DMTP *Turning Points* The New Dynamic S/R Indicator - Linel EA

Dear Forex-TSD friends,

I am not a great MQL coder, but I have some basic coding knowledge and was able to put together an indicator which I would love to become a crowd-created project, if anyone is interested.

This is one indicator in a number I am working with at the moment.

The premise is very simple. Simple Moving Average (SMA) takes the average close of, let's say, 8 candles, in the case of SMA8.

The market is dynamic, and is responsive to the trend direction informed from the average closes.

What happens to create this moving average?

t-1 simply means the most recently closed candle.

The 8SMA is composed of price at.

t, t-1, t-2, t-3, t-4, t-5, t-6, t-7, added together, and divided by 8.

To recalculate on the next candle, we have:

t+1, t, t-1, ... , t-6

What happened to t-7?

It has dropped off the end of the sequence, of course. Therefore the current close is going to be important IN RELATION TO THE CLOSE OF T-7...

We often ignore the CLOSING PRICE of the candle, e.g. 8 candles back, yet whether the current price closes ABOVE or BELOW that price, determines whether the moving average is going to be a little higher, or a little lower.

This closing price is important then, because a close below it in an uptrend will either signal LESSENING MOMENTUM by flattening to some degree the moving average, or if the average is already flattened or flattening, it will TURN the moving average, and thus, give a sign of a turning trend.

... It makes sense then to SELL the price of the 8th candle back in a strong downtrend, and vice versa.

... It makes sense that the price of the 8th candle back's close will act as support / resistance

... It makes sense, intuitively that the price of the 8th candle back's close, if closing strongly above that price in a downtrend, will turn the trend up, or be a sign of slowing momentum against a downtrending average.

INDICATOR

The following indicator then is presented as an EXPERT ADVISOR that does not trade (I use a what-you-see-is-what-you-get wysiwyg platform for EA creation)...

Please feel free to convert it to a CUSTOM INDICATOR if you would like to do so...

It would be great if we could:

= CHOOSE THE PERIODS FOR THE 3 (or more) AVERAGES TO CALCULATE

= SET THE TIMEFRAMES TO TRUE/FALSE

= HAVE A BETTER SYSTEM FOR DISPLAYING AND RECOGNISING WHAT EACH LINE MEANS (e.g. better labels)

At the moment, it calculates the 8, 20 and 50 close levels (those periods back from and including current) and plots a different coloured line for each timeframe, and a different style of line for each period of moving average.

IT IS NECESSARY TO SET 'SHOW OBJECT DESCRIPTIONS'  in Right Click / Common to TICKED to see the meaning of each line at the moment.

I was just short in USDCAD for example...

You can see clearly the bounce at the H1Close8 (SandyBrown) which is also the M15Close20 (Aqua) and the M30Close20 (DarkViolet)

Below the M15Close8 and the M5Close20 (the Aqua and dark green lines that are together at 1.3191), there is a clear space to the lines mentioned and volatility enabled the price to reach the next line.

I am very happy to share this EA with you. I'm even more happy if you can understand and see its potential and want to help create a system with it.

Our indicator here is MULTI-TIMEFRAME (as is, plots M5, M15, M30, H1, H4 and Daily levels for SMA8, 20 and 50) and works to look at much overlooked levels from MULTIPLE TREND LINES (Moving Averages).

Therefore we have a MULTIDIMENSIONAL indicator here...

If we can work together to have a greater number of options for the indicator, for example, which period? how many to display? built-in averages, which one? Other averages like triangular, corrected?

Anyway, the options here are vast and I will happily share some of my best combinations of entries once we get going and we can have a system thread.

I suggest called it "DYNAMIC MOMENTUM & TURNING POINTS - DMTP"... aka LINEL (or Lionel)

I am sorry if there are mistakes in the code. :)

Very best wishes,

Helfen, UK.

***DUE TO THIS FORUM CLOSING, I AM MOVING THIS THREAD TO FOREX STATION***