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Name:
mslmsh - Market structure low/high
Author: tflores (2010.06.21 13:19)
Downloaded: 3867
Download:
 mslmsh.mq4 (5.9 Kb) View


Description

The indicator seeks for local highs and local lows. A local high/low is defined by three candles, if the high of the middle candle is higher than its neigbours it is forming a local high, if the low is lower than the neigbours it forms a local low.

We can do a break out trade if the price exceeds a local high or low and we can see a trend if the lows are rising or the highs are falling.

Each local high/low is also a resistance or support, the more the point has been hit in the past, the stronger it works as resistance or support. The indicator counts how many times a price has been hit and displays the count in a color code from white to red.

Parameters:

The parameters are used to reduce the number of horizontal lines displayed.

  • PipRange: Use the same counter if the price is within a range of x Pips. For example if PipRange is 10, the prices EURUSD 1.2000 and 1.2010 use the same counter. If the PipRange is one there may be 10 lines between.
  • Porcent: Display the upper x% of the range. For example if the maximum hit count of a point is 10, a value of 70 displays the upper 30 por cent of hits, only points which have been hit at least 7 times will be displayed with a horizontal line.

The horizontal lines have the colors White,Yellow,DodgerBlue,Orange,Red where White is the wakest and red the strongest. The commont for a line displays how many relative highs or lows are hitting them.

Conclusion:

Depending on the time frame of a trade and depending on the chart data we must find good parameters to display resistance zones, it varies from no line at all and lines at each price level.

Horizontal lines are built from all candles from the chart, not only from the visible ones.

We can use the resistance zones to set limit orders.

Risk warning

Use at your own risk or with demo money.
This indicator does not work as firmware for any cristal ball.

7 comments  To post a new comment, please log in or register

It repaints.

25.10.2010 03:29 tntpeter
doshur:
something like http://www.doshur.com/forex/dsr.asp


I think their is some real promise with this. Thanks for sharing.

When I look back in time looking for profitable patterns, the screen gets overloaded with yellow, red, orange and blue horizontal lines.

How can I get rid of these?

27.09.2010 06:27 paws
something like http://www.doshur.com/forex/dsr.asp
25.06.2010 07:41 doshur

23.06.2010 17:59 HajarWae
ok tflores, many thanks for your explanation. it just my ideas to make RSI as breakout indicator within the line that placed on high or low RSI Value like your form for local low/high. actualy i've been used this methode and it's very usefull technique, but i've problem to make it in mq4 language. so, if you have pleasure time, i'm very glad for your help. thank you &good luck...
23.06.2010 17:50 HajarWae
HajarWae:

nice indicator....

how to make it in RSI 14?

and create the line for support/resistnace in RSI 14?


The relative strength is a different thing it does not have resistances. Local highs and local lows are used to find break outs of a trend, the RSI is to find a trend but it will triger only if a trend is already going. The break out strategy is used to start trading before the trend establishes.

mslmsh is good to be combined with bollionger bands, if there is a local high or low outside of the bands it is likley to bounce.

(I did not count if this is relevant and happens often, so some time will write an ea to back test this.

23.06.2010 01:27 tflores

nice indicator....

how to make it in RSI 14?

and create the line for support/resistnace in RSI 14?

22.06.2010 15:08 HajarWae