FX Trend Radar Manual

Transcription

1 C O D I N G T R A D E R. C O M FX Trend Radar Manual Version 1.00

2 Table of Contents FX Trend Radar... 1 What is FX Trend Radar?... 1 Installation... 2 Configurations... 9 How to use FX Trend Radar How FX Trend Radar determines a trend? Disclaimer / Disclosure... 19

3 FX Trend Radar Congratulate on taking your first step towards trading like a professional trader! Before you even start using FX Trend Radar, we want to emphasize that it is NOT an indicator giving signals to buy and sell. FX Trend Radar is intended to help you identify trends in the currency pairs and shorten your trading analysis process. No longer will you need to scan through all the charts (20+ pairs / multiple timeframes) searching for trading opportunities. FX Trend Radar helps you identify all potential trend trades just by glancing at its dashboard interface. For novice traders, we suggest using FX Trend Radar while concurrently analyzing your own charts. You will soon find that identifying trends is no longer guts feel and you are be able to identify trends through just a quick glance on a chart! Why? FX Trend Radar has unknowingly trained you to spot a trend when you were cross referencing between the signals given and the charts! What is FX Trend Radar? FX Trend Radar is an institutional quality yet user friendly FX signal application which gives you the most up-to-date trend status of 25 currency pairs over 6 timeframes. Cutting Edge Trend Detection System FX Trend Radar makes use of cutting edge trend detection system, delivering to you not only the trend status but also the lifespan of trends for all pairs/timeframes combination. User-Friendly Interface Utilizing an easy-to-read dashboard style interface, the application provides you with a one glance overview of the currency market, cutting short the analysis process for you. To learn more about our Trend Detection System / other FX Radar series applications, please visit For technical support / enquiries, our technical support team at support@codingtrader.com In short, FX Trend Radar is the ideal tool for retail traders who do not have the time to actively analyze the market. 1

4 Installation Download the exe installer (FX_Trend_Radar.exe) from the website. Double-click the file to start the installation process. FIGURE 1 FX Trend Radar Installer opened 2

5 Click Next to display the Disclaimer. FIGURE 2 FX Trend Radar Disclaimer 3

6 Click Next to display the License Agreement: You must accept the License Agreement and click Next to continue. FIGURE 3 FX Trend Radar License Agreement 4

7 Select the MetaTrader 4 installation that FX Trend Radar should be installed into and click Next. FIGURE 4 Choose MT4 Directory 5

8 Confirm that the installation options are correct and click Start. FIGURE 5 Confirm installation option 6

9 Confirm that the installation options are correct and click Next. FIGURE 6 Installation completed The FX Trend Radar is automatically installed into your c:\program files\mt4 installation\ where mt4 installation is your MetaTrader 4 broker installation folder. That s it. You have successfully installed FX Trend Radar! 7

10 After applying the template file FX_trend_radar, your MetaTrader 4 window should look like this. FIGURE 7 Chart after applying FX_trend_radar template 8

11 Configurations If you are not viewing all the pairs / timeframes provided in FX Trend Radar, you have the option to turn them off. Right-click on the chart and select Indicators List. FIGURE 8 Chart Indicator List Double click on FX_Trend_Radar to open its configurations page. FIGURE 9 FX Trend Radar Configurations 9

12 Select false for the Pairs that you do not wish to view. Similarly for timeframes which you do not wish to view, select false to disable it. You can set the refresh rate of FX Trend Radar too. Its default value is set at 5 min. If you are not monitoring at that timeframe, you may set it to a higher value. (Value is in minute) FIGURE 10 FX Trend Radar Configurations refreshperiod 10

13 How to use FX Trend Radar First let us go through the components in FX Trend Radar dashboard interface and what they meant. FIGURE 11 FX Trend Radar Dashboard interface The Timeframes are listed at the top horizontal column and the Pairs are listed in the left vertical column. The arrows and box in the dashboard means: - Young Uptrend - Strong Uptrend - Matured Uptrend 11

14 - Young Downtrend - Strong Downtrend - Matured Downtrend - No Trend NOTE: FX Trend Radar is NOT an indicator giving signals to buy and sell. It is only intended to help you identify trends in the currency pairs and shorten your trading analysis process. You should base your entries using other methods such as price breakout or retracement. So what if you see a Young Uptrend, Strong Uptrend or Matured Uptrend? - Young Uptrend The uptrend has just started. (Price has just broken from a range bound period or downtrend) The trend is not yet confirmed. It could well be a false breakout and return to a range bound period. If you are a risk taker and go long (buy the pair), your reward is potentially the greatest as you stand to ride through the whole of the uptrend move. If you are currently short (sold the pair), this is a signal for you to close your trade. The tide has most likely turn against you. - Strong Uptrend This is a confirmed uptrend. (Price has been trending upward and there is strong upside momentum) You can enter into a long trade directly or wait for your entry signals, etc, a breakout or retracement. Entering long gives the highest probability of a winning trade. If you are currently short, you should be in deep red. Close the trade now! 12

