PTS Precision Index Oscillator MT5
- Indicators
- PrecisionTradingSystems
- Version: 2.0
- Activations: 10
The Precision Index Oscillator (Pi-Osc) for MT5 by Roger Medcalf of Precision Trading Systems
First of all, if you have any questions please contact me via my website which you can find by searching the above title.
Version 2 has been carefully recoded to be super fast to load up on your chart and some other technical improvements have been incorporated to enhance experience.
Pi-Osc was created to provide accurate trade timing signals designed to find extreme exhaustion points, the points that markets get forced to go to just to take out everyone's stops.
This product solves the age old problem of knowing where the extreme points are, which makes the life as a trader much simpler.
This is highly complex consensus indicator which has some powerful differences to industry standard oscillators.
Some of the features it uses are divergences in Demand Index, Money flow, RSI, Stochastics, pattern recognition, volume analysis, standard deviation extreme points and many such variations of the above in different lengths.
At first glance to the untrained eye it would appear like any other oscillator, but when viewing it in juxtaposition with other oscillators such as RSI or momentum etc. the true power of this indicator begins to emerge.
To my knowledge there is no other oscillator which can frequently pinpoint exact tops and bottoms with the same regular efficiency.
The Precision Index Oscillator is comprised of many different mathematical equations which measure price and volume movement in multiple time frame sampling that predict with a high degree of accuracy where turning points in trends are likely to occur.
PTS Pi-Osc V2 is extremely simple to use and the top and bottom early warning signals are flagged up when + or - 3.14 is reached, the actual trade signal the Precision Index Oscillator gives is when it moves away from Pi.
It is advisable to wait for the trend to begin reversing in direction before the signal is taken as not all signals will reverse on the touch of plus or minus Pi.
A moving average of approximately 10-20 period can be used and waiting for that to begin reversing before taking trades.
Alternatively one can use the highest high of approximately 6-20 bars to enter long trades when the bounce up from -3.14 is observed and vice versa for shorts.
Highlights are provided to display the signals in a clear and precise manner.
Alerts are enabled by default so you can be at your screen ready to get in the next trade.
This signal indicates a high probability that the next bar will reverse. Sometimes a large move will result, others may be small moves and occasionally the signal will fail and the price will not reverse.
As with most technical analysis methods if a signal fails to come to fruition it is best treated as a continuation signal of the existing trend.
There is no guarantee of a winning trade coming from every signal and traders must employ exit stops and good risk management if they are to be successful in the long run.
Stops are totally essential with this product. (Suggested value of a tight stop 2 x ATRs and 5 x ATRs for a wider stop)
Trades can be exited when the trend reverses again by using the moving average entry method but a little bit slower to allow your position the best chance of becoming a big winner.
Important: The Pi-Osc has 8 rules which must be obeyed
1. Trade in the direction of the major trend
2. Find the time frame that has worked best in historical testing
3. Always use stops
4. Wait for the trend to begin turning before entering the trade.
5. Wait for the bounce away from Pi.
6. Wait for the bounce away from Pi.
7. Wait for the bounce away from Pi.
8. Remember the other seven rules.
Please see my website for more screenshots videos and information. Just copy and paste the title of this article into search to find it.
A big thank you to Iron Condor for working extensively on this code to make it load and run faster with increased efficiency.
