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

Binary waves return positive or negative values ​​depending on the bullish or bearish prediction of the indicator readings. The true strength of a binary wave can only be seen when several binary waves are combined into a composite binary wave.

I collected seven individual binary waves into a complex wave:

When creating complex waves, it is important to first test individual binary waves to check their validity. A good binary wave complex will show results that are superior to those generated by the individual binary waves contained within it. Any of the above waves can be excluded from the complex wave by assigning it a weight of zero (weight parameter). This allows you to check the validity of individual waveforms.

The interpretation of binary waves is fairly obvious: higher values ​​indicate a bullish trend, while lower values ​​indicate a bearish trend. The value of a composite binary wave depends on the number of individual binary waves contained within it. You can "weight" binary wave readings according to the quality of their predictive capabilities by assigning values ​​to the corresponding weight parameters. For example, one component of a binary composite wave can have a value of 5, while another one can be equal to 0.75. The maximum total weight of the wave is shown in brackets after the indicator name in the upper left corner of the indicator area.

You can smooth binary waves by setting the bLength parameter greater than 1.

I think you can easily understand how the indicator works and can use it to create high-quality filters for your trading system.

The indicator allows choosing a smoothing type from ten possible versions:

It should be noted that the Phase type parameters of different smoothing algorithms have completely different meanings. For JMA, it is an external phase variable that varies from -100 to +100. For T3, it is the smoothed ratio multiplied by 100 for better visualization; for VIDYA, it is the CMO oscillation period; for AMA, it is the slow EMA period. In other algorithms, these parameters do not affect smoothing. For AMA the fast EMA period is a fixed value, equal to 2 by default. For AMA, the ratio of raised powers is also equal to 2.

The indicator uses the SmoothAlgorithms.mqh library class (must be copied to terminal_data_folder\MQL5\Include). The use of the class "Average price series for intermediate calculations without using additional buffers" is described in detail in the article.

The indicator was first implemented in MQL4 and released in the code base on August 21, 2009.

Indicator input parameters:

Attachment download

📎 binarywave.mq5 (14.48 KB)

📎 smoothalgorithms.mqh (133.8 KB)

Source: MQL5 #679