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There are two types of preset and they are colour coded according to type. Single graph presets are contained in green file folders whereas multiple graph presets are stored in blue file folders.
There are various keys on the keyboard, which perform tasks. These keys are also known as "hot keys".
This refers to the signals used to calculate moving average studies. Market convention dictates that the closing price is used to calculate moving average lines. Tradermade however gives you the option to use the high, low, open and close as well as a typical or average close.
SMA = (P1 + P2 + P3 + P4 + P5) / 5 for a 5 event standard moving average.
The same weight is given to each price and only the recent price action is taken into account.
These oscillators measure overbought/oversold situations, divergence and trading signals.
They are based on the following observations: in an uptrend, the closing price is usually closer to the high of the price range, whereas, in a downtrend the closing price is usually near to the low of the price range.
The Stochastic uses two lines. The formulae used to determine both lines are given using a popular parameter set of 5 and 3 days.
%K = 100 x (C-L5) / (H5-L5).
where C= last close or latest price. L5 = lowest low during the last 5 events. H5 = highest high during the last 5 events.
%D = 100 x H3/L3. %D is a three-day or event moving average of %K.
where H3 = 3 day sum of (C-L5) and l3 = 3 day sum of (H5-L5).
The same 75 and 25 values are used to identify overbought/oversold situations.
A slower stochastic is sometimes preferred to counteract whipsawing and act as a filter. In this case the %K line is not shown. %D is displayed with a new line: %Dn = 3 day moving average of %D. The parameters to be input in this case would then be 5-3-3.
The swing chart is similar to the point & figure chart as it is also a study of pure price movement; in other words, time isn't taken into consideration whilst plotting the price action. So if no price change occurs then the chart does not move. The difference between the swing chart and the point & figure chart is that vertical lines are used instead of the point & figure boxes. The number of points moved in one direction to cause the data to be plotted is required, and also the swing filter is required which is equivalent to the box reversal in a point & figure chart.
When the price falls below the previous low, the colour of the line changes to red.
When the price rises above the previous high, again the colour of the line changes, in the graph below it changes to green.
Swing Line - These are similar to Swing Charts, except that time is considered in the calculation of the swing line. Therefore the distance between each vertical line may vary depending on the timing of the price action.
Back to top This is part of the Ichimoku Study. It is most important when used with the kijun line. If it crosses up above the kijun line, buy. If it crosses down below the kijun line, sell.
Text can be added to a chart either from TraderMade’s text editor or from another Windows application.
The time period is the number of events shown on the chart. The time period displayed can be changed via the "Display Selection"
There are 3 types of time period available in TraderMade Workstation and these are short term, medium term and long term. The long term is then divided into daily, weekly and monthly.
The 'Trading Positions' selection gives the percentage of the top 300 trading models for each of the 4 major currencies. These 300 models are long, short or square of US Dollars.
It also gives the possibility of seeing how these positions would be affected in percentage terms if the market closed either up or down by 50, 100 or 150 points. The user also has the option to switch between a European close and the New York close. The purpose of this is to determine what the condition of the market is and whether it be overbought or oversold.
These are diagonal lines, drawn by the user that identifies levels of support or resistance that change for each event.
True Highs are defined as the maximum of either the current bar's high or the previous bar's close.
True Lows are defined as the minimum of either the current bar's low or the previous bar's close.
Rate Volatility Band - These consist of up to 2 lines either side of the price at certain percentage points, as determined by the user. They can be used as envelopes or filters.
Moving Average Volatility Band - These consist of up to 2 lines either side of the selected moving average at certain percentage points, as determined by the user. They can be used as envelopes or filters.
Volume Accumulation is a volume indicator, which was devised by Marc Chaikin. Volume accumulation counts only a percentage of the volume as a plus or minus, depending on where the close is in relation to its average price for the day. If prices close above the mid-point of the day's range a percentage of that day's volume is give a positive value. If prices close below the mid-point, a percentage of the day's value is assigned a negative value. The only time the entire day's volume is assigned a positive value is when the close is the same as the day's high. When the opposite occurs, all the day's volume is counted as negative.
The term weekly is used to describe those charts where each bar/candle represents one week.
The Four-Week Rule (or Donchian Rule) is a very simple trend following mechanical system, which is always in the market, i.e. either long or short. It is a channel breakout system in which the previous twenty days (4 full calendar weeks) are examined.
a) Long - when the price exceeds the highs of the four preceding weeks, or
b) Short - when the price falls below the lows of the four preceding weeks.
Practical Approach
Count back twenty days and find the highest high and the lowest low for that period. These two points define a channel parallel to the x-axis. If today's action is;
a) Above the upper value, then short positions are liquidated and long positions are taken (or kept).
b) Below the lower value, then long positions are liquidated and short positions are taken (or kept).
c) Within the channel, then the current position is maintained.
Note: If both parts of the channel are penetrated in one day, then only the first signal is taken.
On TraderMade software the signal can be adjusted between using the highest and lowest close over "n" days as well as the market extremes.
WMA = [ P1 + (P2 x 2) + (P3 x 3) + (P4 x 4) + (P5 x 5) ] / ( 1 + 2 + 3 + 4 + 5 )
for a 5 event weighted moving average.
Greater weight is given to the most recent prices, but only the most recent price action is taken into account.
Allows the enhancement of the graph by either zooming visually or zooming by date.
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