Indicator Stability in MetaTrader 4
This video demonstrates the?instability of?the?MetaTrader Forex indicators that are based on?the?Close price. The?Close price of?the?latest bar is constantly changing, inducing the?change of?the?indicator’s curve. The?example demonstration is given for?the?simple and?exponential moving averages. The?author of?the?video proposes a?stable Open price basement for?the?indicators, as?the?Open price is constant for?each bar. He also offers entering the?positions using the?more stable Open price as?the?base for?the?indicators, while the?exit (for?profit or?for?minimal loss) is better to?be done with the?more rapid but unstable Close price base. I, personally, can suggest that you can just ignore the?indicators’ readings on?the?last unfinished bar when you trade. In?your custom expert advisor you can also make it react only on?the?second last bar reading to?minimize the?effect of?the?indicator instability shown in?this Forex video.
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Indicator Stability in MetaTrader 4
