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The TMA + CG indicator is a special algorithm that is designed to automatically display the price channel on the screen. If you want to build a price channel on a chart, a trader can do it on his own, but the algorithm in question not only saves time but also provides higher accuracy. The calculated formula of the TMA + CG indicator allows you to provide maximum accuracy when building a price channel.
Even novice traders know that more than 70% of the time on any chart, there is a flat. Thus, the optimal moment to open a successful position is the moment when the flat in the market is replaced by a trend. Thanks to the price channel displayed on the screen by the considered algorithm, the trader is able to identify the emergence of a new trend with maximum accuracy.
Forex indicator TMA + CG is an arrow modification of the channel indicator TMA. Triangular Moving Average builds a channel, the boundaries of which are twice smoothed moving averages, which allows you to clearly determine the movement of the market.
Unlike conventional TMA, the TMA + CG indicator, with the same period value, gives clearer signals. At the same time, the indicator has advanced parameters, including the alert system and the MTF function.
Indicator settings
The TMA + CG indicator has the following parameters:
1. Time Frame. This parameter is responsible for the time interval at which the formation of the price channel will take place.
2. Price. This parameter is responsible for the type of price level that the algorithm will apply to perform all necessary calculations.
3. Bands Deviations. This parameter is responsible for the distance between the main curve and the additional ones. The optimal value of this parameter is determined experimentally, depending on which trading style you prefer.
4. Interpolate. This parameter is responsible for the features of changing the values of the algorithm.
Also, in the parameters of the algorithm, you can activate a sound notification that will sound at the moment when the algorithm determines the optimal moment for opening positions. If desired, in the parameters, you can change the hue of the curves that the algorithm displays on the screen. If you have not optimized similar tools before, it is recommended to use the algorithm we are considering with the default parameters. This is due to the fact that illiterate parameter settings can cause the algorithm to malfunction.
Indicator signals
The visual signals in this tool are blue and red marks in the form of crosses that occur when the price goes beyond the channel and then returns to it.
Conclusion
This TMA + CG indicator looks quite interesting, and it can be successfully used as a basis for creating a channel trading strategy. Practice shows that the use of the TMA + CG indicator for generating income is most effective during the period when the chart has a flat.
You can find examples of strategies implemented using this tool in the Strategies section of our website.
