Create New Chart Top Next

To open a chart window on your trading workspace, choose Charts on the Upper PanelMenu, and then choose New Chart (Fig.1).

Fig.1

Select preferred chart settings from the New Chart menu and press OK (Fig.2).

Fig.2

A new chart window will appear (Fig.3).

Fig.3

Chart Tools Top Previous Next

By default there is a Tools panel on the left of the chart. To hide the Tools panel, press the

button.To show the Tools panel, press the button on the left side of the chart window (Fig.4).

Fig.4

New Chart Top Previous Next

To open a New Chart in the same window, press the button (Fig.5).

Fig.5

Indicator Tools Top Previous Next

To choose an Indicator Tool, press the button (Fig.6).

Fig.6

To choose an indicator, left-click on the indicator in the All Indicators column and press the

button. The indicator will appear in the Active Indicators column. Select indicatorparameters and line Colors and press OK.

To remove one of the indicators, left-click on the indicator in the Active Indicators column,

press the button and then press OK. To remove all indicators, press the button and thenpress OK.

Use the and buttons to zoom in and out (Fig.7).

Fig.7

Crosshair Top Previous Next

To use the Crosshair tool, press the button (Fig.8).

Fig.8

Place the center of the crosshair at any point on the chart; the time, open/close and high/lowprices at that point will be displayed in the upper left corner.

Trend Line Top Previous Next

To draw a Trend Line, press the button on the left panel; click and drag anywhere on the chart(Fig.9).

Fig.9

To extend a Trend Line to the right or the left: press the button or the button on the leftpanel of the chart window (Fig.10).

Fig.10

Vertical Line/Horizontal Line Top Previous Next

To draw a Vertical Line, press the button on the left panel of chart window (Fig 11-A).

To draw a Horizontal Line, press the button (Fig 11-B). Left-click on the chart field andmove the line anywhere on the chart.

Fig.11

Fibonacci Retracement Top Previous Next

To choose the Fibonacci Retracement tool, press the button on the left panel (Fig.12). Clickand drag on the chart field to draw the Fibonacci levels.

Fig.12

Parallel Line Top Previous Next

To draw a Parallel Line, first draw a parent line and then press the button on the left panel. Aparallel line will appear (Fig.13). Click on the line and drag the cursor to move it.

Fig.13

Line End Coordinates Top Previous Next

To display the Coordinates of the ends of drawn lines, press the button (Fig.14).

Fig.14

Remove Lines Top Previous Next

To remove a Selected Line, press the button on the left panel.

To remove All Lines press the button (Fig.15).

Fig.15

Chart Settings Top Previous Next

To edit the Chart Settings press the button on the left panel. You can edit CommonSettings (Fig.16-A) and Color settings (Fig.16-B).

Fig.16-A

Fig.16-B

Chart Types Top Previous Next

To choose a Candlestick Chart, press the button (Fig.17).

Fig.17

To choose a Bar Chart, press the button (Fig.18).

Fig.18

To choose a Line Chart, press the button (Fig.19).

Fig.19

Technical Indicators Top Previous Next

There are numerous Technical Indicators available in the Indicator Tools menu.

Accelerator/Decelerator Top Previous Next

Accelerator/Decelerator (AC) is an oscillator that measures activation or deactivation of thedriving force on the market. It changes its direction before any changes in the direction of the pricetake place. This oscillator has much in common with Awesome Oscillator, but unlike AO, thecrossing of the zero line is not a buy/sell signal. Accelerator/Decelerator is mostly used to predict the change of the driving force on the market.When AC is at the zero line it means that the driving force is at balance with the acceleration.When AC crosses the zero line and goes up or down the only thing that should be traced is thechange of the color of the bars. Methods of use: 1. When the chart is above the zero line and there are two green bars, it is a signal to buy.2. When the chart is below the zero line and there are two red bars, it is a signal to sell (Fig.20).

Fig.20

Average Directional Movement Top Previous Next

Average Directional Movement (ADX) is an indicator used to determine the strength of thecurrent trend. This indicator is a derivation of two different Direction Momentum Indicators (DI).The difference between ADX and DI is that the latter is used to trace the direction of the trend,while ADX measures the strength of the trend. ADX is mostly used on trending markets and is measured on a scale from 0 to 100. When theindicator is below 20 it means that the trend is weak and is probably changing direction. When it isabove 40, the trend can be treated as a strong one with a possibility of future change. The ADX isfrequently used in conjunction with DI in making trading decisions. Methods of use: 1. When +DI (blue) is above -DI (red), it is a signal to buy.2. When +DI (blue) is below -DI (red), it is a signal to sell (Fig.22). Note: ADX measures the strength of the trend but not its direction. Wait until DI cross each otherbefore making any trading decisions.

