Fibonacci Progression X Weighted MA Function (intermediate)

Fibonacci X Weighted MA Function

All indicator breakdowns will be found in the indicators tab on the home page of: STRATEGY

Indicators:

1. Go to INDICATORS and type in: A Useful MA Weighting Function For Controlling Lag & Smoothness by alexgrover

1. Go to INDICATORS and type in: Fibonacci Progression with Breaks

Settings:

1. Go to settings for Fibonacci Progression with Breaks: Turn off Stop

How to Execute Long:

1. Look for PRICE to be ABOVE your Moving Average
2. Look for a BUY signal to appear

You need both of these signals to appear in order to enter a long position

In Lehmans Terms: If there is a "B" as well as the price being above the orange/yellow line, stock is likely to rise.

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How to Exit Long:

1. Look for a GREEN "3" signal to appear to exit. What these numbers mean is 3 areas to exit. It will print "1" for the first exit reccomendatoin, "2" for the second and "3" for the final. You can exit at either 1,2,or 3.

How to Execute a Short:

It is the exact opposite process of a long

1. Look for PRICE to be Below your Moving Average
2. Look for a Sell signal to appear

You need both of these signals to appear in order to enter a short position

In Lehmans Terms: If there is a "S" as well as the price being bellow the orange/red line, stock is likely to fall.

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How to Exit a Short:

1. Look for a GREEN "3" signal to appear to exit

How the Indicators Work

This is advanced so don't be alarmed.

Fibonacci Progression:

Basic Fibonacci retracements are calculated manually using the Fibonacci sequence and ratios. This can be a tedious and time-consuming process, especially for traders who are new to technical analysis. Fibonacci retracement indicators simplify this process by automatically calculating and plotting the key Fibonacci levels on a chart. Instead of having to calculate the ratios manually, the indicator does this for the trader. Typically, Fibonacci retracement indicators will plot the 23.6%, 38.2%, 50%, 61.8%, and 100% retracement levels on the chart. Each of these levels corresponds to a particular number in the Fibonacci sequence, making it easy for traders to quickly identify potential areas of support or resistance. For example, the 23.6% retracement level corresponds to the number 0.236 in the Fibonacci sequence, while the 38.2% retracement level corresponds to the number 0.382. The indicator will plot these levels on the chart and label them accordingly, making it easy for traders to identify key Fibonacci levels and potential trade entry or exit points.

Weighted MA or (BWMA)

(BWMA) is a technical analysis indicator that is used to smooth out price movements and identify trends in a security's price. Unlike other types of moving averages, a BWMA uses a mathematical formula known as a Butterworth filter to calculate the weights assigned to each data point. The filter is used to assign weights to each data point in the time period being analyzed.

The formula used to calculate the weights for a BWMA is as follows:

w(i) = 1 / (1 + (i / N) ^ (2 * m))

where:

• w(i) is the weight assigned to data point i
• i is the index of the data point, with i = 0 being the most recent data point
• N is the length of the time period being analyzed
• m is a parameter that determines the degree of smoothing. A higher value of m will result in a smoother moving average.

Once the weights have been calculated using the filter, the BWMA is calculated in the same way as a standard weighted moving average. The weighted average is calculated by multiplying each data point by its corresponding weight, summing the products, and dividing by the sum of the weights. The BWMA is used in trading in much the same way as other moving averages. Traders will typically look for crossovers between the BWMA and the price of the security being analyzed as potential signals of trend reversals or trend continuations. For example, if the price of a security crosses above the BWMA, it may be seen as a bullish signal, while a crossover below the BWMA may be seen as a bearish signal. Traders may also use the BWMA to identify potential support and resistance levels, with the BWMA acting as a dynamic support or resistance level that adjusts to changes in the price of the security over time.