RPI Trading (RPI Trading) | Forex indicator download-MT4/MT5 resources-MetaTrader 5 resources

Welcome to the RPI Trading System topic!

RPI (Relative Price Index) is an indicator I created for trading market volatility. It's the core of my system. Not because it's the essential Holy Grail magic number generator for the Forex market's Eye of Sauron, but because it's a simple way to measure relative trends in the market.

Furthermore, RPI is not intended to provide us with entry and/or exit signals. It's designed to essentially be a flag raised so you can see which way the wind is blowing.

The calculation of this indicator is very simple. as follows:

RPI = (C - LL) / (HH - LL)

1. C: Current/closing price
2. LL: Lowest price during the measurement period
3. HH: Highest point during measurement

The default period I use is 14. Because it's magical? No. I used 14 because I originally started creating this indicator based on the general idea of ​​how RSI works, but instead of measuring the average rate of change over the last 14 bars, I wanted to measure the change over the entire time series to provide more competition.

For RSI, 14 periods is the default value because the distribution of its readings forms a bell-shaped curve.

The distribution of returns for any candle in the market also forms a bell-shaped curve. However, the actual distribution of prices over time is essentially an inverse bell curve. The distribution spends more time in the tails rather than hovering around the mean.

The goal is to create a modified version of the RSI that better reflects the distribution of price over time.

Comparing the distribution of RSI to RPI over the same period shows that this model is a good way to achieve this goal. It's not perfect, but it's good enough.

Using RPI is easy. If this indicator reads above 0.5, the price is currently trading above the average of the total range of the cycle, and therefore, we want to enter a long trade. If the indicator reads below 0.5, the price is trading below the average of the total range of the cycle, so we want to enter a short trade.

Again, an indicator is a flag that you raise so you can see which way the wind is blowing.

For all you Crucial Point followers, the idea is very similar to the rolling version:



We can use this indicator to derive more background information about marketing, which will be covered in a later post, but for now, I recommend using the indicator described, getting used to how it changes with the market and finding the periods that work for you. There is no magic number as to what time period is right for you. It really comes down to personal preference. I'm using 14.

Attached is the MQL4 source code of the indicator and a link to the indicator source code on TradingView for users of this platform.

If you have any questions, please leave a comment below!

Trading View indicator source code: https://www.tradingview.com/script/B...e-Price-Index/
MQL4 source code: