2.5
- Indicators
- Takuma Shimizu
- Version: 1.0
What is Ikoku Kairi Band?
It is an oscillator indicator that combines Kairi Relative Index with Bollinger Band and displays signals with possible position entry points.It is meant to be used to trade against the trend, so it is perfect for scalping in a range market. It shouldn’t be used in a trend market. It will display arrow signals at possible entry points for buy and sell position. You can be notified when they appear with, push, alert or email notifications. You can customise the indicator according to your needs in parameters. It includes setting the MA Period, Bollinger Band Period and Deviation.
Kairi Relative Index and Ikoku Kairi Band
Kairi Relative Index is an oscillator which monitors the price momentum and is often compared to RSI. When using the RSI, the general rule is to sell when the value is above 70 and buy when the value is below 30. However, that is not the case with Kairi Relative Index and deciding which deviation is significant enough is difficult. Kairi Relative Index does not move within a range like RSI, therefore there is no way of knowing which value is high and which one is low as they constantly change with the change in price.
Ikoku Kairi Band adds the Bollinger Band to the Kairi Relative Index to solve that problem. When the Kairi value moves outside the Bollinger Band, it shows that the deviations is significant. To make it easier, the indicator will display signal arrows when the Kairi Index returns to the bands. The arrows signal possible entry points for buy or sell positions.
Kairi Relative Index is often used to trade against the trend in a range market. Ikoku Kairi Band is an enhanced version of the classic Kairi indicator, so it should be used in a same manner. It should be used when trading in a range market and it will work best with scalping. Ikoku Kairi band should not be used in a trend market.
See also Ikoku Kairi Band PRO herefor more develped version of this indicator. It uses Perfect Order to filter arrow signals to allow you to trade in a trend market. It also has buttons directly on the indicator window for quick parameter adjustment.
Ikoku Kairi Band Parameters
MA_Period
Kairi Relative Index measures the price deviation from the simple moving average (SMA) so the MA_Period setting is very important for Ikoku Kairi Band. Choosing lower values of MA Period will result in a more choppy Kairi Index line which changes direction more often, while higher values will produce a more gradual graph. The higher the value of the MA Period, the less sensitive the Kairi Relative Index becomes. Setting a lower value of MA period will result in more signal arrows, which also increases the risk of false signals. The higher value of MA period will produce less but also more accurate signal arrows.
Bollinger_Band_Deviation
The Bollinger Band in Ikoku Kairi Band help in identifying which Kairi Value is significantly high or low, indicating oversold or overbought markets. By setting up the lower value for the Bollinger Band Deviation, less of the Kairi Index will be contained within the bands, resulting in more signal arrows appearing, which increases the likelihood of false signals. Higher value of Bollinger Band Deviation means that more of the Kairi Index is contained within the bands, and it will result in less but more significant trade signals. The default value of Bollinger Band Deviation is 2.5
Bollinger_Band_Period
The changes of Bollinger Band Period in Ikoku Kairi Band will give similar results to classic Bollinger Band indicator. The lower value of Bollinger Band period will make it more reactive and result in choppier lines. This setting will produce more signal arrow and therefore more trading opportunities, but it will also increase the number of false signals. The higher value of Bollinger Band will result in smoother lines, less signal arrows, but also less false signals. The default value of Bollinger Band Period is set to 50.
Notifications
You can switch on/off the notifications which will be sent when a signal arrow appears. Alert Notification refers to notification in MT4 on a desktop. Email Notification will be sent to your email. Push notification will be sent by MT4 app on your phone. As a default the notification are switched off, to switch them on change the value to true.
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