Begin Trend indicator is
a VertexFX client side VTL indicator that helps to find points of entry in
market in direction of trend.
The concept behind this indicator is to
identify market cycles based on a combination (difference) of the Linear
Weighted Moving Average (LWMA) and Simple Moving Average (SMA).
At first step, we
calculate the two Linear Weighted Moving Averages (LWMA_h and LWMA_l) of the
High and Low prices over the recent Period_Channel bars. In the next step, we
calculate the Simple Moving Average (SMA) of the Close prices over the recent
Period_Input bars.
Then we do the
calculation values of the red and green indicator lines. The values of the
green line is the difference between LWMA_h and SMA and values of the red line
is the difference between LWMA_l and SMA.
Begin Trend is displayed
in a separate window in the form of two independent lines of red and green
colors, which are an approximation to the zero line is regarded as a signal to
enter the market. Approach is considered a strong signal of the signal line to
the zero level and rebound from it: Bouncing from the zero level, and turn the
green line up - a buy signal. Bouncing from zero and turning red line down - a
signal to sell.
It should be noted that
the signal line may not reach zero and start the turn.
In this case, the signal
strength will depend on the distance between the signal lines and zero - the
smaller it is, the stronger the signal. The ideal is considered to be a signal
occurring at the turn after crossing the zero line signal.
To use Begin Trend indicator download it from here,
then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on the
tree and select refresh or restart your client station and you will find
under VTL local scripts in your client
terminal.
You can check this video
that talks about Begin Trend indicator: