MetaTrader 4 Platform Overview

Mql4 Lesson 25

Mql4 Lesson 26

Mql4 Lesson 27

In this video I show you how to download and install the Scite-mql editor that I use so much. It has several advantages and options that are simply not available in MetaEditor. it can be downloaded at http://www.jimdandyforex.com/coded-pr... I hope you guys enjoy it as much as i have. And please thank the fellow that created it for us.
Update: due to popular demand I have developed some better videos and a site at Jimdandy's Mql4 Courses | Learn Mql4 Programming for Metatrader. Tutorials, Courses, and Lessons eventually the full course will have over 80 videos that take your from knowing nothing to writing your own scrpts, indicators and Expert Advisors

Mql4 Lesson 28

The title says it all. The purpose of the SetIndexBuffer() is somewhat hard to understand. After you watch this video you will wonder why it seemed so complicated. I also explain what the iMAonArray() function does.

Mql4 Lesson 29

In this video I show how to include an mqh file or import and ex4 file into an EA.

Mql4 Lesson 30

This is video 2 of 2 where I show how to move the functions from the MacdEA into and imported ex4 file.

Using Relative Strength Index (RSI) to trade stocks

This video is part of an investing series that show how to use Relative Strength Index (RSI) and technical analysis to invest in stocks.

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How to use RSI indicator to take decisions on buying and selling stocks

The relative strength index (RSI), one of the most popular technical indicators, is computed on the basis of the speed and direction of a stock's price movement. This means that the RSI indicator only measures the stock's internal strength (based on its past) and should not be confused with its relative strength, that is compared with other stocks, market indices, sectoral indices, etc.

Overbought/oversold levels: The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days). This implies that the RSI can also be used to identify the overbought/oversold levels in a counter. As suggested by J Welles Wilder, the developer of this indicator, most technical analysts consider the RSI value above 70 as 'overbought zone' and below 30 as 'oversold zone'.

However, investors and traders need to adjust these levels according to the inherent volatility of the scrip. For instance, volatile stocks like Reliance Power may hit the overbought and oversold levels more frequently than stable stocks like Hindustan Unilever, if the 70 and 30 levels are maintained.

Failure swings: The main problem faced by the short-term traders who use indicators is that the stock may continue to move up despite the indicator hitting the overbought zone, or continue to go down even after the indicator hits the oversold zone. This is the reason Wilder developed a new concept called 'failure swing' for the RSI. A 'bearish failure swing' occurs when the RSI enters the overbought zone (goes above the 70 level) and comes below 70 again. In other words, a short position can be taken only when the RSI cuts the 70 lines from the top. Similarly, a 'bullish failure swing' occurs when the RSI enters the oversold zone and comes out. Both the positive and negative failure swings can be clearly seen in the chart on Reliance.

Wilder also explains the possibility of a failure swing above 70. In this case, the RSI needs to make a lower bottom above 70. As an example, consider the RSI hits 76 and then pulls back to 72, before jumping again to 78. In this case, the 'failure swing above 70' occurs when the RSI goes below 72. So, there is no need for the traders to wait for the RSI to fall below 70. Similarly, a failure swing can take place if the RSI makes a higher top below the 30 level.

Divergence: This rule is similar to the divergence rule for other indicators as explained in the earlier issues. A positive divergence occurs when the RSI makes a higher bottom despite lower trending by share price. Similarly, a negative divergence occurs when the RSI starts falling and makes a lower top despite the share price moving higher. This can be seen in the chart on Bharti Airtel.

Trend direction: 'Trend is your friend' is a cardinal rule of technical analysis and the investors/traders can benefit by trading in the direction of the trend. The RSI is also used for determining and confirming the trend.

For example, it rarely falls below 40 in the case of a stock that is in a strong uptrend, and usually moves between 40 and 80 levels. This type of situation can be seen in the HCL Tech chart. In such a case, when the RSI approaches 40, it can be used as a buy signal, and when it comes close to 80, it can be a square-off signal. So, traders should not go short on a counter that is in a strong uptrend. Similarly, the RSI in a stock facing a strong downtrend usually moves between 60 and 20, and if it comes close to 60, it can be used for selling short.

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Mql4 Lesson 31

In this video I explain some of the things that can go wrong when you are trying to write something as simple as a script to close trades. I see this mistake a lot. Not getting your orders to close when you want can be an aggravating thing indeed.

How to Invest using Bollinger Bands

This video show you how to use technical analysis using Bollinger Bands to invest in stocks

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Developed by John Bollinger.
The Bollinger Bands indicator acts as a measure of volatility. This indicator is a price overlay indicator. The indicator consists of three lines; the middle line (moving average), an upper line and a lower line. These three bands will enclose the price and the price will move within these three bands.
This indicator forms upper and lower bands around a moving average. The default moving average is the 20-SMA. This indicator use the concept of standard deviations to form their upper and lower Bands.
The example is shown below.


Bollinger Bands Indicator
Because standard deviation is a measure of volatility and volatility of the market is dynamic, the bands keep adjust their width. higher volatility means higher standard deviation and the bands widen. Low volatility means the standard deviation is lower and the bands contract.
Bollinger Bands use price action to give a large amount of information. The information given by the this indicator includes:

• Periods of low volatility- consolidation phase of the forex market.
• Periods of high volatility- extended trends, trending forex markets.
• Support and resistance levels.
• Buy and Sell points.

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How to Invest using Bollinger Bands 2

This is part 2 of the video series that shows how to use technical analysis using Bollinger Bands to invest in stocks.

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Bollinger Bands Indicator Bulge and Squeeze Technical Analysis


The Bollinger Bands are self adjusting which means the bands widen and narrow depending on volatility.
Standard Deviation is the statistical measure of the volatility used to calculate the widening or narrowing of the bands. Standard deviation will be higher when prices are changing significantly and lower when markets are calmer.

• When volatility is high the Bands widen.
• When volatility is low the Bands narrows.

The Bollinger Squeeze
Narrowing of Bands is a sign of consolidation and is known as the Bollinger band squeeze.

When the Bollinger Bands display narrow standard deviation it is usually a time of consolidation, and it is a signal that there will be a price breakout and it shows people are adjusting their positions for a new move. Also, the longer the prices stay within the narrow bands the greater the chance of a breakou




The Bollinger Bulge
The widening of Bands is a sign of a breakout and is known as the Bulge.
Bollinger Bands that are far apart can serve as a signal that a trend reversal is approaching. In the example below, the bands get very wide as a result of high volatility on the down swing. The trend reverses as prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to downtrend.