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It’s absolutely distressing. On the one side I can understand your decision. But on the other it’s the nature of forex forums. Thus, it wasn’t unexpectable. Maybe you rethink your decision. If not – I wish you a great time.
Although @gg53 won’t read our posts anymore and won’t give us any guidance, I’d like to continue the discussion gg53 started and request for further contributers.
The last open question was “How to identify trend”. As @simplex asked me to explain my favorite method in detail, I will do now. As some of you may know, I posted in another place on the use of prize action of single candles. The main idea was to just identify possible up/down moves in the subsequent bar from candlesticks alone. The method I use is adopted from the idea of candlestick trading although I don’t use particular candlestick patterns. Although I wouldn’t trust this prize action alone, it can be a good indicator of trend direction.
If you once have studied the ideas of candlestick trading, you’ll have recognized that a continuation of prize movement to the up side is in general more likely the closer the close of previous candle it to the its high. Same is true for moves to the down side. Thus, we only have to evaluate the relative position of close within the range (high – low) of a candle. And this is done by applying the simple formula
sentiment = 2*close – high – low
or
sentiment = (2*close – high – low)/(high-low)
if you prefer a normalization such that values lie within the interval [-1,1].
As a single candle hasn’t much explanatory power, I used the sum of values calculated above for the last 10 bars. To take into account that more recent bars’s action may have more effect on subsequent bars than older bars, I weighted this sum by multiplying the most recent sentiment by 10, the sentiment befor it by 9, … and the 10th sentiment by 1. Afterwards the whole sum has been divided by 1+2+3+4+5+6+7+8+9+10 = 56. Whenever the histogram bars in attached screeshot are below zero, the market sentiment is short. When they are above zero we can look for long entries to enter a position.
Peaks & Troughs indicator is purely price range based.
The ForexGT_VolumeOsc is just to pinpoint (when extended beyond the 80% range) the exact bar in that area for entry.
Its Volume is plus or minus according to price median movement (up or down from previous).
It is based on the relation of that Volume meaningfull average against actual Volume.
Haven’t seen a Peak & Trough similiar indicator post yet (pics @post #9495 & #9508).
G.
Hi @gg53,
when you say “Volume meanungfull average” i undertand that this average is in database. Otherwise, if the average is dynamic, the process will be relative.
It is correct?
i want to understand this well for go to desk!!
Thank you very much
Hi @gg53, when you say “Volume meanungfull average” i undertand that this average is in database. Otherwise, if the average is dynamic, the process will be relative. It is correct? i want to understand this well for go to desk!! Thank you very much
No, it’s not in the database.
“Meaningfull average” is being either adaptive average or relative to its TF.
Using fixed “10” as an average (just an example) is not meaningfull if you are using M5 or M15. What is meaningfull about 50 minutes or 150 minutes? nada…
If you think that 1 hour is meaningfull (just an example) then you should use 12 for M5 and 4 for M15 TF’s.
That can be coded without any database, or look for an adaptive kind of MA.
G.
Off topic:
ECB announcement today.
ECB will probably ease policy (QE) which will send EUR down.
The question is not IF but HOW. Draghi is known for agressive moves, but he’s not alone…
On top of that we got the Unemployment Claims (USD) roughly at the same time.
So watch out and be prepared…
G.
Just for clarification, G. Neither swing rule nor volume oscillator are involved in finding peak/trough and/or trend functions?
Just for clarification, G. Neither swing rule nor volume oscillator are involved in finding peak/trough and/or trend functions?
Wrong.
Swing rules are for identifying Peaks & Troughs (colored bars on chart) in my posts.
Volume Oscillator is for pinpoint the recommended bar for entry in the Peak or Trough area.
Trend rules not yet explained or defined.
G.
Gr8! Hmm … any recommendations where to start. You mentioned that it should by done using volume, prize, multiple time frames and multiple currency pairs.
That relates to TOTAL trading strategy.
1. Selecting the possible (higher probability) currency pair to trade: should be based on Currency-Strength indicator, preferably a scanner based on it.
2. Filtering suggested pairs by Trend strength.
3. Once currency pair is selected, find the retracement (“buy cheap…” – Peak or Trough) as entry.
4. Higher TF’s are the leading trend, entry TF should be opposite (retracement).
5. SL, TP & MM will be separate functions, which will be auto-fitted to currencies characteristics.
6. Each entry should be pending, i.e. either Buy/Sell Stop or Limit. Reason: let the market fullfill your expected direction/expectation. Never enter @market.
G.
I made some changes to the Volume Oscillator:
Instead of contributing the whole “Volume” to up or down bar:
I’m only contributing partial Volume according to the ratio of (Close-Open) / (High-Low).
G.
Think you’ll underestimate up volume in up trend and down volume in down trend as the wicks are built by both, up and down volume (cf. code here).
Think you’ll underestimate up volume in up trend and down volume in down trend as the wicks are built by both, up and down volume (cf. code here).
I’ll test it with history and decide which way is better.
