[tradertom]

Hi Guys i have been following this thread with great interest and would like to congratulate you all on a job well done. I have a couple of questions if you wouldnt mind answering please: what do you consider to be the best settings for the VarMa when used in conjunction with a 5 or 15 minute chart. Also i use esignal charting and am used to riding this same old bike. Is there anyone on here who would know where i can get the VarMA and the fantail VMA3 so i can use on my esignal charts. please advise thank you. By the way have anyone traded live on this indicator as yet...theres nothing like jumping in at the deep end...lol. Thanks

[walterw]

Originally Posted by tradertom »

Hi Guys i have been following this thread with great interest and would like to congratulate you all on a job well done. I have a couple of questions if you wouldnt mind answering please: what do you consider to be the best settings for the VarMa when used in conjunction with a 5 or 15 minute chart. Also i use esignal charting and am used to riding this same old bike. Is there anyone on here who would know where i can get the VarMA and the fantail VMA3 so i can use on my esignal charts. please advise thank you. By the way have anyone traded live on this indicator as yet...theres nothing like jumping in at the deep end...lol. Thanks

Hi TraderTom, the aplications of vma`s are vast...

so far you may want to check some of my threads where I try to show how I use them on real life situations... the latest (recomended) is here http://www.traderslaboratory.com/for...ades-2698.html it will contain medium term and scalp type trades on the same thread... at this point I am researching on forex... I normally trade futures...

cheers Walter.

[PYenner]

tradertom
I have only been doing scalps recently because the market seems to lack confidence and trends dont seem to last long. I have not been systematic because I have usually been pursuing some one aspect like trying to pick the quick trades and try to get the entry timing spot on, quick in and out stuff.
It is building towards a full setup but it has been progressive. Encouraging at least.

[PYenner]

Chimp3_1.mq4
The directional confusion should be fixed now.

A desensitizing option has been added to tame the wild chimp.
Can be set from 0 up. Preset to 1.0 but try 0.5 and 1.5.
May prefer different settings on 1min and 5min charts.

With DeSens set to 1, the smaller swings look smaller and give less encouragement to trade exhausted markets. Also looks a bit saner.

The preset level settings at 3 pips and 6 pips have been removed because the useful level marker settings will now depend on how much DeSens is used.
The idea was to support use of a rule to stay out of the market if the swings are below 0.2 say?? Whatever works out as a useful combination of DeSens setting and swings big enough to trade.

Level markers can still be setup by the user to suit...

[walterw]

Interesting variations here Bruce...


I was wondering if I would ask you or not... I dont want to abuse your great willigness... but I see your great inertia on the programing thing and the chimp has some paralel research ideas that could really be very cool...


Let me tell you what I have in mind...

I would love to translate Jerry`s great statistical method into forex..

here are some of his threads :

http://www.traderslaboratory.com/for...lume-1962.html

http://www.traderslaboratory.com/for...-the-1990.html

http://www.traderslaboratory.com/for...sics-2008.html

etc until... part 10...

If we could get vwap and the sd`s of vwap coded into mt4... wich I believe is not great deal, we could have his method running for forex...

Now my idea is to use Jerry`s setups on 5 min charts, combined with my universal timing on 1 min using my super 2 vma`s ¡¡

I know that such a fusion of methods would give a final very cool product...

You tell me if this could be done eventually.... cheers Walter.

[PYenner]

Walter
Vwap signals of some sort might be possible but might end up with a primative form of display depending on what capabilities MT4 has for horizontal histograms or whatever. Do you need all those lines or just a pointer moving on a line between two end points whatever?? Afraid it kinda seemed like a "bounce between 2 HEs" theory to me, need to read more I guess. imo statistics belong in the past because that is all they apply to.

For Chimp3_1 on 1min try 2 2 1 1 maybe...

[PYenner]

Walter
-->You tell me if this could be done eventually..
Maybe some chance yes, dunno when.

Going to have a go at putting the adx_bars thing back into Chimp oscillator now that it manages to swing both ways without doing odd things. The ADX_bars thing makes the HEs, dunno whats going to happen, time will tell.
If it aint nutty then may get a chance at another variation on vma for the main chart too.
Cheers

[walterw]

Bruce : the Vwap indicator is like a moving average...

for its calculation I copy this explanation from Jerry :

In order to shed more light on this, I want to introduce the concept of the volume weighted average price or VWAP. The VWAP is a well known quantity used by institutional traders to gauge there trading performance. It's use as a day trading tool however has not been fully explored. The VWAP is simply the average of the Volume Distribution Function. The figures below show examples. The red line is the PVP of the distribution and the light blue line is the VWAP for the distribution. To compute it, take the volume Vi for each bar i in the distribution, multiply it by the bars price, Pi, compute the sum, SUM(PiVi) and divide by the total volume, Vtotal, for the whole distribution:

VWAP = [SUM (PiVi)]/Vtotal

The VWAP has the following characteristics:

1) Being the average for the entire distribution, Volume traded above the VWAP is identical to volume traded below the VWAP.

In terms of the distribution function as a probability function, it means that when price action is at the VWAP, there is equal probability for price to move up as there is for price to move down.


then adding the Standard deviation bands from vwap would make the picture more complete for the trader as Jerry shows a lot of strategies from this bands

here is the formulas for the bands described by Jerry :

While we won't address all these questions in one thread their answers can be obtained by analysis of the volume distribution function. To do so requires that we introduce a third property of the volume distribution function called the Standard Deviation of the VWAP, SD for short. SD is computed from the following equations:



where the summation subscript i, runs over all prices in the volume distribution
pi = ith price in the volume distribution
Pi = vi/V is the probability of occurrence of price pi
vi = the volume traded at price pi from the volume distribution
V = total volume for the entire distribution

That's a mouthful. If you would like more details about the variance and the standard deviation, see the wikipedia reference
http://en.wikipedia.org/wiki/Variance and references therein.
So what does the Standard Deviation tell you?
Well for starters,
SD tells you how far you can expect price to move away from the VWAP.

It can be shown (but we won't prove it here ) that computing the SD with respect to the VWAP gives the smallest expectation of price movement.

basicly having this two indicators, it should give us a chart that would look something like this :




but on a forex chart....

About the pvp... its a MP type indicator that already exists for mt4... no programing needed there...

The challenge would be to program vwap and the SD`s from vwap...

This levels have a very good performance for rejection strategies, if we combine that with the 1 min universal timing with vma`s it would certainly have a very high rate of succes... I am very positive about this idea...

I dont know if this explains a little more what I was proposing... cheers Walter.