Discussion of article "Testing patterns that arise when trading currency pair baskets. Part I"

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New article Testing patterns that arise when trading currency pair baskets. Part I has been published:

We begin testing the patterns and trying the methods described in the articles about trading currency pair baskets. Let's see how oversold/overbought level breakthrough patterns are applied in practice.

The range of the combined WPR varies from -100% to +100%, so for now we will assume that the overbought level is at +60%, while the oversold one is at -60%, which corresponds to the standard value. Let's find out how many times the indicator went beyond the overbought/oversold levels. To do this, we should use the method described here:

• Apply the testIndexZig-Zag1.mq5 indicator to the combined WPR chart (testWPReur.mq5). Our goal is to determine the number of extreme values exceeding the levels of +70% and +80% or -70% and -80%, as in the figure below. Note the problem area marked as a blue rectangle. For now, such extreme values are included into the calculation, although we will sort out such values in the future:

Author: Andrei Novichkov