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What are ‘MaxBarsBack’ and how do they work with indicators and trading strategies?

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  • What are ‘MaxBarsBack’ and how do they work with indicators and trading strategies?

    What are ‘MaxBarsBack’ in MultiCharts .NET?

    An indicator or strategy can refer to values of previous bars so that these can be used in the evaluation of the current bar. But when a value of N bars ago is referenced in an indicator or strategy, the script can only start calculating at the N + 1 bar since it needs the other previous bars to base its calculations on.



    For example, a moving average with a length of 20 periods begins plotting its line for the first time at the 21st bar of the chart, since it needs the prior 20 bars for calculating the value for the current bar (bar number 21).

    This number of previous bars that must be available for a study in order to perform its calculations are called the maximum number of bars a study will reference, abbreviated to MaxBarsBack (MultiCharts, n.d.; MultiCharts Wiki, 2012).

    This MaxBarsBack setting ensures that the strategy or indicator has enough price data available to perform all of its calculations. So, if a moving average is set to a length of 20, the MaxBarsBack setting will need to be at least 20 to ensure that the moving average can be calculated.

    The MaxBarsBack setting is also the minimum amount of bars after which an indicator or strategy will perform its calculations. For example, if you have a 20 period moving average with a MaxBarsBack setting of 50, it will start plotting its line at bar 51, even though it will not need 50 price bars to calculate a 20 period moving average.


    Read more - What are ‘MaxBarsBack’ and how do they work with indicators and trading strategies?

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