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Miscellaneous > OC Histogram

Article/Author:

Download: OC_HIST.ELA

File Includes:

Indicator - ELD OC Histogram

Category: Indicator > Miscellaneous

Description:

Open Close Histogram. This Indicator will display a histogram that will help determine when the market is in an uptrend or downtrend.

This Indicator idea is based on the observation that in an uptrend, a market generally closes above its open, and in a downtrend, a market generally closes below its open. This relationship is certainly not true on every bar, because the market tends to go through correction periods during momentum moves, but it's true on average.

This Indicator studies the relationship between the open and closing prices to determine the direciton of the momentum of the market. The Indicator will display the difference of the 10 bar exponential average of the opens, and the 10 bar exponential average of the closes.

Usage:

This Indicator is best used with intra-day bars smaller than 15, or daily bars. Time bars that are above 15 minutes will have too few bars for patterns to develop before the end of the day.

The Strategy OC Histogram can be downloaded and applied to a chart to test a trading idea based on this indicator.




Inputs:

CLoseLen - Number of bars used for the exponential average of the closing prices
OPenLen - Number of bars used for the exponential average of the opening prices

EasyLanguage Code:

Input: CloseLen(10), OpenLen(10);

{Displaying indicator on chart}

Plot1( XAverage(Close, CloseLen) - XAverage(Open, OpenLen),
"OC Histogram");