The Center of gravity indicator for metatrader 4 is actually a specific indicator.
Center Of Gravity Indicator For Metatrader 4
We would discuss about how to utilize the center of gravity indicator in this article.This information will be quite useful for all the traders.
How To Utilize The Center Of Gravity Indicator For Metatrader 4
The center of gravity indicator has available 5 lines:
1.The first and the most important line is the blue line which is known as the center of gravity line.
2.After that there are the green and light brown lines high up along with beneath the blue line.
What is the work of the Center of Gravity Indicator?
whenever the price proceeds on the outermost extremes, it might at a certain point and start moving back to the center of gravity line.
The outermost extremes of prices are considered by the green and brown lines on the one and the other sides.
Accordingly, on condition that you view the price heading up the green and brown lines and on condition that the price intersect them, you must be focus to sell, the reason is that the price is supposed to proceed downwards from the higher position to the center of gravity blue line.
On condition that the price is moving downwards to the green and brown lines and on condition that it meet them, you must be focus to buy, the reason is that you would consider price to proceed back up the center of gravity line.
The formula of the Center Of Gravity Indicator For Metatrader 4
Now, we will move to the formula of the center of gravity for Metatrader 4 indicator.The calculation of the Center of Gravity indicator is as follows:
COG = SUM of closing prices Pn x (n+1) / Sum of closing prices Pn