Counting Consecutive Up and Down Bars to Filter False Swings
Summary
This document explains an MT5 indicator that tracks runs of consecutive rising and falling bars. Separate plots show upward and downward runs, and each count resets when a bar prints in the opposite direction. A trader can set a threshold around commonly observed run lengths to help filter potential false swings.
A later version adds moving averages for the counts of up bars and down bars, providing reference levels for unusually long runs. Zero readings are excluded from these averages so that bars outside the relevant direction do not distort the directional count. The text describes the indicator’s intended use and software changes, but gives no market, parameter-selection method, quantified results, or evidence that the filter improves trading performance. Its usefulness therefore depends on how counts and thresholds behave on the instrument and timeframe being traded.
Key ideas
- The indicator separately counts consecutive rising and falling bars.
- A count resets when a bar moves in the opposite direction.
- A user-set count threshold can be used to filter suspected false swings.
- Moving averages provide reference levels for up-bar and down-bar run lengths.
- Zero readings are excluded from the corresponding moving-average calculations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.