A set of Forex Experts and Templates specifically developed for the Forex market by Forex traders have been added to MetaStock.
FX Multiple Time Frame System
This system is composed of one Template and two Experts. Template:
FX Multiple Time Frame.mwt – This template —when applied to a chart
using the template’s periodicity— will display five charts with the following periodicities: Daily, 60-minute, 30-minute, 15-minute and 5-minute.
The Daily, 60-minute, 30-minute and 15-minute charts (1–4 above) display bar charts with an 8-period Relative Strength Index (RSI) overlaid on the price plot. They also have the *FX Multiple Time Frame Trend Expert attached. The 5-minute chart (b, at the bottom of the image above) displays a bar chart with an 8-period RSI and 50-, 12-, and 3-period Exponential Moving Averages overlaid on the price plot. It also has the *FX Multiple Time Frame Trend Expert attached.
To apply this template to an open chart
1. Right-click on the current chart and choose Apply Template. 2. In the Apply Template dialog select the file named
FX Multiple Time Frame.mwt. 3. Check Use template’s periodicity. 4. Click Open.
How to use this System
This System uses multiple time frame charts to determine trends with a currency pair. This is an intraday system whose signals are generated on a 5-minute chart. It uses the Relative Strength Index (RSI) for the initial buy or sell signal and the MACD and Moving Averages to confirm the signal. After applying the template to a currency pair (EUR/USD for example), look first at the upper leftmost chart (^). This is the Daily chart and it has the
*FX Multiple Time Frame Trend expert attached to it. The current trend is
presented in the lower right corner of the chart and displays a green up arrow for an upward trend, or a red down arrow for a downward trend. If there is no distinguishable trend, no arrows will display.
If the trend is up (a green “up” arrow) then only long trades should be considered. If the trend is down (a red “down” arrow) then only short trades should be considered.
The charts marked _, `, and c have (respectively) 60-minute, 30-minute and 15-minute periodicity values. All of them have the same expert (*FX Multiple
Time Frame Trend) attached and will also display a green up arrow or a red
down arrow to indicate the trend for each time interval.
The Daily chart (^) represents the overall trend of the currency pair with the other three charts giving confirming or non-confirming signals. If the three other charts display the same trend as the Daily chart then the trend is considered very strong. If the Daily chart trend displays in only one (or no) charts then the trend is considered weak.
The 5-minute chart (_) is the “trade signal” chart. This chart has an additional expert (the *FX Multiple Time Frame Signals expert) attached to it. This expert will add buy and sell symbols to the chart and generate Alerts.
Explanation of Symbols and Alerts
The Symbols and Alerts available in the Forex system include: Symbols:
Buy – This symbol (O) is displayed on the chart if the RSI is below 30 and
then trends upwards for three time periods. Once the buy symbol is plotted long trades should be considered.
Sell – This symbol (P) is displayed on the chart if the RSI is above 70 and then
trends downwards for three time periods. Once the Sell symbol is plotted short trades should be considered.
Alerts:
MACD Buy Confirmation – This alert displays when the MACD has
confirmed the buy signal.
MACD Failed Buy Confirmation – This alert displays when the MACD has
failed to confirm the buy signal.
MACD Sell Confirmation – This alert displays when the MACD has
confirmed the sell signal.
MACD Failed Sell Confirmation – This alert displays when the MACD has
failed to confirm the sell signal.
RSI Flat Top – This alert displays when the RSI has flattened after an uptrend.
This usually confirms the upward trend
RSI Flat Bottom – This alert displays when the RSI has flattened after a
downtrend. This usually confirms the downward trend
12 – 50 Cross Up – This alert displays when the 12-period Exponential
Moving Average crosses above the 50-period Moving Average. This is considered a bullish signal.
12 – 50 Cross Down – This alert displays when the 12-period Exponential
Moving Average crosses below the 50-period Moving Average. This is considered a bearish signal.
To use the Forex System
When using the system, the trader should follow these steps: 1. Look for the Daily current trend.
If the trend is up then only long trades should be considered; if the trend is down then only short trades should be considered. 2. Look for Buy or Sell signals on the 5-minute chart.
3. If one displays and follows the trend direction of the Daily chart then: a) Look at the trends of the other three charts to confirm the signal. b) Wait for Alerts to confirm the trend (MACD Confirmation,
RSI Flats and 12-50 Cross).
