Introduction to the Glitch Index Indicator
The Glitch Index indicator is a custom forex histogram indicator that shows the index of the price deviation from its average value.
That gauge was first introduced in the February edition of Active Trader Magazine in the year 2004. Since then, it has continued to gain popularity and support within the MT5 traders community.
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.
MA Period – defines the moving average period
MA Method – defines the moving average calculation method
ROC Period – defines the period of calculating the price rate of change (ROC)
Applied Price – defines the price that is used for calculations
The formula for the Glitch Index indicator:
The calculations of the Glitch Index indicator are based on the following formula:
Glitch Index[i] = 100 * diff[i] / Price[i]
diff[i] = Applied price[i] – smamult[i]
smamult[i] = MA(i)*((MA(i) – MA(i-ROC Period)) * 0.1+1)
MA – moving average with the calculation period of MA Period and the calculation method of MA method.
How to use the Glitch Index:
The histogram bars of the Glitch Index indicator fluctuates above and below the 0 level. Positive values indicate bullish momentum, and darker green color reflects a stronger signal. Similarly, negative values indicate bearish momentum, and darker red color reflects a stronger signal.
How to set up the Glitch Index indicator in MT5?
Copy and paste the Glitch_Index.mq5 or Glitch_Index.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 Glitch Index 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.
Glitch Index Indicator Free Download
To download the Glitch Index Indicator for Metatrader 5 (MT5) for free just click the button below: