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DSL Balance of Market Power JMA is a trading algorithm based on the interaction of several forex indicators. The indicator's calculations are aimed at determining information about the current trend, namely its strength and direction. It is represented in the lower window of the price chart in the form of three lines: two signal and one main one, which changes its color and direction under certain market conditions. Taking into account the values of the indicator lines, the current market direction is determined, which in turn allows determining the moment of opening a trade.
The DSL Balance of Market Power JMA indicator is suitable for trading any currency pair, on any timeframe.
Input parameters
The settings of the DSL Balance of Market Power JMA indicator are used to change the values of its general functioning. The Input parameters of the indicator affect its technical operation, the Colors section is used to change its general visualization, and the Levels section is used to add signal levels to the indicator window.
-Smoothing period - period for smoothing indicator calculation values. The default value is 90.
-Signal period - period of indicator signal lines. Default value is 9.
Indicator signals
To open a certain trade using the DSL Balance of Market Power JMA indicator, first it is needed to determine the current trend. To do this, it should be taken into account the direction and color of its main line, as well as its location relative to the signal lines. If the indicator detects an upward trend, long positions are opened if the trend is downward-short positions. In case of a weak trend, namely at the moment of its coloring in a neutral shade, in order to avoid a loss, trades are not opened. At the moment of a trend change, in both cases, trades are closed.
Signal for Buy trades:
- The main line of the indicator has a color with a growth value and, heading up, crosses the fast signal line.
Upon receipt of such conditions, a buy trade can be opened on a signal candle due to the presence of an uptrend in the current market. At the moment of its change or weakening, namely, when the color and location of its main line change, the current trade should be closed and a new one should be considered.
Signal for Sell trades:
- The indicator line has a color with a falling value and falls below the slow signal line.
Upon receipt of such a combination of conditions on a signal candle, a sell trade can be opened. The current trade should be closed and a new one should be considered when the trend changes, namely, upon receipt of reverse conditions from the indicator.
Conclusion
The DSL Balance of Market Power JMA indicator, despite its ease of use, is very effective, thanks to the trading algorithms included in it. In order to gain the necessary trading skills and use the indicator correctly, it is recommended to use a demo account.
