Ward's_EMA_Power

[Robert2617 10]

{===========================================}

{=== _Ward's_EMA_Power =====================}

{===========================================}

 

{This indicator is used help you decide

whether to take a trade or get out of a

trade. It uses EMA cross overs to color

the radar screen cells green, yellow or

red depending on which direction the

"signal EMA" (XAverage1) is moving.

 

This is basically a RadarScreen Indicator

for a "ribbon" of EMAs.

 

By default, the cells will light up in

order letting you know how "strong" or

"weak" the trade indication. You can

also load two instances of this indicator

setting the averages in sequence 4 through

10 on the first and then 4, 11, 12, 13,14,

15 and 16 on the second to make a bar of

tweve cells. This looks really cool if you

like things like that.

 

Also, this indicator gives signals letting

you know if the EMA is rising (+), falling

(-) or the same as last bar (=).

 

Remember, trading is risky so use this

indicator at your own risk! I hope this

helps make your trading a little more fun.}

 

{Note: Make sure you load at least enough

additional bars of data for the longest

EMA that you use!}

 

Below I have attached a couple of screenshots. One shows what the EMAs "see" on a chart and the other is to illistrate that you could still have a clean chart if you wanted to or use some other indicator along with this one.

 

I was trying to create an EMA crossover trade indicator using two EMAs. Then it hit me. If two EMAs are good, wouldn't 12 be better? Then you could see how strong or weak the signal is or know if you should stay in a trade or not. Some people say EMAs lag because they are a result of history. To overcome this you may be able to do the following. You could set the indicator to use say 25 tick bars (or less) while you look at and trade off of a 1 minute chart. That way you are getting trade signals from the indicator before your chart even shows what is happening!

 

In the images, I have two instances of the indicator loaded in the same RadarScreen. The settings on the first instance are 4,5,6,7,8,9,10 and on the second 4,11,12,13,14,15,16. I also have loaded 200 additional bars of data. Signals happen when the 4 EMA crosses over or touches any of the other EMAs.

 

You don't have to use two instances of this indicator for it to work properly. The defaults are setup for 1. Some people don't want to use up 2 indicators worth of valuable desktop real estate.

 

Enjoy!

WARDS_EMA_POWER.ELD

[slableak 10]

Hi Robert.

I installed this in radar Screen. Looks great. I am not sure I understand what each cell 1 thru 6 is telling me. Can you explain that to me?

 

thanks,

David

[Robert2617 10]

Sure. Everything keys off of XAverage1. As it moves, touches or crosses any other XAverage, the cells light. Green means it is above it, red below it and yellow for the same as it. Then, the +,-, and = signs tell you which way between each Xaverage the Xaverage1 is pointing.

 

Some say trade when a 4 EMA crosses an 8 EMA (or the 3 and 6 or whatever). This indicator is more sensitive than that on the first few EMAs and less sensitive on the later EMAs at default settings. It is up to you to decide how many greens or reds it takes for you to make a trade. One green? Three greens? Five? That is up to you. Also, just say you are in a long trade and all your lights are green. Price has a pullback, and the first 2 lights turn red. You know you should stay in the trade for more profit because you have previously decided that it takes at least four reds before you make a trade. You can use it to put you in a trade and to take you out. But you have to see it live and decide what your tolerance/risk levels are.

 

Probably best to watch the the same interval chart and Radar at first to see how it behaves. Then make a decision of what works best for you.

 

And by the way, I started writing this indicator this past Friday afternoon and only had 3 plots at that time. It was after the close of the day, last night, when I decided to add 3 more so I haven't even seen this in action yet, in all it's glory! However, I do feel confident that it will work as intended.

 

My idea is to use it as a "strength meter". With only 3 plots it was working and looked great. With 6 or 12 it should rock. I tested it on multiple symbols, time frames and looked at magnified charts to make sure it was working properly. If you notice any oddities, let me know and we can adjust it.

 

One thing I did notice is that when price is flat, you may get all of one color depending on which way price is slightly trending. So you do still need to look at the chart. At those times, note that price is flat and then when price makes a break one way or the other, you'll know what to do. It appears to work best at up and down times. Keep that in the back of your mind.

[slableak 10]

Well, I just subscribed today to Radar Screen to try out your indicator. I have seen a lot of post on TS Forum about the Motherlode indicators Avery wrote. Are you familular with his stuff? Also, since I am a Radar beginner do you have any tips or other favorite indicators you might sugest?

 

thanks,

David

[Robert2617 10]

Yes I am familiar with Avery's work and because of his work I got RS too! hahahah

 

My favorites of Avery's are the _Gridiron_II_SR15, SMAA_ROC and SMAA_LLMACD. I'm trying out SMAA_VolumeSpike. I also like a lot of the others but I found myself over indicated!

 

I think the best one by far is the Gridiron Pivots. I can't see myself trading without it.

 

I created a couple basic color coded indicators to compliment the one's I just mentioned. I haven't put them on the downloads section here yet but you can find them here: http://www.traderslaboratory.com/forums/18/ts-radarscreen-1127-2.html#post5925

 

So for now I have:

 

Rate of Change

Fast MACD

Slow Stochastics

On Balance Volume

Volume Spikes

12 EMAs

Tick and Trin

Time and Sales

Tick Delta

HA Paint Bars

 

All that and a crisp clean chart to look at. All put together it looks like the screenshot attached. I use my mouse wheel on the top left RS to change between the chart intervals. Scroll and click.

 

There is another really good RS indicator you should try. That one is called "Tradable Symbols" and it can be found on the TS forums.

[slableak 10]

Hi Robert,

 

thanks for the help and the indicators. Somehow I missed the gridiron indicator. I am going to see if I can find it on TS forum.

 

thanks,

David

[slableak 10]

It looks like finding the Gridiron Pivots is like looking for a needle in a hay stack. Could you post it for me?

 

thanks,

David

[Robert2617 10]

Originally found in TRO's Motherlodes. He updated this particular indicator this week. Attached.

_GRIDIRON_II_SR15.ELD

[slableak 10]

Thanks!

 

I was reading that TRO is no longer able to post in the TS forums. What happened to him? I have never heard of him.

[Robert2617 10]

Boiled down and in a nutshell. There were complaints from the people trying to sell indicators because everytime TRO saw something new, he would code it. Then somebody reported that in his eld files he has "I will gladly except all donations. Send them to P.O.Box bla bla bla" so that was the opportunity to banish him. That broke some rule or something. It went something like that but I wasn't there.

[Kiwi 16]

Yep,

 

Tradestation: the tool of vested interests

 

or just tools, full stop.

[slableak 10]

I would be interested in seeing more of TRO's indicators. Does he have another web site that he posts at?

[Robert2617 10]

Yes, He is a Pirate now plundering the the Forex market. http://kreslik.com

[Robert2617 10]

OK back on topic. I did some more testing tonight (Sunday the 25th) and it looks like the default settings were too sensitive. I found the best results when I started the XAverages at 4 and then 6, 8, 10, 12, 14 and 16 for a single instance of the indicator. If you do two, do 4, 6,8,10,12 etc on the first and 4, 18,20,22,24 etc on the second.

 

I've updated the indicator's defaults and attached it.

 

============

 

Tested it some today (Monday the 26th) live. It works as planned. Using one instance at default settings with 200 bars of data added, worked perfectly! However, using two instances of it with one point increments (4,5,6,7,8,9, etc) for the EMAs is too sensitive. The spread between the EMAs must be two points (4,6,8,10,12,14 etc). You can play with it to see what works best for you but I say use a 2 point spread. Cheers.

Wards_EMA_Power.ELD