Tuesday, November 29, 2016

VWAP Article

I just read this really interesting article on VWAP: 7 Reasons Day Traders Love The VWAP.

It's got a good description of VWAP, some simple trading stategies for VWAP, and some top tips.

The article is mainly aimed at VWAP on stocks. However, it's still a good read.

Monday, November 28, 2016

Candle Pattern Indicator

I'm currently developing a candle pattern indicator. Actually this is something that I had started a year or so ago, but never completed. Finally getting around to finishing it off!

There will actually be 2 indicators (released as a set).

Candle Pattern indicator will detect common Japanese candlestick patterns, e.g. Doji, Spinning Top, Bullish/Bearish Engulfing, Morning Star, Hammer, etc.

Candle Pattern Scanner, will implement the same pattern matching rules, but will do so for a number of instruments (e.g. all forex majors, all forex, all instruments, custom list, etc.). The indicator is similar to my Multi-Indicator indicator and will draw a "min-chart" of the last few candles and the most recently detected candlestick pattern.

This is still a work in-progress, and I only implemented a preliminary subset of candlestick patterns. I also intend to add alerts (e.g. sound/pop-up/email) which can be used to notify the user when a new pattern has formed.

Wednesday, November 9, 2016

Currency Strength and Major Markets (9/11/2016) ; morning after US elects Trump

The currency strength charts shows large moves across the board:

Same for stocks and gold:

And the day has just started. Tie those chin straps...

Tuesday, November 8, 2016

Line Sync (Release 11)

I just uploaded a new version of the Line Sync indicator.

Release 11:
  • Added “auto-label” feature for horizontal and vertical lines 
  • Modified import / export code to support colours better 

The import/export now supports easier colour handling, which now allows colours to be expressed as an integer value, an RGB value or a colour name.
An example of an import/export file is shown below...

The "auto-label" feature can automatically label horizontal lines with price, and vertical lines with the date and time. These automatic labels are only shown when there is no user-defined label.

More information on Line Sync can be found here.

Thursday, November 3, 2016

Monday, October 17, 2016

Candle Profile (Release 11) : Support for FXCM's "Real Volume"

I have uploaded a new version of the Candle Profile indicator. This supports FXCM's "Real Volume" indicators (actually it uses the "Directional real volume" indicator).

The FXCM’s “Directional Real Volume” indicator can provide real volume (buy, sell and total) direct from FXCM’s order books. However, there are a few things to note:

  • The “Directional Real Volume” indicator has to be installed separately. The indicator can be obtained from “FXCM Apps” site (https://www.fxcmapps.com/apps/directional-real-volume/)
  • The real volume data is only available for certain high liquidity instruments (currently: EUR/USD, USD/JPY, GBP/USD, EUR/JPY, AUD/USD, GBP/JPY, USD/CAD, AUD/JPY, USD/CHF, EUR/CHF, NZD/USD, EUR/AUD, EUR/GBP and EUR/CAD).
  • Historic data before 2010 does not appear to be available.
  • The real volume data is loaded separately from FXCM’s servers. This takes an additional amount of time, resulting in a delay before the indicator is drawn. This could be a several seconds or even minutes depending on the size of the chart

The Candle Profile can use this data, where available, to construct the profile. If "real volume" data is not available, then the Candle Profile can use tick volume or "TPO". (TPO is "Time Price Opportunity", which is a Market Profile term, basically it means that price traded at that location).

More information on the Candle Profile can be found here.

Saturday, October 15, 2016

Multi-Indicator Indicator (Release 8)

Just made a small change to the Multi-Indicator Indicator. It now draws a central reference line for indicators such as RSI, CCI, etc.

It is on the download server.

More information about the Currency Strength Meter can be found here.

Currency Strength Meter (Release 22)

Just added "currency cross alert" to the Currency Strength Meter. This feature can alert you when one currency strength crosses above/below another. It works in any mode (e.g. "Normal", "RSI", etc.).

It is on the download server.

More information about the Currency Strength Meter can be found here.

Tuesday, October 4, 2016

VWAP Indicator

Volume-Weighted Average Price (VWAP) is the ratio of the value traded to total volume traded over a particular time horizon. The time horizon is usually a day although other time horizons are sometimes used such as weekly, monthly and quarterly.

VWAP is often used as a trading benchmark by investors who aim to be as passive as possible in their execution. Many pension funds, and some mutual funds, fall into this category.

The aim of using a VWAP trading target is to ensure that the trader executing the order does so in-line with volume on the market. It is sometimes argued that such execution reduces transaction costs by minimising market impact costs (the additional cost due to the market impact, i.e. the adverse effect of a trader's activities on the price of a security). The VWAP can be considered as a “fair price”.

In addition to computing and plotting the VWAP, this indicator also plots standard deviation bands. The indicator can compute VWAP for daily, weekly, monthly and quarterly time-frames, as well as hourly and 4-hourly.

This indicator supports FXCM’s “Real Volume” indicator. This indicator can provide real volume direct from FXCM’s order books. However, there are a few things to note:
  • The “Real Volume” indicator has to be installed separately. The indicator can be obtained from “FXCM Apps” site
  • The real volume data is only available for certain high liquidity instruments (currently: EUR/USD, USD/JPY, GBP/USD, EUR/JPY, AUD/USD, GBP/JPY, USD/CAD, AUD/JPY, USD/CHF, EUR/CHF, NZD/USD, EUR/AUD, EUR/GBP and EUR/CAD)
If “Real Volume” data is not available, then the indicator can use tick volume data instead.