The purpose is to eliminate further move up/down when we encounter Doji’s (or almost Doji’s). Doji’s usually signals turning points, and have almost “0” price movement.
Considering them with high volume will move the indicator at least one bar further up/down, causing it to “lag” a bit.
G.
Hi all,
I see great post. I was in a tryp but now i am going to read all.
Thank you very much @Anti for thread of R.
I want to ask question to @Anti and @gg53 about green and brown bars because the logic i dont understand very well. When you said:
highest High = Previous Bar HighestHigh…..
is the highest high in the previous “x” bars? because highest high and lowest high in previous bar not possible, correct??
Thank you very much in advance!!
As far as I understood it, it’s based on highest high of previous
xbars. But you’re right – especially under extreme market conditions one bar can create highest high and lowest low. As I haven’t further investigated this, I don’t know how to handle those candles …As far as I understood it, it’s based on highest high of previous
xbars. But you’re right – especially under extreme market conditions one bar can create highest high and lowest low. As I haven’t further investigated this, I don’t know how to handle those candles …You’re right. We don’t use this system prior to announcements, and that’s when those things happening.
In general, we stop trading at least 30 min. before announcement, and switch to “News Trading” Tactic, or wait at least 30 min. after that event.
G.
Thank you for reply @gg53 and @Anti,
then, only conditions in “x” previous bars about higher and lower values of price.
then the logic would be for down swing:
if highest value of (high) “x” bars is higher than current high value && lowest values of previous (low) “x” bars is higher than current low value then we are in down swing.
It is correct this logic?
Thank you for reply @gg53 and @Anti, then, only conditions in “x” previous bars about higher and lower values of price. then the logic would be for down swing: if highest value of (high) “x” bars is higher than current high value && lowest values of previous (low) “x” bars is higher than current low value then we are in down swing. It is correct this logic?
See post #9553.
G.
Hi G,
The PEAK/TROUGH is NOT the END swing point, But some BARS near the swing point ? And the Oscillator defines the exact entry point based on the TREND and Peak/Trough. Do i understand it right ?
Thanks
Edit: sorry i could not active in these last 2 days .. my eyes were very pain. Doctor said that it is not because of improper of my eyeglass lenses, but some thing like inflammation of the optic nerve
So, i must take a rest 5 – 10 minutes, after every 1 hour in front of computer ….
Hi G, The PEAK/TROUGH is NOT the END swing point, But some BARS near the swing point ? And the Oscillator defines the exact entry point based on the TREND and Peak/Trough. Do i understand it right ? Thanks Edit: sorry i could not active in these last 2 days .. my eyes were very pain. Doctor said that it is not because of improper of my eyeglass lenses, but some thing like inflammation of the optic nerve
So, i must take a rest 5 – 10 minutes, after every 1 hour in front of computer. Peaks & Troughs are AREAS, which is good to watch and know.
VolumeOsc is for Pinpoint the possible bar for entry.
EURUSD is in UpTrend, so we look to enter @Troughs areas. VolumeOsc is Pinpointing the recommended bar.
If you are already in a trade, it’s a good point to Scale-in, i.e. add another trade.
G.
Hi G, The PEAK/TROUGH is NOT the END swing point, But some BARS near the swing point ? And the Oscillator defines the exact entry point based on the TREND and Peak/Trough. Do i understand it right ? Thanks Edit: sorry i could not active in these last 2 days .. my eyes were very pain. Doctor said that it is not because of improper of my eyeglass lenses, but some thing like inflammation of the optic nerve
So, i must take a rest 5 – 10 minutes, after every 1 hour in front of computer …. Hello Smallcat,
Me too i have very sensible eyes, i will give you something which really works for me.
You apply compress of cornflower, i mean you lie on your back, and you put compress of cornflower on your eyes, but you keep your eyes closed, that’s important we just want to treat the external, but what it’s interesting, is after 5 minutes the cornflower penetrates deep and calm your eyes. Generally i keep it 10 minutes.
If you could find biological cornflower water, it’s very good.
I give you the product i use, but i live in France, don’t know if you can find the same.
You can also check the new samsung curved monitors, they have function to reduce the blue light, which is very bad for the eyes.
If you wear glasses, you can also ask when you’ll renew your glasses for a blue light filter directly in your glass. All the manufacturers of glasses have that in their arsenal now.
Take care of your eyes, they are very precious, imagine you can’t watch your screen ….
Ok, I’ve seen that the Peaks & Troughs indicator already accomplished by “someone”… Ask around… Good job, “t” !!
Please remember that we need those as a function.
Now its time for the Trend function. I’ll post the guidelines for your debates/reviews/comments/additions. I’m quite busy right now, so – to be continued…
G.
Hi
attached is the prototype indicator of GG53’s Peak and Troughs..
tankhang
*re-attached the indicator – fixed real-time update problem..
** re-attached the indicator – accidentally deleted..
So, i must take a rest 5 – 10 minutes, after every 1 hour in front of computer ….
So, i must take a rest 5 – 10 minutes, after every 1 hour in front of computer. 
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