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Extremum Histogram Color-Change Trading System

Article MQL5 code base
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Summary

This trading system uses the Extremum indicator’s histogram color changes to generate entries. A trade signal occurs when a bar closes and the histogram switches from green to red or red to green. The description does not specify the indicator’s calculation or explain how to distinguish long from short entries beyond the color change.

Positions are exited either by a pending order or when the histogram changes to a color opposite the open position. The document reports a historical test on USDCHF four-hour data for 2011, using default Expert Advisor inputs and no stop loss or take profit. It refers to charts showing trade history and test results, but provides no numerical performance figures or further details about the test setup. The example therefore outlines a basic rule set rather than establishing its robustness or suitability across other markets and periods.

Key ideas

  • The system generates a signal when a closed bar coincides with a histogram color change.
  • Trades may exit through a pending order or an opposite-color histogram signal.
  • The cited test used USDCHF four-hour data from 2011 and default Expert Advisor inputs.
  • The reported test did not use stop-loss or take-profit levels.

Tags

ForexTechnical indicatorsBacktesting

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