Synthetic bars – a new word in displaying price graphic information
the vast majority of actively selling traders use technical analysis of traditional bar or candlestick charts. As we know, they differ by the interim scale on which they are built. In other words, one traditional temporary bar or candlestick reflects the range of price fluctuations during a specific time interval. Common to them is the four basic prices: open, high, low, close.
the impetus to research in this direction was the fact that traditional bar graphs, for all their popularity, have one very significant shortcoming. This deficiency is very apparent when using these graphs in trade systems, in which the trade is in fact signal the completion of the last bar.
bars Synthetic very often at strong and sudden movements of the trading signal is obtained when the price has already passed most of their momentum and proposes trader “to jump into the last car.”
in most cases, this is quite a risky signal, because the likelihood of rebound prices also much compared to further movement in the direction of the initial pulse. A typical example of such a signal is shown in the figure below. Condition trade signal serve combinations on the intersection of moving averages.
Figure. 1. An example of the intersection of moving averages on the graph of temporary bars
earlier decisions of this problem was the development and implementation of such methods to display price information as graphs renko, Kagi or Tic-Tac-Toe.
all these charts are based on a single parameter-height display of boxing or fixed the progress of prices. But they are not widespread because, despite their advantage in terms of timely trading signal, they also have a number of disadvantages, albeit a somewhat different plan.
first, the graphics information quite problematic to use together with the well-known and popular technical analysis indicators. Secondly, they have a distinctive appearance, which is quite significantly different from the traditional type of bar chart. So there she was in front of us the problem of addiction to a similar style display pricing information.
on this basis, was tasked with developing this type of display price information, which would combine the benefits of graphs with fixed height boxing (renko, Kagi or HO) and a traditional bar chart. He received the title of synthetic bar (synthetic bar).
For the basic principle of forming synthetic bars was taken no time factor, as in traditional bars, and the factor of price movement. That is, one synthetic bar can hang on the chart until the price won’t come in motion (though a few hours), and at the same time at strong motion we can get them much more than just a one minute period.
in other words, this type of display has no timing and means the timeline on synthetic graph plays no role. VB3 received synthetic bars on appearance is completely indistinguishable from traditional temporary bars, and you can use them together with any MetaTrader 4 program indicators.
the appearance of these bars is almost identical to the usual temporary with the only difference being that they all have the same height. The following illustration shows the same plot the graph as in figure above, but using synthetic bars.
Figure. 2. example of the intersection of moving averages in a chart of synthetic bars
how to build synthetic bars? To begin, set the main and the only option is bar height in points.
Next, a specially designed light begins to remember and analyze all incoming ticks.
build Algorithm synthetic bars
Consider the build process synthetic bars. For example, start with the first bar. The first tick record as opening price OPEN. The next tick will price HIGH or LOW, depending on whether more or less than the price level which came OPEN.
takes the upgrade price HIGH or LOW on the assumption that they are maximum or minimum values of previous HIGH or LOW. If the regular price makes the difference between HIGH and LOW is greater than the specified height of the bar, the bar closes and begins to form a new bar. A characteristic feature of such a bar would be that CLOSE price he will always be equal to either HIGH or LOW.
this indicator was developed on the basis of a script Converter that is included in the Period the standard delivery of the MetaTrader 4. The code of the indicator is provided in attached file.
use indicator this indicator is somewhat more difficult than working with conventional indicators. To start, you need to put the light in the folder where you place your custom indicators. You must then open the minute chart of the chosen currency pair and attach the indicator “synbar.mq4”.
Figure. 3. preparation of data
after the indicator handles the minute bars history, he will form a new timetable, which will have a temporary dimension of M9. You can open it via the menu “File-Open Offline” in the main menu, then select “instrument symbol” M9 “Open”.
Figure. 4. opening graphics with synthetic bars
with this schedule you can work as a regular, with one condition, that the side-by-side on the desktop will be open both M1 and M9 graphics.
Figure. 5. The EURUSD, built on synthetic bars
you can attach to it all sorts of indicators to draw lines on it, placing graphical objects, etc. The only restriction would be that such a graph would not work.
this limitation has been compromised by writing a script with expert functions. Scripts, oddly enough, on this chart are correctly. Unfortunately, the subject of this article is not part of the theme of writing scripts for M9 graphics, so I will not touch it.
to ensure correct operation of the indicator, you need to set the permission to use the DLL.
Figure. 6. settings Advisor
parameters in the display just two. The first, most important and substantive, it is the height of the bar.
- ExtBarHeight is defined in paragraphs (paragraphs, taken on the trade server).
For example, if a four-digit “, then write in the usual integer number of points to which you want to deliver. If “quoting” the integer multiply on 10 points.
- SplitOnLine is a subsidiary and only affects how the display schedule. If you want to get a static chart, then this parameter should be set to FALSE. If you want to have a chart with dynamic formation of bars, then bet TRUE.
as you know, the kind of graphics depends on the height of the bar specified by ExtBarHeight. It is also very much will affect the performance of your trading signals system. In fact, the height of the bars is an optional parameter and, in some cases, it may be the only one.
Figure. 7. Schedule daytime bars of EURUSD quotes
Figure. 8. the schedule for the EURUSD quotes, synthetic bars
Use synthetic bars avoids hard binding trade signal to the time so you can receive trade signals before end
formation of traditional temporary bars. Besides the appearance of such graphics has more “smooth”, without a major fall look. As features, you can emphasize the following:
- because the trading signal can be formed at any time, it is necessary to ensure continuous monitoring of such schedules.
of the shortcomings you can highlight the following: If the market “explodes” gap, which far exceeds the height setting synthetic bars, the drawing of an ex post facto basis. This means that:
- even if the graphics in such circumstances and will be very attractive trading signals, develop them, it would be impossible, because no broker does not allow trade within the gap.
-don’t trade when the market generates GePs.