Reverse ParityShows the reverse graph of the forex pairs. Includes three exponential moving avarages. Option to show Bollinger bands.
Pairs
Currency Pairs High Low RangeIndicator gives the High-Low range of 18 currency pairs. There is a High Ave which is the average of the top four (you may need to adjust which ones are in the average) as well as the bottom four Low Ave. The picture is of a weekly chart with the indicator set at 12 week average of the High-Low range with a .7 (70%) multiplier. When I am looking for week long trades with lots of movement I pick my pairs based on the most actives with a 70% capture of the range as a guide line of when to exit. Sometime when I am not in the mood for volatility I go with the ones in the Low Ave area. Further, when I day trade I set the indicator to a 1Day chart and move the percent to 20% or 30% as a guideline to tell when to get out of a trade.
Kaufman Stress IndicatorStress Indicator, first proposed by Mr. Perry Kaufman, provides an easy way for trading pairs / arbs.
Kaufman's trading rules for Stress Indicator:
- Decide on a pair to trade: For ex., AAPL v QQQ
- Calculate the Stress Indicator (SI) for that pair
- Buy the stock when SI 50
- Calculate the 60-day moving average of QQQ
- If the trend of QQQ is down, hedge the stock position with QQQ equal to the risk of the stock using the 20-day ATR of each
- Exit the hedge when the stock position exits, or exit the hedge when the trend of QQQ turns up
- Do not trade stocks under $3
Explanation of all potential SI applications is beyond this post. For more info:
- ptasite.s3.amazonaws.com
- www.futuresmag.com
- kaufmansignals.com
- TASC 2014 March issue.
Though Kaufman's Stress stategy is built on top of this Stress Indicator, I suggest reading up his full strategy guidelines before applying this.
Kaufman suggests using 60SMA on the index to track the slope. I have included a custom SMA (find it in the middle pane) that can show SMA for any selected symbol. Use the guide below to import that in to your charts: drive.google.com