Watch the testing video here:
Price Cycle Indicator
Introduction to the Price Cycle Indicator
The Price Cycle (PC) indicator is a custom forex oscillator that is used by traders to reveal market cycles in the short and long term periods.
A market cycle is defined by series of repeated patterns and that gauge does pretty well in spotting such patterns.
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 calculation period;
Method – defines the calculation method;
Overbought – defines the overbought level;
Oversold – defines the oversold level.
The formula for the Price Cycle indicator:
The calculations of the Price Cycle indicator are based on the following formula:
PC = MA(Close-Low) / ATR
When the indicator line moves beyond the 1-Day overbought/oversold region and the price gets close to the extreme monthly ranges, we can consider it is time to sell/buy respectively.
How to use the Price Cycle:
When the red signal line goes above the 70 mark, it is a sign of a overbought condition, therefore a bearish reversal is possible and a potential entry point for a sell trade. Similarly, When the red signal line dips below the 30 mark, it is a sign of an oversold condition, therefore a bullish reversal is possible and a potential entry point for a buy trade.
You can even manually spot divergences and apply them in your trading approach.
How to set up the Price Cycle indicator in MT5?
Copy and paste the PC.mq5 or PC.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
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