Consumer Information : Excessive Zone Filter – Buying and selling Methods – 17 February 2026

1. What Is the Excessive Zone Filter?

Excessive Zone Filter is a sign filtering function that helps keep away from getting into trades when value is on the high or backside of a Donchian value channel.

Easy analogy:

Think about an elevator in a 10-story constructing:

• If the elevator is at flooring 9–10 (close to the highest), you shouldn’t BUY as a result of value has climbed too excessive — the possibility of reversal may be very excessive.
• If the elevator is at flooring 1–2 (close to the underside), you shouldn’t SELL as a result of value has dropped too deep — the possibility of a bounce-back may be very excessive.

This filter routinely checks the place value sits inside the channel and blocks indicators that carry excessive threat on account of value being at an excessive.

2. Why Filter Excessive Zones?

The Downside With out the Filter

When the Excessive Zone Filter is off, the indicator shows all indicators that match the sample (Fakey, PinBar, Inverted Hammer), together with these showing at:

• Channel tops: Worth has been rising constantly — a BUY sign right here dangers “shopping for the highest”
• Channel bottoms: Worth has been falling constantly — a SELL sign right here dangers “promoting the underside”

Advantages of Enabling the Filter

Who Ought to Allow This Filter?

• Reversal merchants — particularly necessary
• Merchants preferring secure entries, prioritizing high quality over amount
• Newbies — helps keep away from the most typical mistake: shopping for tops and promoting bottoms

3. How It Works

Step 1: Decide the Donchian Worth Channel

The system seems again N candles (e.g., 20 or 50 candles) and finds:

• Highest Excessive of these N candles
• Lowest Low of these N candles

These two values type a Donchian channel — representing the latest value vary.

Step 2: Calculate Worth Place (%) Inside the Channel

Place (%) = (Present Worth – Lowest Low) / (Highest Excessive – Lowest Low) × 100

• 0% = value is on the channel backside (lowest)
• 50% = value is on the channel midpoint
• 100% = value is on the channel high (highest)

Step 3: Apply Filtering Guidelines

Visible Illustration

Which means: Solely indicators inside the secure zone (between the 2 thresholds) are displayed. Indicators in excessive zones are routinely blocked.

4. Enter Settings Information

Methods to Open Settings

1. Proper-click the indicator on the chart → choose Properties (or press  Ctrl+I )
2. Change to the Inputs tab
3. Discover the group “=== EXTREME ZONE FILTER ===”

Enter Abstract Desk

(*) Default values differ by indicator — see Part 7 for particulars.

5. Detailed Enter Rationalization

5.1. Excessive Zone Filter (keep away from tops/bottoms)

Operate: Allow or disable the complete excessive zone filter.

• true  = ON — The system checks value place inside the Donchian channel earlier than accepting a sign
• false  = OFF — All indicators are displayed no matter value place

Advice: Allow ( true ) for reside buying and selling. Disable ( false ) just for backtesting or if you wish to see all sample indicators.

5.2. Donchian Interval for channel

Operate: Variety of candles to look again for figuring out the very best/lowest value channel.

Vital word: That is the variety of candles, not days. Donchian Interval = 50 on an H1 chart means 50 H1 candles (about 2 buying and selling days), whereas on a D1 chart it means 50 days.

Suggestions:

• Small TFs (M5, M15): use 20–30
• Medium TFs (H1, H4): use 30–50
• Massive TFs (D1, W1): use 50–100

5.3. Block BUY above channel (%)

Operate: Share threshold — blocks BUY indicators when value is above this degree inside the Donchian channel.

Instance: Set to 70% → If value is at 75% of the channel → BUY is BLOCKED ⛔ → If value is at 65% of the channel → BUY is ACCEPTED ✅

Advice: 65–75% for many markets.

5.4. Block SELL beneath channel (%)

Operate: Share threshold — blocks SELL indicators when value is beneath this degree inside the Donchian channel.

Instance: Set to 30% → If value is at 25% of the channel → SELL is BLOCKED ⛔ → If value is at 40% of the channel → SELL is ACCEPTED ✅

Advice: 25–35% for many markets.

5.5. Timeframe (CURRENT=chart TF)

Operate: Select the timeframe used to calculate the Donchian channel.

When to decide on a hard and fast TF?

• Once you need the intense zone filter to be constant when switching between chart TFs
• Instance: Set TF = H4 → Whether or not the chart exhibits M15 or H1, the filter at all times makes use of the H4 channel (extra secure)

Advice: Maintain  PERIOD_CURRENT  for those who usually commerce on a single TF. Select a bigger TF (e.g., H4 or D1) if you would like a extra secure filter when switching TFs.

6. Studying the Filter Outcomes

Blocked Indicators

When a sign is blocked by the Excessive Zone Filter, it’ll not be displayed on the chart (no arrow, no entry/SL/TP strains).

