Hi. Lately there have been new indicators coming out that call from other MTF indicators to draw lines with easy to read signals (red/blue) to replace oscillators and histograms. This saves space on the MT4 window and allows for easy and rapid spotting of a new trend or reversal on all timeframes, seen from just one chart. I am attaching a screenshot with 3 of such indicators. Their premise is very simple, sell when all lines are red or buy when all lines are blue. The lines differ only by what time frame theyre reading from. I am attaching a chart with 3 different such indicators. They may look like a holy grail, especially FX Trend (reads from SilverTrend), but it repaints the past for up to the last 6 bars making it almost useless for live trading. The other 2 indicators I have tested less, but apparently they redraw as well and signals are less accurate, more delayed and less frequent, they call the data from MTF CCI.
In the second screenshot I have posted my idea to apply this MTF color bar design to stochastics. The goal is to receive the same kind of signals the other indicators attempt to give but without the redraw issue, since a change of color from red to blue or blue to red should happen only after the close of the candle where the stochastic has crossed. This indicator should never repaint a bar that has already closed, as it is better to have noise (which we may try to reduce by changing settings) coming from it, than just plain bad signals. In this second screenshot I have added stochastics from ascending timeframes into the chart, and edited the colors from the color bar indicator at bottom with photoshop to mirror its respective stoch action. When Kline crossed downward it is red, when it crossed upward it is blue, and i drew yellow whenever kline changed direction (slope) but has not yet crossed over.
If anyone can code this indicator it should be a very powerful tool for all of us to incorporate into our trading. I currently trade these setups of several timeframe stochastics with success, but a color bar should make signals easier and faster to read (time=pips), as well as saving a lot of space in the MT4 chart window.
For the proposed indicator it would be vital to maintain the MTF property and it wouldnt matter if the indicator draws only one bar from 1 timeframe, as we would be able to just stack as many as we want with different timeframes and settings. It would also be essential for the periods , timeframe and applied price to remain a modifiable variable. I am attaching the MTF stochastic indicator I currently use.
I am excited to see if anyone can code this, once we have an indicator ready I will post a new thread with a complete system that will combine it with other indicators for optimum entry and exit levels.