Ozymandias indicator
Almost every trader who approaches their trading more or less professionally knows one
unbreakable rule: let profits run and cut losses quickly.
In fact, while the reluctance to use stop orders and nip unprofitable positions in the bud is more like stupidity, implementing the rule of letting profits grow is much more difficult.
Of course, if you take this rule literally, then there is nothing easier than opening a position and waiting a long time and relentlessly for the movement to work itself out.
However, we all know very well that the market never moves in a straight line and creates enormous market noise.
The Ozymandias indicator is a powerful tool that allows you to view the forex market from a completely different perspective, as its primary purpose is to filter out market noise. The indicator itself is designed to clearly identify the trend and, consequently, the direction of a trade.
However, beyond its simple function of filtering out market noise, Ozymandias can easily be used as a signal indicator or a standalone trading strategy .
Installing the script.
The Ozymandias indicator is a tool designed exclusively for the MetaTrader4 trading platform. To use it, you need to install it. To do this, download the indicator file at the end of this article. Next, open the MT4 data directory where all indicators are located.
To open the data directory, simply go to the File menu in the running platform and select the appropriate menu item. In the directory that appears, find a folder called "indicators" and drop the file you downloaded a minute ago into it. After installation, the terminal must see the file.
To do this, simply restart the trading platform or update the indicator in the "Navigator" section of the terminal. After the update, the indicator will appear in the "Custom" section, so simply drag it onto the chart. The resulting chart will look like this:
Settings and operating principle
The image above shows the Ozymandias indicator consisting of three lines, with the center line changing color. Many may recognize this tool as Bollinger Bands , but the operating principles of these indicators are fundamentally different.
The central line displays the trend direction: if it's green, the market is trending upward, and if it's red, it's trending downward. Due to price smoothing, the tool is noticeably lagging, as is the case with any trend indicator. The two outer blue lines indicate overbought and oversold zones.
Ozymandias's settings only include one parameter: Amplitude. This parameter determines how many bars or candles are taken into account. You can specify a value of up to four.
In terms of its operating principles, Ozymandias finds highs and lows within a specified bar range, and when these are broken, a trend is established. The extreme lines are constructed using the ATR indicator and create a range within which the main price movement occurs.
Ozymandias Signals
There are several ways to use the indicator in trading. Naturally, the most common method is blindly following the trend. This method essentially opens a position when the line changes color. So, if the center line changes to red, sell; if it changes to blue, buy. An example is below:
The second less popular but more effective way to use the indicator is trading from overbought and oversold in the direction of the main global trend.
So, to enter a buy position, Ozymandias must set the following conditions:
1) The central line is blue.
2) The price touched the lower border of the indicator (oversold zone).
Example:
To enter a sell position, Ozymandias must set the following conditions:
1) The central line is red.
2) The price touched the upper border of the indicator (overbought zone).
Example:
In conclusion, I'd like to note that Ozymandias is a versatile technical analysis tool that can even function as a standalone trading system. The only drawback, noticeable to the naked eye, is the indicator's lag.
However, this drawback is inherent to all trend instruments, the main task of which is to display the current trend without market noise.
