I personally find that instruments with many spikes are dangerous for my trading strategies. So I want to be able to avoid trades at spiky instruments in my robots. I have not seen any indicator that handle this, so here is the recipe of such an indicator. I don't have the time to code it at this moment. Anyone out there having the time?? Please let us have the mq4 code if you can manage.
Measure x number of candles backward.
If the candle is Long
SpikeUp = High[x] - Close[x]
SpikeDown = Open[x] - Low[x]
TotalSpike = SpikeUp + SpikeDown
If the candle is Short
SpikeUp = High[x] - Open[x]
SpikeDown = Close[x] - Low[x]
TotalSpike = SpikeUp + SpikeDown
Then sum the TotalSpike from the number of bars backward that you want.
You can average the result.
Pretty simple but useful I think.
A large number gives a risky situation in my strategies.
I think also that a small number will help to find trending instruments.
Note of cause, that the indicator can look at the history. It is of no use in the case of a sudden spike because of NEWS.
Measure x number of candles backward.
If the candle is Long
SpikeUp = High[x] - Close[x]
SpikeDown = Open[x] - Low[x]
TotalSpike = SpikeUp + SpikeDown
If the candle is Short
SpikeUp = High[x] - Open[x]
SpikeDown = Close[x] - Low[x]
TotalSpike = SpikeUp + SpikeDown
Then sum the TotalSpike from the number of bars backward that you want.
You can average the result.
Pretty simple but useful I think.
A large number gives a risky situation in my strategies.
I think also that a small number will help to find trending instruments.
Note of cause, that the indicator can look at the history. It is of no use in the case of a sudden spike because of NEWS.
Read post #1 !! Then read it again 10 more times before you ask.