What are repainting indicators all you need to know?

Repainting Indicators

A repainting indicator is an indicator that changes its values as new data arrives. Unlike non repainting indicator, when the historical values of the repainting indicator change, they can neither be relied on for backtesting nor for auto-trading since they are not point in time accurate. 👇

▶️ Re-paint the current candle

Nearly all technical indicators update the candle value with every tick on their current candle and this is normal. The Close price of the current candle will change for as long as it is forming. Most indicators are based on their Close prices, due to which the value at the current bar may change and this phenomenon is not called as Repainting.

▶️ Repainting past candles

Some indicators change their signals on past candles because they are viewing the future candles to create the past signals. These indicators change history signals as the future trend changes. These are repainting indicators which cannot be relied upon by traders for live trading.

▶️ Repainting multi-timeframe indicators (MTF)

Multi-timeframe (MTF), indicators are a common type of repainting issue that is often overlooked. MTF indicators are those indicators that use data from other timeframes, which are usually higher timeframe. MTF indicators with repainting effects can make them look quite appealing by fetching data from higher timeframes and displaying its historical values as if they were the Open/High/Low/Close value of the candle in the current timeframe. Multi-timeframe indicator trading is a risky business. You should be aware of repainting, and not judge their efficiency by historical charts.

❓Why do indicators repaint their markings?

Indicator selling companies may intentionally create repainting indicators to fool potential users. This is done in order to make signals seem more precise and accurate. These indicators are normally sold out even with a fake label of non repainting.

A repainting indicator can look more attractive than a non repainting indicator, as its historical entry and exit signals can be precisely timed. 🙌

❓Are all indicators repainting?

However, not all indicators need to be repainted. The majority of technical indicators used in FX trading are not-repainting, they can be found at https://mql5.com. Normal (non-repainting indicators) don’t alter their signal value for the candle once it has completed. Non-repainting indicators don’t look to the future to provide a signal for the current candle. They are calculated solely using the current and past candles. They do not change its value if new data arrives.

❓Are Repainting indicators useful?

Some repainting indicators can be used as a good source of confirming a trend but they can never be solely used as a primary source of signal. They must have to be combined with other non repainting indicators. The indicator’s repainting nature should be disclosed by the developer otherwise, It is considered cheating and even fraud by Forex traders.

❓How to detect repainting nature?

There are two ways to detect if an indicator is repainting 📈

  1. Install the indicator on a back tester and closely monitor the signal positions.
  2. Install the indicator on a live chart and closely monitor the signal positions.

The first method is more useful and quick, because we can control back tester (strategy tester) speed and run it for infinite time on majority pairs.

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What are repainting indicators all you need to know?

Repainting Indicators

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