Force Index Indicator
The Force Index indicator was invented by Alexander Elder. This technical indicator is used to indicate the strength of upward or downward trends. Indicators that can take into account trading volume (VOL) are generally not bad, and the Force Index is precisely such an indicator. This indicator can be directly loaded in MT4/MT5 software. Although…
Chaikin Money Flow Indicator
The Chaikin Money Flow (CMF) indicator measures the buying (accumulation) and selling (distribution) pressure of a forex, stock, or futures asset over a specific period. Often compared to other volume-based technical indicators such as the On-Balance Volume (OBV) and Money Flow Index (MFI), the CMF is a popular volume-weighted oscillator. This article will explore the…
How to Establish Consistency and Execution Power
In the process of trading, we often hear such words as executing according to the trading system and maintaining consistency. Few people understand what consistency means. Simply put, consistency means operating according to a certain rule. But behind this lies a lot of wisdom about life, about gains and losses, and human nature. Why Is…
Trend Tracking Weapon: ATR Indicator
In the previous article “Trend Tracking Weapon: Selection of Moving Average Parameters“, it was mentioned that the Dow Theory, the originator of technical analysis, divides trends into the following three levels: As trend-following traders, we need to focus on intermediate trends and above and ignore and filter out intraday noise. So how can we filter…
Trend Tracking Weapon: SAR Indicator
For mature traders or trading systems, stop loss is one of the very important links. Regarding the importance of stop-loss, traders who have certain trading experience and a certain understanding of trading can all understand it, and there is no need to say more here. There are many methods of stop-loss, such as psychological stop-loss,…
Trend Tracking Weapon: Trading Process
To complete a task, formulating corresponding procedures and executing according to them is a relatively effective and feasible method. With procedures, there are rules to follow when doing things, and there is no need to cram at the last minute. With procedures, the mentality of doing things is more stable and one will not act…
Trend Tracking Weapon: Relationship between Indicators and Prices
Indicators are like the dashboard of a car. The dashboard of a car is used to display the current various states of the car, such as speed, engine speed, etc. But it is only for display. The dashboard of a car cannot determine or affect the state of the car, nor can it predict the…
Trend Tracking Weapon: Selection of Moving Average Parameters
We introduced two classic indicators, Moving Averages, and Adaptive Moving Averages, in the two articles “Trend Tracking Weapon: Key Points of Applying Moving Averages and MACD” and “Trend Tracking Weapon: Adaptive Moving Average“. Many readers asked how to choose the parameters of moving averages. My reply is that it needs to be selected according to…
Trend Tracking Weapon: Adaptive Moving Average
Trend following is a relatively simple and effective trading model. To track trends well, one must first achieve accurate and effective identification of trends. There are many methods and tools for identifying trends. Among them, the simplest and most effective one is the moving average. For example, the ATR channel indicator that I often use…
Trend Tracking Weapon: Key Points of Applying Moving Averages and MACD
Moving Averages and MACD are classic indicators that come with most market software. The following is my understanding of the key points of applying these two classic indicators. Moving Averages(MA) Calculation formula: Interpretation: MA means calculating the arithmetic average value of the closing price within N periods. Taking the 10-day moving average as an example,…