Have you ever heard of a time bias indicator? Would you like to know how an instrument behaves at a given time? Then read this tutorial.
Sometimes a financial instrument may start to move in a certain way based on the time.
We have created an indicator that performs these statistical studies and reports them on the graph.
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Our algorithm performs various calculations. Generally, for hourly Bias, we consider the last 30-60 days.
The algorithm uses the percentual variation of the candles with a normalization performed by atr.
First of all, check how many times the candles is bullish or bearish and set the color of the histogram.
You can find many free indicators for TradeStation, MultiCharts and MetaTrader here: Indicators
When the color of the histogram’s column is more pronounced, it means that the event has occurred often.
Then the indicator calculates how many points the instrument moves at that time.
A longer bar, therefore, means a stronger movement.
You may find a positive bar with a negative color. That type of signal is interpreted as neutral.
The goal is to discover a Green or Red Area. You can use this filter only if there are many columns in the same direction.
This filter can be inserted into any trading system.
Checking if there is a bias is very important, stop the trades when there is a strong and contrary bias can significantly improve a strategy