MNL Price Indicator is a price action based short term trend indicator. It is calculated based on the short term price moves over a period of three bars. This indicator is quickly responsive to changes in trend over a few bars in chart. The red line indicates the trend direction as well as the trend strength. When it is above zero, trend is up and higher values indicate strength in the uptrend. When it is below zero, trend is down and lower values indicate strength in down trend. The teal color line is an average of the red line and can be used as a signal line. When red line cross above teal line, trend has confirmed to be upward and vice versa.
MNL Price Indicator being quickly responsive to fast changes in short term trend, must be used with trend filters. Otherwise it will generate many false signals. A 50 period moving average can be used as a trend filter. Buy signals are valid when price is above the trend filter MA and sell signal must be ignored. See Image attached.
The Indicator can be customized through the parameters. Parameters are located at the top of the script file. Open the script in VTL editor and modify parameter values. This part of the script is well documented for ease of use.
MNL Price Indicator being quickly responsive to fast changes in short term trend, must be used with trend filters. Otherwise it will generate many false signals. A 50 period moving average can be used as a trend filter. Buy signals are valid when price is above the trend filter MA and sell signal must be ignored. See Image attached.
The Indicator can be customized through the parameters. Parameters are located at the top of the script file. Open the script in VTL editor and modify parameter values. This part of the script is well documented for ease of use.
MNL Price Indicator - VertexFX
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