The Key Elements of Backend Data Dictionary:
This Data Dictionary provides information about each attribute, also referred to as fields, of a data model.
An attribute is a place in the database that holds information. If we were to create a Data Dictionary representing the articles here on Dashboard App, we’d potentially have attributes for title, author, category, and the content itself.
A Data Dictionary organized in a spreadsheet format. Each attribute is listed as a row in the spreadsheet and each column labels an element of information that is useful to know about the attribute
R1- DeMark – Resistance
PP – Pivot point
R2 Fibo – Resistance
PP -pivot point
The Relative Strength Index (RSI) provides a visual mean to monitor both the current, as well as historical, strength and weakness. RSI is a momentum-based oscillator which measure the speed (velocity) as well as the change (magnitude) of directional price movements. The strength or weakness is based on closing prices over the duration of a specified trading period creating a reliable metric of price and momentum changes. Readings: It is also scaled from 0 to 100. Value equal or less than 30 indicate ‘oversold market conditions’ and an increase in the possibility of price going up. In other words, falling trend is likely to reverse, it can be a buy. If the value is 70 or higher ,it is a overbought conditions with the possibility of price going down.
The stochastic oscillator is a range-bound indicator range from 0 to 100, used to identify overbought and oversold market conditions. A reading over 80 reflects overbought market conditions, and a reading below 20 reflects oversold market conditions. Stoch RSI can be configured to use data from different trading periods.
In a standard 14-period setting, a reading above 80 indicates that the pair has been trading near the top of its trading range over the last 14 periods, while a reading below 20 indicates that the pair has been trading near the low of its trading range over the last 14 periods.
Some technical traders base their algorithm as ‘ trading with Stochastic RSI oversold/overbought levels’ as follow:
When, StochRSI exits from oversold (below 20) level up, then Buy.
When, StochRSI exits from overbought (above 80) level down, then Sell.
MACD (Moving Average Convergence/Divergence) is simple and reliable indicators has in its base Moving Averages.
It calculates and displays the difference between the two moving averages ( in our case 12 and 26 period moving averages) at any time. As the market moves, moving averages move with it, widening (diverging) when the market is trending and moving closer (converging) when the market is slowing down and possibility of a trend change arise.
MACD momentum oscillator is oscillates above and below zero (has no lower or upper limits). Technical traders combine this line in a line’s crossover strategy, MACD line and trigger line crossover outperforms EMAs crossover. A change from positive to negative MACD is interpreted as “bearish”, and from negative to positive as “bullish”. Zero crossovers provide evidence of a change in the direction of a trend but less confirmation of its momentum than a signal line crossover.
The average directional movement index (ADX) indicate trend strength (not the trend direction or momentum. ADX ranges between 0 and 100. The value of the ADX is proportional to the slope of the trend. The slope of the ADX line is proportional to the acceleration of the price movement, changing trend slope.
ADX readings below 20 indicate trend weakness, and readings above 40 indicate trend strength. An extremely strong trend is indicated by readings above 50. Some traders think that when a reading below 20, present an breakouts event.
Williams %R is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Williams %R moves between 0 and -100, which makes -50 the midpoint. A Williams %R cross above -50 signals that prices are trading in the upper half of their high-low range for the given look-back period (Bullish). Conversely, a cross below -50 means prices are trading in the bottom half of the given look-back period (Bearish)
Commodity Channel Index (CCI) is used to identify price reversals, price extremes and trend strength. When CCI moves above +100, there is a strong uptrend confirmed, triggers a buy signal. The trade is held as long as CCI trades above +100. Exits will be made when CCI goes back below +100. Opposite true for downtrends and readings below -100.
ATR (Average Trading Range) with standard settings of 14 days used on daily charts and 14-day ATR to determine the average size of the daily trading range. In other words, how volatile is the market and how much does it move from one point to another during the trading day.
ATR gauges price volatility. Forex Traders use Average True Range indicator to place their Stop Loss orders. When the market is volatile, wider stops dodge being stopped out by “random market movements”. When the volatility is low, tighter stops are used to have better protections.
High/Low indicator plots horizontal lines on a chart, which represent the high and low price for a 14 days period. With the High-Low indicator, we can compare the trading day’s high and low with recent trading ranges, by looking at raw numbers. With High-Low indicator a trader can immediately see the context of the market’s recent performance with reference to the current day. To get a clearer picture of highs and lows, also see 5Day and 1 month high and low events. highs
The Ultimate Oscillator indicator (UO) indicator is used to measure “momentum” across three varying timeframes to avoid the problem of rapid advance or decline in price, and therefore a false divergence trading signal.
