Sunday, October 9, 2011

Chaikin Oscillator Indicator

Chaikin Oscillator indicator is essentially a copy of a standard forex indicator MACD, only estimates of this indicator does not apply to the graph of the price currency instrument, but to another standard forex indicator called «Accumulation / Distribution» and «A / D».

But unlike the standard indicator MACD , "moving average" in this indicator have less time and therefore more responsive to changes in price, and each column of the histogram of this indicator is calculated as the difference between three-period and 10-period exponential moving average, applied to the line forex indicator "Accumulation / Distribution" . As well as the standard indicator MACD predict price changes, so does the indicator Chaikin Oscillator indicator predicts the change in the "Accumulation / Distribution" .


Another difference between this indicator of the standard is, of course, the color histogram bars in different colors, all the color and type of lines the user can configure the settings in the indicator.

An indicator:

SlowPeriod - the period of slow "moving average"
FastPeriod - a period of rapid 'moving average'
TypeSmooth - smoothing parameter:
0 - SMA,
1 - EMA,
2 - SSMA,
3 - LWMA.
Color options:

0 - color histogram growing when it is above zero;
1 - color histogram of the incident when it is above zero;
2 - color histogram of the incident when it is below zero;
3 - color histogram growing when it is below zero;
4 - color line, which connects the extremes of the histogram.
The use of the trade:

all SD signals forex indicator MACD applied to the price of foreign exchange tool and indicator signals served Chaikin Oscillator indicator applied to the "Accumulation / Distribution" , but if that fact does not take into account, and watch it on the price chart, we can see that the signals of this indicator is well practiced and on schedule.

Themselves signal indicator Chaikin Oscillator is no different from signal MACD , but the trade should be used only two of the strongest signal, it is certainly a divergence, and crossing the zero line, and in order to display yet provided better results, you should wait until after the divergence of the signal when histogram crosses the zero level and its only open a trading position.

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