REQ Help with Trend Indicator

[BlowFish 10]

Just had another thought...we still haven't explained 2 whites. I'm confident in guessing (not even going to look at the chart again!) that if the MA is up and you close below you get white and will continue to get white until the MA turns down (red) or you get a close back over the MA (Green).

 

I think that will make it identical. Its not a bad little indicator though I rather like a 3 period SMA.

 

Cheers.

[Dogpile 10]

would you mind sharing your code for the indicator at all?

 

but of course. this is a constant work in process. you need a rule in the code to indicate whether the computed reversal price is off the lowest low or highest high -- you can see I set this to be where the midpoint of the last bar is relative to the range of the last 6 bars. if anyone can think of a better way to do this, I am all ears.

 

Vars: LowestLow(0), HighestHigh(0);

 

If CurrentBar > 1 Then Begin

LowestLow = Lowest (low, 5);

HighestHigh = Highest (High, 5);

 

value10=highest(h,6);

value11=lowest(l,6);

value12=(value10+value11)/2;

value13=(H+L)/2;

 

If value13>value12 then begin

value1=highesthigh-(AvgTrueRange(5)[1] * 1.5);

plot1(value1,"SAR Value");

end;

 

If value13<value12 then begin

value2=LowestLow + (AvgTrueRange(5)[1] * 1.5);

plot1(value2,"SAR Value");

end;

 

End;

If value13>value12 then

setplotcolor(1,white)

else

setplotcolor(1,cyan);

 

 

clearly, you cannot use this indicator by itself -- you must incorporate many other factors -- ie, higher timeframe pattern, vwap etc.. whatever you use... but this indicator gives a price as an idea for an entry that you can take or leave.

[Dogpile 10]

here is an example from today.

 

I entered ES when it appeared price failed just under VWAP. I did this with a market order before the 'confirmation' of the reversal price triggered. I set a stop-market order at the computed reversal price to enter YM as a way to add to my initial order. I totally screwed up on the YM exit as you can see.

 

The key here was not this indicator -- but it was nice in the heat of battle to have a computed price to go with. Just an example.

 

[jjthetrader 10]

Yes there does appear to be more to it. There seems to be a condition of the closes closeness to the MA. It's almost like there's a very small MA envelope around the MA and until it breaks out of that the second close won't change from white.

There's the added observation that if you're closing above the MA then you get a drastic close below, bypassing that "envelope", it will go straight from green to red and bypass white all together.

I've posted a 5min chart of the ES with the diamonds on so if you guys would like to trouble shoot you can. I can post any chart you like with them on to test with.

[jjthetrader 10]

Blu-Ray, I'm just trying to make your life difficult. But here's another condition for you that will explain some of the white diamond action.

As you can see in the attached pic, point A should be "green" (mine are blue) because it's the 2nd close above the MA. But it closes below the previous bar which keeps the diamonds white. Then point B closes level to A which also keeps it white. If that would have closed up it would have been green.

Then we see Point C is white as well because it closes below the MA after a close above it. But then look at the next bar. It's wide range up and goes straight to green (blue in my case) because of my MA envelope theory.

 

So did I ruin your weekend thinking about programming this? lol

[pipper 10]

Hey Guys

I am new to the forum and relatively new to trading. I read this thread @ the indicator and was interested because I use a simple system of moving averages to trade the ym with. I use a 5 ema on close. a 6 ema on open. I simply wait for a cross and buy/sell on a pullback to the 5 ema.I have been very interested in the VSA and these VWAP and have been playing with tick delta lately as well. I love the website and great effort everyone puts in to it.

 

AG

[walterw 10]

Blu-Ray: My question : once the bar closed, the diamonds will not change color ? no repainting ? nice job Blu-Ray ( as usual )... cheers Walter.

[walterw 10]

Hey Guys

I am new to the forum and relatively new to trading. I read this thread @ the indicator and was interested because I use a simple system of moving averages to trade the ym with. I use a 5 ema on close. a 6 ema on open. I simply wait for a cross and buy/sell on a pullback to the 5 ema.I have been very interested in the VSA and these VWAP and have been playing with tick delta lately as well. I love the website and great effort everyone puts in to it.

 

AG

 

pipper : can you post a chart of this trades ? sounds simple... cheers Walter.

[pipper 10]

Hi Walter...it is really a simple strategy ...this is basically a 3 bar play... find a time frame with 3 bars between ma xovers. then there is a few points to be made.

first bar is signal - shows a crossover of ma's when bar closes

second bar is entry bar - extrapolate where 5 ema will be if it were a straight line and place limit order at this 5 ema extrapolation point..

third bar - high/low(depending if you went long or short) is the first target.

if I find a time frame with 3 bars between ma xovers. then there is a few points to be made.

it seems simple but you have to be fast on the orders...especially playing the 144 tick chart.

 

 

I really like this entry technique as it guarantees a minimum move. I work full time so I don't get alot of trading time unless I work evenings.

I would love to make a full time occupation of trading!

 

 

Anthony pipper_boy@hotmail.com

[bheubach 10]

pipper

Thanks for sharing your method for trading the YM. Would you mind posting your MACD settings. Thanks.

 

Wilson

[pipper 10]

Hi Wilson

 

Macd is 5 13 6

 

AG

[jjthetrader 10]

hi guys...

 

I have been working on something similar so thought I would chime in...

 

rather than have the indicator follow price as in a close relative to a moving average, personally I find it more useful to compute a price in advance that signals a 'reversal' if touched. Thus you can see a 'mechanical trigger point' in advance rather than having to wait for a bar to close. I realize this is really only a minor difference in what you are doing but thought I would throw this in anyway.

 

My friend, what you are describing is a strategy. This is merely an indicator. However, I have worked out a nice little strategy from observing price action around the white diamonds if it's been in a consistent (6 bars) trend. For my strategy this indicator works best on a 2min chart and will scalp 1 point off the ES nicely. I set entry at the low of the bar creating the white diamond (if going long). Of course there's more to it than that but you get the idea of how a mechanical entry could be set by using an idea like this. It's similar to yours, waiting for a pullback.

 

I do appreciate your post as I'm always interested in incorporating new things. Thank you.

[jjthetrader 10]

Hey Guys

I am new to the forum and relatively new to trading. I read this thread @ the indicator and was interested because I use a simple system of moving averages to trade the ym with. I use a 5 ema on close. a 6 ema on open. I simply wait for a cross and buy/sell on a pullback to the 5 ema.I have been very interested in the VSA and these VWAP and have been playing with tick delta lately as well. I love the website and great effort everyone puts in to it.

 

AG

 

Thank you for contributing to the thread. It's very interesting how different folks use MA's for trading. Have you created a strategy for this and backtested it?

[pipper 10]

Hi JJ

 

make sure you look at the charts again....remember

 

second bar - entry at 5 ema.... to hi/lo of 3rd bar is target

depending if u went long or short.

we can research 100 days of xovers...entry price on second bar to h/l of 3rd bar can be measured.

then you can see that 9times out of 10 the market will move "n" number of points.

as an example n = 5 then you are guaranteed 4 ticks on a limit order. the 512 tick on the ym can some days only give 4 to 5 entries all day. you would 9 times out of ten be guaranteed "n" number of points.

I do have an indicator on my 512 chart in the example above. it is a simple indicator for ema/ema or ema/wma xover.

Anthony

yes JJ. it is simple to backtest...just check the first couple of hours every morning. I am still working on a better way of using this entry technique... I am hoping to find ways to filter trades on this forum. I oringinally did this play off a 144 tick on the ym. lots of trading and lots of commissions : ).

[pipper 10]

JJ

I just realized that you meant a backtest in TS. I don't know much @ that or how to do it at all. sorry

 

AG

[jjthetrader 10]

JJ

I just realized that you meant a backtest in TS. I don't know much @ that or how to do it at all. sorry

 

AG

 

Yes, I was just wondering if you had an automated strategy in TS which was backtested.

When you exit on the low/high of the 3rd bar, how do you know it's the low/high of that bar or do you have a target of 4 ticks or something?

[jjthetrader 10]

Hey Guys

I am new to the forum and relatively new to trading. I read this thread @ the indicator and was interested because I use a simple system of moving averages to trade the ym with. I use a 5 ema on close. a 6 ema on open. I simply wait for a cross and buy/sell on a pullback to the 5 ema.I have been very interested in the VSA and these VWAP and have been playing with tick delta lately as well. I love the website and great effort everyone puts in to it.

