Custom Indicators User Guide

Transcription

1 Custom Indicators User Guide 1 of 12

2 Introduction The indicators included in this guide are offered 100% free to all our traders with a live account. These indicators were used by several members of our management team over a long period during their full time trading days. These indicators have proven their mantle through thick and thin, volatile times and sideways market movements. In short, they ve stood the test of time. These indicators only work on a Manhattan Global Markets Live or Demo account. Please do not try to break the ex4 file by decompiling it and trying to run it on other brokers platform. We are generously giving these indicators for free to all our traders to help them win. None of these indicators repaint or lag behind. They have all been tested on the MT4 platform for repaints and they have all passed as non repainting indicators. 2 of 12

3 Daily Movement Indicator The Daily movement indicator is an essential for every trader, manual or algorithmic, short term or long term. If you want to focus your efforts on the most lucrative trade opportunities as a daytrader, then you ve got to have the Daily Movement Indicator. The Daily Movement indicator calculates the average range a currency pair moves during a period. The calculation is performed using the Average True Range (ATR) values of the Highs and Lows on a Daily chart spanning the previous X candles. The default settings for the Daily Movement Indicator looks like this: As you can see, the indicator is already loaded with optimum settings for it to work on your Manhattan Global Markets trading account. Hence, you don t need to do anything here unless you wish to see the market movement for the currency pairs over a shorter period (instead of daily), which is not recommended. Once you have the indicator running, it will look really ugly without the included template file. You need to right click on the chart (you can use any currency pair for this), and load a template. When asked, navigate to the folder where you saved the indicator files and go to the DailyMovement directory. Inside there you will see a.tpl file called MGM_DailyMovement.tpl. Load that template and your Daily Movement indicator should look something like this: 3 of 12

4 SR Lines Indicator A good Support and resistance indicator is probably the most critical component of an algo traders toolkit. With our S/R indicator, we make the process of mapping support & resistance lines easy as drag and drop. The settings for this indicator are as follows: SR_Interval_Bars - Use this to specify the number of bars you would like to consider when mapping out the support/resistance levels. For example, if you are on the M15 interval and would like to see the support and resistance zones for the previous 1 day, then use 96 as the value. Why? Because there are minute candles in a day. :) SR_Interval_Hours - You could achieve the same outcome as above by putting in 24 to view S/R levels over 24 hours. SR_Interval_Mins - Or you could use 60 in this field to see S/R levels over the last 1 hour. SR_Shift - Now this is an important one. Because S/R levels are constantly moving, you need to know if price broke past an S or R level. If you don t use an SR_Shift, then the line depicting the S or R level will keep shifting and you won t even know. Hence, it is recommended to use a generous offset. I use 4 which means that I have 4 candles to visually see the breakout happening before the S and R lines meet back again and continue with the chart. SR_Bars - Set to true if you re using SR_Interval_Bars to define how S & R should be calculated 4 of 12

5 SR_Mins - Set to true if you re using SR_Interval_Mins to define how S & R should be calculated SR_Hours - Set to true if you re using SR_Interval_hours to define how S& R should be calculated. Once you have the settings defined, drop the indicator from the Navigator onto any chart. It should look something like this: The benefit of using SR_Shift. See how in the previous candle, the price broke below the support line. If you didn t have the SR_Shift defined, the blue horizontal line depicting the support level would have gone further below to where the bottom tip of the current candle is. 5 of 12

6 Multi SR Indicator Support & Resistance lines are not static. What was Support yesterday can become today s resistance after a break below the previous support. The reverse is true for resistance lines. Hence, in order to be effective in determining support & resistance zones, one must consider them as a dynamic line. This indicator plots multiple areas of support and resistance using historical price data. There s nothing to change in the settings for this indicator except the timeframe you wish to use to plot these areas of S and R. Timeframe 0 means the current timeframe of your chart. Timeframe is represented in Minutes. 0 = current. 15=M15, 60=H1, 240=H4 and so on Sometimes it is a smart idea to use a higher timeframe to get more accurate S & R zones. So if you re trading M1 timeframe, we recommend you check S & R on H1 timeframe. In that case, you will put 60 in the TimeFrame settings. The fatter blue lines indicate heavy congestion zones implying that price attempted to break these lines multiple times but was not successful. Be very cautious when price is near these lines. Other, thinner lines represent S & R zones but not as strong as the fat lines. 6 of 12

