X-Lines indicator for MT4 - important market prices on the chart
Let's consider the MT4 version of the popular X-Lines indicator. The indicator serves one purpose - marking important market prices on the chart. The main difference from other analysis systems is the consideration of volumetric processes in combination with the analysis of price activity. The script does not draw levels by price tops or by edge bars, also standard algorithms of technical analysis such as MACD, Bollinger Bands, etc.
Indicator algorithm
The algorithm of the X-Lines MT4 indicator automatically marks on the chart the prices interesting for the market, i.e. those prices, which in the past were a consensus between the buyer and the seller. Naturally, being a participant of active trading operations, the price becomes quite informative. Such a price marker can play the role of both support and resistance in the future, depending on the volumes involved in the trading process.
The accuracy of the levels displayed is independent of the trading instrument or time frame. The indicator has the ability to differentiate between weak and strong (important) levels, depending on the trading activity at these prices in the past.
It is very easy to filter out weak levels or, conversely, to display them, just change the value of the Positional Power parameter:
The default value is 6. You can change it between 1 and 99.
Note: the lower this option is, the more significant (important) levels the indicator will show. Higher values show less important levels, respectively there are more levels.
You can also select the amount of history to be taken into account in the analysis, to do that change the Period_of_analysis variable. The default value is 4000 (i.e., 4000 of the last 4000 bars in the selected timeframe are analyzed). A value of 0 will indicate that the indicator will analyze the entire history available in the terminal. Please note that the analysis of the entire history may lead to an unclear picture, as a consequence of layering levels. For this reason, it is recommended to use the analysis of the entire history only with low values of Positional Power. This way you won't see the critical mass of prices.
Examples of use
- You can use the indicator to set take profit and stop loss values, using X-Lines for smart Money Management.
- The X-Lines indicator also successfully manages the detection of uninteresting price zones and accumulation zones. Areas (breaks) with missing important levels indicate an uninteresting area for the market, which can be overcome only after the set of positions (no matter whether up or down). The set of positions is carried out in the areas of price accumulation or accumulation zones.
- Pivot levels or price reversal (not return) levels are shown as two levels close to each other, on both sides of which (bottom and top) there are small and sometimes large uninteresting zones.
It is statistically proven that important price points coincide with Fibonacci levels. There is also confirmed evidence of a partial overlap of non-interest zones (areas without levels) with the Elder safety zone. All this points to the possibility of universal use of X-Lines for the evaluation of important market prices.
As you can see, the range of applications of X-Lines MT4 is quite wide. Experiment and you will see how much analytical power this tool gives you.
Download indicator
- You can read about free, limited version of the indicator (only the 5 and 15 minute time frames are available),
- either rent full version.
You will also be interested in