sigmaforexindicators

    Fractals | SigmaForex

    Tuesday, September 16, 2008, 07:19 PM [forex trading ]

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    Fractals

    It allows to detect the bottom or the top.
    - A bearish turning point occurs when there is a pattern with the highest high in the middle and two lower highs on each side.
    - A bullish turning point occurs when there is a pattern with the lowest low in the middle and two higher lows on each side.
    The most common confirmation indicator used with fractals is the "Alligator indicator", a tool that is created by using moving averages that factor in the use of fractal geometry. The standard rule states that all buy rules are only valid if below the "alligator's teeth" (the center average), and all sell rules are only valid if above the alligator's teeth.




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    Gator Oscillator | SigmaForex

    Tuesday, September 16, 2008, 07:12 PM [forex trading ]



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    It is based on the Alligator and shows the degree of convergence/divergence of the Balance Lines (Smoothed Moving Averages).
    The Gator Oscillator is displayed as two histograms:
    - The histogram above zero shows the distance between the blue and the red lines (between the Alligator's jaw and teeth);
    - The histogram below zero shows the distance between the red and the green lines (between the Alligator's teeth and lips).
    The Gator Oscillator clearly shows convergence and intertwining of the Balance Lines when the Alligator is asleep or awake thus helps identify a trend.




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    Market Facilitation Index | SigmaForex

    Tuesday, September 16, 2008, 07:04 PM [forex trading ]


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    It shows the change of price for 1 tick & it is a more rigid indicator in that it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a security.
    - If prices grow while MFI falls (or vice versa), there is a great probability of a price turn
    - When MFI value's over 80 or under 20, signals correspondingly of a potential peak or bottom of the market.

    MFI increases and volume increases: new opened positions in the direction of bar development.
    MFI falls and volume falls: the market participants are not interested anymore.
    MFI increases, but the volume falls: the market is not supported with the volume from clients, and the price is changing due to traders’ (brokers and dealers) "on the floor" speculations
    MFI falls, but the volume increases: There is a battle between bulls and bears, characterized by a large sell and buy volume, but the price is not changing significantly since the forces are equal.



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    Commodity Channel Index (CCI) | SigmaForex

    Tuesday, September 16, 2008, 06:52 PM [forex trading ]

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    Commodity Channel Index (CCI)

    CCI has been developed by Donald Lambert; it designed to detect beginning and ending market trends & provides an indication of overbought or oversold markets.
    The CCI indicates the increasing in the prices compared to average prices as it moves towards +100.
    As the CCI drops towards -100, it indicates that the price is increasingly low compared to average prices.
    It provides a warning of overbought and oversold markets when the line crosses the +100 or the -100 levels.
    The actual buy or sell signal is usually provided, however, when the line then crosses back over the +100 or -100 level.
    Buy signals are generated when CCI dropped below -100 & then come back up through this level.
    Sell signals are generated when CCI dropped below +100 or make strong thrust above +100 & then dropped back up through this level.
    Zero line crossings it confirms buy or sell signals.




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