True Bars/Candles and Market Sentiment

[Anti]

So, my implementation fits your idea, @gg53? I still tried to couple this indie with some others I programmed – for instance with one for the detection of trends as well as another which uses the mathematical expression I posted previously (page 3, #9115). But both attempts are not very satisfying. But it was also only a fast test … Think I’ll try some other ideas tomorrow.

[gg53]

Anti wrote:

So, my implementation fits your idea, @gg53? I still tried to couple this indie with some others I programmed – for instance with one for the detection of trends as well as another which uses the mathematical expression I posted previously (page 3, #9115). But both attempts are not very satisfying. But it was also only a fast test … Think I’ll try some other ideas tomorrow.

In your code you defined “Range” as (High-Low). It should be MathAbs(Close-Open). See same question & response by SmallCat.

Also I think it will more beneficial to display results on-chart and not in a separate indicator window, but that’s me…

Didn’t check further than that.

If you want to further extend it to Trend, please make it as a separate function – like defined in the “Trading made really simple” thread.

Thanks for your efforts!

 

G.

[Anti]

Before I’ll definitively go to bed, I’d like to share a new version of the indicator. To prevent some false signals, I didn’t take signals into account whose range (high to low) engulfs previous candle. Additionally, as the simplest indicator for a trend I used an EMA8 on close an checked for validity of signals if close is above/below this trend line. The indicator give good signals in most cases but I believe that we could get much more out of it. Due to the filtering other good signals were suppressed.

Just to clarify it: I used the code skeleton of @smallcat indicator posted previously. I hope it’s ok for you (also mentioned this in the code itself). If not, I will delete it.

• This reply was modified 10 years, 5 months ago by Anti.
• This reply was modified 10 years, 5 months ago by Anti.

[smallcat]

VlanFx wrote:

Here is my take. It uses GG’s Gadi_NormalizedVolume_v2.2 for volume information. The indicator paints bars according to GG’s rule. The direction of the bar is given by the direction of the candle. The size of the bar is calculated based on the volume change and inverted candle’s range change meaning: the bigger the volume[0] and smaller the range[0] the bigger the indicator bar. If you don’t like this logic, you can turn it off in inputs. I just thought it might show the power of the change. Thanks @GG53 for another tip. I’ll try to incorporate it into my FractalArrow indi. Vlan

Thanks a lot mate
May i know what is the meaning of that White bar ?

Thanks

[smallcat]

Anti wrote:

… I used the code skeleton of @smallcat indicator posted previously. I hope it’s ok for you (also mentioned this in the code itself). If not, I will delete it.

Hi mate,

The logic in that version is Wrong, so do not use it. I will upload the newer one soon, today or tomorrow …

[Anti]

smallcat wrote:

Anti wrote:

… I used the code skeleton of @smallcat indicator posted previously. I hope it’s ok for you (also mentioned this in the code itself). If not, I will delete it.

Hi mate, The logic in that version is Wrong, so do not use it. I will upload the newer one soon, today or tomorrow …

Hi smallcat,

I didn’t use your actual code (only the skeleton for painting the arrows). My kernel code is different from yours:

if ( (curVol>prevVol)&&(curRange<prevRange)&&(curLow<prevLow)&&(curHigh<prevHigh)&&iClose(NULL,0,i)>iMA(NULL,0,8,0,MODE_EMA,PRICE_CLOSE,i) ) {
upArrow[i]  = curLow – Distance;
}
else if ( (curVol>prevVol)&&(curRange>prevRange)&&(curHigh>prevHigh)&&(curLow>prevLow)&&iClose(NULL,0,i)<iMA(NULL,0,8,0,MODE_EMA,PRICE_CLOSE,i) ) {
dnArrow[i]  = curHigh + Distance;

• This reply was modified 10 years, 5 months ago by Anti.

[smallcat]

Anti wrote:

 

Hi smallcat, I didn’t use your actual code (only the skeleton for painting the arrows). My kernel code is different from yours:

if ( (curVol>prevVol)&&(curRange<prevRange)&&(curLow<prevLow)&&(curHigh<prevHigh)&&iClose(NULL,0,i)>iMA(NULL,0,8,0,MODE_EMA,PRICE_CLOSE,i) ) { upArrow[i] = curLow – Distance; } else if ( (curVol>prevVol)&&(curRange>prevRange)&&(curHigh>prevHigh)&&(curLow>prevLow)&&iClose(NULL,0,i)<iMA(NULL,0,8,0,MODE_EMA,PRICE_CLOSE,i) ) { dnArrow[i] = curHigh + Distance;

Ou, it is ok then …

[VlanFx]

smallcat wrote:

VlanFx wrote:

