Forex Inverse Reaction Indicator

Forex Inverse Reaction Indicator:

The idea of the InverseReaction indicator is based on the assumption that an unusual price changes (going beyond the volatility range) is accompanied by a reverse movement.

There are many examples of this behavior: the case of Lehman Bros, Flash Crash, etc.

The signal appears when price goes beyond the boundaries of the gray volatility cloud. In this case, the reverse reaction can be expected. In this situation, the histogram bar is painted in the appropriate color.

The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.

The original indicator was developed in the MQL4 language and published in the CodeBase on 10.10.2013.

Test results:

Forex Inverse Reaction Indicator

Copy and paste the file into the MQL5 Indicators folder of the Metatrader 4 trading platform.

You can access this folder from the top menu as follows:

File > Open Data Folder > MQL5 > Indicators (paste here)

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