is the ​large online community of programmers and coders that are familiar with the MQL programming language.

This means that technical support for the MT4 platform is readily available at various websites, as well as there being a multitude of technical indicators for you to choose from.

Please note that ​MT4 custom indicators have file extensions (file names ending with) .mq4 or .ex4

Once you have either (or both) of these files, you can add them to your MT4 platform with the following steps.