In today's market there are many algorithms for assessing the market situation, which are complex and powerful. Recently, more and more often, traders have resorted to using the Market Way indicator (in Russian, which means “market path”).
What is it
Using the Way Market display indicator, traders can fairly accurately predict the dynamics and trends of price changes in the market, and determine the optimal places to place positions. The undoubted advantage of this indicator is more accurate signals, in comparison with the classic "Stochastic" and MACD. In addition, its basic principles are somewhat different in the positive direction.
Way Market Display Indicator: How It Works
The window of the algorithm is located below the price level. In it you can see a set of multi-colored lines and a histogram. The orange curve (the main curve of the algorithm) is responsible for the trend line. An uptrend is indicated by light green and green curved lines, and a downtrend is displayed by lilac and pink. Check the truth of the algorithm signals using a histogram.
Installation and optimal Market Way settings
The indicator installation process is quite simple and will not cause questions even for novice users. To start working with the algorithm, you need to activate it. Only after this operation can you go to the parameter window.
The Way Market display indicator has the following main parameters:
- IdMain - draws a trend curve in the indicator window.
- IdBear - setting the parameters of the downtrend curves.
- IdBull - adjusting the parameters of upward trend curves.
- IdArray - smoothing curves in a window. Thanks to anti-aliasing, you can get rid of market noise and reduce the risk of false signals.
The successful result of the algorithm depends on its proper optimization, therefore certain recommendations should be followed. The Way Market display indicator may initially seem too confusing. It is worth noting that correctly setting up the indicator is quite difficult, therefore, it is recommended to start working on the default settings.
Features of application in work
The Way Market display indicator can be used in three ways. In the first option, you need to track the position of the blue dots. So, when placing points above the orange curve, you need to create buy positions, and if the blue points below the orange curve - sell positions.
The second way is to assess the market situation according to the position of the histogram relative to zero. If the columns are below zero, provided that the orange trend curve increases, this is a signal for creating buy positions. If the columns are below zero and the trend of the orange curve declines, you need to create sell positions.
The essence of the third (safest) way to use the Market Way is to focus on three signals. The essence of this method is as follows:
• The upward trend of the orange curve.
• Intersections of green and orange curves.
• The blue tint of the histogram and its location below the zero mark.
For novice users of the algorithm, it is recommended to use a demo account for a detailed familiarization with all the subtleties of setting up and using the algorithm.
Main advantage: Way Market display indicator and good forecasts
According to its nature, the Market Way indicator is a very complex oscillator algorithm for in-depth technical analysis. The undoubted advantage of this algorithm is the ability to display both the strength of bulls and bears, as well as the ability to track the moment of weakening of sellers and buyers.
Also, the Way Market display indicator allows you to monitor the current trend (moving averages). Therefore, in addition to a simple measurement of strength, it can be used to fairly accurately determine the flow trend.
Thanks to all these features, the Market Way indicator is a complex, powerful system indicator that can easily be used to determine trading tactics.
Strategies in Market Way
The algorithm allows you to apply the strategy on an arbitrary part of the time frame. But, due to the low level of market noise, the Way Market display indicator has disadvantages: senior bidders have advantages. Consider the main strategies in the algorithm:
Buy signal:
1) The red line in the center signals an upward trend of the market, located above zero.
2) The line of bulls in light green should be located so as to cross the line of the moving average (dark green) from bottom to top or be above it.
3) The line of bears (dark pink color) crosses the bottom line of the moving average (blue), or is located above it.
It is not necessary to set the stop order to the minimum value of the signal candle. It will also be true to set it to the values of local minima and maxima. But the “stop” setting has a greater advantage when the signal candle reaches its minimum value after it is closed. Profit equals stop signal.
Sell signal:
1) The downward trend of the market - the red line in the center runs below zero.
2) The line of bulls crosses the line of the moving average from top to bottom or is under it.
3) The line of bears is located below the line of the moving average or crosses it from top to bottom.
Performance
As practical experience shows, the Way Market display indicator was tested for operability when monitoring nine currency pairs. Open were no more than 3-4 transactions at a time. As a result, the trader will be able to make 20 successful transactions. Moreover, all open transactions will be closed during the day due to low profits (20-30 points).