The Combined Vertex MT4 Indicator. Oscillator for searching short
The Vertex indicator is a combined technical oscillator designed to facilitate the Forex trading process. The instrument consists of two modules - a basic oscillator and signal arrows, which show the expected price direction in the future.
It is worth noting here that these pointers are sometimes redrawn, but the main algorithm presented in a separate window works quite well.
Vertex combines three classic formulas of standard indicators at once - Moving Average, Momentum, and Bollinger Bands. Calculations for building a markup in a separate window are formed in two stages:
1. First, Vertex calculates the modified version of The Momentum (in the window it is represented by blue and red lines);
2. Then Bollinger Bands are drawn based on this formation.
In fact, the Vertex indicator itself is represented by the red-blue structure, and all other constructions are add-ons designed to search for specific signals to buy/sell currencies.
The Vertex indicator has a large number of all kinds of settings, most of which are of secondary importance, from the color of the arrows to the permissions for sound notifications.
The primary settings include the following parameters:
Processed - the depth of history for analysis (the greater it is, the more often the terminal hangs on weak PCs);
Control_Period - period for calculating the main moving average (by default, it is assigned a blue color);
Signal_Period - the period for calculating the red signal line (together with the previous one, it forms the Momentum);
Signal_Method - a method for plotting MA (0 - based on closing prices, etc.);
BB_Up_Period - period for calculating the first BB (its top line is displayed on the chart);
BB_Up_Deviation - number of standard deviations for the first BB;
BB_Dn_Period and BB_Dn_Deviation are similar indicators for the second BB (it is needed to form the lower channel line).
Thus, if in the usual Bollinger channel the borders are equidistant from the central moving average, then in the Vertex Forex indicator, the trader independently edits their sensitivity to price fluctuations.
According to the author's recommendations, a currency pair should be bought at the moment when the red line is below the lower BB, while its value at the moment reaches -6 or -10.
In particular, if the indicator has tested the -6 bar, such a signal is considered to be an average one; therefore, an ordinary green arrow appears on the main chart.
If the Momentum is so strong that the red line touches the -10 mark, an additional blue circle will appear on the chart, indicating that the most reliable pattern has formed.
The Vertex indicator generates basic signals to sell forex according to a similar principle, namely:
If the red line is above the upper BB, and its value exceeds 6, this is a normal pattern (identified by a downward arrow);
If the Momentum reaches 10, such an entry point is considered the most valuable (it is accompanied by a pale purple circle).
In conclusion, it is worth noting that it is not entirely advisable to trade with the arrow indicators of this indicator alone. For the use of this indicator to bring real benefits to the trader, it is necessary to filter his signals using other algorithmic systems.
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.