Candles Indicator

Candles Indicator is a VertexFX VTL Indicator that works with 3 different Indicators:

1. Relative Strength Index (RSI):- A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.

It is calculated using the following formula:
RSI = 100 – 100/ (1 + RS*)
*Where RS = Average of x days’ up closes / Average of x days’ down closes.

As you see on the attached image, the RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pull-back.

Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued. This will give the change in price with the relative prices of the instrument in previous timings the overbought will give a sell signal and the oversold will give a buy signal

2. Cumulative Channel Index (CCI):- Cumulative Channel Index is relative to the price changes to its average.

CCI is relatively high when prices are far above their average. CCI is relatively low when prices are far below their average. In this manner, CCI can be used to identify overbought and oversold levels, and by that you can get the corresponding sell and buy signals of a specific instrument

3. Price ROC: – A technical indicator that measures the percentage change between the most recent price and the price of “n” periods in the past.

It is calculated by using the following formula: 
(Closing Price Today – Closing Price “n” Periods Ago) / Closing Price “n” Periods Ago

The ROC increases along with the prices up trending and it decreases when the prices go down. High prices changing give the according significant ROC changing. This will give the buy signal in up-trending and sell signal in down trending.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.