Estimating Higher-Timeframe Prices from One-Minute Bars

Summary

The M1MA indicator estimates an effective price for each chart bar by averaging price data from the corresponding one-minute bars. It is intended for timeframes of five minutes or higher, with intraday charts recommended. The result is presented as an alternative input for price-action analysis and identifying price levels, rather than as a smoothing indicator.

Users can limit how many chart bars are calculated, choose a smoothing period on the chart timeframe, and select which one-minute price type to use. A smoothing period of one leaves the estimated per-bar price unsmoothed. The description cautions that calculation and history loading can take time on higher timeframes, and that the required one-minute history must be available from the broker. It gives a daily-bar example to illustrate the volume of minute data needed, but provides no performance tests or evidence that the estimate improves trading results.

Key ideas

• The indicator estimates each higher-timeframe bar’s price from its constituent one-minute bars.
• It is intended for charts of five minutes or longer, with intraday use recommended.
• The bar limit controls the amount of history processed and can affect loading time.
• The chosen one-minute price type and host-timeframe smoothing period affect the calculation.
• The method depends on the broker supplying sufficient one-minute history.

Tags

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