Extreme Price Filter: Identify and Avoid Market Traps
Info
The Extreme Price Filter: Identify and Avoid Market Traps is a Indicator for MetaTrader 5 that extreme price filterthis indicator detects when the current price bar's high reaches a local extreme high, or when the current price bar's low reaches a local extreme low. The logic is as follows:High breach = high[i] > Local high extremum - ATR * multiplierLow breach = low[i] < Local low extremum + ATR * multiplierThe indicator offers two modes of operation:1.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Extreme Price Filter: Identify and Avoid Market Traps
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
Extreme Price FilterThis indicator detects when the current price bar's high reaches a local extreme high, or when the current price bar's low reaches a local extreme low.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: GDS Renko Liquidity Sweep Lab: Price Action Analysis - another powerful indicator for MetaTrader 5 traders.
Extreme Price FilterAlso recommended: Basket Break-Even Levels: Buy, Sell, and Net with Target Price - similar indicator with strong performance on MetaTrader 5.
This indicator detects when the current price bar's high reaches a local extreme high, or when the current price bar's low reaches a local extreme low.
The logic is as follows:
High breach = high[i] > Local high extremum - ATR * multiplier
Low breach = low[i] < Local low extremum + ATR * multiplier
The indicator offers two modes of operation:
1. Live bar: Detects breaches on the current, unclosed bar.
2. Closed bar only: Examines breaches only on completed bars. This mode is often preferable for automated systems that process only closed bar data.
Many entry signal indicators and systems lack the ability to identify extreme local highs and lows. Consequently, they may generate buy signals at extreme highs or sell signals at extreme lows, leading traders into classic bull or bear traps.
The primary purpose of this indicator is to assist other signal indicators or trading systems by providing advanced warning of potential traps.
Visual Interpretation:
Red markers indicate that trading a buy position on that price bar is not advised.
Blue markers indicate that trading a sell position on that price bar is not advised.
Expert Advisor (EA) Usage Example:
double ext_filter_sig[1];
CopyBuffer(ext_filter_handle, 2, 0, 1, ext_filter_sig);
bool can_execute_buy = (ext_filter_sig[0] != -1.0);
bool can_execute_sell = (ext_filter_sig[0] != 1.0);
if (myBuyLogic && can_execute_buy) Buy...
if (mySellLogic && can_execute_sell) Sell...
You may also like: AIS Average Rank Speed: Measuring Price Volatility - excellent alternative for indicator users on MetaTrader 5.
Source Code
#property indicator_chart_window
#property indicator_buffers 3
#property indicator_plots 2
#property indicator_label1 "Upper"
#property indicator_type1 DRAW_LINE
#property indicator_color1 clrNONE
#property indicator_label2 "Lower"
#property indicator_type2 DRAW_LINE
#property indicator_color2 clrNONE
enum ENUM_BREACH_MODE.......
⚠ Limitations & Risk Warning
- 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.