Word: This filter operates silently — you will not see a “sign blocked” notification. The sign merely doesn’t seem.

Methods to Affirm the Filter Is Working

1. Examine ON/OFF: Flip the filter off ( false ) → depend indicators → Flip it again on ( true ) → depend once more. Fewer indicators = filter is working.

2. Verify sign positions: With the filter on, you may discover BUY indicators not seem close to the channel high and SELL indicators not seem close to the channel backside.

3. MTF Dashboard: On the Dashboard, the overall sign depend can be decrease when the filter is enabled — that is the anticipated conduct (fewer however larger high quality).

Blocked Indicators Marked on Chart

Some blocked indicators should still seem as pale or crossed-out on the chart (relying on model and indicator configuration). These are indicators that have been “sample detected however filtered out” — they’re for reference solely, don’t use them for entries.

7. Tuning by Sample Sort

Every indicator (sample sort) has totally different default values, tuned to match the traits of every sample.

Default Values Comparability

Why Every Sample Is Completely different

Mirage (Fakey) — Average

Fakey is a “false breakout” sample — inherently a robust reversal sign. The filter is ready at a reasonable degree (70/30) as a result of Fakey hardly ever seems at excessive zones (it wants a buying and selling vary to type the lure).

• Donchian Interval = 20: Shorter channel as a result of Fakey works nicely on small–medium TFs
• Disabled by default as a result of Fakey already has a number of built-in filters (High quality, Course, Stoploss Hunt)

PinBar — Strictest

PinBar is a single-candle reversal sample, most weak to “traps” at excessive zones. Due to this fact:

• Enabled by default ( true ) — most necessary among the many 3 patterns
• Block BUY = 65% (stricter): PinBar BUY indicators at excessive ranges typically fail
• Donchian Interval = 50: Longer channel for extra correct excessive zone evaluation

Inverted Hammer — Loosest

Inverted Hammer has distinctive traits: the lengthy higher wick exhibits robust promoting stress that was absorbed. This sample can work nicely even when value has already moved up.

• Block BUY = 80% (loosest): Permits BUY at larger positions as a result of the sample has momentum
• Disabled by default as a result of Inverted Hammer already has its personal affirmation mechanism (affirmation bar)

Tuning Suggestions

8. Actual-World Examples

Instance 1: PinBar BUY Blocked at Channel Prime

State of affairs: XAUUSD H4 chart, Donchian Interval = 50

Gold value rises from 2,300 → 2,380 over 50 H4 candles Donchian Channel: Low = 2,300 | Excessive = 2,380 Bullish PinBar seems at value 2,372 Place inside channel: = (2,372 – 2,300) / (2,380 – 2,300) × 100 = 72 / 80 × 100 = 90% → Block BUY threshold = 65% → 90% > 65% → BUY sign BLOCKED ⛔

End result: The indicator doesn’t show this PinBar BUY sign. In actuality, value subsequently reversed from 2,380 all the way down to 2,340 — a major shedding commerce was prevented.

Instance 2: PinBar SELL Blocked at Channel Backside

State of affairs: EURUSD D1 chart, Donchian Interval = 50

EURUSD drops from 1.1050 → 1.0880 over 50 D1 candles Donchian Channel: Low = 1.0880 | Excessive = 1.1050 Bearish PinBar seems at value 1.0910 Place inside channel: = (1.0910 – 1.0880) / (1.1050 – 1.0880) × 100 = 0.0030 / 0.0170 × 100 = 17.6% → Block SELL threshold = 35% → 17.6% < 35% → SELL sign BLOCKED ⛔

End result: Worth is simply too low — promoting right here means “promoting the underside.” In actuality, EURUSD bounced from 1.0880 as much as 1.0950.

Instance 3: Fakey BUY Accepted in Protected Zone

State of affairs: GBPUSD H1 chart, Donchian Interval = 20

GBPUSD ranges between 1.2650 – 1.2750 (20 H1 candles) Donchian Channel: Low = 1.2650 | Excessive = 1.2750 Bullish Fakey seems at value 1.2690 Place inside channel: = (1.2690 – 1.2650) / (1.2750 – 1.2650) × 100 = 0.0040 / 0.0100 × 100 = 40% → Block BUY threshold = 70% → 40% < 70% → BUY sign ACCEPTED ✅

End result: Worth is within the lower-middle zone of the channel with loads of room to rise. The Fakey BUY is displayed on the chart.

