Introduction to the Chartmill Value Indicator
The Chartmill Value indicator is a custom forex technical analysis tool, that was developed by Dirk Vandycke and first introduced in the Technical Analysis of Stocks & Commodities magazine in January, 2013.
The Chartmill Value indicator portrays a standard deviation from the moving average indicator and has the potential of being added to any price series over any time frame.
When we see the price strongly appreciating or depreciating and candlesticks pushing definitely in a specific direction, these candlestick bars will move away from the moving average in a result. Subsequently, the moving average will begin to grow.
The distance between prices and the moving average will start to get smaller as prices begin to flatten out or consolidate, while the moving average will keep moving delayed over a while.
The indicator is displayed in a separate window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Period – defines the period for calculation;
Method – defines the moving average calculation method;
Calculation mode – defines the calculation for the deviation mode;
ATR – defines the calculation for deviation mode by ATR;
Sqrt ATR – defines the calculation for deviation mode by the square root of ATR.
The formula for the Chartmill Value indicator:
The calculations of the Chartmill Value indicator are based on the following formula:
CVI = (Close-VC) / ATR * Mode
VC = MedianMA(Period, Method)
ATR – Average True Range(Period)
If Calculation mode = ATR:
Mode = Period
Mode = SQRT(Period)
How to set up the Chartmill Value indicator in MT5?
Copy and paste the CVI.mq5 or CVI.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Chartmill Value indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Chartmill Value Indicator Free Download
To download the Chartmill Value Indicator for Metatrader 5 (MT5) for free just click the button below: