Average Moving Average Alarm programing - great tool!

[SXMTrader]

Hello everybody,

I found an Average Moving Average, which is showing the trend very well. In a flat market the AMA is horizontal and you don't place any order. But if the AMA is showing up or down, you place your order. Also a EMA 5 is helpful. Crossing of the EMA 5 confirms the change in trend as well. I aslo use RSI 14.
Now my question, is there somebody who like to program this indicator with an alarm? This will be very helpful to use it. I have it on the 1 hour and 4 hour chart. Because on the 1 hour and 4 hour chart signals are less, but also in the middle of the night. If we can get big trends it is worth to wake up in the night! You find it in the attachment. Please have a look and let us now what you think. To get an alarm will be great. There are also dots on the AMA which you will use to indentify the trend.

It will be great, if somebody can help.

Thank you,

Holger

 

[rnfuller102]

Hello everybody,

I found an Average Moving Average, which is showing the trend very well. In a flat market the AMA is horizontal and you don't place any order. But if the AMA is showing up or down, you place your order. Also a EMA 5 is helpful. Crossing of the EMA 5 confirms the change in trend as well. I aslo use RSI 14.
Now my question, is there somebody who like to program this indicator with an alarm? This will be very helpful to use it. I have it on the 1 hour and 4 hour chart. Because on the 1 hour and 4 hour chart signals are less, but also in the middle of the night. If we can get big trends it is worth to wake up in the night! You find it in the attachment. Please have a look and let us now what you think. To get an alarm will be great. There are also dots on the AMA which you will use to indentify the trend.

It will be great, if somebody can help.

Thank you,

Holger

Hi, Holger,

Thanks for posting this indicator. I've seen reference to it but not used it before. I've now added it to my indicators folder.

I wish I knew how to program alerts into indicators - sorry I can't help you with that.

But I do have a question about how to use it.

I have the 5, 13, and 21 EMAs on a chart. What do I adjust the setting to in the AMA indicator? Yours, as downloaded, shows a value of 9. Which EMAs do you use for the AMA setting of 9?

I have another question. Since you already use a MA crossover alert, when would the AMA crossover be more helpful than the an exponential moving average crossover? How do you decide to use which indicator and when? How is one signal better than the other, please? And thanks.

Raymond

 

[SXMTrader]

Hello Raymond,

I found a recommended setting of 10 instead of 9 for the AMA.

I have now 4 charts to compare. 1 hour and 4 hour GBP/USD and EUR/USD with the following settings:

1 hour and 4 hour:
AMA setting 10,2,30
RSI 14
MACD 8,12,1

and

1 hour and 4 hour:
EMA 5
EMA 13
EMA 21 (I took your setting)
RSI 14
MACD 8,12,1
EMA crossover signal 5,13

Now have a look on your 1 hour chart and compare the days from the 6th of April 2009 until the 14th of April 2009

The EMA crossove signal is showing a lot of arrows in a flat market, some of them we like to avoid. If you look now on the other chart with the AMA you will see that the AMA is showing a horizontal direction, which means no trend is to see. Now I wait not only for the RSI, MACD, I also wait for a blue or yellow dot and, the most important, that the AMA is showing up or down. This can help to avoid some of the false signals which we get with EMA crossovers in flat market. Compare the 2 chart on this day to get an idea what I mean. For me it looks helpful to understand the direction of the red line from the AMA. Shortly before I posted my first thread about the 4 hour MA strategy, I found this AMA. I like it that's why I spend now the whole weekend already to compare charts, 1 hour and 4 hour only. I hope this information helps you to have a closer look at the advantage of the AMA which I see.
Please let me know what you think abotu it.

Holger

 

[Reeser]

Hi Holgar, SXMTrader!

Try this!

-Reeser