Daily Rang Trend
Idea of the indicator
Lack of a pulse (events, news ...) explains the oscillation of prices in a range around an equilibrium level (said spindle level), the occurrence of a major operations pushes the price to leave horizontal corridor (range) and take direction.
- How to determine the equilibrium level?
- How to determine the area of horizontal movement (range)?
- After leaving the Range, what are the next terminal of the movement?
- And what will be the next equilibrium level after this move?
This indicator carries an answer to these questions:
Indicator works on the chart H4 and less and all Forex product.
The Indicator changes the values at the opening of new daily Bar.
Recommended reading of the indicator
- Range of horizontal movement is the interval between R1 and S1 (the two green lines).
- Closing below S1 means high probability of falling through.
- Closing above R1 means high probability the rise.
- Level R2 is the first barrier of upside, and S2 is the first barrier of the decline.
- The price has a tendency to return to the the equilibrium area (between R1 and S1).
- Closing and stability below S2 opens the way to S3.
- Closing and stability above R2 opens the way to R3.
- Touch and stabilizes below R3 gives very strong sign of change to the downside.
- Touch and stabilizes above S3 gives very strong sign of change to increase.
- "fact" is the only input parameter. It gives you possibility to adapt your interval. I recommend the default value of "1.0", below "0.62" to tighten the intervals, or "1.62" to widen them.
In the attached video, a strategy to use this indicator, sample test shows very nice results!
For best results, combine this indicator with indicators forces specially: https://www.mql5.com/en/market/product/7261