Flat and volatility indicator XASER FV
It's no secret that the most profitable strategies are. trend strategies. Trend trading means minimal risks and substantial profits. But every trend comes to an end. After a trend always comes Flat: long or short. As practice shows, all trend trading strategies on financial markets are unprofitable on flat (sideways price movement). Sometimes, a trader loses everything (and sometimes more) that he earned on the last trend on the flat following the trend.
So, in order to minimize losses, it is necessary to simply not open trades during flat. But if there are no problems with trend detection (it is enough to use MovingAverage), then only experienced traders can detect flat "by eye". The rest make mistakes such as: being late in identifying the flat, opening trades on the expansion of the flat (false price movement) and others. And with automatic trading systems (Expert Advisors, robots) there is a deplorable situation, because they rely only on dry figures! Here is what you need XASER FV flat indicatorit doesn't so much increase profits as it does cut off losses.
Indicator signals:
- value = 0 - this is flat (we do not open trades, but it is desirable to close the already opened ones);
- value is greater than zero and growing: growth volatility market (the trend has started) - you can open a deal in the direction of the trend;
- value falls: volatility decreases (trend fades) - you can close the deal.
The figure shows an example of using the indicator with parameters 8-40. The timeframe used is M15.
In all positions marked with red ticks, you can open positions, and the places of closing trades are marked with vertical red lines.
I'd like to point out that XASER FV indicator does not show the direction of price movement and the direction of opening trades! It shows that either the price movement is in flat or the price movement forms a trend. You can determine the direction of the trend with the help of additional trend indicators.
Tips for using the indicator:
- The main purpose of the XASER FV indicator is to be used as a filter, i.e. to cut off flat trades;
- It can be used in different types of trading strategies;
- Indicator settings are specified based on the goals. The settings are selected for each currency, timeframe and strategy used - different. For example, in scalping Expert Advisors I use fast settings (5-15 or 6-25), in trending Expert Advisors I use slow settings;
- Use in conjunction with other confirmatory indicators.
Dear Author!
In your article you have specified the values for the indicator settings, but which of them are put in which field is not specified. Could you specify which values and for which field are used?
Xaser settings are reduced to specifying two variables X-period & Flat period. The Flat Period variable indicates the period value for flat analysis, while the X-period variable indicates the total analysis period.
The figure of the article shows an example of using the indicator with parameters 8-40 with M15 timeframe. Hence, Xaser-period(8) & Flat period(40)