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PZ Flat Market Index MT5
This indicator calculates how much has a symbol moved in relative terms to find trending or flat markets. It displays what percentage of the latest price range is directional. [ Installation Guide | Update Guide | Troubleshooting | FAQ | All Products ]
- A value of zero means the market is absolutely flat
- A value of 100 means the market is totally trending
- The blue line means the price range is healthy
- The red line means the price range is narrow
- The moving average is the flat market index (FMI)
It has straightforward trading implications.
- Use trend-trading strategies when the line is blue and above the FMI
- Use range-trading strategies when the line is red and below the FMI
- Perform instrument selection based on the FMI
This indicator is especially useful to avoid flat markets in your Expert Advisors.
- Max History Bars: Amount of bars to look into the past when loading.
- Lookback: Amount of bars to study the flat market index.
- Period: Averaging period to calculate the index.
- ATR Period: ATR period used in the indicator to calculate a movement unit.
- ATR Multiplier: Multiplier of ATR to calculate a movement unit of the index.
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.