The SRange Contraction Metatrader 5 indicator is designed as a signal technical tool to display daily ranges.
It is built based on the Range Contraction indicator.
The SRange Contraction MT5 indicator is shown on a separate window, where the ratio between today’s and the previous day’s ranges are being displayed.
An alert pointer gets marked along with the narrow range points (under the designated value).
If the previous day’s range was tighter than the day before, this could suggest an explosive moment today according to Toby Crabel.
The adjustable input parameters on the SRange_Contraction indicator are as follows:
Threshold – defines the previous day’s range threshold;
Show Small Range – defines whether to display narrow range signals or not (Yes/No);
Calculation period mode – defines the period mode calculation:
Current – calculations on the current bar;
Previous – calculations on the previous bar.
The formula that represents the SRange_Contraction MT5 indicator is as follows:
RC = 100.0 * (High[Period] – Low[Period]) / (High[Period+1] – Low[Period+1])
RC < Threshold:
Breakout = RC
The SRange_Contraction custom Metatrader 5 indicator is not your standalone kind of indicator, but instead, a good mix with other technical tools will help you optimize your trading results when deoloying it within your strategy.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Threshold, Show Small Range, Calculation period mode), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the SRange_Contraction.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)