The predictive Forex indicator, WmiFor, uses the Spearman method to predict potential future price movements.
The WmiFor indicator belongs to the category of predictors. It selects the specified interval (default 24 bars) and compares the LWMA sequences with the LWMA sample sequences. Comparison is performed using the Spearman method and additionally by sample height (by default, the difference in sample height should not exceed 10%). After collecting the required number of the most similar samples (default value is 5), the WmiFor indicator projects the price movement that took place in the past after all found samples to the current moment in time. Real candles, overlapping each other, form a corridor of possible price movement.
Using WmiFor indicator in trading
The corridor of possible price movements is drawn as brown stripes, often referred to as a cloud. If a cloud is found, at least two similar samples are displayed. Blue candles located inside the cloud represent one of the potential scenarios for the price behavior of the selected currency pair. The brown lines indicate the “beginning of the sample” and “end of the sample”, which can be moved after selecting them with a double click of the mouse. The forecast will be recalculated 1-2 seconds after the lines are shifted.
The start and end points can be fixed to ensure the sample remains stationary even after new emerging candles. In this scenario, the forecast will remain constant and won’t be redrawn with each new candle. For instance, you can stabilize only the beginning of the sample, and the end will shift with each new candle. Here, every new candle will slightly refine the forecast (the sample’s size increases, but the start remains fixed). To generate a reliable forecast, the WmiFor indicator requires a history of quotes for the selected currency pair.
If there aren’t enough similar behavioral patterns in the history, the WmiFor indicator will suggest reducing the severity of the comparison by adjusting the ScalePercents parameter downwards. However, be aware that the forecast’s reliability may decrease in such cases.
It’s recommended to install the WmiFor predictive Forex indicator on a pre-loaded price chart. If the indicator has already been added and you change the time scale or currency pair, causing MetaTrader 4 to load a new quote history for displaying a fresh price chart, the previously drawn corridor might vanish from the screen. This isn’t a concern; simply switch to a different time scale and then revert.
Features of WmiFor MT4 indicator
- Platform: Metatrader 4
- Ability to change settings: Yes
- Timeframe: any from 1 Minute to Daily
- Currency pairs: any
In WmiFor.zip file you will find:
Download WmiFor MT4 indicator for free: