Indicator Stability in MetaTrader 4
This video demonstrates the instability of the MetaTrader Forex indicators that are based on the Close price. The Close price of the latest bar is constantly changing, inducing the change of the indicator’s curve. The example demonstration is given for the simple and exponential moving averages. The author of the video proposes a stable Open price basement for the indicators, as the Open price is constant for each bar. He also offers entering the positions using the more stable Open price as the base for the indicators, while the exit (for profit or for minimal loss) is better to be done with the more rapid but unstable Close price base. I, personally, can suggest that you can just ignore the indicators’ readings on the last unfinished bar when you trade. In your custom expert advisor you can also make it react only on the second last bar reading to minimize the effect of the indicator instability shown in this Forex video.
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