9. Combining with Different Filters

Excessive Zone Filter is one among 7 filters that work in sequence. Processing order:

Sign detected → (1) Spacing → (2) High quality → (3) Excessive Zone → (4) Course → (5) Stoploss Hunt → (6) Sign Zone → (7) Reverse

Relationship with Every Filter

Standard Mixtures

Combo 1 — Most secure (really useful for newcomers):

• High quality Filter:  true , Min High quality: 0.5
• Excessive Zone Filter:  true , 50 interval, 65/35
• Course Filter: enabled with development

Indicators should be prime quality + not in excessive zone + appropriate course = very secure.

Combo 2 — Reversal dealer:

• High quality Filter:  true , Min High quality: 0.4
• Excessive Zone Filter:  true , 30 interval, 70/30
• Stoploss Hunt: enabled

Permits extra reversal indicators, however they have to go the SH filter (avoids value traps).

Combo 3 — Most indicators (backtesting/analysis):

• Disable all filters → View all detected patterns
• Then allow filters one after the other to guage their impression

10. Regularly Requested Questions

Q1: I enabled Excessive Zone Filter however no indicators seem?

Potential causes:

• Thresholds are too strict (BUY Max too low or SELL Min too excessive)
• The market is trending strongly — value stays on the high or backside of the channel
• Donchian Interval is simply too small — the channel is simply too slender

Options:

1. Improve BUY Max to 80% and reduce SELL Min to twenty%
2. Improve Donchian Interval to widen the channel
3. If nonetheless no indicators → quickly disable the filter and consider visually

Q2: Ought to BUY Max and SELL Min add as much as 100%?

Not required. These two values work independently:

• BUY Max = 70% means “block BUY when value is above 70% of the channel”
• SELL Min = 30% means “block SELL when value is beneath 30% of the channel”

You possibly can set BUY Max = 75% and SELL Min = 40% (whole = 115%). This creates:

• Protected BUY zone: 0–75%
• Protected SELL zone: 40–100%
• Zone 40–75%: each BUY and SELL are accepted

Q3: What ought to the Donchian Interval be?

Rule of thumb: Use roughly 20–50 candles for the TF you commerce on.

• If value is very unstable → enhance interval to 50–100
• If value is ranging quietly → lower interval to fifteen–25

This fall: Does this filter have an effect on the MTF Dashboard?

Sure. The filter applies to each native chart indicators and MTF-scanned indicators. When the filter is enabled, the Dashboard will present fewer indicators — that is the anticipated conduct.

Q5: Which TF ought to I exploit for the filter?

• PERIOD_CURRENT (default): Appropriate for many instances — the filter adjusts with the chart
• Mounted TF (e.g., H4 or D1): Once you need the filter based mostly on a much bigger image, whatever the present chart TF

Q6: Does the filter work with pairs apart from XAUUSD?

Sure. The filter is predicated on proportion place inside the value channel, unbiased of the instrument sort or value unit. Whether or not XAUUSD (~2,300), EURUSD (~1.09), or USDJPY (~150), the filter works accurately.

Q7: Is the filter helpful throughout sideways (ranging) markets?

Very helpful. In sideways markets:

• The Donchian channel is slender → excessive zones are extra clearly outlined
• BUY indicators close to the vary high and SELL indicators close to the vary backside can be blocked
• Solely indicators close to the vary center stay — the place breakout or bounce chance is highest

11. Professional Suggestions for Efficient Use

Tip 1: Begin Strict, Loosen Steadily

When first utilizing the filter, begin with strict settings (BUY Max = 60%, SELL Min = 40%) and observe for 1–2 weeks. If too few indicators seem, widen by 5% at a time till you discover the proper steadiness.

Tip 2: Match Donchian Interval to Your Buying and selling TF

Tip 3: Mix EZ + Course Filter = “Golden Zone”

When each Excessive Zone Filter and Course Filter are enabled:

• EZ removes indicators at excessive zones (too excessive/low)
• Course removes indicators towards the development

End result: Solely indicators which might be in the proper course + at an affordable value degree stay — that is the “golden zone” with the very best win fee.

Tip 4: Use a Greater TF for the Filter When Buying and selling Small TFs

In case you commerce on M15 or H1 however wish to keep away from entries towards the bigger development:

1. Set Timeframe = H4 or D1
2. Worth can be evaluated inside the Donchian channel of the upper TF
3. Instance: Even when the M15 chart exhibits a PinBar BUY, if value is at 85% of the D1 channel → the sign is blocked as a result of on the massive image, value is already too excessive

Tip 5: Backtest Earlier than Going Stay

1. Open a chart, disable all filters → report whole indicators and win fee
2. Allow Excessive Zone Filter → evaluate the outcomes
3. Experiment with totally different Donchian durations and threshold values
4. Select the configuration with the most effective win fee on historic knowledge

Fast Reference

Ultimate tip: The Excessive Zone Filter is sort of a bouncer on the door — not there to dam everybody, however to ensure solely the “worthy” indicators get in. Fewer, however higher.