Hysteresis for MT4
This indicator identifies market modes based on a moving average channel of the highs and lows. When the system is in the bull mode, it only allows the channel to increase, and vice versa in bear. The purpose of choosing a channel over just a moving average is to get the benefits of hysteresis and reduce whipsaws by using a range of values before switching from bull to bear regime.
How to interpret
- When price is above the indicator value, the market is bullish and you should look for opportunities to go long.
- When price is below the indicator value, the market is bearish and you should look for opportunities to sell short.