Meet the Creator:
Fedor Igumnov
The asymmetry indicator is a unique tool that traders can leverage to gain insights into market trends. In simple terms, asymmetry measures the ratio of the third central moment to the cube of the standard deviation.
So, what does that mean for you as a trader? Essentially, the third central moment reflects the average deviation of data points from the sample variance. Since standard deviations can be quite small—especially when dealing with fractional quotes—we use the RSI (Relative Strength Index) to calculate asymmetry. This gives us a trend indicator that can be quite telling.
When the asymmetry values are high, it often signals the beginning of a new trend. Conversely, low values suggest that the market is stuck in a flat trend, which can mean it's time to sit on your hands or look for other opportunities.
This indicator was first developed in MQL4 and made its debut on Code Base at mql4.com on May 4, 2011.
Fig.1 The asymmetry indicator
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