The Point of Balance mt5 forex indicator is a triple-line channel that is the current trend revealer. The price and chart candlestick move above/below that channel.
It consists of three lines: the red color and green lines are aligned to the channel’s upper outer and lower outer boundaries, respectively, while the blue line stays in the middle of the channel.
The indicator is displayed directly on the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your preferences. Let’s take a closer look at these inputs below.
Period – defines the calculation 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,
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.
How to use the Point of Balance:
Bullish sentiment is considered when the candlesticks are aligned above the channel of the POB indicator. Alternatively, bearish sentiment is underway when the candlesticks are aligned below the channel.
How to set up the Point of Balance indicator in MT5?
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.
The Point of Balance indicator is worth adding to your trading collection but remember to have realistic expectations. Like any other technical analysis tool, it cannot provide accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your trading system based on it.
Point of Balance MT5 Forex Indicator Free Download
Read More Aria Scalper MT4 EA FREE Download