Trading indicator Trend envelopes parabolic weighted MA Histo for MT5
Trend envelopes-parabolic weighted MA Histo is an updated version of the Trend envelopes indicator, made in the form of a histogram with the addition of a moving average. Thanks to good signal filtering and additional calculations, the indicator allows conducting effective and profitable trades. Despite the fact that the indicator does not generate many signals, thanks to powerful filtering, almost all of them turn out to be accurate.
At the same time, in the indicator settings, filtering or smoothing of signals can be disabled at own discretion. The indicator can make calculations on any convenient timeframe and currency pair.
Despite the extensiveness of the calculations performed, the Trend envelopes-parabolic weighted MA histo indicator has only three input parameters.
- -Trend envelopes deviation - percentage deviation of the Trend envelopes indicator. The default value is 0.1.
- -PWMA period - the value of the period of the parabolic weighted moving average, which is part of the indicator. If it is selected a value less than or equal to 1, the smoothing of the received signals will be disabled. The default value is 14.
- -PWMA power-power of the MA calculations. The default value is 2.
Since the indicator is presented in the form of a histogram on the price chart, its color range and width can be changed.
The Trend envelopes-parabolic weighted MA histo indicator is indicated on the chart in the form of a histogram, which changes color under certain conditions. Accordingly, the indicator signal is generated during the histogram color change, that is, the formation of a new trend in the market.
Signal for Buy trades:
- -After the formation of columns with a fall value, columns with a growth value begin to form on a certain candle, this characterizes the beginning of an uptrend.
After the formation of columns with a growth value, a long position can be opened, which should be closed when columns with a fall value appear.
Signal for Sell trades:
- - An uptrend in the market is replaced by a downtrend, characterized by the presence of columns with a fall value.
After the formation of such columns, a short position can be opened. The trade should be closed when columns with growth values appear.
Trend envelopes -parabolic weighted MA Histo, despite its effectiveness, is more suitable for use in various strategies that contain indicators that indicate the exact points of opening or closing positions. However, even before using the indicator as an additional or main indicator in a strategy, it is recommended to practice on a demo account .