Detecting Price Breakout Signals from Accumulation/Distribution Trend Lines

Summary

This article describes an MQL4 function that searches for extrema in the Accumulation/Distribution indicator, draws trend lines through selected peaks and troughs, and detects when the indicator crosses those lines. It returns the crossing direction and can place corresponding arrows on the price chart. The method distinguishes broader trend lines from optional local lines and is designed to work across symbols and time frames, with the indicator data and history length supplied as inputs.

The author demonstrates the function in a one-year EURUSD test using five-minute bars, but the setup also uses fixed position sizing, staged trailing exits, repeated entries, and an equity-based close rule. The article says the resulting approach is unsuitable for live use and presents the function primarily as a signal component for an EA. Its test does not isolate the signal's predictive value from the surrounding position and exit rules, so it provides limited evidence that A/D line crossings forecast price breakouts.

Key ideas

• The function identifies A/D peaks and troughs, then connects selected extrema to form trend lines.
• Crossings between the A/D line and those trend lines are classified by direction and can be displayed as price-chart arrows.
• Local trend lines supplement broader lines and can be disabled when they are not needed.
• The reported EA test combines the signal with specific position and exit rules, limiting conclusions about the signal alone.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.