ms-Candle-Index. Indicator of the strength of the direction of the candle. – indicator MetaTrader 5
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The indicator determines the index of the direction of the bar at prices and gaps / breaks in them.
It is a logical continuation of the ms-Candle indicator.
Comparison of Open and Close prices often does not give a correct assessment of the direction of the candle.
They can build, if the body is more than 2/3 of its size in other cases
a different approach in assessing. The indicator implements the author’s empirical approach to this problem.
During the indicator calculation, some statistical characteristics are evaluated
a number of quotations. The results described structure TCandlesStats. Boundary values are calculated
the sizes of the minimum and maximum candles, as well as the approximate size of the “average” or
“normal” candles. The assessment is carried out as the height of the candle and the height of its body.
The calculation results are displayed in the terminal log. The calculation is performed on a fixed size
data window and is repeated when passing at least 1/3 of its size.
This ensures that the results are up to date at the time of calculation.
The estimate of the gap in quotes (large gap) uses the size of the maximum candle from the statistical estimate.
It would be more correct to use the price deviation channel and the Open price going beyond it.
However, the correct definition of this channel is much more difficult.
When calculating the indicator, TCandleInfo structure is calculated for each bar.
The meaning of the fields in it is clear from the comments. The calculation is implemented in the form of macros.
In the indicator window (Fig.1-2) shows information about the strength of the direction of the bars – the direction index.
A positive indicator indicates the price movement up, a negative-down.
The indicator is dimensionless, normalized relative to the stat of the maximum candle size estimation.
The inclusion of an additional normalization (additional normalization parameter CI = true Fig.3-4) allows
bring the index values to the interval -1..1. The larger the index, the more pronounced the price movement.
The values of the module 1 large(0.6321 mode extra normalization) are talking about a strong impulse to the movement
prices.
Visually, each bar is described by two states of the histogram column:
1. According to the index sign of the candle – exterior color (red / green)
2. By relative with the value on the previous bar, the change in the index excluding the current sign
bar (light green / light red).
So for the candle up (index in the “+” zone) the column will be green. If this is relative
the index grows, then the internal column will be painted in light green color, if it falls – light red.
For a candle down the principle is similar. If the relative index change is 0, then the internal column
not drawn and the color of the index becomes full – green or red.
Candle index value can be smoothed with a small set of MA. This is done using this (author Nikolay Kositsin). Two changes were made to it for use in MQL4.
The modified SmoothAlgorithms45.mqh library should be placed in the Include folder of the terminal.
Works in MT4 and in MT5.
Yellow line is the MA of the values of CI, blue – MA from changes in CI (1 derivative).
What is the difference from the ms-Candle indicator? What is the meaning of it?
In certain situations, at a certain moment it is IMPORTANT to “see” that the direction of price movement is already
beginning to change, but not only the fact of his change.
For use in MT4, change the extension of file ms-candle-index to mq4, and paste MQL5IncludeSmoothAlgorithms45.mqh to
folder MQL4Include or download .
Changes in versions:
1.00 The normalization was introduced in the directional estimation algorithm, the structure of TCandleInfo was expanded.
1.01 Added input option to hide the histogram
1.02 Additional normalization is performed by the square of the direction coefficients, which allows more densely fill
the interval -1..1 without losing the proportion of CI to the stat evaluation of the quotes window.
Added levels. Assessment I propose to discuss.
1.03 corrected the description. Changed levels in each mode (normalization on/off) their own.
    Logically correspond to each other. Added simple info panel.
