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The SSA of WPR MACD can be considered a full-fledged trading strategy based on the functioning of several effective forex indicators. Thanks to the interaction of calculations included in the indicator algorithm, SSA of WPR MACD serves to determine the current trend and its strength, and is also suitable for finding the optimal moment for entering the current market during a certain trend. The indicator is displayed in the lower window of the price chart as a histogram, which, depending on market conditions, goes down or up in relation to its signal levels and is painted in a certain color. These histogram parameters serve as the main signal for determining the trend and further actions at the time of its existence.
The SSA of WPR MACD indicator is suitable for any timeframes and currency pairs. However, both of these conditions must be combined with each other and with the parameters in the indicator settings.
Input parameters
The settings of the SSA of WPR MACD indicator are a list of ten input parameters, and also include additional sections, such as Colors, which is responsible for the color scheme of the indicator, and Levels, which is used to add additional signal levels to the indicator window.
- NumberofBars - the number of bars on which the indicator calculates. The default value is 1234.
- Lag - parameter responsible for the filtering period of indicator values. The default value is 25.
- NumberofComputations - period for calculating indicator values. The default value is 2.
- Price - price type to which the indicator calculations will be applied. The default value is Close Price.
- WprPeriod - WPR indicator period value. The default value is 14.
- MAFast - fast moving average period of the indicator. The default value is 15.
- MASlow - the period of the slow moving average of the indicator. The default value is 45.
- MAMode - type of smoothing used moving averages. By default, it is set to Linear Weighted.
- MAPrice - price type to which the indicator's moving average calculations will apply. By default, it has the Close price value.
- MacdCompress - MACD indicator value compression parameter. Default value is 1.0.
Indicator signals
The SSA of WPR MACD indicator can be considered as a simple algorithm based on histogram indicators. That is, the method of its use does not differ from other similar indicators. Trading is made during a certain trend period, which in turn is determined by the color and location of the histogram relative to its signal levels. After receiving a signal based on a combination of these conditions, a position can be opened in the direction with the current trend.
Signal for Buy trades:
- The indicator histogram rises above its level 0 and 25, while its bars are colored with the growth value.
A buy trade can be opened immediately after receiving such conditions from the indicator. Such a trade should be closed accordingly when receiving the opposite conditions, namely, a change in the direction of the histogram relative to its levels. This will indicate a possible change in the current uptrend, which will allow considering the possibility of opening new positions.
Signal for Sell trades:
- Indicator bars colored with fall value fall below levels 0 and -25.
After receiving such a combination of conditions, a short position may be opened on the signal candle, due to the presence of a downward trend. It should be closed after the indicator forms opposite conditions, that is, if the histogram changes location or color. This will indicate a change in trend, which will allow opening new trades and close old ones.
Conclusion
The SSA of WPR MACD indicator is a very accurate and efficient trading algorithm that serves as an excellent assistant in determining the current trend and its strength and finding the moment to enter the market. In addition, this algorithm is very easy to use, so it can be considered even by novice traders who can improve trading performance by prior practice on a demo account.
You may also be interested The Heiken Ashi MA T3 trend trading indicator for MT4