This indicator is now available on the store.

Sunday, October 2, 2016

VWAP with "Real Volume"

Modifying my VWAP indicator to use the "Real Volume" data from FXCM.

In the screenshot below, I've super-imposed 2 instances of VWAP indicator. The pink lines are using "tick volume", and the gold lines are using the real-volume.

This is still under development.

Wednesday, September 21, 2016

Currency Strength Meter (21/9/2016) ; Bank of Japan alters policy

The Bank of Japan has made changes to its stimulus programme, in its latest attempt to spur economic growth. The central bank has abandoned its base money target, and replaced it with a "yield curve control" system.

Wednesday, September 14, 2016

Crazy oil

US EIA crude oil data out showed better than expected draw... shouldn't oil go up?

Huge spikes in FXCM's DAX CFD

Bid/Ask spread on FXCM's DAX CFD (GER30) is normally about 1-2 pips. During US session after EIA crude oil stock data, saw these huge spikes.

Friday, September 9, 2016

Line Sync Update (Release 9)

I've uploaded new release of the updated Line Sync indicator.

Release 9:
  • Added “channels” and “zones”
  • Total overhaul of graphics and user-interface
  • Fixed a few bugs caused by recent platform update
  • Tidy up of code


Short video...

Thursday, September 8, 2016

Line Sync Update

Long-awaited updated to Line Sync is almost ready.

This has been total re-write of the graphics and user-interface and major overhaul of nearly everything else... that's why it's been taking so long!

Most of it is "under the hood" of course, and you probably won't notice.

Things you will notice:
  • Fixed issues with trend lines that were caused by last update of MarketScope
  • Added "zones" (i.e. rectangular areas, useful for support/supply/resistance/demand zones)
  • Added "price channels"
  • New "tool bar" to select the current drawing mode

The new version of Line Sync allows you to select the drawing mode (e.g Horizontal Line, Vertical Line, Zone, etc). This simplifies the menu system which was already over-cumbersome.

Just on final testing and clean-up of the code now.

The new version is back-compatible with the old Line Sync.

More information on the Line Sync here.

Monday, September 5, 2016

Indicator updates (alerts added)

I've updated some indicators, to add "alert" option.

Currency Strength Meter (Release 21), Currency Strength Bars (Release 6), Over-bought / Over-sold (Release 5) and Divergence (Release 3) now all have option to create an alert (popup and/or sound).

The new releases are on the server.

More information on these indicators can be found herehere, here and here.

Friday, September 2, 2016

Currency Strength (2/9/2016) ; NFP later today

3 hours to go before this month's US NFP data release. Here's how the currencies are looking.

Thursday, September 1, 2016

Tuesday, August 30, 2016

Highs and Lows Indicator (Release 4)

I've just uploaded a new version of the Highs and Lows indicator.

Release 4:
  • Added “Quarter” option
  • Added option to show lines “full-screen” (or just from the start of the day/week/month/etc.)

More information can be found here.

Thursday, August 25, 2016

Supply/Demand (Release 5) and Support/Resistance (Release 5)

I've just uploaded a new version of the Supply/Demand and Support/Resistance indicators. The change is actually the same for both (since they share a lot of common code).

Release 5:
  • When “Historic data” size is set to 0, it uses the chart data rather than loading separate data source

More information on the Supply/Demand indicator can be found here.
More information on the Support/Resistance indicator can be found here.

Zig-Zag (Release 8)

I've just uploaded a new version of the Zig-Zag (Weis Wave) indicator. The version has a couple of new label styles which were requested by customers.

The latest version can be download from the site. More information on the indicator can be found here.

Monday, August 15, 2016

New version of Line Sync coming soon

I've been working on this one for months, and my writing this blog post is basically a way to force myself to finish it off !

The existing version of Line Sync has a bug with trend line extensions (caused during last update of MarketScope). I also wanted to add some new features (such as zones and price channels). However, both of these required total overhaul of the graphics system. On top of that the user interface (which is already quite klunky due to platform limitations) was getting too complex, so I'm having a major overhaul of that too.

To cut a long story short, this is almost a 100% re-write of the tool. I'm almost there now though, just a couple more features and some testing.

Here's a sneaky peak of how it looks at the moment...

More information on Line Sync (current version) can be found here.

Friday, July 29, 2016

Currency Strength (29/7/2016) ; BoJ keeps rates as they are

Notice the "Fat Finger Trade" just after 11pm UK. Low liquidity, nerves about the BoJ, maybe a fat finger or front running; caused 150+ spike.

BoJ keeping rates the same, despite hints previously. Surprise for the markets.

Wednesday, July 6, 2016

British Pound and Big Round Numbers

This chart of GBP looks pretty horrific, post-BREXIT drop. The "Big Round Numbers" really coming into play on these reaction levels, acting as support, resistance and then flipping.

More information on my Big Round Numbers indicator can be found here. It's also on the FXCM Apps store.

Friday, June 24, 2016

Currency Strength and Major Markets (24/6/2016) - BREXIT vote +1

Well... it's a BREXIT !!!

Yesterday the markets seemed to have voted for "stay", with stocks and GBP up on their highs. But the grim reality of the British decision hit home not long after the first results started to come in.

Thursday, June 23, 2016

Sunday, June 19, 2016