For those traders who would like as little to do with mathematical terms and operations as possible, we have developed a handful of new indicators that simplify some basic relational operations used in trading. These new indicators are called Threshold Indicators and serve as a substitute to some of the Relational Indicators, such as A > B or A < B, commonly used in trading strategies.
After downloading and installing these custom indicators, you will note that four different indicators are contained in a new category (Threshold Indicators) under the following names: OverThreshold, UnderThreshold, BreakoutOver, and BreakoutUnder. Each of the four indicators contains two inputs, an indicator and a threshold, and is described as follows:
OverThreshold – If the indicator is above the specified threshold, then OverThreshold is true (equals 1) otherwise it is false (equals 0).
UnderThreshold – If the indicator is below the specified threshold, then UnderThreshold is true (equals 1) otherwise it is false (equals 0).
BreakoutOver – If the indicator is above the specified threshold and the lag of the indicator one period ago is less then or equal to the threshold, then BreakoutOver is true (equals 1) otherwise it is false (equals 0).
BreakoutUnder – If the indicator is below the specified threshold and the lag of the indicator one period ago is greater than or equal to the threshold, then BreakoutUnder is true (equals 1) otherwise it is false (equals 0).
Both the indicator and the threshold can be any indicator from the NeuroShell Trader’s Indicator Wizard or a custom indicator (the threshold is not limited to a numeric value).
The defaults for each of the inputs to the Threshold Indicators should be adjusted to suit your trading goals, e.g., the indicator could be set to the RSI and the threshold to 70 in the OverThreshold indicating an uptrending market (used an entry condition in the Trading Strategy Wizard in the case of this example).
To install the Threshold Indicators:
1.Download the self-extracting file.
2.After downloading has completed, execute the Threshold Indicators file by double-clicking it.
3.Check to be sure the path in the ‘Unzip to folder’ section of the dialogue box points to the NeuroShell Trader/Template directory. Make any necessary changes to the file path before continuing.
4.Click ‘Unzip’ and the Threshold Indicators will be installed and a new category, Threshold, will appear in the Indicator