BSI - indicatore per MetaTrader 5

Real author:

fxborg

Bounce Strength Indicator (BSI) shows the strength of bounce according to the Wyckoff method.

After a move higher, the stock moves into a flat consolidation with a clear support level. Chartists should watch action closely as prices approach support level. A high volume surge off support, also known as a springboard, is the first sign that the bigger uptrend is set to continue and a consolidation breakout is imminent.

How to measure the strength of bounce?

Strength of bounce up from lows:

Strength of bounce down from highs:

My measuring method means the following:

• The greater the rise from lower position, the stronger the buying pressure.
• The greater the fall from higher position, the stronger the selling pressure.

This idea is simple, but it can become a leading indicator of the range breakout. It will work only within range.

Display:

• plus histogram — shows the bounce strength up from lows;
• minus histogram — shows the bounce strength down from highs;
• middle line — average of difference between plus/minus.

Originally this indicator has been written in MQL4 and was first published in the Code Base on 04.02.2016.

Figure 1. The BSI indicator