Here is my take. It uses GG’s Gadi_NormalizedVolume_v2.2 for volume information. The indicator paints bars according to GG’s rule. The direction of the bar is given by the direction of the candle. The size of the bar is calculated based on the volume change and inverted candle’s range change meaning: the bigger the volume[0] and smaller the range[0] the bigger the indicator bar. If you don’t like this logic, you can turn it off in inputs. I just thought it might show the power of the change. Thanks @GG53 for another tip. I’ll try to incorporate it into my FractalArrow indi. Vlan

Thanks a lot mate May i know what is the meaning of that White bar ? Thanks

Hi smallcat,

according to GG53’s explanation in the Killing Zone thread at FF (post 1086), the white bar means: Volume is not moving the price in any significant direction (“Doji”).

Vlan

[pipatronic]

I have always wondered how accurate the “volume” is on our MT4 because if the tick data is based on the brokers platform and 95% of the clients are losing……  you can see my point, I realise its all we have to play with. Is there another way to get real volume say from the futures market ?

Pip

skype : pipatronic

[Anti]

I think you may get a better understanding of real volume from futures market by calculating some kind of synthetic currency price from futures instruments. But it’s hard to get good futures live feed for mt4 or other usual retail traders’ tools. Nevertheless, I’d say tick volume can be understood as an indicator of trading activity. If you obtain higher volume than in previous bars, imho you can conclude that there are more market participants interested in buying or selling.

[BlackStack]

Volume in Forex:

 

[gg53]

Anti wrote:

Before I’ll definitively go to bed, I’d like to share a new version of the indicator. To prevent some false signals, I didn’t take signals into account whose range (high to low) engulfs previous candle. Additionally, as the simplest indicator for a trend I used an EMA8 on close an checked for validity of signals if close is above/below this trend line. The indicator give good signals in most cases but I believe that we could get much more out of it. Due to the filtering other good signals were suppressed. Just to clarify it: I used the code skeleton of @smallcat indicator posted previously. I hope it’s ok for you (also mentioned this in the code itself). If not, I will delete it.

Engulfed is already eliminated in the function initial definition:

“…A new high is made (in an uptrend) or a new low (in a downtrend)…”

 

G.

[gg53]

pipatronic wrote:

I have always wondered how accurate the “volume” is on our MT4 because if the tick data is based on the brokers platform and 95% of the clients are losing…… you can see my point, I realise its all we have to play with. Is there another way to get real volume say from the futures market ? Pip

There is no true Volume in Forex.

The parameter “Volume” in Data-Window is actualy Tick-Volume – which is the number of times the price is changed during TF.

This number is coming to the broker from Interbank. From testing it’s quite good reference to Futures Volume, like 90% correlation. Not by actual number, but by the relative relation to one another. You can see that in the Tick_Volume indicator.

Let’s leave the debates about this issue to another thread.

 

G.

[gg53]

VlanFx wrote:

smallcat wrote:

VlanFx wrote:

Here is my take. It uses GG’s Gadi_NormalizedVolume_v2.2 for volume information. The indicator paints bars according to GG’s rule. The direction of the bar is given by the direction of the candle. The size of the bar is calculated based on the volume change and inverted candle’s range change meaning: the bigger the volume[0] and smaller the range[0] the bigger the indicator bar. If you don’t like this logic, you can turn it off in inputs. I just thought it might show the power of the change. Thanks @GG53 for another tip. I’ll try to incorporate it into my FractalArrow indi. Vlan

Thanks a lot mate May i know what is the meaning of that White bar ? Thanks

Hi smallcat, according to GG53’s explanation in the Killing Zone thread at FF (post 1086), the white bar means: Volume is not moving the price in any significant direction (“Doji”). Vlan

White bars are either “Doji” or engulfed bars, i.e. no significant price movement.

 

G.

[gg53]

Anti wrote:

Before I’ll definitively go to bed, I’d like to share a new version of the indicator. To prevent some false signals, I didn’t take signals into account whose range (high to low) engulfs previous candle. Additionally, as the simplest indicator for a trend I used an EMA8 on close an checked for validity of signals if close is above/below this trend line. The indicator give good signals in most cases but I believe that we could get much more out of it. Due to the filtering other good signals were suppressed. Just to clarify it: I used the code skeleton of @smallcat indicator posted previously. I hope it’s ok for you (also mentioned this in the code itself). If not, I will delete it.

If you want to use some kind of “smoothing” don’t use MA’s.

You can use some kind of second order Low-Pass filter.

 

G.

