3bar trend

[waveslider 10]

Hello,

 

This indicator is designed to indicate trend and potential support/resistance levels.

 

It originated from my work with the wide range bodies and their translation into tick charts.

 

My theory is that wide range bodies appear in tick charts as consecutive bars higher or lower (3 bars with higher highs, higher lows, etc.). It's not an exactly true translation, but often it works out that way in my experience.

 

Taking the theory one step further, if you have 2 sets of 3 consecutive up or down bars, you normally will have a trend intact.

 

This indicator recognizes (bullish example) when there is three consecutive bars setting higher highs and higher lows. Then it looks for the occurrence to happen once again and sets a dotted line where the pivot was that started the move.

 

New lines will appear as the trend progresses and new legs appear. These lines are areas of support within the trend.

 

If price begins to run into the lines, then you have likely run into a range and should look for range trades as opposed to continuation trades. Once the range fails you get flat until new trend bars are established (this is beacuse the range may just expand to shake more people out).

 

I am posting this for feedback. Since we each have a diverse approach to trading I would be interested to see if anyone finds this analysis fitting into their style well.

 

Getting late, sorry if I don't make much sense here - -here you go. PS> the indicator is designed to run on tick charts, maybe on volume bars as well.

3BAR.ELDFetching info...

[torero 10]

This is an excellent assessment of the price action, waveslider! I manually draw these S/R areas but not incorporating WRB in doing so. This is an interesting approaching in seeing the S/R clearer. I'll give it a try. Thanks for your generosity!

[dovetree 10]

Re: 3bar trend

 

This sounds a little like the scalper buy or sell signals form TTM but with and niteresting twist.

Can you post the actual code rather than a ELD? I have Ts 2000i and cannnot use the ELD.

 

Thanks

[Soultrader 12]

Very interest waveslider. Dalton also referred to these areas as balance areas. Basically, if the distance between two dotted lines become shorter price is balancing out. Hence, if you are long/short you would want to look for an exit. In a healthy trend, the distance between the dotted lines should not get shorter.

 

Just something that might be helpful

[waveslider 10]

Thanks soultrader, I am not familiar with Dalton and maybe should do a little reading.

Something else that tells when price is balancing out is price catching up with time, this is the same idea as what you stated I believe. The idea is that the trend will slow down and "recharge" before it makes its next move -continuation or reversal. Either that will happen or there will be a capitulation "washout" move signaling reversal.

One thing to note is that when one of these levels is broken and price holds above or below the dotted line, it will normally come back and retest the other side of the dotted line from the other side.

So in other words, resistance becomes support - not a new concept, just a different way of visualizing it.

Here's a chart from friday's session that shows that happening.

[waveslider 10]

Here is the .eld code for 3bar. As a PS to that last note - I wonder if anyone has done any work with dispaced moving averages/price channels. These seem to be a good way of telling when the trend has slowed and maybe stalled out.

It's hard to see this in retrospect since you can't actually see the shift in real time, I am starting to watch it a little bit now to see if it might be useful.

I think Hurst did some work on this idea..

 

If you need the ELA text you can PM me. thanks

[dovetree 10]

Thanks for the code, I will see how it goes in 2000i. Is it a show me or indicator

[waveslider 10]

its an indicator that should be plotted as dots. if there are any programmers out there, please post any bugs... thanks

[slableak 10]

Hi Waveslider,

 

this is a Great indicator. Thanks!!!

I was wondering if it would be possible for you to write an input for this indicator where we could change it from 3 bar to 2 bar? I use the indicator but sometimes I give up a lot of profit waiting for the next set of stop dots.

 

David

[waveslider 10]

Hi David.

 

I'm glad you are finding good use for this. Regarding your question - -3 is a pretty key number here to use in identifying the important pivots. There needs to be adequate indication of strength, I think you need at least 3 consecutive bars.

 

Sounds like you are using it as an exit stop. Personally I wouldn't use it as a trailing stop because it doesn't actually trail. Try using a parabolic or volatility stop instead.

 

I tested the 3 bar and it works best as an entry point at the beginning of a new trend. You enter once the level is broken and tested from the opposite side. Kind of like Walter's flip trade he talks about.

[slableak 10]

  waveslider said:

Hi David.

 

Sounds like you are using it as an exit stop. Personally I wouldn't use it as a trailing stop because it doesn't actually trail.

 

Hi Waveslider,

 

Actually I have been using it for a type of swing trade indicator on the ER2 after I find the trend and get in the trade. So yes & no on the stop. I thought it would be good to make it more sensitive and place it on the chaert twice with different colors. I would like to code it for Ninja Trader. I dont know enough about C# language to do it though.

 

thanks,

David

[waveslider 10]

to make it more sensitive, you could always take the time frame a notch lower..

