Movement of the price
Indicator Movement Of The Price It calculates the average range for intraday bars for a specified period of time.
Work of this indicator is very simple, it calculates the ranges of price movements on intraday candles (bars) for a certain period of time and then calculates their average value and draws it in the histogram below the chart directly in the indicator window. So that the indicator has worked in the best way, you should choose to schedule timeframe as short as possible. It is better if the time frame is less than the time, simply because the indicator Movement Of The Price better working and shows the best signal is at the lowest possible amount of time.
Options
- PERIOD - the number of candles on which calculated the average range;
- HISTORY_DEPTH - the number of bars in history, in which the indicator is calculated.
Description of the parameters: the default PERIOD parameter is the number 480, this number corresponds to the number of bars in the week to hour timeframe; than the "weaker" than your computer, the less need to put a number in HISTORY_DEPTH parameter because the calculations of the indicator may be delayed for a long time, which in turn can cause a hang-up of both the trading terminal, so the computer as a whole. In addition, if set to 0, the indicator has been calculated for the whole of the existing stories.
The use of trade
On the chart the indicator behaves as follows: When the market begins the flat or "corridor", the indicator histogram falls and is as close to the minimum, and when the price starts to move in one direction or another, the indicator bar graph increases and reaches its peak around the end or trend reversal.
Trade on this indicator can be divided into three types:
- when the histogram is reduced accordingly begins the flat, we are putting an order to buy higher prices and an order to sell below the price. Initial stop may serve the opposite order.
- we are waiting for, when the histogram indicator decreases. Once it begins to rise, opening the deal in the direction of the current trend and keep the deal as long as the histogram again begins to decrease.
- everything is the opposite: we are waiting for, when the histogram will draw its highest value for the period, and the higher the better. This behavior is an indicator often indicates the extremes of the market, so in this example we will trade on the spread.
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