The idea of the InverseReaction indicator is based on the assumption that an unusual price changes (going beyond the volatility range) is accompanied by a reverse movement.
There are many examples of this behavior: the case of Lehman Bros, Flash Crash, etc.
The signal appears when price goes beyond the boundaries of the gray volatility cloud. In this case, the reverse reaction can be expected. In this situation, the histogram bar is painted in the appropriate color.
The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.
InverseReaction - indicator MetaTrader 5 Real author: Erdem Sen An optimized version of the InverseReaction indicator, which operates at a maximum speed in the IREA…
InverseReaction - indicator MetaTrader 5 Description: The idea behind the InverseReaction indicator is that an unusual impact in price changes will be adjusted by an…