[9146894me 10]

I'm interested in your ideas. I would like the ela code text to look for improvements and would share the same.

Randy

[MC 10]

I left Tradestation and man am I gonna miss this indicator.

Has this been coded for any other platforms that someone could share the code for? I'm still undecided on what platform and broker I will use and this may help me decide.

 

Thanks

[trader273 10]

  mcichocki_ said:

I left Tradestation and man am I gonna miss this indicator.

Has this been coded for any other platforms that someone could share the code for? I'm still undecided on what platform and broker I will use and this may help me decide.

 

Thanks

 

Take a look at Multi-charts. It is basically a TS clone only you can choose what data provider instead of being stuck with what TS gives you.

[Mr.Money 10]

  trader273 said:

Take a look at Multi-charts. It is basically a TS clone only you can choose what data provider instead of being stuck with what TS gives you.

 

 

Do they accept the same indicators??

[trader273 10]

  Mr.Money said:

Do they accept the same indicators??

 

It uses easy language as its programming language. I have never had a problem, but there maybe some things that TS offers that MC doesnt but nothing too extreme. I believe they have a free trial, give it a try to see if everything works, if not no big deal.

[MC 10]

  trader273 said:

It uses easy language as its programming language. I have never had a problem, but there maybe some things that TS offers that MC doesnt but nothing too extreme. I believe they have a free trial, give it a try to see if everything works, if not no big deal.

 

Thanks guys...I'll look into them.

I've seen them before but am not in a position to pay the full price yet.

Any reccomendations on data providers?

[Mr.Money 10]

  mcichocki_ said:

Thanks guys...I'll look into them.

I've seen them before but am not in a position to pay the full price yet.

Any reccomendations on data providers?

 

I've been using transact for years. Platform is similar to infinity AT. Actually they're the developers of that platform. No problems whatsoever. I see they're listed on multicharts list of vendors

 

Frank

[aaa 10]

Hello

 

Is there a way to set the end of each line at the next low/high instead of the next pivot ?

 

I tried but I've reached my limits in programming...

 

 
var:flag(0),value2last(0),value1last(0),bullflag(0),bearflag(0);


if h>h[1] and low>low[1] and h[1]>h[2] and l[1]>l[2] and h[2]>h[3] and l[2]>l[3]   then begin
value1=pivotlowvs(1,l,2,2,20)[1];
bullflag=bullflag+1;
end;

//It doesn't work...


if h<h[1] and low<low[1] and h[1]<h[2] and l[1]<l[2] and h[2]<h[3] and l[2]<l[3]  then begin
value2=pivothighvs(1,h,2,2,20)[1];
bearflag=bearflag+1;
end;
if value1<>value1[1] then value1last=value1[1];
if value2<>value2[1] then value2last=value2[1];


if bullflag>0 and c<value1 then bullflag=0;
if bearflag>0 and c>value2 then bearflag=0;

if l>value1 and bullflag>=2   and value1>value1last then begin
plot1(value1,"stop");

end;

if h<value2 and bearflag>=2  and value2<value2last then begin
plot2(value2,"sstop");

end;

 

 
if l>value1 and bullflag>=2   and value1>value1last then 
   begin
	value10 = tl_new( date, Time , value1, date, Time , value1);	
   end ;

if close <= value1 then
		value11 = time ;

tl_setbegin(value10, date, Time , value10 );	
tl_setend(value10, date, value11,value10 );

Edited April 5, 2009 by aaa

[aaa 10]

I'm so stupid with the HTML Wrap...:crap:

OK I've found it up !

First insert C.O.D.E tag

Than write the text

than insert the /C.o.d.e tag

And very important ; reload the page !!!!!!

Edited April 5, 2009 by aaa

[BlowFish 10]

You want to ignore subsequent higher bars after the first 3? The level will end up being a pivot anyway unless there are subsequent higher bars. Logic would dictate that should you have 4 higher bars both the 3rd and then subsequently the 4th should be flagged. Not sure exactly want you want to achieve.

[aaa 10]

Here is a snap

 

The white lines should be the extension of the dots until they reaches a price

 

It wil show the end of Support and resistance based of the last pivots

[aaa 10]

In an other hand TAMS' zigzag is pretty much better than the original in MC or TS

It takes the real High + low with incredible precisions

 

Could it be possible to integrate the tams' code instead of

pivotlowvs(1,l,2,2,20)

pivothighvs(1,h,2,2,20)

Edited April 5, 2009 by aaa

[aaa 10]

I use this indicator to filter the "interesting" pivots which could be support/ resistance

 

Also the 3 candles shows a good entry/exit point

 

I'm still try to stop the dots at the next price...

 

Should I create flags for each pivot ?

 

(On my picture the lines are the dots' extension)