Indicators

Quant Bar

Developer: Shaun Overton

Predict the direction of the next bar.

The QuantBar indicator is based on statistial analysis of the EURUSD H1 charts. The indicator attempts to identify the best buying and selling opportunities in the market through statistical analysis of historical data.

The change between closing prices of two bars are categorized into bins. A bin is a set size that follows the formula:

(Close of the last bar – Close of two bars ago) / Close of the last bar

This gives a percentage reading of how much the price changed in between bars. Essentially, up moves predict the next bar will move down. Down moves predict that the next bar will move up.

The bin size for the EURUSD H1 chart is 0.0010648.

There are 10 total bins. Changes that fall into bins 2, 3, 6 or 7 offer the best historical performance without biasing towards movements in the up or down direction.

Another feature is the SB score, which looks at the relationship between the close, high and low. Prices that close at the bar’s low show an SB score of 0%. Prices that close near a bar’s high show an SB score of 100%. An SB score < 25% indicates a potential buying opportunity. SB scores above 75% favor shorts.

Suggested stop loss settings are 50 pips. Consider using a 100 pip take profit. If neither the stop nor the take profit is hit within one single bar, then exit the trade. Trades should only be held for one single bar.

INPUTS

The following inputs are available in the indicator’s properties window and can be defined by the app user:

  • The total number of bins to use
  • The size of each individual bin
  • Which bins to use for long/buy trades?
  • Max SB score for a long trade
  • Which bins to use for short/sell trades?
  • Min SB score for a short trade
  • Color for drawing bullish candles
  • Color for drawing bearish candles
  • Would you like popup notifications when a QuantBar forms?
  • Would you like email alerts when a QuantBar forms?
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This automated strategy is only compatible with FXCM MetaTrader 4 software. Additionally, an FXCM account is required (including free FXCM demo accounts).

There is no guarantee that the systems, trading techniques, trading methods, indicators will result in profits or not result in losses.

Forex Capital Markets, LLC. (“FXCM LLC”) is an independent legal entity and is not affiliated with Shaun Overton. Shaun Overton is not an employee, agent or partner of FXCM LLC.

*Links to third-party sites are provided for your convenience and for informational purposes only. FXCM bears no liability for the accuracy, content, or any other matter related to the external site or for that of subsequent links, and accepts no liability whatsoever for any loss or damage arising from the use of this or any other content. Such sites are not within our control and may not follow the same privacy, security, or accessibility standards as ours. Please read the linked websites’ terms and conditions.