XPonts indicator: entry at the point of trend initiation
XPointers indicator is designed to look for trend reversal points on the chart, so-called bars (candles) "X-points". At first glance, it is banally dangerous for your deposit to take trades against the existing trend, but at the same time this tactic allows you to enter into the trend at its point of origin.
XPoints indicator description
This indicator looks quite simple and consists of three colored, dotted (by default) lines and multidirectional arrows of two colors, as shown in the screenshot below:
- up arrow is a buy signal;
- down arrow is for selling.
"X-points" are bars that have:
- parameter rate = (High - Low) / MathAbs (Close - Open) is greater than 1;
- the minimum value (Low) touches the lower channel boundary or the maximum value (High) touches the upper channel boundary.
Parameters of XPoints indicator
- per - channel construction period;
- xrate - minimum ratio;
- xsize - minimum bar height (High-Low);
- xslope - the minimum increment of the next bar;
- xminupdn - the minimum thickness of the canal;
- xhour1 - hour from which the indicator signals are allowed (inclusive);
- xhour2 - hour up to which the indicator signals are allowed (inclusive);
- xindent - indicator arrow indent from the signal bar.
Customizing parameters
- The larger the per parameter, the wider the channel.
- The larger the ratio parameter (xrate), the less false signals, but this does not mean that you should make it very large, you need to look at the history of each instrument the number of false signals with different parameters. If the value is too high, you may miss good signals.
- The minimum bar height (xsize) strongly depends on the time period you have chosen, as it is calculated by High-Low, the value is specified in pips.
- The xslope and xminupdn parameters work on the same principle as xsize to help filter out false signals.
- The xhour1 and xhour2 parameters specify the time interval when the indicator is allowed to signal, by default night time is excluded, when the trading volume is minimal.
- The xindent parameter allows you to specify the distance in points between the chart and the indicator arrow, which is convenient for determining the level of stop loss setting.
Also in this indicator there is an opportunity to set the color of lines and arrows.
According to ForTrader.org experts, XPointers indicator is of interest to traders, but requires fine-tuning and can be used as a filter for a trading system.