This indicators are also referred to as the Corona charts. They are designed to give the trader a complete view of the market activities. In addition to giving the market price indications, the indicators also shows the trader when they (indicators) are week or strong. This is a unique thing among indicators since no other indicator does this. The indicators are also designed to help the trader in choosing the most appropriate method of trading by telling the trader whether the market is trending or cycling.
The Corona charts have four main segments. These are: The Spectrum from which the dominant cycle is extracted, the Cycle Signal to Noise Ratio, the Swing Position and the Trend Vigor. We are going to look at the work of each of the indicators so that the trader can know what to be looking for in each of the indicator.
The Spectrum It measures any cyclic activity in the Forex market that occurs within six to thirty bars or candlesticks using a series of digital filters. The amplitude of the output of each filter is compared to the most resilient signal and the result is exhibited over an amplitude range of 20 decibels in the form of a heat map. Actually, the colors for the strongest signal is yellow. Then as the amplitudes decreases, the display “cools off” through to black. The foremost cycle line is taken out of the strongest signals in the spectrum.
Cycle Signal to Noise Ratio It is displayed on a chart and it is time synchronous with the main trading chart. It has a vertical scale of 1 decibel to 11 decibel. For example if the Signal to Noise Ratio begins to form a “corona” below 4 dB, it alerts you that the ratio may become too low to safely swing trade on the basis of the cycle alone.
Fig.1. The Corona charts on a chart.
The Corona indicators are five in number. These indicators are CoronaCyclePeriod _v2.1, CoronaDashBoard _v1, CoronaSNR _v2.1, CoronaSwingPosition _v2.1 and CoronaTrendVigor _v2.1.
The CoronaCyclePeriods_2.1 shows the cyclic activities within the period of the timeframe used. The colors of the spectrum as discussed above are followed. The CoronaSwingPosition _v2.1 on the other hand shows the swings of the market prices. It shows whether the market prices are moving up or down. CoronaTrendVigor _v2.1 shows the trend of the market prices. The CoronaDashBoard _v1 gives a summary of all the other indicators. It shows the strength of the signals they are giving.
How to use the Corona Indicators to trade
The main indicator to look at for telling whether to trade or not is the CoronaDashBoard _v1.
Fig.2. A snapshot of the CoronaDashBoardv1.0.
From the above snapshot you can see that the CoronaDashBoard _v1. Show the strength of each of the indicators. So if the strength of all the indicators is relatively strong, the trader should be comfortable to place a trade.
So when should a trader place a sell order?
The trader should place a sell order when the CoronaSNR _v2.1, CoronaSwingPosition _v2.1 and CoronaTrendVigor _v2.1 are showing a downward motion of the market prices. If this is the case, check to see that the CoronaDashBoard show strong indicators.
What about buying?
The trader should place a buy order when the CoronaSNR _v2.1, CoronaSwingPosition _v2.1 and CoronaTrendVigor _v2.1 are showing an upward motion of the market prices. If this is the case, check to see that the CoronaDashBoard show strong indicators.
Fig.3. Placing a buy order using the Corona Indicators.
Fig.4. In such circumstances the trader should avoid trading.
Download Free Forex Corona Indicators