Hello
The last days I've always thought made for trend determination by means of indicators. As I try to ProFX system to automate as much as possible, it is absolutely necessary to determine the trend in the 4-hour chart as reliably as possible.
But until now I had used three indicators of John Ehlers, who work very well. As one would be the Laguerre filters, the Instantaneous Trendline and the Leading Indicator. To the chart be kept free of lines, I rewrote these three indicators in histograms.
Although currently the leading Indicator produces very little lag, there are situations that's where all three of these indicators or another healthy trend, although it no longer exists. This happens especially after long candles, followed by a correction.
I've written about two other indicators, which should resolve this problem. One indicator is directly related to each new bar, and has therefore no Lag The second indicator calculates the strength of the two currency pairs and is based on an RSI over all pairs involving either one or the other currency.
on the inserted picture you can see an example of the current 4-hour charts. The last two indicators are written by me. The area at issue, I have something highlighted.
As you can see we have after the long candle on the left side of the highlighted area, a correction in prices in the first one had better not open long position more. The three top indicators need three bars to the falling prices seen. the second-lowest indicator recognizes this as early as the first bar and in the lowest indicator we see that the strength of the GBP (white line), not markedly falls, the U.S. dollar (blue line) but increasing in strength.
On the right side of the chart, we see what happens as compared with the price, if the strength of the USD again significantly decreases and falls below the 50 mark, while the strength of GBP virtually unchanged moved. I
these two indicators will probably still fit into my strategy and even see if it pays off.
Kind regards Mike
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