Modified Moving Average (for Scalping purposes)

Expensive merchants,
Hello.I’ve an thought a couple of modification of transferring common indicator and wish to share it right here. I hope will probably be useful and by your assist we enhance its efficiency. The straightforward thought is described as follows.

Modified MA:

In MA we sum up final p worth and divide the summation to the p (variety of samples). As an alternative, if we divide the summation to the worth of final worth (e.g. shut worth of the final candle), then we now have an oscillating MA:

OSC_MA(i) = c0 – [x(i+p) + x(i+p-1) + … + x(i+1) + x(i)] / x(i) , i = 0 : Bars;

the place c0 is a continuing to shift the outcome towards zero (c0 is ready to p).

I’ve written the MQL4 script for this indicator and connected it.

Notes:
1) For the very best accuracy and utilization, it’s steered to make use of this indicator in 1-Minute time-frame and for the aim of scalping or day buying and selling.

2) The indicator is finest to make use of in divergence situation. When indicator exhibits divergence, then I discover that 1-Minute pattern (and typically hourly pattern) reverse quickly or worth holds at that stage (i.e. ready for divergence and buying and selling within the route of hourly pattern are very important).

3) Areas between 0.1 ~ 0.15 (promoting area) & -0.1 ~ -0.15 (shopping for area) are of concern when default choices are set (interval = 90 in 1-Minute time-frame).

4) Consideration to the assist and resistance zones and pattern traces would assist the dealer for higher entry and exit factors.

5) In a brief pattern, pullbacks from stage “0” stands out as the preliminary of consecutive waves to succeed in increased highs or decrease lows.

6) Recommended forex pair: EUR/USD.

I’ve connected a picture which exhibits the motion of the indicator in 1-Minute time-frame.

Please observe that the indicator alone isn’t sufficient to commerce, one ought to use his/her information of buying and selling. Please examine the indicator on a demo account!

Your opinions and concepts would enhance the indicator and are appreciated.

Hooked up Picture (click on to enlarge)
Click to Enlarge Name: modified_MA.png Size: 36 KB
Hooked up Information
File Type: ex4 Modified_MA_00.ex4   8 KB | 21 downloads
File Type: mq4 Modified_MA_00.mq4   2 KB | 28 downloads

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Author: Forex Wiki Team
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