Something Interesting - page 57

[Sergey Golubev]

Building an EquiVolume Indicator in MQL5

This article shows how to build an EquiVolume indicator in MQL5. It transforms traditional candles into volume‑weighted boxes whose width depends on relative trading activity within a lookback period. We will implement a step-by-step process that identifies maximum volume, normalizes all other volumes against it, and converts them into proportional visual widths for each candle. The result can be used to analyze market strength, highlight high-participation zones, and improve price action interpretation for both manual trading and algorithmic strategy development.

[Sergey Golubev]

Encoding Candlestick Patterns (Part 3): Frequency Analysis for Single Candlestick Type Structure

Frequency analysis is widely used in many disciplines, including linguistics, genetics, and data science, to identify dominant structures within large datasets. Applying the same principle to encoded candlestick data allows us to determine which market structures occur most frequently, which are relatively rare, and whether certain combinations exhibit recurring behavior that may warrant further investigation.

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

SuperTrend

Sergey Golubev, 2026.08.19 13:54

Making Custom Indicators for Beginners (Part 1): SuperTrend Indicator

SuperTrend is a representative example of a classic weekend project: two developers can receive identical requirements yet produce very different implementations. The concept is well-established and based on a volatility-band approach (similar to Keltner Channels or Bollinger Bands); however, instead of plotting a static envelope around the price, it is rendered as a single line that switches sides depending on the trend direction. The concept combines the ATR (Average True Range) with a locking mechanism — the ratchet principle. This logic can be implemented in about twenty lines of code.

[Sergey Golubev]

A Forgotten Classic in Volume Analysis: The Finite Volume Elements Indicator for Today's Markets

In the world of technical analysis, volume indicators play a key role in understanding market dynamics and confirming price movements. One such tool is the Finite Volume Elements (FVE) indicator, first described in detail in the April 2003 issue of Technical Analysis of STOCKS & COMMODITIES. FVE was developed as an improved method for assessing the balance between buyers and sellers, taking into account not only the direction of price movement but also the intensity of trading volume.

[Sergey Golubev]

Sergey Golubev #:

Exploring Advanced Machine Learning Techniques on the Darvas Box Breakout Strategy

The Darvas Box Breakout Strategy, created by Nicolas Darvas, is a technical trading approach that spots potential buy signals when a stock’s price rises above a set "box" range, suggesting strong upward momentum. In this article, we will apply this strategy concept as an example to explore three advanced machine learning techniques. These include using a machine learning model to generate signals rather than to filter trades, employing continuous signals rather than discrete ones, and using models trained on different timeframes to confirm trades. These methods offer fresh perspectives on how machine learning can enhance algorithmic trading beyond traditional practices.

Automating Classic Market Methods in MQL5 (Part 7): The Nicolas Darvas Box System

Nicolas Darvas became one of the most celebrated traders of the twentieth century without any formal financial training. He was a dancer—performing across Europe and Asia in the 1950s while studying stock price behavior from weekly newspapers delivered to wherever his tour had taken him that week. He developed his method over several years of losses before discovering the pattern that made his fortune: stocks that formed tight, quiet boxes of price consolidation and then broke above them on expanding volume were about to make huge moves.

His rules were simple enough to apply with nothing more than a notebook and a pencil. A box top was the highest high, after which the price failed to make a new high for three consecutive sessions. A box bottom was the lowest low during the same period. When the price broke above the box top on volume expansion, he bought. The stop went below the box bottom. If the price advanced and formed a new box, he bought more. If the stop was hit, he exited without argument.