Super BB MACD SSA trading system
The system “Super BB MACD SSA” is designed for trading on the Forex market and is based on the analysis by the method of SSA (Singular Spectrum Analysis). In the Russian community, the method is often referred to as caterpillar (the domestic version of the SSA method). The method consists in analyzing the time series and separating the high-frequency component (noise) from the low-frequency one. There are parallels with Fourier transform filters, but the mathematics is different. The results can be used to analyze the current market situation and general trend.
This system can be used for intraday trading on charts from 5 minutes to 1 hour and for medium-term, H4 and daily charts. The system is quite accurate in determining market impulses and reversals, so it can be used for trading in metals and commodities in addition to currency pairs. Such trading will require bank brokers.
The system consists of several SSA-modified indicators and an advanced MACD indicator. The “BB MACD” is a combination of the MACD (Moving Average Convergence Divergence) indicator and the Bollinger Bands, which helps to determine the points of change in the direction of the trend as well as the strength of the current trend. The indicator is drawn in the lower window of the terminal, consists of two white lines and points that can be either pink or lilac. Changing the color of the points shows the change of the local trend, while the width of the gap between the lines shows the strength of the trend.
For correct operation of the system it is necessary to place the “libSSA” file into the “Libraries” folder. This file, as well as indicators and the system template can be found in the archive at the bottom of the article.
On the main chart, the “TTM Ssa Bars” indicator colors bars in blue or purple, depending on the direction. The “Bt stop ssa” indicator in the same colors shows the current support and resistance levels and the prevailing direction. The “PivotsD v5” indicator helps to identify important levels on higher timeframes in intraday trading
This picture shows a sample of opening a position to buy. First, the indicator “BB MACD” became purple, then the points of the indicator “Bt stop ssa” became blue. The position opens on the blue bar of the “TTM Ssa Bars” indicator. Extending the range of white lines confirms the strength of the trend. Stop-loss is set below the local minimum, and the position is closed after the indicator “BB MACD” changes its color to pink. Here is an example of opening a position to sell. First, the indicator “BB MACD” became pink, then the points of the indicator “Bt stop ssa” became purple. The position opens on the purple bar of the “TTM Ssa Bars” indicator. Stop-loss is set above the local minimum, and the position is closed after the indicator “BB MACD” changes its color to lilac
If the colors of the indicators do not coincide and the white lines of the indicator “BB MACD” approach each other, you should not open positions.