Derivative Metatrader 5 Indicator
In mathematics, the value of the derivative is calculated according to the following simple formula:
, (1)
where:
x0 — current value of the argument,x — value of the argument to the right of the chart,
f(x0) — value of the function at point x0,
f(x) — value of the function at point х.
In the original definition the difference between x and x0 is infinitesimal, i.e. the limit of the function is used. Using the formula (1) it is possible to calculate the approximate value of the derivative using the fuction values, avoiding direct differentiation.
Regarding the price chart, x0 is the current bar, and x is the upcoming bar, which will be formed after a number of chart periods. Respectively, f(x0) is the price value on the current bar, and f(x) is the price value of the upcoming bar. We find that (1) contains two unknowns — f(x0) and f(x). Since we do not have additional expressions which contain the same two unknowns, the solution of equation (1) in this case is absent.
Known values must be taken as f(x) and f(x0) to make it possible to find the derivative f'(x0). For that purpose it is necessary to take a point to the left of the current bar as x0, and to designate the current bar as x. As a result, f(x0) and f(x) become certain values (prices at points x and x0 correspond to the price values visible on the chart).
Although, the calculated value will characterize an area already known to a trader, in which the price growth or fall can be judged without the help of the derivative. In this case the useful information is not simply the value of the derivative, but the comparison of two values of the derivative at adjacent bars. In case the signs of the calculated values are different the price has passed an extremum. The type of the extremum can be easily determined using the combination of signs: transition from negative value to positive value is minimum, positive to negative — maximum.
The described principle of calculation of a derivative is implemented in the Derivative indicator. As a result it displays the difference of prices between the examined bar and the bar spaced from the examined one by a number of bars set in the “Delay” parameter.
The easiest way to use the indicator is this: the line crosses the zero level from below — you should buy, from above — you should sell.
Originally this indicator has been written in MQL4 and was first published in the Code Base on mql5.com on 09.09.2015.
Derivative Metatrader MT5 Indicator – Download Instructions
In order to transform accumulated history data, you need to install a MetaTrader 5
Derivative Metatrader – it is a MetaTrader 5 indicator that allows you to detect several changes and dynamics in price that many traders can’t estimate or see without an indicator, which highlights its essence and usage.
Accordingly, traders can draw conclusions and make estimates about how the prices will change based on the information they have and then they can modify their strategy for better trading.
How to install Derivative Metatrader indicator for MetaTrader 5.mq5?
Download indicator for MetaTrader 5.mq5Copy Derivative Metatrader to Directory / experts / indicators /
Start or restart your Metatrader 5 Client
Select Chart and Timeframe where you want to test your mt5 indicator
Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
Right click on Derivative Metatrader for MetaTrader 5.mq5
Attach to a chart
Modify settings or press ok
now indicator for MetaTrader 5.mq5 is available on your Chart
How to remove Derivative Metatrader Indicator for MetaTrader 5.mq5 from your Metatrader 5 Chart?
Select the Chart where is the Indicator running in your Metatrader 5 ClientRight click into the Chart
“Indicators list”
Select the Indicator and delete
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