Harmonic Strength Index
The Harmonic Strength Index (HSI) is the primary indicator for accompanying harmonic pattern identification and it is designed to replace RSI for harmonic traders.
HSI is used to confirm and identify harmonic patterns as well as to time entries within the PRZ. HSI is unique in that it oscillates at a far more active frequency than RSI while still managing to avoid extended stays above overbought/oversold or repeated false signals in close succession. Instead, HSI takes the first few hundred bars of the chart to adapt is oscillation frequency to the behavior of the instrument and then continues to update its response as time passes. The result is informative, decisive signals throughout varying levels of market volatility.
There is a companion indicator called HSI Arrows that can be loaded into the price pane. HSI Arrows will display an up-arrow below each bar where HSI crosses up through the lower threshold and a down-arrow above each bar where HSI crosses down through the upper threshold.
HSI and HSI Arrows
To load the Harmonic Strength Index into a chart:
•Look at the left-hand side of your MT4 program window and you should see the Navigator pane. Use the scrollbar to scroll up/down until you see the HPC folder. Click on the (+) icon to open the HPC folder. You should now see the list of all of the Harmonic Pattern Collection indicators. Note that if the Navigator pane is NOT displayed, just select the View option from the main MT4 menu and then select the Navigator option.
Chart Menu
•Double-click on the hpcHSIIndicator (and/or the hpcHSIArrowsIndicator) and the Custom Indicator dialog will be displayed.
Indicators Dialog
•It will most likely be on the About screen. To access the indicator inputs, just click on the Inputs tab.
•Adjust the parameters as needed and then click on the OK button. The Harmonic Strength Index will now be loaded into your workspace.
See Also:
