Market Activity Index Panel MT5
This innovative technical indicator was created to detect quiet market period before the beginning of the high volatile market. Like many good technical indicators, this Market Activity Index is very stable and it is widely applicable to many financial and non financial instruments. The Market Activity Index can be used best to visualize the alternating form of low and high volatile market. It is very useful tool to pick up the quiet market but ironically this is the most powerful tool to predict the highly volatile market. Greatest thing about the Market Activity Index is that the reading of this indicator is bounded by its top (1.0) and bottom (0.0) limit but for the bottom limit will never diverge from actual price movements. It means that for the reading of 0.08 Market activity Index can't be calculated from highly volatile price movement. To visualize how important this concept is, imagine that price can still go even further up even after the RSI reading indicates over 70 overbought signal (This can happen to 99% of oscillators.). The same thing can happen to ADX or most of technical indicators. For example, 25 reading of ADX can be still calculated even if there were quite extreme price movement before. One might say that these are false signal or lagging signal. Market Activity Index is not a magic indicator but it will do its job reliably notifying the quiet or sideways market period to traders most of time. This tool can help you to learn the market rhythm.
Operation of Market Activity Index
The Market Activity Index is designed to oscillate between 0.0 and 1.0 theoretically. Level 0.0 indicate theoretically dead quiet period and Level 1.0 indicates theoretically maximum volatility. However both 0.0 and 1.0 will never reach in practice. Instead, use can choose 0.05 or 0.1 to detect sideways or low volatility period. Choice of critical value should be made accordingly to the price data itself.
Market Activity Index Panel
If you need the Market Activity Index Indicator for a single or few currency pairs only. You can find it here: https://www.mql5.com/en/market/product/16189. Market Activity Index Indicator is useful for the complete volatility analysis. Instead, you may prefer to monitor volatility of multiple instruments. In such a case, Market Activity Index Panel is recommended. With Market Activity Index Panel, you can monitor up to 21 currency pairs efficiently. You can readily spot the currency pairs entering sideways market across different time frame and different symbols. Once you spot the currency pairs and time frame moving in sideways market, you can open the chart by one click on your panel.
How to use Market Activity Index Panel
Market Activity Index Panel can scan up to 21 symbols in your Market Watch. However, You don't have to keep 21 symbols in your Market Watch always. You can keep only 5 or 8 symbols if you wish. So remove symbols you hardly use for your trading from your market watch. Once your market watch table is arranged, then open a chart from your market watch and attach Market Activity Index Panel to the chart. Market Activity Index Panel will load data and calculate Market Activity Index for each symbols and time frame. Initially Market Activity Index Panel can have some loading and calculating time. Sometimes, for the symbols not used often, the data may be not fully loaded from your broker. In that case, the index value will be left as blank cell in the Market Activity Index Panel. Remedy is simple, just click on the blank cell to open the chart, then click somewhere on the chart to load data. After that, click tab buttons to recalculate the Market Activity Index value for that chart. Otherwise, calculation will be updated automatically every calculation interval. Also note that Market Activity Index value in the panel is based on the latest completed bar and not based on last close price.
Input setting for Panel is really simple. Rest of settings can be found here: https://www.mql5.com/en/market/product/16189.
- Update speed in Seconds – related to the computation. If you are not using M1 data, then you can set this greater than 60 seconds.
- Use M1 Data...Use MN1 Data