MQL5: Create Your Own Indicator – MQL5 Wizard
What is an indicator? It is a set of calculated values that we want to be displayed on the screen in a convenient way. Sets of values are represented in programs as arrays. Thus, creation of an indicator means writing an algorithm that handles some arrays (price arrays) and records results of handling to other arrays (indicator values).
Despite the fact that there are a lot of ready indicators, which have become classics already, the necessity to create one’s own indicators will always exist. Such indicators that we create using our own algorithms are called custom indicators. In this article we will discuss how to create a simple custom indicator.
Indicators Are Different
An indicator can be presented as colored lines or areas, or it can be displayed as special labels pointing at favorable moments for position entering. Also these types can be combined, which gives even more indicator types. We’ll consider creation of an indicator on the example of the well-known True Strength Index developed by William Blau.
True Strength Index
The TSI indicator is based on the double-smoothed momentum to identify trends, as well as oversold/overbought areas. Mathematical explanation of it can be found in Momentum, Direction, and Divergence by William Blau. Here we include only its calculation formula.
TSI(CLOSE,r,s) =100*EMA(EMA(mtm,r),s) / EMA(EMA(|mtm|,r),s)
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