Efficient way to use ADxOsMA
Thank you for your continued support.
This is Teramura from the Tool Development Team.
Thank you very much for using the Tool Development Team's tools on a daily basis.
Today,
「AD×OsMA」 will be taught for efficient usage.
ADxOsMA analyzes trends withADX and determines the direction,
using 200SMA andOsMA to judge that direction,
to provide trend-following
entry signals.
If you haven't downloaded it yet,
please download it from here.
Trend following with ADxOsMA
In a market where a trend appears,
it can be used in any market,
regardless of time or currency pair.
So, because it offers high flexibility,
you may wonder when to enter.
It might be natural to think, “Just enter normally according to the signal.”
That answer is not wrong,
but it would not be very impressive by itself.
Therefore,
this time I’d like to share a technique to improve win rate.
That technique is win-rate enhancement using multi-time-frame analysis,
a method to improve profitability.
First, please look at this chart where ADxOsMA is applied.
It looks like there are good-looking signals appearing.
The selling signals look like they could win.
However,
the buying signal seems to have little future.
Since we are able to take profits from other signals,
this level of tolerance is acceptable, but
you can also prevent entering on this buy signal beforehand.
That method is multi-time-frame analysis,
and the idea is simple: only enter when the signal direction matches the one-time frame above.
Since the time frame on the previous chart is the 1-hour chart,
let's look at the next higher time frame, the 4-hour chart.
The vertical line drawn indicates
the location of the buy signal from earlier,
but the most recent signal is a sell.
In other words, in this market, there are only sell signals… (・o・)
Therefore, when the 4-hour chart shows this kind of market,
the lower 1-hour chart should only enter in the sell direction,
and such a judgment is effective.
In this way,ADxOsMA with
a touch of multi-time-frame analysis
allows for more efficient trading.
Please give it a try!
If you still haven’t downloaded ADxOsMA yet,here!