[smallcat]

VlanFx wrote:

Hi smallcat, according to GG53’s explanation in the Killing Zone thread at FF (post 1086), the white bar means: Volume is not moving the price in any significant direction (“Doji”). Vlan

gg53 wrote:

White bars are either “Doji” or engulfed bars, i.e. no significant price movement. G.

Thanks Vlan & GG. Hm … i must spare time to read the KillingZone again …

[smallcat]

gg53 wrote:

If you want to use some kind of “smoothing” don’t use MA’s. You can use some kind of second order Low-Pass filter. G.

Hi G, can we say that Ehler’s two pole is one of this “second order low-pass filter” ?

[VlanFx]

gg53 wrote:

Just to clarify: Volume greater than previous bar volume Range less than previous bar range A new high is made (in an uptrend) or a new low (in a downtrend) Closes below the high (in uptrend) or below the low (in downtrend) G.

Added these conditions.

To determine trend direction I used GG53’s Gadi_Trend_v1.3 from the Killing Zone.

I also added logic so that once all the above conditions are met, the indi waits for the volume to change in the same direction and only then paints the dots.

Vlan

[pipatronic]

pipatronic wrote:

I have always wondered how accurate the “volume” is on our MT4 because if the tick data is based on the brokers platform and 95% of the clients are losing…… you can see my point, I realise its all we have to play with. Is there another way to get real volume say from the futures market ? Pip

Thank you for the replies chaps !! appreciated

Pip

skype : pipatronic

[gg53]

VlanFx wrote:

gg53 wrote:

Just to clarify: Volume greater than previous bar volume Range less than previous bar range A new high is made (in an uptrend) or a new low (in a downtrend) Closes below the high (in uptrend) or below the low (in downtrend) G.

Added these conditions. To determine trend direction I used GG53’s Gadi_Trend_v1.3 from the Killing Zone. I also added logic so that once all the above conditions are met, the indi waits for the volume to change in the same direction and only then paints the dots. Vlan

Please DON’T try to make a trading system. We’ll get to it in small steps.

For now we only need a rigid, reliable, minimal lag, minimal false-signal Peak & Trough Functions.

The next step will be the same rigid, reliable, minimal lag, minimal false-signal Trend Function.

 

G.

[pipatronic]

Thanks Vlan just having a play with it now and looking at the code we my newbie prog eyes

Pip

skype : pipatronic

[VlanFx]

gg53 wrote:

Please DON’T try to make a trading system. We’ll get to it in small steps. For now we only need a rigid, reliable, minimal lag, minimal false-signal Peak & Trough Functions. The next step will be the same rigid, reliable, minimal lag, minimal false-signal Trend Function. G.

sorry, I got carried away   I removed it so there’s no confusion.

Here is a version using just conditions from this thread.

V.

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[pipatronic]

Thanks Vlan – it was slipping away before my eyes

skype : pipatronic

[smallcat]

Hi,

Trying to put the puzzle pieces to its place. This can be wrong though. Any information is welcome …

1) lets say we are at TF H1. We try to get the True Bar using Gadi_obv (red or yellow dot). Then split it into 3 parts, top is bull sentiment, bottom is bear sentiment.

2) Then we try to create our sonar meter (channels of M1 to M30), to measure how far is the “H1” river bottom. It is like market profile. Then we compare the current position to the “thirds” of True bar in point 1) above.

3) we are trying to find peak and valley using Volume, Range and HiLo of current candle, compare to previous one. This is trying to find the turning point. Volume can be taken from GadiVolume, or MT4 standard Volume indicator. How about the High of current candle bigger than previous one at down swing? Is it also a sign of beginning of turning point?

Smallcat

 

[gg53]

smallcat wrote:

Hi, Trying to put the puzzle pieces to its place. This can be wrong though. Any information is welcome … 1) lets say we are at TF H1. We try to get the True Bar using Gadi_obv (red or yellow dot). Then split it into 3 parts, top is bull sentiment, bottom is bear sentiment. 2) Then we try to create our sonar meter (channels of M1 to M30), to measure how far is the “H1” river bottom. It is like market profile. Then we compare the current position to the “thirds” of True bar in point 1) above. 3) we are trying to find peak and valley using Volume, Range and HiLo of current candle, compare to previous one. This is trying to find the turning point. Volume can be taken from GadiVolume, or MT4 standard Volume indicator. How about the High of current candle bigger than previous one at down swing? Is it also a sign of beginning of turning point? Smallcat

You are correct by trying to figure this out on >= M30 TF. There is no point in developing such system on smaller TF’s.

Trying to find turning point based on PRICE leads to std. Fractals, which are lagging by at least 2 bars.

Furthermore, the entry will be on the close of the second bar.

Can we do something better than that? or more reliable, eliminating false entries?

 

G.

[Author]

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