7 Fibo Lines Indicator The Fibo Lines Indicator is a very simple yet extremely powerful indicator for manual traders. The Italian math genius Fibonacci discovered a unique correlation between a certain number sequences. Today, we know those numbers as the Fibonacci numbers. This indicator looks at a recurring pattern around a specific Fibonacci prime number In our personal trading experience, every time price came close to any of the numbers the sum of which equalled 11, the price bounced back. If price managed to break past any of those numbers, then the breakout continued for quite some time before a higher number stopped it dead in its tracks. TimeFrames are the same as in the Multi-SR Indicator. Line shift is the same as in the SR Lines indicator. Line Type, Line Width and Line Color are just cosmetic settings so you can choose whatever you like for these. Highest Price Point in the last 47 & 137 periods Highest Price Point in the last 29 periods Highest Price Point in the last 11 periods Highest Price Point in the last 83 periods 7 of 12

8 Notice how price behaved around 47, 137, 29, 11 and 83 - Now add each of these digits together and you will see something interesting. Each of those numbers when added together comes to =11, 137: = 11 and so on You can see very easily that every time price came close to these numbers, something strong happened. It either broke through like in 47, 137, 29 and 11 or held its ground bouncing right back up, as seen in 83. Take this knowledge in one hand, use your understanding of trends in the other hand and you will have a super simple, yet extremely powerful directional trading method that will stand the test of time. Just for fun lets overlay the Fibonacci Mystery Lines indicator and the Multi-SR indicator and see if we can find some correlation Can you see how accurately the fat blue lines identified the strongest areas of support and resistance as seen through the Fibonacci Mystery Lines indicator? Drop it on your charts the next time you trade manually and see how it goes. 8 of 12

9 Manhattan Quotient Indicator This is our absolute STAR PERFORMER. The Manhattan Quotient indicator uses 5 exponential moving averages, applies a logarithmic normalising equation to it and tries to predict where price is moving next. Sounds nerdy? Forget about all that. Just remember Blue is Buy, Red is Sell. Check it out. Sell Buy If you followed the Manhattan Quotient for this particular trade, from the point of color changing from red to blue, to it changing back from blue to red, you would have made 348 pips. The Manhattan Quotient is not a scalping indicator. It is best used on the H1 timeframe. The indicator has super complex settings yes, its for nerds ready? Check it out. Just kidding. See? This is the most sophisticated, yet user friendly indicator you will ever come across. All the complex mat is hidden from you You just choose the Period, timeframe and set the alerts to true and that s it. 9 of 12

10 Period: This defines the loopback period for determining the baseline for the algorithm. 96 has worked very well for us in the past because its the most stable period. For example, 96 periods in M15 timeframe means 1 day. How? Because there are 96, 15 minute candles in a 24 hour period. And you know D1 is a good way to understand where short term movements are and the algorithm can normalize all the small twitches that you see during volatile times (market opens, news, crossovers etc.) and removes it from the equation (but not entirely) to give you a more clean and un-adulterated version of where the market is really heading toward. You can try the smaller timeframes and you will see more frequent instances of red and blue bars at short intervals of each other this means that the Quotient is not able to accurately say if its going to stay blue or are we in a twitchy zig, zag period Be smart. Stick to 96 at least until you ve made some money from the Quotient. Ok? Smart Tip Drop the Manhattan Quotient indicator twice on your chart and apply a different timeframe to each. Check this out: The first one is Timeframe 0, Period 96 on H1. The second one is Timeframe 240, Period 96 and also on H1. Just by looking at it you can tell that longer term forecast is for the market to still move up. For ultra conservative traders, you should only make a move if both timeframes confirm the same result. Meaning: If both timeframes say blue - BUY. If both say red - SELL. 10 of 12

11 Buy/Sell Arrows Indicator CAUTION: This Buy/Sell Arrows Indicator is highly accurate in its own right, but it is recommended that you use the Manhattan Quotient and Support/Resistance Indicators for best results. Blue is BUY, Red is SELL. Use this indicator along with another confirming indicator such as the Manhattan Quotient. Also, you should always take into consideration the Support & Resistance zones identified by the Multi-SR, Fibo and SR Lines indicators. If you use all these indicators as a team, you will have a SIGNIFICANTLY higher chance of success, compared to anything else you may have tried before. The settings for this indicator is very simple. you need to specify a fast moving average and a slow moving average. That s it. Everything else is calculated by the algo in the background. The chart above used Slow: 29 and Fast: 83. Do these numbers ring a bell? They are both Fibonacci Primes as mentioned in the Fibo Lines section of this guide. I wonder how accurate it would be, if we used some of the other Fibo Primes? 11 of 12

12 Support & Help If you need any assistance with regards to these indicators, please feel free to contact our support team. you can us on support at manhattanglobalmarkets.com or come to the live chat room on the and ask for Ari or Alan. 12 of 12