Top Bottom
It’s Not What You Think
From the title of this indicator, you may have formulated an idea in your head as to what the function of this week’s tool might do. And, we’d have to say that it has nothing to do with that. And that’s totally fine. After all, remember “Bootylicious.1-2-3.ex4”? If you’re scratching your head, it’s just an inside joke between us and a bunch of people out there in trading land. You’re not missing anything super important.
Tippy Top
Alright, where were we? Oh yeah, our newest indicator to the collection is called the Top Bottom. The original code was written for TradingView some time in the past and was recoded for MT4 in 2023. We found multiple indicators with the same, or similar name during our research; however, they were not the same as what we’re profiling.
Bones And Such
What this indicator does is search for a specific occurrence where the current high price is larger than the last high price and is also larger than the high price a specified number of periods in the past. The same goes for the low. But, initially, we picked up some repainting errors and as we all know that ain’t good.
Sweet
But, we really liked this below chart, two-lines cross indicator. It looked really cool, was easy to test, simple to use, and thus…we moped over our collective beers. So, we checked with our top-notch coder Niels, and he was able to wave the magic coding wand and fixed it. That being the case, the fixed version is what we’ve got in the library…naturally!
Do You Even Aroon?
Remember the Aroon indicator? VP talked about it, we blogged about it…we even made a technical analysis video on it not too long ago, because many of you requested it. While this indicator does not function in the same manner, it does look a bit similar…like there might have been a common relative somewhere. More kissing cousins, perhaps?
What’s In The Box
We’ll take a look at the default settings, which we reset to bright, friendly colors in the code, so you won’t have to. What you see is…what’s in the box.
Told Ya So
Below is a screenshot with both the Top Bottom and Aroon indicators so you can see what we mean by them being related to each other, visually at least. The Aroon is on the bottom, just in case you were befuddled. We did change the settings in the Aroon to match ours, for the sake of consistency.
Settings
The original version had two settings, but we found (or rather Niels) discovered that there were inconsistencies in the results, so that was an additional thing he corrected. Now, the indicator plots correctly, doesn’t repaint, and doesn’t talk back. It now only has one setting, and we love that.
Bottom Period: This lone setting controls the overall calculations for the indicator. The default setting is 14.
Follow the Circles
It was quite apparent…the signals that is. We noted where the two lines cross (the signal) and then slapped on a color coded circle over price to show you where it lined up. One of the things we immediately noticed were less false signals as we’d had in past indicator profiles. A sign of a good C2 indicator. Let’s go see how it did.
Fer Sure!
We’ll Take It
Alrighty then. Not the best, but we get the market gives us. The Euro was hovering somewhere in the (lowish) average range, and the SPX500 was a bit low. Nothing new here. BTC was a little softer than usual, but still provided a good testing results. XAU, the current darling, did nicely, as we expected. Remember, these are not the best settings and of course, there are a bunch of other pairs out there we don’t test it on…that’s your job. We just clear the path to help you see it, but you have to walk it. After all, what fun would it be if we carried you?
Resources
You can download the improved, error free version (the only one out there) from the on-line library for free. When you’re ready to get it, click HERE.. Also, be sure to subscribe to the Stonehill Forex YouTube channel for the technical analysis videos. Sign up for the Advanced NNFX Course HERE.
Our only goal is to make you a better trader.
*Our published testing results are based on money management strategies employed by the NNFX system and depend on varying external factors, which may be different between individuals and their specific broker conditions. No guarantee, trading recommendations, or other market suggestions are implied. Your results and subsequent trading activities are solely your own responsibility.
BTW — Any information communicated by Stonehill Forex Limited is solely for educational purposes. The information contained within the courses and on the website neither constitutes investment advice nor a general recommendation on investments. It is not intended to be and should not be interpreted as investment advice or a general recommendation on investment. Any person who places trades, orders or makes other types of trades and investments etc. is responsible for their own investment decisions and does so at their own risk. It is recommended that any person taking investment decisions consults with an independent financial advisor. Stonehill Forex Limited training courses and blogs are for educational purposes only, not a financial advisory service, and does not give financial advice or make general recommendations on investment.