Menu
Brokers
MT4 Forex Brokers
MT5 Forex brokers
PayPal Brokers
Skrill Brokers
Oil Trading Brokers
Gold Trading Brokers
Web Browser Platform
Brokers with CFD Trading
ECN Brokers
Bitcoin FX Brokers
PAMM Forex Brokers
With Cent Accounts
With High Leverage
Cryptocurrency Brokers
Forums
All threads
New threads
New posts
Trending
Search forums
What's new
New threads
New posts
Latest activity
Log in
Register
Search
Search titles only
By:
Search titles only
By:
Menu
Install the app
Install
Reply to thread
Forums
Trading Platforms
Other Trading Platforms
Navel EMA VertexFX indicator
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Message
[QUOTE="OmSaiTech, post: 184213, member: 35060"] Navel EMA indicator is an innovative VertexFX Client-side Auto Trader that identifies trend reversals. Traditional Exponential Moving Averages (EMA) are useful in identifying new trend breakouts. However, one of the major drawbacks of EMA is that they tend to generate many false signals resulting in whipsaw trades and losses. The Navel EMA attempts to overcome this drawback by employing a better smoothing filter. Unlike traditional EMAs, Navel EMA uses all prices – Open, High, Low and Close. This ensures that weightage is given to all price fields, especially to the Open price. In the first step, we calculate the Navel price, which is, Navel Price = ( Close + 5 x Open + 2 x High + Low ) / 9 It can be observed here that the Open price has a weightage of five times that of the Close and Low prices, which High has a weightage of twice that of Close and Low. In the next step, the Smoothing Factor (PR) is calculated as follows, PR = 2.0 / (MA_PERIOD + 1.0) Finally, we calculate the Navel EMA using the following formula, Navel EMA = PR x Navel Price(current) + (1.0 – PR) x Navel EMA(previous) For the first candle, the Navel EMA is set to Navel Price. By giving a higher weightage to the Open price, the indicator is biased towards strong openings. When the opening of a candle is strong, it tends to continue in the same direction with a very high probability. Using a higher weightage for the Open price also ensures that the indicator can be used profitably for intraday trades because the dependence on the closing price of the candle has lower weightage and therefore the Navel EMA value does not fluctuate during the lifetime of the candle. SIGNALS: 1. A BUY signal is generated when the Navel EMA starts rising and the candle closing price is below the Navel EMA. It has been observed that waiting for a new Swing Low after the BUY signal has been generated to enter the BUY trade generates better returns. However, the SELL trade should be initiated below the Navel EMA. The BUY stop-loss can be placed below the nearest Swing Low. 2. A SELL signal is generated when the Navel EMA starts falling and the candle closing price is above the Navel EMA. It has been observed that waiting for a new Swing High after the SELL signal has been generated to enter the SELL trade generates better returns. However, the SELL trade should be above the Navel EMA. The SELL stop-loss can be placed above the nearest Swing High. CONFIGURABLE INPUTS: 1.MA_PERIOD– The period used to calculate the Navel EMA. 2.MA_SHIFT – The number of candles to shift the calculated Navel EMA into the future. [URL deleted] [/QUOTE]
Insert quotes…
Verification
Post reply
Top
Bottom
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…