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Indicators: Breaking Out with RSI

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MetaQuotes Software Corp. 2010.12.24 08:50 

Breaking Out with RSI:

An indicator based on Lows and Highs of last 16 candles + RSI reading. Describes trend as Flat, Trending Up, Breaking Out Upwards, Trending Down, Breaking Out Downwards.

Author: Imran Latif

MQL4 Comments
16319
MQL4 Comments 2010.12.25 23:01  

what is the middle color section ? Short term breakout?

Imran Latif
14
Imran Latif 2010.12.26 11:59  
alspice:

what is the middle color section ? Short term breakout?


The middle color shows the average price range of last 16 candles. And this section shows the "Range Bound" state. When price exits from this upwards, it shows "Trending Up", and when downwards, it shows "Trending Down".
MQL4 Comments
16319
MQL4 Comments 2010.12.27 04:11  

can you give an explanation why did u choose 'last 16 candles' and why not other than 16?

really appreciate your feedback.

thanks a lot.

MQL4 Comments
16319
MQL4 Comments 2010.12.27 04:22  
favorable / unfavorable RSI koment, whether referring to the trading following the trand,,
Imran Latif
14
Imran Latif 2010.12.28 22:06  
schatzy:
favorable / unfavorable RSI koment, whether referring to the trading following the trand,,

Favourable RSI means that the RSI is also in favour of the current trend, and unfavourable means that the RSI is not yet inidcating the stregnth of the direction of price.
Imran Latif
14
Imran Latif 2010.12.28 22:10  
bolasatuboladua:

can you give an explanation why did u choose 'last 16 candles' and why not other than 16?

really appreciate your feedback.

thanks a lot.


In some of my studies I saw that a 14 or 16 periods pattern is considered to assess the trend and next possible move of the price. I've used here 16 periods to include more bars in analysis.
Imran Latif
14
Imran Latif 2010.12.28 22:12  
alspice:

what is the middle color section ? Short term breakout?


Middle colour section denotes the average price range of last sixteen periods.
Imran Latif
14
Imran Latif 2010.12.28 22:13  
bolasatuboladua:

can you give an explanation why did u choose 'last 16 candles' and why not other than 16?

really appreciate your feedback.

thanks a lot.


Normally a 14 or 16 periods pattern is considered to assess the trend and next possible move of the price. I've used here 16 periods to include more bars in analysis.
MQL4 Comments
16319
MQL4 Comments 2010.12.31 15:18  

Eman great stuff. Thank you for your hard work. Do you think you can make a breakout box of ADX? It will be great if you combine it with RSI

MQL4 Comments
16319
MQL4 Comments 2011.01.08 15:05  

THANK YOU EMAAN!! I HOPE THE BREAKOUT LINES OF THE RECTANGLE WILL HELP ME FIX MY SL.

BEST REGARDS,

ALF

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