Today I would like to offer you a thechanalysis tool – DOT MMS. Its algorithm is based on moving averages. There are many similar indicators, but this one has its own peculiarities. It generates signals based on the analysis of the degree of slope of the MA lines. Thus, DOT MMS estimates the strength of the trend movement. And the moment of its weakening is considered as a signal of a possible change in the current trend. In addition, the distances between opening and closing candlesticks are taken into account in calculations. Quite a complex calculation formula makes this indicator a quality technical analysis tool. Another feature is the use of an additional filter. It allows you to ignore some signals that appear on the chart. You should use only those of them, which with a high probability allow you to open a profitable trade. The indicator also displays the window on the chart, in which the statistics on signals is displayed.Parameters in the settings are quite a few, but don’t be afraid of it.
In fact, they’re grouped into three groups. The first of these is to indicate
parameters for forming buy signals, the second – for selling signals. Well, uh…
the third group of parameters refers to the information window that I have been writing to you about
above.There are several other parameters, but they do not matter, because they relate to the design of the indicator – the color and size of the line and icons. Now let’s move on to the most important thing.
How to trade on DOT MMS indicator
To make it easier to perceive the conditions of opening deals, let’s take a look at the chart:The decision to enter the market is taken as follows.We are first interested in the appearance of a point on the chart (green –
for shopping, red for sales). But, uh… (sighs)
it’s not a signal to action yet. The next candle should have a shooter on it
of the same color. However, you can only open an order if there is
a small yellow triangle appears in the indicator.If you look at my screen, you can see three signals
to buy. But the real signal was only one of them. It’s got
all three conditions (dot, arrow and triangle) are met. The other two.
should have been left unattended. And that’s a good thing. If we believed them, we would have gotten
would have been a loss.After opening the deal, we must set a stop-loss.
I recommend that you focus on local extrema. And as for the fixation
of profit, there may be different options. For example, it could be
Take Profit, placed near an important level. Can you close the warrant after
to get a reverse signal.Preliminary testing of the indicator DOT MMS on a demo account is a prerequisite for using it in trading.DOT_MMSDownloadFyodorov’s Inga12.09.2019