The wma(6) is the one with the color change in the chart. The basis is whether or not the value is rising or falling. I do NOT backtest. One can only make money trading in real time. To me, trading is simple... either you SEE IT or you don't.
I would have to agree with you! I don't use any auto trading function as I feel the market is emotion driven--and emotion is something a computer, for at least the present moment, does not have. I believe truly great traders have a sixth sense about the market that has been derived from countless hours spent watching that currency/etc--hours spent "seeing it." On to another question, I have not seen color changing wma's--is this something you programmed? Although I have seen it on jjrvat's charts too, and I believe jjrvat uses sierra. I'll have to look closely at oec's charts to see if I can do that--very nice to have the colors change (at least nice for the psyche.) pk
The color changing moving average is an indicator that I found on the net for MT4. As usual, I probably modified it to fit my needs. But your focus should be on the price action, not on the indicator.
Very True! Or possibly I could add in a zillion indicators to tell me that--which in the end would conflict, but wouldn't that be easier than doing my homework
Knowing the rules can be "bent" or "broken" ala THE MATRIX, can be highly profitable! Taking the long trade off the double bottom that was formed was worth 80+ pips if you hung in there.
Coloring the line is one way. For a couple of reasons I choose to plot a triangle when the "wave" line changes from falling /rising to rising/falling. The black triangle point down when the "wave' line is starts to fall and the triangle point up when the wave line starts rising. The yellow line is the 'wave" line. The green dotted line is the "macro' line. I added text to help in determining if the waves were making higher highs or lower lows. I use the Square of 9 [SQ9] as the horizontal lines to indicate potential areas of S/R.