Hi.

The Rex oscillator measures market behavior based on the relationship of the close to the open, high and low values of the same bar. A big difference between the high and close on a bar indicates weakness, and wide disparity between the low and close indicates strength. The difference between open and close also indicates market performance.

The True Value of a Bar (TVB) gives an indication of how healthy the market is. A negative close and a positive TVB (or vice versa) is an indication of the market building strength on the opposing side of the trend. The Rex oscillator is a moving average (SMA, EMA, WMA or SMMA) of the TVB value with the specified period.

Interpretation

When the Rex Oscillator turns positive in a bearish trend, a reversal is indicated. Likewise, Rex turning negative in a bull market indicates a reversal to the downside.

I stumbled upon a very interesting indicator who would be very useful as an exitindicator. I have looked everywhere but I couldn’t find it ready for PRT.

Here is the mq4-code:

//+------------------------------------------------------------------+
//| Rex.mq4 |
//| Copyright © 2014, Gehtsoft USA LLC |
//| http://fxcodebase.com |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2014, Gehtsoft USA LLC"
#property link "http://fxcodebase.com"

#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 Green
#property indicator_color2 Red

extern int Smoothing_Length=14;
extern int Smoothing_Method=0; // 0 - SMA
// 1 - EMA
// 2 - SMMA
// 3 - LWMA
extern int Signal_Length=14;
extern int Signal_Method=0; // 0 - SMA
// 1 - EMA
// 2 - SMMA
// 3 - LWMA

double Rex[], Signal[];
double TVB[];

int init()
{
IndicatorShortName("Rex oscillator");
IndicatorDigits(Digits);
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,Rex);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1,Signal);
SetIndexStyle(2,DRAW_NONE);
SetIndexBuffer(2,TVB);

return(0);
}

int deinit()
{

return(0);
}

int start()
{
if(Bars<=3) return(0);
int ExtCountedBars=IndicatorCounted();
if (ExtCountedBars<0) return(-1);
int limit=Bars-2;
if(ExtCountedBars>2) limit=Bars-ExtCountedBars-1;
int pos;
pos=limit;
while(pos>=0)
{
TVB[pos]=3.*Close[pos]-(Low[pos]+Open[pos]+High[pos]);

pos--;
}

pos=limit;
while(pos>=0)
{
Rex[pos]=iMAOnArray(TVB, 0, Smoothing_Length, 0, Smoothing_Method, pos)/Point;

pos--;
}

pos=limit;
while(pos>=0)
{
Signal[pos]=iMAOnArray(Rex, 0, Signal_Length, 0, Signal_Method, pos);

pos--;
}

return(0);
}

Rex.mq4 Rex_MQL.png