IMPORTANT: Equis International is not a Registered Investment Advisory
service. The experts included with MetaStock are for educational purposes and are to be used at your own risk. Equis International (or its partners) is not liable for the investment decisions you make based on information obtained from the Expert Advisor.
FX Keltner Systems
There are two FX Keltner Systems; *FX Keltner System 1 and *FX Keltner
System 2. Both of these systems are composed of one Template and one
Expert.
The two Keltner Systems use “Keltner Channels” as their primary method of triggering signals. Keltner Channels are included in MetaStock as a new custom formula. Keltner Channels are explained in the book The New
Commodity Trading System and Methods by Perry Kaufman and were first
introduced in the book How To Make Money in Commodities, by Chester W. Keltner.
FX Keltner System 1
This system looks for very specific patterns that occur infrequently. It is not uncommon for this system to generate few signals. However, when signals do occur they are usually followed by sharp moves.
FX Keltner 1.mwt – This template displays a Price Oscillator plus ADX and
Keltner Channels with the Expert *FX Keltner System 1 attached.
*FX Keltner System 1 – This Expert uses Keltner Channels, the Price
Oscillator, and the ADX to generate and display buy and sell signals and to generate Alerts.
FX Keltner System 2
This system is similar to the FX Keltner System 1 except in place of the ADX it uses the r-squared indicator. This system gives more frequent signals than FX Keltner System 1.
FX Keltner 2.mwt – This template displays the Price Oscillator, the r-squared
indicator, and Keltner Channels with the Expert *FX Keltner System 2 attached.
*FX Keltner System 2 – This Expert uses Keltner Channels, a Price Oscillator,
and the r-squared indicator to generate and display buy and sell signals and to generate Alerts.
FX Pattern System
The FX Pattern System is also composed of one Template and one Expert. This system works best on charts with 5-minute periodicity. It uses Bollinger Bands, Standard Error Bands, and the Stochastic Oscillator to generate signals.
FX Pattern System.mwt – This template displays Bollinger Bands, Standard
Error Bands and the Stochastic Oscillator indicator with the Expert
*FX Pattern System attached.
*FX Pattern System – This Expert uses Bollinger Bands, Standard Error
Bands, and the Stochastic Oscillator indicator to generate display buy and sell signals and to generate alerts.
Chapter 6 - Rahul Mohindar
Oscillator System
The Rahul Mohindar Oscillator and its associated tools and indicators were developed by Mr. Rahul Mohindar of VIRATECH (viratechindia.com). In addition to being a trader and trainer, Mr. Mohindar is a panelist on both CNBC and CNN India.
These set of tools and indicators and expert can be used across any timeframe for Stocks, Commodities and Forex. It is designed to work with
Open/High/Low/Close (OHLC) bar charts only.
RMO Trade Model
The RMO Trade Model consists of 4 key modules: The RMO
This module detects the primary trend of the instrument’s trading value. SwingTrader (Indicators & Expert)
This module detects each swing within a trend and automatically places
red (Sell) or blue (Buy) arrows on the price chart at these points. Sentiment Detector
This module colors the OHLC chart bars red (bearish) or blue (bullish) indicating the prevailing sentiment
Exit Swing Indicator
This module is used only when registering a profitable trade as a trailing stop loss and works well as an exit signal.
RMO Indicator
The RMO was developed to smoothen out multiple market swings, indicating a longer term major trend.
If the RMO is positive (above zero) you should look for blue Buy arrows with blue bars.
If the RMO is negative (below zero) you should look for red Sell arrows with red bars.
Swing Trade Indicators
The three SwingTrd indicators are constantly measuring the strength of market swings.
SwingTrd 1 Tracks minor (short-term) trends SwingTrd 2 Tracks medium-term trends
SwingTrd 3 Tracks long-term trends (and is slower to change)
SwingTrd 2 and SwingTrd 3 are plotted in the same window. When they intersect (cross), it can result in a potential trend change as that is where strength is building or dropping for the stock. This can be easily detected with arrows on the price charts that are automatically plotted by the expert.
When the SwingTrd 2 indicator goes above or below 0, it should be treated as the first indication of trend change or breakout; this can be easily viewed with red and blue bars with the RMO expert that has been provided. A more confirmed interpretation is to expect strength when the high of a blue breakout bar is crossed and weakness when the low of a first red down breakout bar is broken.
None of the Buy (Blue) arrows are actionable because they are not confirmed by a blue bar where the High is crossed.
The Sell (Red) arrows are actionable because they are confirmed by a red bar where the low is crossed.
Notes:
• You can trade on any one indicator; for example, you could just be using the RMO or only using Bar Colors.
• Whenever taking a Trade, place a STOP at the nearest support or at least a few points below the level marked by the SwingTrd buy arrow.
• The RMO Explorers can further help you detect instruments that have fresh opportunities, whether with a new Blue/Red bar or a Swing Trade Buy/Sell signal.
The Exit Swing Signal
Once you take a trade and get into profit – or a trend sets in – you will want to use this indicator to mark where your trailing stop loss point should be set so that you exit your trades closer to the peak.
Once you have entered into an instrument and are profitably into an established trend, you can exit longs below the low when the EXIT Swing Indicator leaves the over-bought region (where the ESI is below 75).
Using the RMO
Below are two possible setups for using the RMO as a trading indicator. Although both of these are designed for indicating buys, they could easily be reversed to indicate sells.
“Trade with the Trend” Setup Swing Trade: BUY Arrow (Blue) Sentiment: BLUE Bars RMO: Positive (Above 0)
This setup is a strong buy trade as the primary trend is up, an up swing is setting in and also the sentiment is bullish.
As we are trading in the direction of Primary Trend (RMO), this setup is even more accurate & reliable.
“Aggressive BUY Breakout” Setup Swing Trade: BUY Arrow (Blue) Sentiment: BLUE Bars RMO: Negative (Below 0)
With this setup you are essentially expecting that the market sentiment will turn positive when you see the bars change to a blue color and the swing trade buy arrow shows up. However, as the primary trend (RMO) is still negative, you might want to consider trading in smaller amounts, a covered strategy, or just buy “call” options.
Interpretation of the RMO Model
The four aspects of the RMO to be interpreted are discussed below. The RMO
This is an oscillator which clearly identifies whether the major (primary) market trend is positive or negative. If the RMO is positive —i.e. above the 0 Line— this indicates a probable strength and increases the indicator’s “Buy” preference. The converse (RMO below the 0 line) would indicate probable weakness, and so put more weight on “Sell” trades.
Note: The shape size or curve of the RMO has no relevance; all that matters is
whether it is above or below the 0 line. The SwingTrader indicator
This is a set of indicators for which every intersection/crossover signals a possible trade opportunity. Each signal is marked with an expert arrow, so you do not necessarily need to view the SwingTrd indicators directly.
Use:
The buy and sell arrows show up frequently, and you probably don't want to trade on every single one of them. To increase the number of valuable trades, consider making trades on the buy arrows only when the RMO is positive, and on the sell arrows only when the RMO is negative.
For further safety, buy only above the High of the signal/arrow bar, and be sure to set a stop loss point —either at the previous bar’s low or when an
identified support level is broken. Likewise, sell only below the low of a sell arrow bar, and set a stop loss above the previous bar’s high or the breaking of an identified resistance level.
Sentiment Detector
This built-in expert colors your OHLC bars blue or red by evaluating the medium-term trend for strength and weakness. There are two ways to use these indications:
• A slightly aggressive trader might just trade on the bar colors, not integrating them with any other tools or indicators. As an example, such a trader would buy above the high of a blue breakout bar, and sell below the low of a red breakout bar.
• A position or longer-term trader would exit long either by seeing a combination of red bars and a red arrow, which is a hint that the trend may be turning negative, or by getting stopped out.
HINT: You could integrate this with the RMO and SwingTrader Arrows as
follows:
TRADE when you get all three going the same direction (i.e. if the bars
are blue, the RMO is positive, and you get a Buy arrow, you would buy).
Exit Swing Indicator
This provides you with a profit-taking exit strategy*. Here is an example:
If you are long on a stock and have got into an uptrend, each time the exit swing indicator slips below the red (75) line, look at putting in a trailing stop or exit below the low of the corresponding price bar. Likewise if you are short and are into a downtrend, every time the indicator crosses above the blue (25) level look at putting in a trailing stop or exit above the high of the
corresponding price bar.
CAUTION: This should not be used immediately after taking a trade.
Mr. Mohindar recommends using the Exit Swing Indicator only after you have entered a trade and are profitably trending. He suggests partially exiting when you achieve an intermediate financial goal/target, and then using this indicator to trail your stops and/or exit at better levels.
* The Exit Swing indicator is lesser used and is recommended for fast profit taking and to active traders.