Indicator from Varchev Finance: Varchev Median Change

We present you a custom indicator by Varchev Finance which can be downloaded from the following link. To use it you should follow the instruction written here How to add an additional indicator to the Meta Trader 4 platform.

How does the indicator actually  work:

Varchev Median Change measures the change in the median value of two consecutive Japanese candles (two consecutive bars). The median which variance is measured can be plotted using Simple Moving Average with period 1 and type (H + L) / 2 as shown in the picture below:

Varchev Median Change can visually help you find markets's consolidations, and after the price leaves the consolidation zone, you can position yourself in the direction of the breakout. The indicator works for all time frames and can be used for several adjacent time periods to find close to perfect positioning. /! The indicator may also be used when configuring a EA system /

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Also, if you look at it for a long time, divergence can also be observed - when the price is lower and the median change is not big enough:

If you use the indicator in a robotic system, you can calculate the sum of the last n candles and, when the sum is close to 0, this is a consolidation signal. It is good to keep an eye on and not have too much change in the set of median changes.

Important: Before you start implementing a strategy that includes the indicator, make sure it works profitable for you on the demo, then start using it on a real account.

Charts: Varchev Meta Trader 4 Essential Edition

Read more:

• How to add an additional indicator to the Meta Trader 4 platform
• Multi Time Frame DeMarker indicator from Varchev Finance
• MultiMA indicator by Varchev Finance