The Beginner Indicator for MT5
The Beginner auxiliary indicator is the simplest and most understandable indicator created to analyze the highs and lows at a certain time interval, as well as to compare them with the trading range of a currency pair, and if a sufficiently significant top or bottom is identified, the indicator marks it with a dot. Beginner consists of points of two colors, one of them denotes a local maximum, and the other is a local minimum.
The indicator is able to redraw on reload and therefore cannot be used as a generating trading signals, since the positions of the points can be changed at any time. The indicator is available on both platforms MT4 MT5. Can be used with any currency pair on any convenient time frame.
For the indicator to work well, advanced settings are not required, so the indicator consists of only three parameters.
- -AllBars - the selected number of bars over which the calculation will be performed. The default value is 0. Note that 0 is the number of all bars on the chart.
- -Otstup - a parameter that forms the percentage that is cut off from the range before determining the minimums and maximums, as well as their significance. The higher the value, the more often points will be formed. The default value is 30.
- - Period - the period for calculating the current minimum and maximum. The higher its value, the smaller the points will be formed. The default value is 9.
At first glance, using the Beginner indicator may seem too simple. That is, when points with a growth value are formed, make a buy trade, and when points are formed with a falling value, sell trade. But you should definitely understand that this is by no means the case. This indicator can help only in search of support and resistance points. The Beginner indicator is a redrawing indicator, that is, it displays the past output based on future data, so in no case should the formation of a point be considered an entry point into trades.
The indicator points are strong levels of breakout and rebound, support and resistance. And if it is a trade using the breakout tactics, you need to make a buy trade when the price breaks out from the bottom up, mentally drawn, a horizontal line emanating from a point with a local maximum value. A sell trade should be made when the price breaks down from top to bottom, a mentally drawn horizontal line emanating from a point with a local minimum value. Accordingly, trades should be closed when the market trend changes, determined by additional indicators. A stop-loss order during buy trades is placed at the level of local minimum points, and during sell trades, at the level of local maximum points.
The Beginner indicator does an excellent job of determining the local minimum and maximum and serves as a good additional indicator for any strategies. With the help of the indicator, it can be placed stop loss and take profit orders with great accuracy. But the indicator is used alone extremely rarely due to frequent false signals after redrawing.