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The WA Averages nmc indicator is a trading algorithm, the calculations of which are based on the use of the ATR, Bollinger Band indicators with smoothing in the form of the use of the MA indicator. The indicator calculations are aimed at determining the current trend, namely its direction and strength, which in turn also allows opening certain trades during this period. The indicator is presented in the lower window of the price chart in the form of the histogram with signal lines, which change their color and direction under certain market conditions. Taking into account the indicator values, the current trend is determined, which in turn allows the opening certain trades.
The WA Averages nmc indicator is suitable for trading on any time frame, using any currency pairs.
Input parameters
The WA Averages nmc indicator settings include several sections. The Input Parameters section is responsible for its technical operation, the Colors section is responsible for its general visualization, and the Levels section is used to add signal levels to the indicator window.
-TimeFrame - parameter for using the trading indicator. The default value is current.
-Price - the type of price to which the indicator calculations are applied. The default value is Close.
-FastMa - period of the fast moving average of the indicator. The default value is 20.
-SlowMa - calculation period for the slow moving average of the indicator. The default value is 40.
-MaMethod - type of moving average smoothing used. Default value is super smoother.
-BandsLength - calculation period for the Bollinger Band indicator. The default value is 21.
-BandsPrice - the type of price to which the Bollinger Band indicator calculations are applied. By default, it is set to Close price.
-BandsDeviation - the current deviation of the indicator values from the standard. The default value is 2.0.
-Sensitive - filtering period for indicator signals. The default value is 50.
-AtrPeriod - period of the ATR indicator. The default value is 100.
Indicator signals
The WA Averages nmc indicator is very easy to use since the algorithm for its application is similar to the use of similar histogram indicators. To open certain trades using the indicator, it should be taken into account the current trend, which is determined taking into account the direction and color of its bars. If the current market trend is upward,buy trades are opened, if the trend is downward, sell trades are opened. When the trend changes, trades are closed.
Signal for Buy trades:
- The histogram columns are colored with the growth value and are directed upward along with the signal line.
When such conditions are received on the signal candle, a buy trade can be opened due to the presence of an uptrend. At the moment of its change, namely when opposite conditions are received, the current trade should be closed and a new one should be considered.
Signal for Sell trades:
- At least three columns of the histogram have a color with the fall value and are directed downward along with the signal line
When such a combination of conditions is received on the signal candle, a sell trade can be opened. At this moment, a downward trend is determined in the market. At the moment the return signal is received, a trend change is expected, in which the current trade is closed and a new one is considered.
Conclusion
The WA Averages nmc trading algorithm is very accurate as its calculations are based on the use of very effective forex indicators. Although the indicator is easy to use, practice on a demo account is recommended.
