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Indicator TPO and TPO-Range - description and application on Forex
As is known, the main driving force of the market is the balance of supply and demand. That is why the availability of information on trade volumes is one of the most reliable sources of profit in the Forex market. Dynamics of open market transactions and their volumes will give the speculators more meaningful information than instruments of technical analysis is the graphical and mathematical reflection of the market.
Although the real volume in the Forex market is not available, the data on tick volumes in the proper interpretation can help a trader to consider in your trading market. This opportunity gives us the algorithm TPO – Time Price Opportunity, the literal translation of which means "Time Price Opportunities".
Indicator TRO is used in MetaTrader 4 and belongs to group of cluster indicators. Your histogram it displays directly on the price chart and shows tick volume, that is, only the total number of transactions of a trading instrument.
Here we must make a small digression. The fact that in Forex market there is no data center where the data were summarized. Therefore, the terminal MT 4 we see, as a rule, the number of transactions concluded in specific broker. The second point is that for these transactions there is no information about separate amounts of transactions for the purchase or sale and a certain amount a trader can only see the total amount of the transactions and dynamics that increase or decrease.
Unlike Forex, stock exchange and others like it can give the trader information about how many were sold and bought stock, signed contracts, Put and Call, a specific number of individual transactions on price levels. And precisely because of this difference, the trader must understand that no matter how progressive the use of data on the volume in the Forex market, as the basis of an independent trading system tick volume can't serve.
Download free TPO and TPO-Range:
Description of the algorithm of the indicator TRO
For purposes of understanding the operation of the indicator will consider its algorithm. The TRO indicator displays on the chart the clusters of the volume over a period of time, which corresponds to the standard timeframes.
TRO on the chart of the Forex market
Histogram TRO, located at the levels, the more, the greater the volume of transactions was at this level. This is the main difference between TRO from other volume indicators – it shows the volume at price levels, and the total mass of the volume indicators at a time.
The blue lines in each cluster represent the largest volume of ticks and are called "fashion". Fashion as price levels with the maximum volumes of transactions are a kind of power levels that can be used in trading strategies.
Fashion TRO on Forex
The indicator gives good signals to enter the position, however, for more significant periods, you should use a second window with the indicator. In this case, the second instance at the senior iframe will serve as a filter for false signals. For example, when we discover that on a larger timeframe there is a "mod", located near the point of entry into the market, and the price rests at its further movement.
The TRO indicator in MetaTrader 4 is similar to other standard programs. To do this, go to the menu "File" - "Open data directory". In the window you should enter the Indikators folder and move the required files. You must then restart the terminal. After installation, you can set the algorithm.
Settings TRO
Open menu "tools-options-Charts" terminal MT 4, where the specified period in bars, and in bars, are shown in the window and considered in the calculations of the algorithm.
Configure the graph bars
When you enter the settings, you need to remember that the number of bars must match the number of minute bars in a day – 1440 PCs. the default indicator is set to 65000 bars corresponding to two months in the Forex market (with the exception of Saturdays and Sundays).
More reviews two useful indicators:
Transient Zones
The Chaikin Oscillator
In the indicator settings specify the value of the Range parameter, period, in minutes, that must correspond to the operating timeframe. For example, if a worker is TF = H1, the parameter should look like 60 minutes. Variable Range count governs the number of clusters, which are displayed on the price chart.
These parameters are essential for the algorithm of the indicator, and all the others are used to customize the chart display.
The indicator settings TRO
In the process, price is confident enough to work out power levels built indicator TRO.
Price levels for TRO
The TPO indicator-Range
For your convenience, and in order to get rid of the second window, the design of the indicator TPO-Range places on the same chart your levels corresponding to older time frame or other parameters specified by the user. The installation of the TPO indicator-Range MetaTrader 4 is nothing new.
To set up the indicator uses a slightly different set of parameters. You need to pay attention to price action near levels of the indicator:
Level TRO change
As you can see, the significance of its levels are so high that even the previously worked levels do not lose their relevance.
To summarize, we can conclude about the possibility of confident use of species indicator TRO a part of any trading strategy. But it must be remembered that, as stand-alone tools algorithms can not be considered because of their features discussed above.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 433
| Rating: 0.0/0 |
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