BSI - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

The Bounce Strength Index (BSI) shows the strength of a rebound based on the Wyckoff method.

After moving higher, the stock entered sideways trading with clear support. When price approaches support, chartists should pay close attention to the movement. A large spike in volume off support, also known as a springboard, is the first sign that the larger uptrend will continue and that a consolidation breakout is imminent.

How to measure bounce strength?

Strength of rebound from lows:

(Closing Price - Lowest Price) * (High Limit - Lowest Price) / Range Spread

Strength of pullback from highs:

(Highest Price - Closing Price) * (Highest Price - Lower Limit) / Range Spread

My measurement method is this:

The idea is simple, but it can be a leading indicator of a range breakout. It only works within scope.

The indicator was originally written in MQL4 and first published in the code base on February 4, 2016.

Figure 1. BSI indicator

Attachment download

📎 bsi.mq5 (12.15 KB)

Source: MQL5 #14808