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Market Noise

Market Noise

Market Noise is an indicator that determines market phases on a price chart, and also distinguishes clear smooth trend movements from noisy flat movements when an accumulation or distribution phase occurs.

Each phase is good for its own type of trading: trend for trend-following systems, and flat for aggressive ones. When market noise begins, you can decide to exit trades. In the same way, and vice versa, as soon as the noise ends, you need to turn off aggressive trading systems. Someone can trade both types of trading strategies, switching from one to the other. Therefore, this indicator plays the role of a good assistant in the field of trading decisions. Any price movements can be divided into two components - the general price movement for a selected period of time and noise in the form of price fluctuations within this period. At the same time, different markets at different periods of time can demonstrate a wide range of mutual relations between the noise and trend components (Fig. 1). The higher the noise level in price movements, the more difficult it is to discern the direction and strength of the underlying trend. Therefore, in this case it is necessary to use slower trend identification methods. On the other hand, in markets with low noise levels, the main trend is determined quite easily and faster methods of determining trends are reasonable, ensuring a minimum lag of trading signals from changes in price direction. To determine the state of the market, an advanced efficiency ratio (ER) is used, which is based on an exponential comparison of the total price movement and the sum of noise market movements over a certain period. The efficiency ratio (ER) can vary from 0 to 1. The ER value will be zero when the market there is no directional movement, only noise. The ER value will be equal to one when the market moves in one direction, with a complete absence of noise.

Advantages
  • Defining a clear trend for trend trading systems
  • Flat determination for aggressive systems (grids, averaging, martingale, sitting out), or trading systems with high SL and low TP
  • Few settings - only the calculation period in bars

Use the Market Noise indicator as an addition to your trading system


Try also my other products in the market https://www.mql5.com/ru/users/capitalplus/seller

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    MultiFractal is a modified Bill Williams fractal indicator, supplemented by higher order fractals, the difference between which is four in size, similar to changing the time frame. Advantages over the original terminal indicator: Convenience Visibility Information content The indicator is convenient because you do not need to switch to different timeframes when working. Visibility - in one chart you can see the structure of the chart from smaller to medium and large market movements. Information
    Currency Strength Dynamic Currency Strength Dynamic is an indicator of currency strength. Currency strength refers to the trend direction of most or all currency pairs that a currency is a part of. The indicator is based on readings of the difference between moving averages, similar to the MACD indicator, on the 28 most popular currency pairs: majors and minors. Advantages Unique oscillatory calculation method Availability of buttons to disable or enable lines of specific currencies Infor
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