Trend_Risk_Indicator - MetaTrader 5 Script - MT4/MT5 Resource

The Trend Risk indicator finds the trending part of the price movement and indicates the presence of the trend through the values ​​in the buffer.

Can be used for sideways trading - disabling trading when price threatens to exit the channel in which the trade was executed. During trend trading, this indicator can identify areas where the trend may be exhausting or may be slowing down.

It has two input parameters:

 Top = smoothed price + smoothed range * deviation bottom = smoothed price - smoothed range * deviation
SmoothPrice = (PrevSmoothPrice * (Band Range-1) + Closing Price) / Band Range SmoothRange = (PrevSmoothRange * (Band Range-1) + High-Low) / Band Range
if close > top
SignalBuffer="Do Not Trade"=Top
If closing price < bottom
SignalBuffer = "Do Not Trade" = Bottom
The indicator displays colored Japanese candlesticks in a separate window - bullish candlesticks are green , bearish ones are red . If the candlestick close is outside the channel formed by the channel, the color of the candlestick is gray and the value corresponding to the value of the broken channel line is added to the indicator signal buffer. This allows to determine the direction of the breakout from the Expert Advisor and limit trades in this or that direction depending on the trading system used.

Figure 1. Trading in a Flat Channel: Band Range = 12, Bias = 1.8

Figure 2. Trend Trading (Limits): Band Range = 23, Bias = 6.0
 Attachment download
 📎 trend_risk_indicator.mq5 (13.98 KB)
 Source: MQL5 #21844