Fig.22

Alligator Top Previous Next

Alligator is an indicator that consists of three Moving Averages with different numbers of bars forsmoothed MA. The blue line (Alligator jaw) is a Balance Line for the timeframe that was used tobuild the chart (13 bar smoothed average offset by 8 bars). The red line (Alligator teeth) is also aBalance Line, but a level lower than the blue one (8 bar smoothed average offset by 5 bars). Thegreen line (Alligator lips) is also a Balance Line, a level lower than the red one (5 bar smoothedaverage offset by 3 bars). The Alligator is mostly used to determine the presence/absence of the trend and its direction. It canalso be used together with Eliot waves: if the price is outside the Alligator’s mouth, an impulse waveis being formed; if it is inside the Alligator’s mouth, a correcting line is being formed. Methods of use: 1. When the blue, red, and green lines are crossed or intertwined, there is a flat market; the Alligator

is sleeping. The longer this period, the more the market will move after.2. When all three lines are not crossed or intertwined and the price is above the Alligator’s mouth,

there is an uptrend in the market. At this period the Alligator is awake and hunting.3. When all three lines are not crossed or intertwined and the price is under the Alligator’s mouth,

there is a downtrend in the market. At this period the Alligator is also awake and hunting.4. When the lines are crossed or intertwined, it means that the market is flat again. At this period the

Alligator is full and it is time to fix the profit (Fig.21).

Fig.21

Average True Range Top Previous Next

Average True Range (ATR) is an indicator that measures the volatility of the market. It is usuallya 14-day Moving Average of the True Range. True Range (TR) in its turn is defined as the largestdifference of today's high and today's low, today's high and yesterday's close and today's low andyesterday's close. The larger the TR, the greater the volatility of the instrument; the lower the TR,the lower the volatility. Methods of use: 1. The value of this indicator is usually high when prices change sharply.2. If the value of this indicator is not high, the prices stay stable.3. Before a significant rise/fall in prices, the value of this indicator is usually low/high (Fig.23). Note: Since ATR shows volatility as an absolute level, low price instruments have lower ATRlevels than high price instruments.

Fig .23

Awesome Oscillator Top Previous Next

Awesome Oscillator (AO) is a 34-period simple Moving Average, plotted through the middlepoints of the bars (H+L)/2, which is subtracted from the 5-period simple Moving Average, builtacross the central points of the bars (H+L)/2. AO shows the state of the market driving force atpresent. Awesome Oscillator is mostly used when the trend cannot be clearly traced. AO has three mainsignals: the saucer (reversed saucer), crossing of the zero line and two pikes. The saucer is a chartconsisting of three candlesticks where the second (red) is lower than the first and the third (green) ishigher than the second. Crossing of the zero line takes place when the chart passes from negative topositive values and vice versa.. Two pikes is a chart where there is a peak followed by another peakthat is higher/lower than the first one. Both peaks should be above or below the zero line. Methods of use: 1. When the saucer signal is formed above the zero line or when crossing of the zero line is from the

negative into the positive side or when the two pikes are formed below the zero line, it is a signalto buy.

2. When the saucer signal is formed below the zero line or when crossing of the zero line is from thepositive into the negative side or when the two pikes are formed above the zero line, it is a signalto sell (Fig.24).

Fig.24

Bollinger Bands Top Previous Next

Bollinger Bands (BB) is an indicator that compares volatility and relative price levels over aperiod of time. Bollinger Bands adjust to the market conditions. As soon as the market becomesmore volatile, the bands widen; they contract during less volatile times. The use of Bollinger Bands is based on the fact that prices usually remain within the limits of upperand lower borders. BB are mostly used for determining if the current value of a data field isbehaving normally or breaking out in another direction. BB can also be used for identifying whentrend reversals should be expected. The variable width of BB is caused by the volatility of prices. Methods of use: 1. Sharp changes in price take place after the channel narrows.2. If prices cross the border, it is a signal that the current trend will continue (Fig.25-A).3. A price move that originates at one border tends to go all the way to the other border (Fig.25-B).

