Composite Binary Wave Indicator

Related: binary trading based on candle colors - another powerful indicator for MetaTrader 5 traders.

The Binary Wave indicator provides a positive or negative value reflecting bullish or bearish market forecasts based on its readings.

Also recommended: Composite High/Low Momentum Indicator (HLM) - similar indicator with strong performance on MetaTrader 5.

The primary advantage of Binary Waves is realized when multiple individual waves are combined into a composite wave.

This composite wave integrates seven individual binary wave components:

- A comparison of the closing price relative to its moving average (above or below).
- MACD slope.
- Oscillator crossing the zero line.
- Commodity Channel Index (CCI) crossing the zero line.
- Momentum crossing the level of 100.
- Relative Strength Index (RSI) crossing the level of 50.
- Directional Movement Index (DMI+) and Directional Movement Index (DMI-) comparison (ADX).

When constructing a composite wave, it is essential to first validate the individual binary waves. A well-performing composite wave should yield superior results compared to its constituent individual waves.
Any individual wave can be excluded from the composite by setting its weight parameter to zero, facilitating individual wave validity testing.

Interpreting the Binary Waves is straightforward: higher values signify an uptrend, while lower values indicate a downtrend.
The values of the composite binary wave are influenced by the number of individual binary waves it comprises.
The predictive accuracy of individual binary waves can be accounted for by assigning specific weights. For instance, one component might have a weight of 5, while another is 0.75. The maximum total weight for a wave is displayed in parentheses next to the indicator name in the upper-left corner of the indicator panel.

A Binary Wave can be smoothed by setting the `blength` parameter to a value greater than one.

This indicator is designed to be easily understood and utilized for developing robust filters within trading systems.

Supported Smoothing Algorithms:
- Simple Moving Average
- Exponential Moving Average
- Smoothed Moving Average
- Linear Weighted Moving Average
- JMA Adaptive Average
- Ultralinear Smoothing
- Parabolic Smoothing
- Tillson's Multiple Exponential Smoothing
- Smoothing using Tushar Chande's algorithm
- Smoothing using Perry Kaufman's algorithm

Note on Phase Parameters:
The phase type parameters differ significantly across smoothing algorithms. For JMA, it is an external phase variable ranging from -100 to +100. For T3, it is a smoothing ratio multiplied by 100 for enhanced visualization. For Vidya, it represents the CMO oscillator period, and for AMA, it is the slow EMA period. These parameters do not influence smoothing in other algorithms. For AMA, the fast EMA period is fixed at 2 by default, and the exponentiation ratio is also 2.

The indicator utilizes classes from the `smoothalgorithms.mqh` library, which must be placed in the `terminal_data_folder\mql5\Include` directory. The usage of these classes is detailed in the associated article.

This indicator was initially developed for MQL4 and published on 21.08.2026.

Indicator Input Parameters:

You may also like: Read Double Data from Binary File - excellent alternative for indicator users on MetaTrader 5.

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#property link "https://robotfx.org"
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• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.