ScalpIndicatorM5
- Indicators
-
Igor Bulyshev
Умный, красивый, в меру упитанный и талантливый трейдер-программист в полном расцвете сил!!)) - Version: 1.1
An indicator for trading on M5.
This indicator helps traders quickly assess who is currently stronger in the market – the bulls (buyers) or the bears (sellers). It is displayed in a separate window below the price chart as a two-color histogram (bars):
Blue bars – bullish zone (the price is likely to rise).
Red bars – bearish zone (the price is likely to fall).
The indicator smooths out random noise and shows the overall market sentiment. The higher the bar, the stronger the signal. A color change from blue to red (or vice versa) can serve as a signal to enter a trade.
How it works:
For each bar, the average price ((High + Low)/2) is calculated within the range of the last N candles.
This value is passed through a special filter (exponential smoothing) to remove excess fluctuations.
The signal is then transformed and smoothed again, resulting in a smooth line that fluctuates around zero. If the line is above zero, the histogram is blue (bulls); if below, it is red (bears).
Indicator Settings:
Intensity (default 20) – This is the number of candles the indicator analyzes to determine the high and low. The lower the number, the more sensitive the indicator is to local movements (it reacts faster, but may generate false signals). The higher the number, the smoother and more reliable the signal, but with a delay. For M5, 14–20 is optimal.
Alpha (default 0.1) – The signal smoothing coefficient. It determines how quickly the indicator forgets old data and reacts to new data. Values from 0 to 1:
Small Alpha (0.05–0.1) – Strong smoothing, a smooth signal, fewer false triggers, but a slower response.
Large Alpha (0.2–0.4) – Fast response, but more noise.
Tip: To start, leave the default values (20 and 0.1) – they work well for a five-minute chart. If you want a more sensitive indicator, decrease the intensity and/or increase the Alpha. If you want a more reliable indicator, do the opposite.
