Without exaggeration, the indicator with a beautiful name Ozymandias can be called one of the best developments for financial markets, since it solves two key tasks at once - it recognizes trends and filters random fluctuations that often cause unprofitable trades.
On the price chart, the Ozymandias indicator is presented as a channel. In the center, its main line is built, which changes color depending on the situation, and additional borders are marked above and below at a certain interval.
In the settings, the user is allowed to adjust only one parameter Amplitude, through which the number of analyzed candles is set. In other words, it performs the same function as the Period parameter in the Moving Average.
It is interesting here that the formula by which the indicator values are calculated does not contain anything new, namely, it takes into account the reading of the moving average, ATR, and local high and low of the candles.
In general, the Ozymandias indicator once again proves that the most effective instruments have been known for a long time, and the trader's work comes down to solving one single problem - the selection of optimal parameters (periods) for each timeframe and asset.
It is not difficult to determine the current market trend using this tool. The trend is determined by the color of the center line of the channel.
If it is colored blue, we can speak of an uptrend.
Red, on the other hand, indicates the development of a downward trend.
In principle, it is nothing new here, but the Ozymandias indicator has several advantages:
First, it is not redrawn in history;
secondly, its markup is noise-resistant, i.e. does not generate false signals at the slightest insignificant market noise;
and thirdly, this tool is easy to embed into the code of advisors.
Standard indicators, such as Moving Average or CCI, in similar conditions would have given a false signal long ago with all the ensuing consequences.
The Ozymandias indicator is a good trending tool, at least it recognizes trends better than the usual standard analogs. In any case, this algorithm only recognizes the general trend, and traders should look for specific entry points to a position using other tools.
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.