MetaTrader 4 MT4 Indicators Bounce Strength Indicator – indicator MetaTrader 4

Bounce Strength Indicator – indicator MetaTrader 4

Bounce Strength Indicator (BSI) shows the strength of bounce according to the Wyckoff method.

After a move higher, the stock moves into a flat consolidation with a clear support level. Chartists should watch action closely as prices approach support. A high volume surge off support, also known as a springboard, is the first sign that the bigger uptrend is set to continue and a consolidation breakout is imminent.

How to measure the strength of bounce?

Strength of bounce up from lows:

(close – low ) * ( ceiling – low ) / range spread

Strength of bounce down from highs:

(high – close) * ( high – floor ) / range spread

My measuring method means the following:

  • The greater the rise from lower position, the stronger the buying pressure.
  • The greater the fall from higher position, the stronger the selling pressure.

This idea is simple, but it can become a leading indicator of the range breakout. It will work only within range.

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Display:
  • plus histogram — shows the bounce strength up from lows;
  • minus histogram — shows the bounce strength down from highs;
  • middle line — average of difference between plus/minus.

Bounce Strength Indicator default settings

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