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The term "daily" is used to describe those charts that are constructed from a time period of 24hrs. Each daily bar contains the high, low, open and close that occurred during each trading day. In TraderMade this is between 0:00 to 23:59 GMT.
Each contract or instrument has historical and daily data and may also have intra-day data.
The DDE provides a capability to link real time rates from the Tradermade application to an Excel spreadsheet.
The DMI is used to identify a trending market and to provide an indication of the extent of this trend. It consists of two lines +DIp and -DIp. The 1st is a measure of uptrend and the second is a measure of downtrend. A 3rd line ADX (Average Directional Movement Index) indicates how much the market is trending, either up or down. The higher the ADX line, the more the market is trending and the more suitable it becomes for a trend following system. Wilder's ADXR line rates the directional movement on a scale of 0-100. The more trending the market and the more suitable the instrument is for a trending system. When the ADXR line is below 25 it indicates that a market is not suitable for a trend following system.
Directional Movement lines may be used as a system on their own or as a filter on a trend-following system. The crossing of the two lines generates buy and sell signals. Long when +DIp crosses over -DIp and short, when -DIp crosses over +DIp.
Exchanges is short for Futures Exchanges that are available on each system.
The date, and time at which any futures or option contracts must be settled.
EMA = Yesterday’s EMA + (Today’s Price – Yesterday’s EMA) x (2 / n + 1)
All previous price action taken into account and greater weight is given to recent prices.
Fibonacci was a 12th Century Italian mathematician who discovered the number series 1,1,2,3,5,8,13,21,34,55, where each successive number is the sum of the two previous numbers. The difference in ratio between these numbers into infinity is always 0.618, which is known as the "Golden Ratio". This number is one of the most important numbers in Technical Analysis and is always used as the most important retracement level.
Back to top W D Gann was an extremely successful stocks and commodities trader in the 1920's. Through his study of market behaviour he concluded that the most important retracement levels were thirds and eighths, with greatest importance attached to 1/3, 3/8, a half, 2/3 and 5/8.
The High is the highest price recorded during a selected time interval.
Historical volatility can be defined as the standard deviation of a price over a specific time period. Three main assumptions are used in this calculation, which are also used in most option pricing models:
1) Price changes are random and unpredictable.
2) Percentage changes in price are distributed normally.
3) Absolute price changes are distributed lognormally.
The 3rd assumption explains why options with higher exercise prices carry more value than options with lower exercise prices (because the upside has more potential than the downside).
Tradermade uses lognormal distribution for its calculations. It can be defined as:
xi = 1n [ pi ]
pi-1
Where xi is the price change at time i, and pi is the actual price at time i.
Lognormal distribution has the following characteristics:
1) Continuous - represents the nature of the Forex markets, and is the assumption made in most option pricing models.
2) Range of prices allowed in this distribution is 0 to infinity, accurately reflecting the realities of the market.
3) The asymmetrical distribution accurately reflects the higher value of options with a higher exercise price.
On balance, the lognormal distribution seems to be the better choice because it more accurately represents the realities of the market, (and in particular the Forex market).
There are various keys on the keyboard, which perform tasks. These keys are known as "hot keys".
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