Filtering Boom and Crash Price Spikes with Velocity, ATR, and Trend
Summary
The article describes an alert-focused MetaTrader expert advisor for detecting unusually sharp upward or downward price moves. It combines a rolling price-change threshold with an ATR expansion check and a moving-average direction filter; optional pivot-distance and trading-session checks further constrain signals. When the conditions align, the tool marks the chart and records the event, rather than placing trades automatically.
The explanation outlines the filter logic and configurable inputs, then describes chart display and CSV logging. It reports a demonstration on a Boom 900 chart, with plotted signals and supporting lines, but provides no quantified performance evaluation or evidence of predictive profitability. The author presents the tool as a component for trader review and recommends additional checks and larger chart timeframes to reduce noise. Its signals therefore require independent testing and risk controls before any use in trading decisions.
Key ideas
- A rolling window sets a threshold for identifying price changes that are unusually large relative to recent history.
- An ATR surge and moving-average direction check provide separate volatility and trend confirmations.
- Optional pivot-zone and session-hour filters can suppress signals in selected market conditions.
- The EA displays and logs signals but does not execute orders.
- The article provides a visual demonstration rather than quantified evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.