IMPLEMENTATION OF AN EFFECTIVE METHOD OF TECHNICAL ANALYSIS FOR DETERMINING THE MARKET TREND ON THE METATRADER 5 PLATFORM
Abstract
The article discusses the possibilities of using effective methods of technical analysis to determine
the trend direction of financial assets on the multi-market platform MetaTrader 5.
The advantages and expediency of using technical analysis methods in various areas of financial
markets are shown by examples of works by Russian and foreign authors. In order to determine
the direction and strength of the trend, the insufficiency of the use of such technical indicators as
Bollinger bands (BB), MACD, MA, EMA, constructed according to various laws of the distribution
of prices of financial assets, is justified. Graphical analysis tools are considered as a special case
of technical analysis, characterized by special visibility and visualization of the process under
study. The article provides examples of technical analysis figures, shows them to belong to the
basic types of graphical analysis. The concept of a modern trading strategy – innovative trading is
considered, a comparative analysis of the trading strategy, its opportunities and risks is carried out. The paper describes the developed software module in the form of a trading indicator on the
MetaTrader 5 platform in Meta Quotes Language 5 (MQL5) in combination with a script in the
high-level Python language for algotrading using technical analysis methods. The indicator is
based on the construction of support and resistance lines to determine the direction and strength
of the trend. An algorithm for determining the direction and strength of the trend with technical
analysis tools has been developed, which as a result will improve the accuracy of the trend direction
forecast by integrating a technical indicator into the system. For the experimental part of the
process, a financial instrument was used – the EUR/USD currency pair, the total study period was
six months. As a result, the algorithm worked correctly in real time without human intervention for
twenty-four weeks. Based on the test results, it is possible to judge the prospects of research in this
area for solving a large range of applied problems of financial mathematics and analytics.
The application of the created indicator can be extended to any trading operations on various
financial instruments and their combinations.
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