Fig.25

Commodity Channel Index Top Previous Next

Commodity Channel Index (CCI) is an oscillator that provides an indication of overbought oroversold markets. An instrument is deemed oversold when CCI goes below -100 and overboughtwhen it exceeds +100. CCI measures the relationship between the asset's price, Moving Average,and deviations from the average. CCI is mostly used to determine cyclical trends in commodity, equity and currency markets.It identifies potential peaks and valleys of the asset's price and shows estimated changes in thedirection of the asset’s price movement. Methods of use: 1. Moves of CCI: When the CCI moves back above -100, it can be treated as a signal to buy.

When the CCI moves back below +100, it can be treated as a signal to sell.2. Divergence (when an indicator is trending in the opposite direction to the price): A positive

divergence below -100 increases the strength of a signal based on a move back above -100. Anegative divergence above +100 would increase the strength of a signal based on a move backbelow +100.

3. Indicators: An advance above -100 and trend line breakout show that an instrument is oversoldand the trend can be treated as bullish. A decline below +100 and a trend line break show that asecurity is overbought and the trend can be treated as bearish (Fig.26).

Fig.26

DeMarker Top Previous Next

DeMarker (Demarker, De Marker, DeM) is an indicator that identifies price exhaustion, as wellas potential price minimums and maximums. This indicator fluctuates between 0 and 1 andcompares the most recent price action to the previous period's price to measure the existing demandof the underlying asset. DeMarker is used to identify risk levels prior to opening a position. In most cases, when an asset'sprice goes above 0.6, the volatility and risk are lower, while a reading below 0.4 can be treated as asign of increasing risk. Furthermore, use of this indicator over long periods of time (weeks, months)allows an opportunity to trace the long term market tendency. Methods of use: 1. When the indicator falls below 0.3, a bullish price reversal is to be expected.2. When the indicator rises above 0.7, a bearish price reversal is to be expected (Fig.27).

Fig.27

Envelopes Top Previous Next

Envelopes (Moving Average Envelope, Trading Bands) is a technical indicator that consists oftwo moving averages: one moving upward, the other moving downward. This indicator defines theupper and lower boundaries of the price range. Higher volatility should lead to higher deviationpercentage. One should bear in mind that since only previous data is used for the calculation of this indicator, itwill always be a bit behind actual prices. As a result, it does not predict any changes in the trend,but only identifies it. Methods of use: 1. When the indicator reaches its low and turns in the opposite direction, it can be treated as a

signal to buy.2. When the indicator reaches its high and turns in the opposite direction, it can be treated as a

signal to sell (Fig.28).

Fig.28

Fractals Top Previous Next

Fractals is an indicator that detects the higher and the lower limits of the current trend and canpredict a possible reversal of the trend. This indicator is a series of at least five successive bars, withthe highest high in the middle and two lower highs on both sides. The opposite series is at least fivesuccessive bars, with the lowest low in the middle and two higher lows on both sides. Fractals are mostly used to predict a reversal in the current trend. A shift from a downtrend to anuptrend can be traced when the lowest bar is in the middle of the pattern and two bars withsuccessively higher lows are located on either side of it. A shift from an uptrend to a downtrend canbe traced when the highest bar is in the middle of the pattern and two bars with successively lowerhighs are located on both sides of it. Note that Fractals are more effective when used in conjunctionwith other indicators such as MA, Fibonacci Retracement, and Alligator. Methods of use: 1. If a BUY fractal is higher than the red line (Alligator teeth) it is a signal to buy.2. If a SELL fractal is lower than the red line (Alligator teeth) it is a signal to sell (Fig.29).

Fig.29

Gator Top Previous Next

Gator, an oscillator based on the Alligator indicator, demonstrates the degree of divergence/convergence of smoothed Moving Averages. This oscillator is indicated in the form of two bar charts, one on either side of the zero line. The topbar chart shows the distance between the red and blue lines. The bottom bar chart shows the distancebetween the red and green lines. The bars of the chart are red and blue: the bar becomes red when itsvalue is lower than the previous one and green when its value is higher than the previous one(Fig.30). Gator Oscillator helps to visualize and determine the presence or absence of a trend at the givenperiod of time. It also helps to visualize periods of rapprochement and crossing of the smoothedMoving Averages (balance lines).

Fig.30

Linear Regression Top Previous Next

Linear Regression is a statistical method of following a trend. Its results are usually close to themoving average and their methods of use are similar. But unlike MA, Linear Regression has asmaller delay and is more responsive to price changes.

Linear Regression is used to indicate the dominant trend on the market with slight delay from theactual price of the asset. It can also provide information about future divergence of the main trend,but only when the price starts moving near the trend line within a narrow range.

Methods of use: 1. The direction of the indicator shows whether there is a bullish or bearish trend in the market at

the moment.2. The crossing of the indicator and the price chart confirms the trend’s change. It is only a

confirmation because the change in this indicator is late in comparison with a price change(Fig.31).

Note: If the price changes uniformly around the regression line, the market trend should have atendency to continue.

Fig.31

Moving Average Convergence/Divergence

Top Previous Next

Moving Average Convergence/Divergence (MACD) is an indicator that follows the trend. Itconsists of a 12-period Exponential Moving Average (EMA, green), a 26-period ExponentialMoving Average (navy), and a bar chart (red) that shows the difference between them. MACD isused when prices vary in the price corridor. MACD is mainly used to identify three things: crossovers, overbought/oversold conditions, anddivergences. Crossovers happen when the MACD falls below the signal line, which is a bearishsignal (signal to sell). Conversely, when the MACD goes over the signal line, it is a bullish signal,(signal to buy). Overbought/oversold conditions happen when MA dramatically falls/rises from alonger Moving Average, which is a signal that the price is overextending and will soon return tomore realistic levels. Divergence takes place when the price diverges from the MACD, which is asignal of the end of the current trend. Methods of use: 1. When MACD is lower than the signal line, it is a signal to sell.2. When MACD is higher than the signal line, it is a signal to buy.3. MACD crossings over the zero line in either direction are used as signals to buy/sell (Fig.32). Note: It is advisable to wait for a confirmed cross over the signal line before entering into aposition. This helps to avoid entering into a position too early.

Fig.32

Momentum Top Previous Next

Momentum is an indicator/oscillator that measures the rate of change in currency prices. Itevaluates the difference between today's closing price and the closing price n days ago. Usually a10-days period is used for the calculation of this indicator. In this case momentum is calculated bytaking the current closing price, subtracting the price 10 days ago, and plotting the results aroundthe zero line. The results plotted can be negative when the current price is lower than oldest price orpositive when the current price is greater than the oldest price. Like MACD, Momentum also can be used as a trend-following indicator. A signal to buy occurswhen the indicator reaches the bottom of a downward curve and then begins to grow; a signal tosell occurs when the indicator reaches the top of an upward curve and then begins to decline. As aforerunning indicator it can be used when the proximity of the market to top/bottom is accompaniedby the drastic surge of the indicator, following by a decline in the value of the indicator while therates continue to rise/fall or move horizontally. In such a case divergence takes place. Methods of use: 1. When the indicator reaches the bottom of a downward curve and begins to grow, it is a signal to

buy.2. When the indicator reaches the top of an upward curve, it is a signal to sell (Fig.33).

Fig.33

Moving Average Top Previous Next

Moving Average (MA) is an indicator that shows the average price within a defined time period. There are four types of Moving Averages: Simple MA, Exponential MA, Smoothed MA, andWeighted MA. They differ from each other only in terms of the weight coefficients that areassigned to the latest data. Moving averages are mostly used to define areas of support and resistance, to emphasize thedirection of a trend, and to smooth out price and volume fluctuations. The direction of the indicatorshows whether a bullish or bearish trend is present in the market at the moment. The intersection ofthe indicator and the price chart confirms the change in a trend. It is only a confirmation becausethe change of this indicator is late in comparison with a price change. Methods of use: 1. When the instrument price rises above its MA, it is a signal to buy.2. When the price falls below its MA it is a signal to sell (Fig.34).3. The direction of MA gives an idea of whether there is a bearish or bullish trend on the market.

Fig.34

Parabolic SAR Top Previous Next

Parabolic SAR (stop-and-reversal) is an indicator used for analyzing trending markets. It hasmuch in common with MA, but, unlike MA, Parabolic SAR moves with higher acceleration andmay change its position in terms of the price. This is an ideal indicator for providing exit points. Parabolic SAR is mostly used on the trending markets for the creation of closing orders and trailingstop orders. It is also used for defining the trend: if the parabola goes below the price line, themarket is bullish; if the parabola goes above the price line, the market is bearish. Methods of use: 1. Long positions should be closed when the price falls below the SAR line.2. Short positions should be closed when the price rises higher than the SAR line (Fig.35).3. Each point of SAR defines the level of stop-order for the current & not the following trading

period (day, hour, etc.). Note: This indicator is valid only for the trending markets; it is not useful in sideways phases.

Fig.35

Relative Strength Index Top Previous Next

Relative Strength Index (RSI) – a price-following oscillator that ranges between 0 and 100. Thereare 3 distinct zones in the chart of this indicator: the upper (overbought) zone ranges from 70 to 100;the lower (oversold) zone ranges from 0 to 30; the middle zone ranges from 30 to 70. RSI is mostly used in day trading to determine the state of the market – whether it is oversold,overbought, or stable. If the RSI tops out in the upper zone (overbought, > 70) and then returns tothe middle zone, the price would move in the same direction. If the RSI bottoms out in the lowerzone (oversold, < 30) and then returns to the middle zone, the price would move in the samedirection (Fig.36). Method of use: 1. When the RSI peaks in the overbought zone, the price is expected to follow it; this is a signal to

sell.2. When the RSI peaks in the oversold zone, the price is expected to follow it; this is a signal to buy.3. Divergence: when the price reaches a new minimum/maximum but is not confirmed by a new

minimum/maximum on the RSI chart, the price correction takes place in favor of the direction ofRSI.

Note: On the RSI chart, levels of support/resistance and reversal patterns are sometimes visible moredistinctly than on the price chart.

Fig.36

Standard Deviation Top Previous Next

Standard Deviation is a statistical measure of volatility. It is usually used not as a separateindicator but as a component of other indicators. Standard Deviation is mostly used in the stock market to identify the degree of volatility of stock.This indicator is also applied to mutual funds, where it shows how much the return of the fund isdeviating from the expected normal returns. Method of usage:

1. The value of this indicator is usually high if prices change sharply.2. If the value of this indicator is not high, the prices are stable.3. Before a significant rise/fall in prices, this indicator is usually low (Fig.37).

Fig.37

Stochastic Top Previous Next

Stochastic is an oscillator that compares where an asset’s price closed relative to its price range overa given period of time. It consists of two lines: the main line is called %K (green) and the secondaryis called %D (navy). In the main line (%K), fluctuations are usually more distinct than in thesecondary line (%D), because %D is a Moving Average of the line %K. Stochastic indicator ismeasured on a scale from 0% to 100%. The Stochastic oscillator is mostly used on the trending markets. If both lines (%D and %K) top outin the upper zone (above 80% mark) and then the indicator returns to the middle zone, the ratewould move in the same direction. If both lines bottom out in the lower zone (below 20% mark) andthen the indicator returns to the middle zone, the rate would move in the same direction. Method of use: 1. When one of the lines of the Stochastic falls below 20% and then rises above that level (Fig.38-

A) or when the %K line rises above the %D line (Fig.38-B), it is a signal to buy.2. When one of the lines of the Stochastic rises above 80% and then falls below that level (Fig.38-

C) or sell when the %K line falls below the %D line (Fig.38-D), it is a signal to sell.3. Divergence: if rates produce a series of new minimum/maximum and the oscillator does not,

then some rate correction is possible in the direction of the oscillator’s movement.

Fig.38

Williams' Percent Range Top Previous

Williams' Percent Range (Williams %R, or %R) is a momentum indicator that measuresoverbought/oversold levels, which fluctuates between 0 and -100%. When the value reaches 0% itmeans that the closing price is the same as the period high. Conversely, when the value reaches -100% it means that the closing price is identical to the period low. The Williams %R is mostly used as a hint of the market’s condition on the trending markets. Itshows a reversal in the underlying instrument’s price. Frequently this indicator reaches its peak andturns down a bit earlier than the instrument’s price. Similarly, %R reaches its lowest point and turnsup a bit earlier than the instrument’s price (Fig.39).

Methods of use: 1. Readings in the 0 to -20% range: the market is overbought; this can be treated as a signal to sell.2. Readings in the -80 to -100% range: the market is oversold; this can be treated as a signal to

buy. Note: It is advisable to wait for the indicator price to change direction before making any tradingdecisions.

Fig.39