#### Risk Disclosure

Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View full risk disclosure.

## Indicator Threshold Solver The Indicator Threshold solver compares an indicator against 4 possible threshold values. When the indicator value falls between thresholds a favorable value is generated calculated by linearly interpolated between the corresponding Output values.

### Parameters

#### Thresholds

Please note, Threshold values must be entered in descending order. (I.E#1 A=5, B=4, C=3, D=2, E=1 I.E#2 A=2, B=1, C=0, D= -1, E= -2)

#### Short Output

Sets the solver’s Short output values as described in Long Output above.

### Video Tutorial

This video is from our weekly Workshop on July 10th, 2015.
For more benefit please watch in full screen mode, as this video is recorded in HD.

### Examples

#### Example 1A: The Basics

This demonstrates the basic function of Indicator Threshold solver using the Stochastic D.    This Solver will be used to detect over-bought, above 80, and over-sold, below 20, conditions of the Stochastic D.    In this first example the 50 line of the Stochastic will be used to switch the output between Long and Short. • Add the Indicator Threshold solver
• Set Indicator to Stochastic D
• Set Thresholds values as shown
• Set Long Output > Greater Than 80 to 1
• Set Short Output > Less Than 20 to 1

The chart below shows a Long output when the Stochastic D is above the 50 line, and a Short output when it is below the 50 line. #### Example 1B: The Basics of Going Digital

This demonstrates the basic function of Indicator Threshold solver using the Stochastic D.    This time the Solver will be set to give a digital style output. • Add the Indicator Threshold solver
• Set Indicator to Stochastic D
• Set Thresholds values as shown
• Set Long Output > Greater Than 80 to 1
• Set Short Output > Less Than 20 to 1

Notice that At B & At C are set to 0, and thus no output values between 20 to 80.    The chart below only shows values above 80 and below 20. #### Example 1C: The Basics of a Smooth Transition

This demonstrates the basic function of Indicator Threshold solver using the Stochastic D.  In this example the Solver’s output will transition between outputs always totaling 1.  As the Long output increases the Short output decreases, and vise versa. • Add the Indicator Threshold solver
• Set Indicator to Stochastic D
• Set Thresholds values as shown
• Set Long Output > Greater Than 80 & At 80 to 1
• Set Short Output > At 20 & Less Than 20 to 1

The chart below shows a Long output when the Stochastic D is above 20, and a Short output when it is below 80. #### Example 2A: A Basic MACD Filter

This demonstrates the basic function of Indicator Threshold solver using the MACD line.  This Solver will be used to detect if the MACD is above the zero line for a Long(buy) filter, or below the zero line for a Short(sell) filter.  The zero line threshold of the MACD will be used to switch the output between Long and Short. • Add the Indicator Threshold solver
• Set Indicator to the MACD
• Leave the Thresholds values at zero
• Set Long Output > Greater Than A to 1
• Set Short Output > Less Than E to 1

The chart below shows a Long output when the MACD is above zero, and a Short output when it is below zero. 