Chartmill Value Indicator

Introduction to the Chartmill Value Indicator

The Chartmill Value indicator is a custom forex technical analysis tool, that was developed by Dirk Vandycke and first introduced in the Technical Analysis of Stocks & Commodities magazine in January, 2013.

The Chartmill Value indicator portrays a standard deviation from the moving average indicator and has the potential of being added to any price series over any time frame.

When we see the price strongly appreciating or depreciating and candlesticks pushing definitely in a specific direction, these candlestick bars will move away from the moving average in a result. Subsequently, the moving average will begin to grow.

The distance between prices and the moving average will start to get smaller as prices begin to flatten out or consolidate, while the moving average will keep moving delayed over a while.

The indicator is displayed in a separate window placed just below the main trading chart.

It fits all kinds of timeframes and currency pairs.

The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.

Period – defines the period for calculation;

Method – defines the moving average calculation method;

Calculation mode – defines the calculation for the deviation mode;

ATR – defines the calculation for deviation mode by ATR;

Sqrt ATR – defines the calculation for deviation mode by the square root of ATR.

The formula for the Chartmill Value indicator:

The calculations of the Chartmill Value indicator are based on the following formula:

CVI = (Close-VC) / ATR * Mode

where:

VC = MedianMA(Period, Method)

ATR – Average True Range(Period)

If Calculation mode = ATR: