Signal Noise Ratio
The Signal Noise Ratio indicator is a useful Vertex FX indicator to estimate the quality of market and the trend. The market consists of a primary trend (termed as signal), and whipsaws or counter trends against the main trend (termed as noise). When the markets are strongly trending, the signal is strong and the noise is weak. When the trend starts weakening or exhausting, the signal slowly becomes weak, and the noise becomes strong. The SNR indicator calculates these characteristics of the price. In the first phase, we smooth the price with a 4-bar SMA, and then calculate the InPhase and Quadrature using the Hilbert Transform. In the next step we calculate the dominant cycle period using Homodyne Discriminator.
Finally, the SNR is calculated based upon the Daily Range (High - Low), converted to logarithmic value and expressed as decibels.
NOTE - This indicator should not (cannot) be used by itself. It should be used in conjunction with other indicators.
Inference - When the SNR has bottomed out below zero and is gradually rising, we should stay in the trade (as decided by the trader from other indicators). When the SNR has peaked out and starts falling, it is recommended to exit the trade. (It is not recommended to reverse the position). The direction of the trade must be determined by other trending indicators, and not by the SNR indicator.
The indicator is showing relative actual strength of currency XXX. The indicator calculates its value of close prices of 7 pairs containing currency XXX. The indicator can be used for MEAN REVERSION based strategies. Lets assume XXX YYY currency pair scheme where XXX is BASE currency and YYY is QUOTEcurrency. Place Power of XXX into your chart first and Power of YYY second. You can have 2 relevant situations. Indicators curves are close to each other. It means there is higher probability that the price of the pair XXX YYY will go UP. Do not take Power of .. signals separately from overall market situation (SR levels/zones and so on). Indicators curves are FAR from each other. It means there is higher probability that the price of the pair XXX YYY will go DOWN. Do not take Power of .. signals separately from overall market situation (SR levels/zones and so on).
The MAAngle indicator provides buy and sell signals based on the angle of a moving average. Let’s take a look how it works. How To Interpret This Forex Indicator Rising moving average indicates medium to strong up trend = MAAngle green bar.Falling moving average indicates medium to strong down trend = MAAngle brown bar.Flat moving average indicates a trend less market = MAAngle yellow bar. Trading Signals BUY: Wait for the first green bar.SELL: Wait for the first brown bar. Configurable Indicator Options MAPeriod, Angle Treshold, StartMAShift EUR/USD 4 Hour Chart Example
Red = Down Trend and Blue = Up Trend