Average Penetration Indicator

v10.3
Average Penetration Indicator

Thank you to Markos Katsanos and his article in the June 2018 edition of Technical Analysis of Stocks and Commodities magazine for this idea.

This indicator counts the number of times that a candles high or low penetrates a simple moving average line. The period of average and look back period can be adjusted to suit the market being traded.

The author was using an average of 100 and a look back period of 3 months. He was also only counting the number of times that the close penetrates the average line but I decided that high and low penetration gave more interesting results. On the line chart the red line is number of times the low is below the average line during the look back period and the green line is the number of times the high is above the average line. So green above red = bullish market and red above green = bearish market.

It can also be seen that when the red and green are converging that a bull run or bear run may be coming to an end. I converted the indicator into a histogram to more easily show this. The histogram switches to bullish or bearish if the lines start converging but otherwise is bullish if green is above red and bearish if the opposite.

The author calls his version his ‘Stiffness’ filter. I will let your own imagination work out why!

Both codes are included here along with ITF files to import. I recommend importing over cut and paste to get full functionality.

Share this

Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments : How to import ITF files into ProRealTime platform?

New! PRC is also now on YouTube, subscribe to our channel for exclusive content and tutorials

  1. Vonasi • 06/21/2018 #

    Forum discussion on these indicators can be found here: https://www.prorealcode.com/topic/average-penetration-filter/

  2. jennr29 • 06/21/2018 #

    Hi. Is it possible to convert this code to an mq4 file?

    • Nicolas • 06/21/2018 #

      Sorry but our website is dedicated to prorealtime programming. However, you can ask for private coding job here: https://www.prorealcode.com/trading-programming-services/

avatar
Register or

Likes

avatar avatar avatar avatar avatar avatar
Related users ' posts
Varadero54 Bonsoir Anthon et merci pour les indicateurs qui semble particulièrement pertinents ... Po...
supertiti Bonjour Anthon...y ? On est vraiment tout près de ce que propose Julien , sur sa dernière...
anthon Salut à tous et merci ! Content que les indicateurs vous plaisent . Abonnez vous à ma page y...
camporan You can use it 5M onwards, but the longer timeframe the more accurate it is. My preferred ar...
manchokcity can we have it in mql4 platform? or how or which platform do we use it?
camporan I don't use MetaTrader so I won't be able to do the translation myself. Sorry!
ggolfet I tried to use it (with prorealtime version 11 - end of day version). I receive an error mes...
Nicolas Try to reduce the displayed units of the chart. MaxScale should always be superior to Start...
ggolfet Thanks Nicolas, I imported the itf file and solved the problem.
winnie37 yes. "No ground breaking math here, but I am finding very useful and some algo based on it i...
Jan Wind Also interesting to know what does not work, which set up you use, saves me investigating ! ...
winnie37 i just set the proorder like this: buy when 50/100/200 phase >0 and sell when under 0, go...
Vinks_o_7
4 months ago
Jan Wind fatcat, sorry to hear. Today I did run the code for 100.000 bars (from 17 dec 2017 till 31 ...
GraHal I confirm that I get almost exactly the same (+7 days difference now) results as Jan states ...
Jan Wind A discussion Topic is opened, and can be found at https://www.prorealcode.com/topic/di-tem...
Francesco78 derschnee spiace a me che non riesci a replicarla. Prima di esprimere giudizi pensaci 2 volte.
avatar
unkown ;-) sfido chiunque a riuscirci!
avatar
unkown infatti basta leggere i post degli altri....
juanj DId some tests using MACD validations on higher timeframes using MTF functionality and unfor...
FREDNC Hi Francesco I tried with :
FREDNC adx[14]>adxmin and adx[14] > adxr[14] and adx[14]>adxmin and adx[14] DIminus[3](clo...
luxrun Good evening Nicholas, I can not see the colors on the line of the moving average, but only ...
Nicolas Yes, you must choose the oscillator that will color the moving average. Example: ONCE UseC...
Vonasi Discussion on this indicator/filter can be found here: https://www.prorealcode.com/topic/121...
Leo Does it opens pending orders?... maybe they were not trigger.
Mattzi Dont know, all i can see is that it opened an order yesterday in backtest but not live. Th...
Jean-Christophe Hello Leo, when running the strategy from 29/12/2015 to 31/08/2018 on ProRealTime Premium, I...
odin here is my code c1 = ExponentialAverage[3](close) c2 = ExponentialAverage[5](close) c3 ...
juanj HI Odin Can you also kindly provide the code for the 'Short Term Trader Squezze' indicato...
odin this is the short term Trader squezze indicator. short term Trader in Trouble and squezze is...
Geronima Ortiz I watched the video three times, but I can not put the npips parameter as a variable. I do...
Geronima Ortiz I think the video is for an old version of prorealtime, the images do not correspond at all ...
Nicolas indicator1 = CALL “PRC_StopReversal”[npips, 1] and define npips in the optimization window ...
Tradingrob Is it possible to make this indicator also suitable for dax30, s&p500, mdax50, and even...
Pablo Jimenez Hello, Odin , thanks for this amazing strategy. One question , would it work for indexes cfd...
Juanjo Hola, Gracias por la estrategia. Cuando comentas que funciona para todos los mercados, ...¿f...
Caribeengeek Bonjour j’avais vu que vous proposiez d’écrire des codes pour ceux qui s’y connaisse pas Mai...
Caribeengeek Les devises unité
Nicolas Merci d'utiliser le forum pour les demandes de programmation personnalisée

Top