I have discovered an indicator that may be useful in MetaTrader used with something like SilverTrend or similar. Sadly though my MetaTrrader skills are non-existant so I have no way of sharing this indicator with you all, and perhaps developing a strategy from it.

I use the indicator to provide similar functionality to that of ADX/DMI, only this particular indicator is a lot faster. It basically can help to tell you when a market is in consolidation or trending. It can also determine the strength of the trend, direction of the trend and the potential weakening of the trend.

I think if this was used in conjuction with something like SilverTrend or ASCTrend we may have the basis for a strategy.

From what I can read of the code, the indicator works like this:

2 Variables are created (I will call the vA and vB) as follows:

vA = ((close - open)/open) * 1000
vB = ((open - previousclose)/previousclose) * 1000

Then simply a moving average of those calculations is calculated and plotted according to a user-defined length (for example 9 or 14).

The indicator would then work like this, I draw two bands on screen, one at +0.005 and the other at -0.005 (this is an arbitary figure). One indicator (I think its vB from memory) remains fairly constant and works almost like a 'zero' line, the other is more volatile (again I think this is vA). I then do not trade when vA is below +0.005 and above -0.005. Once vA breaks out of those bands, I would look for a SilverTrend entry in the direction of the breakout. When the trend starts to weaken then it is time to look for an exit.

If I could code this for everybody so that we could test, I would. But I think it might be a good basis for a strategy, although so far it is untested. If somebody wants to code this, it may be of interest to this forum.

BTW - Good forum, makes for some good reading.