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The Balance Point The current trend is revealed by the triple-line channel of the mt5 forex indicator. The chart candlestick and price oscillate above and below that channel.
It consists of three lines, with the blue line remaining in the center and the red and green lines aligned to the upper and lower outside edges of the channel, respectively.
The primary trade chart is where the indication is plainly visible.
All timeframes and currency pairs are compatible with it.
Direct changes to the default indicator settings can be made from the input tab. To suit your preferences, feel free to play around with the settings and parameters. Let’s examine these inputs in more detail below.
Calculation period is defined by the term period.
The formula for the Point of Balance indicator:
The calculations of the Point of Balance indicator are based on the following formula:
BL = (MinH+MaxH)/2,
BR = (MinL+MaxL)/2,
POB = (BL+BR)/2,
Where
MinH, MaxH – is the maximum and minimum of HIGH prices over the period;
MinL, MaxL – is the maximum and minimum LOW prices over the period.
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How to use the Point of Balance:
When the candlesticks are lined above the POB indicator’s channel, bullish sentiment is assumed. In contrast, when the candlesticks are aligned below the channel, bearish sentiment is present.
How to set up
Copy and paste the POB.mq5 or POB.ex5 indicator files into the MQL5 folder of the MetaTrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator, find the gauge name, right-click it, and select Attach to the chart.
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It is worthwhile to include the Point of Balance indicator to your trading toolkit, but keep your expectations in check. Like any other technical analysis tool, it is not always able to produce reliable signals. As a result, this forex indicator occasionally generates erroneous signals. The state of the market will have a huge impact on how it performs. Feel free to use it as the foundation for your trading strategy.
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