Thread: Xaos Explorer - Vertex FX Indicator

Xaos Explorer is a simplistic Vertex FX client side VTL indicator that provides reference BUY and SELLS signals based upon the Open, High, Low and Close prices. It comprises of four components, which are the ratios of the reference prices compared to the current prices.
In the first step, we calculate the ratio of the Close SEPARATION bars ago over the current Close price. This is the GRAY indicator line. In the second step, we calculate the ratio of the Open SEPARATION bars ago over the current Open price. This is the YELLOW indicator line.
In the third step, we calculate the ratio of the High SEPARATION bars ago over the current High price. This is the SILVER indicator line. Finally, we calculate the ratio of the Low SEPARATION bars ago over the current Low price. This is the GOLD indicator line.
A BUY signal is generated if any of these ratios is above the INDICATOR_LEVEL_1 as denoted by the GREEN BUY marker. On the contrary, a SELL signal is generated if any of these ratios is below the INDICATOR_LEVEL_2 as denoted by the RED SELL marker.
The idea behind this indicator is that when the price breakouts out of a range bound market which is defined by the INDICATOR_LEVEL_1 and INDICATOR_LEVEL_2, it has a potential to exhibit a strong breakout. The price should be range bound within the INDICATOR_LEVEL_1 and INDICATOR_LEVEL_2 over the recent SEPARATION bars as a precondition.
BUY - Enter BUY trade at close of candle when the indicator displays a BUY (GREEN) signal. Do not open BUY trade if candle has a gap up opening.
SELL - Enter SELL trade at close of candle when the indicator displays a SELL (RED) signal. Do not open SELL trade if the candle has a gap down opening.