Bullish UO Divergence: Bullish Divergence forms meaning price forms a lower low (be below 30) while UO makes a higher low (breaks above the high of the Divergence)
Bearish UO Divergence: Bearish Divergence forms meaning price forms a higher high(above 70) while UO makes a lower high(falls below the low of the Divergence).
Rate-of-Change indicator, is simply a momentum oscillator that measures the % change in price from one period to the next. The ROC calculation compares the current price with the price “n” periods ago. This fluctuates above and below the zero line as the Rate-of-Change moves from positive to negative.
As a momentum oscillator, ROC signals include centerline crossovers, divergences and overbought-oversold readings. Divergences fail to foreshadow reversals more often than not, so this article will forgo a detailed discussion on them. Even though center line crossovers are prone to whipsaw, especially short-term, these crossovers can be used to identify the overall trend. Identifying overbought or oversold extremes comes naturally to the Rate-of-Change oscillator.
The Bull/Bear Power is a comparison of an 13 period EMA of the closing prices. By comparing the low and high to the EMA, a measure of general bullish bearish strength is ascertained:
Bulls Power = High – EMA (A buy signal is generated when the oscillator moves above Zero)
Bears Power = Low – EMA (A sell signal is generated when the oscillator moves below Zero)
Total ‘BUYS’ /10
Total ‘Sells’ /10
EMA gives priority to most recent data, thus reacts to price changes quicker than Simple Moving Average. Dashboard has 6 time period EMAs:
- EMA 5
- EMA 10
- EMA 20
- EMA 50
- EMA 100
- MA 200
Total buy and sell signals from interpreting 10 TAs
Forex Intelligence Modeling
One % change of price
Rank TA %CHG:
Based on column % one day change, ranking of pair with respect to 28 pairs
Ranking of pair, one the basis of strength and weakness calculation. I am evaluation various ‘strength and weakness’ models as given below:
Forex Correlation Matrix – Forex Correlation between two pairs on following parameters:
1. Relative currency strength: Daily Time frame analysis of the currency indexes
2. Absolute currency strength: 15 m *period time frame, calculated as a percentage gain or loss
3. Balance of trade
INO scoring idea is taken from MarketClub’s Chart Analysis Score proprietary tool that measures trend strength and direction based on five different timing thresholds. This tool takes into account intraday price action, new daily, weekly and monthly highs and lows, and moving averages. This Score will dynamically update depending upon intraday price action and as new highs or lows occur.
The Chart Analysis Score can be used in conjunction with our Trade Triangle signals to help you determine prime trading opportunities. The Scores can generally be viewed like this:
+/-50 to 65 : Trading Range
+/-70 to 80 : Emerging Trend
+/-85 to 100 : Strong Trend
However Dashboard’s logic rely on Odds Enhancers performed by traders themselves. I will evaluate how to proceed with scoring system. At present A pair can have score of upto 1.15 on the basis of price strength and direction.
Three time frames Monthly weekly and daily are presented for all trends, as presented in following screenshot.
Dashboard detects trend from EMA analysis.
This score will come from traders Odds Enhancers scoring.
It is buy or sell decision!
The strength on lowest time frame,can be one of the following five readings:
1. Maximum (strongest signal)
5. Minimum (weakest)
The buy or sell direction, calculated on lower time frame can be one of the following five readings:
I adopted some of the Barchart’s methodology to find Interesting assets.
Overall TA Barchart overview, opinion and analysis
5D & 1M High- Low:
The 5 days and one month’s highs and lows of a price action for all the pairs. To see an example, on Jun 18, 2019 for AUD/CHF pair in image above captioned ‘The Orders screen’.
|2019-06-18||AUDCHF||1.05||M ↓W ↓D ↓||0.12||44.107(11)||44.107||Sell / Sell||▼ Hi2/ Low16|
The 5D/1M Hi-Lo column is some thing like Hi 2/Low 16, this means during last 5 days price action has achieved 2 high highs and during one month 16 lower lows. Lower lows are overwhelming more than highs.
RANK PERF 1D:
Ranking of the 28 pairs on the basis of one day % gain or loss performance. For an example see here, how Finviz calculates performance % loss/gain.
RANK FX IDX:
Ranking of the 8 majors on the basis of value of currency index.
It is the Future market price of the currency for the Front Month, huge difference in current and Future price might give some trading opportunities.
IDX Perf RANK:
It is redundant calculations of Ranking with Indices and performance.
Today’s pips variation, dollar and percentage for the pair
APP OE SCORE:
How does Dashboard’s logic calculate Odds enhancers on your behalf? (to be continued)