Thread: Strange Indicator - Vertex FX Indicator

The Strange Indicator is a Vertex FX Exponential Moving Average based indicator that calculates the direction of the trend and its strength.

We first calculate the EMA of the Close, High and Low, and use the reference SHIFT bars ago for our prices. The indicator is calculated by dividing the difference between the Close and Low of the EMA from the difference between High and Low of the EMA. This value is expressed as percentage (multiplied by 100).

When the prices are moving downwards, and the markets start stabilizing, the closing prices tend to be near the low of the candle. Hence, the indicator exhibits lower values reflecting an end to the downtrend. Whereas when the prices are moving upwards and start stabilizing, the closing prices tend to be farther from the low of the candles. Hence the indicator exhibits higher values - reflecting an end to the uptrend.

BUY - Enter BUY trade when indicator value closes above 30 from below.
SELL - Enter SELL trade when indicator value closes below 30 from above.