Hi,
This indicator, called SafeZone, is based on the Alexander Elder's formulae, and it is plotting a suggested stop loss position depending on the price movement.
How it works:
In an up-trend, it will take the specified number of bars, compare their lows, mark all the lower lows made, calculate the difference between the lows, take their average, multiply it with the specified coefficient and subtract that value from the present bar's low.
In a down-trend it will use highs for the calculation, multiply with the coefficient and add that value to the present bar's high.
(I know this is hard to understand. The plan was just to give you some info so that you can at least have a little bit of idea what the input parameters mean and what will you obtain by changing them. For a real explanation the whole chapter from the Elder's book would have to be posted.)
The input parameters are:
1) StartPeriod - the number of bars to use for calculation. The dafult is 10
2) Coefficient - the larger the coefficient, further away suggested stop-losses will be from the current price.The default it 2.0
The indicator is the dotted red line on the price chart.
Any feedback, suggestions and improvements would be very appreciated.
Thank you,
branac
This indicator, called SafeZone, is based on the Alexander Elder's formulae, and it is plotting a suggested stop loss position depending on the price movement.
How it works:
In an up-trend, it will take the specified number of bars, compare their lows, mark all the lower lows made, calculate the difference between the lows, take their average, multiply it with the specified coefficient and subtract that value from the present bar's low.
In a down-trend it will use highs for the calculation, multiply with the coefficient and add that value to the present bar's high.
(I know this is hard to understand. The plan was just to give you some info so that you can at least have a little bit of idea what the input parameters mean and what will you obtain by changing them. For a real explanation the whole chapter from the Elder's book would have to be posted.)
The input parameters are:
1) StartPeriod - the number of bars to use for calculation. The dafult is 10
2) Coefficient - the larger the coefficient, further away suggested stop-losses will be from the current price.The default it 2.0
The indicator is the dotted red line on the price chart.
Any feedback, suggestions and improvements would be very appreciated.
Thank you,
branac
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