The indicator provides a statistical picture of price movements intraday bars. He builds a histogram of average price movements in each intraday bar, broken down by day of week. Bars with standard deviation above movement or with a higher percentage of purchases than sales (or vice versa) can be considered as direct signals to trade.
The indicator looks at the history of the current character and summarizes the changes in quotations on each intraday bar given day of the week. For example, if the current schedule – is H1, then the 15:00 bar stands 5 internal cells to calculate price changes on Mondays, Tuesdays, Wednesdays, Thursdays and Fridays. And these 5-well Vectors – 24 – for each hour bar. In addition, for each bar and each day of the week count the number of times when the bar is “moved” up or down.
Analysis of the full history allows to calculate motion expectation rates on one bar (this value is close to zero, but may contain a small displacement: supertrend) and standard deviation. Then easily detect the cells corresponding to the bars with the price higher than the expectation of plus / minus deviation. It is statistically valid assessment of what the bars and on what days tend to be bullish or bearish.
In addition, the indicator allows you to count the number of bullish and bearish intraday specific implementations bar and then find bars, on which the purchase or sale had significantly more marked preference than the opposite direction.
The indicator should be put on the intraday timeframes – D1 and older do not make sense. It should also be noted that the timeframes smaller than M15 are not particularly effective because it bars the size becomes small. Recommended timeframes: M15, M30, H1, H4.
On the chart the indicator illuminates the field 2 bars: one in the end of history ( “backtest”), and one in the future ( “forward”). Both domains comprise a number of bars in a day, such as 24 bar for H1. For the field test, the indicator calculates the virtual profit that could be achieved by trading on the signals, and the result is displayed in the title display. For example, in the first screen shot shown below message: StatBarsPoints: 394 pts in 12 single-bar-orders. Indeed, in a test seen 12 bars (shown in bold yellow) with the historical dimensions that go beyond the calculated deviation, and although not all the bars aligned with the direction of price movement, the overall result is positive. It should be noted that the virtual income is considered to be without spreads.
The area forward of the show as a prediction of the near future. It makes sense to be prepared to trade on the most prominent expected signals.
- DayOffset – number “of the day”, which ends the history of the analysis; Default – 0, which means that the test area is located directly at the end of the story; a value of 1 and more allow you to move the “future” back and evaluate virtual trade on other areas of quotations; “Day” here refers to the number of bars in the day and not the calendar day; For example, if the last bar – 15:00, then setting parameter to 1 will move forward and test the border yesterday Bar 15:00;
- Threshold – indicates the defect detection signal; ; 1 – Default the meaning of the threshold depends on the parameter Percentage, those. on the mode indicator; when Percentage – false, Threshold – is a multiplier for the rejection; when Percentage – true, Threshold – the percentage (100% = 1.0);
- Percentage – flag to select the operating mode: false – calculation points; true – calculation of interest; default – false (more reliable);
By default, the indicator analyzes price changes for bars in points. For example, if the expected value in the entire history of one point on the bar (5-sign, AUDJPY) and deviation – 15 points, at a threshold of 1, the indicator mark signal beverage with expected movement 16 (1 + 15) or more points up or 14 (1-15), and more points downward. If the threshold is 2, the levels are 31 (1 + 15 * 2) and 29 (1-15 * 2).
When the indicator calculates the interest up and down movements for each bar, the threshold should be lower, since 1.0 = 100%, and a single bar with these characteristics will never be (otherwise, it would be the “gold” bar, constantly making a profit), so that this threshold is unattainable. For example, setting a threshold of 0.7 means that the indicator signals will treat those bars, in which 70% or more just a case of buying or selling, ie bars with a noticeable asymmetry.
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