15 - Matured Uptrend Price has been trending up for quite a period of time. We do not recommend going long at this moment as there is a high probability of a price retracement. This does not mean that the uptrend is ending. Price could still go into a range bound period before continuing with its uptrend. If you are currently long, you could take partial profit or close your whole trade. However be prepared to go long again if your own entry method says so. - Young Downtrend The downtrend has just started. (Price has just broken from a range bound period or uptrend) The trend is not yet confirmed. It could well be a false breakout and return to a range bound period. If you are a risk taker and go short (sell the pair), your reward is potentially the greatest as you stand to ride through the whole of the downtrend move. If you are currently long (bought the pair), this is a signal for you to close your trade. The tide has most likely turn against you. - Strong Downtrend This is a confirmed downtrend. (Price has been trending downward and there is strong downside momentum) You can enter into a short trade directly or wait for your entry signals, etc, a breakout or retracement. Entering short gives the highest probability of a winning trade. If you are currently long, you should be in deep red. Close the trade now! - Matured Downtrend Price has been trending down for quite a period of time. 13

16 We do not recommend going short at this moment as there is a high probability of a price retracement. This does not mean that the downtrend is ending. Price could still go into a range bound period before continuing with its downtrend. If you are currently short, you could take partial profit or close your whole trade. However be prepared to go short again if your own entry method says so. - No Trend There is no trend currently. Price is most likely in a range bound period or there is strong volatility on both sides (prices swinging violently up and down) We do not recommend entering any trades. However if you are a mean reversion trader, you could execute range bound trades, selling at resistance and buying at support. Large number of arrows in the Dashboard This is an EXTREMELY POWERFUL indication that prices of many pairs are moving in trending fashion. This usually happens when there is a strong theme (etc. risk aversion in end 2008) at play in the WHOLE currency market. Prices of pairs are correlated and usually move in tandem. When you see a whole bunch of arrows in the dashboard, traders are moving prices in a direction supported by the theme in play. Volume in the market is likely to be high too. By observing the number of arrows in the dashboard, you will gain a better feel of the market at a shorter time, without the need to look at all the fundamental reports, which usually create more confusion to your thoughts! 14

17 How FX Trend Radar determines a trend? The idea of creating FX Trend Radar came about from the numerous requests by traders (both professionals and retail traders) to create an indicator which allows them to monitor multiple pairs in multiple timeframe. We have combined the essences of their systems and through our own research and optimization, come up with FX Trend Radar. Below are the main concepts behind FX Trend Radar: 1. Based on a series of Adaptive Moving Averages Since the start of trend trading, pioneers of system trading have used moving averages (crossover, comparison of different moving averages period etc) as signals for entering trades. All those methods are base on the notion that moving averages (which are actually low pass price filters) tells trends. This is so fundamentally true if you can see that moving averages are nothing but a display of past price action! However moving averages are lagging price indicators (Indicators that produce signals after the price events have occurred). We have modified traditionally used moving averages method and came up with our own adaptive version of it to increase the response of moving averages to predict trends. For the pair below, FX Trend Radar will detect it as a trend base on our adaptive moving averages algorithm. You can see that 1) traditional moving averages, 2) swing points and 3) trend lines all indicate that there is a prevailing trend. 15

18 FIGURE 12A Moving averages FIGURE 12B Swing points 16

19 FIGURE 12C Trend line 2. Based on relative Strength of price movements Most trend indicators do not care about the strength of a trend. Whether it gaining in momentum or waning. We do not want to get into a trend where the momentum of the move is waning. That is a low probability trade. FX Trend Radar performs checks on the recent price movement to ensure that those trending pairs with waning strength are filtered out. For the pair below, even though it is in a downtrend, it is filtered out due to its waning downtrend move as highlighted below. 17

20 Waning Downtrend FIGURE 13 Checks on strength of price 3. Checks on opposite price movements Sharp opposing price movements against the trend direction are warning signals that there are strong opposing forces up against the trend. It signals a huge pool of supply which is waiting for a uptrend to hit it or a huge pool of demand waiting for a downtrend to hit it. Those are usually huge institutes orders waiting to get filled at a favorable price. We do not want to be going against those orders. Sharp opposing price movements could also be due to unfavorable news (e.g. sudden interest rate hikes, war etc) which might reverse the course of a trend immediately. Those are warning signals that the trend is coming to an end or has already ended. 18

21 Disclaimer / Disclosure Forex trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade forex, you should carefully consider your investment objectives, level of experience, and risk appetite. You must be aware of the risks of investing in forex and be willing to accept them in order to trade in these markets. Trading involves substantial risk of loss and is not suitable for all investors. CodingTrader.com has taken measures to ensure the accuracy and timeliness of the information in the application, however, does not guarantee its accuracy and timeliness, and will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information, inability to access the information, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this application. This application is neither a solicitation nor an offer to buy or sell currencies. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. 19