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Indicator
Purpose:
To show the (“Golden” and “Death”) crosses of the Fast and Slow Moving Averages.
To also show “reentry” or additional entry points where the price bars “completely” cross the fast or slow moving average
Inputs:
- FastPeriod – Number of bars for Fast Moving Average
- FastMethod – Fast Moving Average Method
- SlowPeriod – Number of bars for Slow Moving Average
- SlowMethod – Slow Moving Average Method
- UseVolume – If true will require that the bar of the crosses be accompanied by a percent increase in the Moving Avg of the Volume
- AddtlVolPercent – Additional Volume Percent
- VolumeMAbars – Volume Moving Average bars
Reentry points:
The entry points are places where the price bar has “completely” crossed (retraced to) the Fast or Slow MA in the direction opposite to the Golden or Death cross and then later crosses back in the direction of the Golden or Death cross. Completely meaning one of the bars is completely on the other side of one of these moving averages (i.e. where no part of the bar touches the moving average).
User Notes:
The Indicator tries to capitalize on profound crosses of the 50 (Fast) and 200 period (Slow) moving averages. Crosses of these two periods are popularly known by Swing traders as Golden and Death crosses. However the indicator also gives some flexibility by allowing the periods used to be varied through the inputs.
The indicator additionally marks potential reentry points where following a cross the prices retraces and moves back above or below one of the moving average lines by marking bars that then close back in the direction of the major cross.
A volume options is also available. If this is used a Golden or Death cross must be accompanied by a percentage increase in volume vs. a moving average of the volume.
This has no effect on determining the reentry point crosses.
The Moving Averages shown on the chart and Volume subwindow are the standard Metatrader 4 Moving Avg. and Volume indicators.
Following a cross it may be best to only stay in the trade for a fixed (possibly ATR based) number of pips and not hold the trade until an opposite cross occurs.
System Requirements
To run Metatrader 4 you should be using Windows 2000 or later, with a 2.0 GHz or faster CPU, and at least 512 MB RAM (although 1 GB is recommended). You should have a screen resolution of 1024 x 768 or higher, and an internet connection speed of 56 kbps or faster.