 

AG

 

I like it. I've just gone back and looked at it on a 512 tick. What I'd like to see is some background weakness/strength come in using VSA and then narrow my entry and direction down with this.

I personally like scalping, quick and dirty.

 

What do you do if the second bar doesn't come up to touch the 5ema? Not take the trade and wait for the next setup?

 

cheers

[BlowFish 10]

i think thats accounted for by the rules I proposed MA up close down so white

 

"As you can see in the attached pic, point A should be "green" (mine are blue) because it's the 2nd close above the MA. But it closes below the previous bar which keeps the diamonds white. Then point B closes level to A which also keeps it white. If that would have closed up it would have been green.

Then we see Point C is white as well because it closes below the MA after a close above it. But then look at the next bar. It's wide range up and goes straight to green (blue in my case) because of my MA envelope theory."

[pipper 10]

jj

there are lots of good trades in the morning to worry @ missing one is silly. Just get ready to enter the next one. and it depends on what time frame you are trading... on the 512 tick you could market at close of signal bar using a tick counter and still get 5 points. on a large time frame you can anticipate the xup or x down. on the fast time frame like the 144 u need the limit order to guarantee the the 4 points that that chart will pay 9 times out of 10. it works best in a fast moving market! try it a minute or so after a report... you will be filled and out in 2 seconds. TS wont even show trading at your fill and you are inanddone. I personally cut 3/4 of a position out at the 4 ticks. on the 144 tick I try to go 1 tick below where the 5 ema would be. if the trade is stalling at half way through the 3rd bar I will exit market. usually if you don't get the target, the market is going to go the other way.

this is where the tape reading could really help I think. Soultrader seems to have that beat. you could prob get better entries off tape. I just ordered a couple of books recommended here on the website. mind over markets and wyckoff for tape reading.

When I started playing the 512 tick... there was a lot less entries but larger stops? the location of the stop is also set by looking at past history of x overs.

Anthony

[Blu-Ray 10]

Blu-Ray, I'm just trying to make your life difficult. But here's another condition for you that will explain some of the white diamond action.

As you can see in the attached pic, point A should be "green" (mine are blue) because it's the 2nd close above the MA. But it closes below the previous bar which keeps the diamonds white. Then point B closes level to A which also keeps it white. If that would have closed up it would have been green.

Then we see Point C is white as well because it closes below the MA after a close above it. But then look at the next bar. It's wide range up and goes straight to green (blue in my case) because of my MA envelope theory.

 

So did I ruin your weekend thinking about programming this? lol

 

 

Hehe, thanks JJ, yes my mind never switches when trying to solve a code.:o

 

With regards to the chart you posted, Blowfish has replied a few posts ago about this and that was the way I coded the revised version of it. For example using your chart posted,

 

Point A = close is above MA, however MA is lower the MA of 1 bar ago.

Point B = same as point A

Point C = MA is greater than MA of 1 bar ago , however close is lower than MA.

 

If you get a chance, could you post some more charts, but could you state the timeframe and also the session start time ( Just so I can get an exact match )

 

Cheers

 

Blu-Ray

[Blu-Ray 10]

Blu-Ray: My question : once the bar closed, the diamonds will not change color ? no repainting ? nice job Blu-Ray ( as usual )... cheers Walter.

 

Thanks Walter, Yes once the bar has closed there is no repainting, the diamond / cross will stay the same color.

 

Cheers

 

Blu-Ray

[jjthetrader 10]

 

If you get a chance, could you post some more charts, but could you state the timeframe and also the session start time ( Just so I can get an exact match )

 

Cheers

 

Blu-Ray

 

 

I'm just seeing this thread now. I didn't get an email saying there was a response. Hmmm.

 

Here's some more charts. I put up a few daily well know charts to make it easy on you followed by a 2min ES chart from today. I'm Eastern Standard Time. Session starts at 9:30 for me.

[jjthetrader 10]

Through Trial and error I reproduced the Relative Volume Bands from TGuider if anyone is interested. I'll post a screenshot.

The only thing I don't know how to do and don't even know if it can be done is that as volume is increasing, the average lines will get thicker thus increasing the range that would be considered average.

You'll have to tell me if it can be done Blu-Ray. As is though it is a very good representation.

[Blu-Ray 10]

I'm just seeing this thread now. I didn't get an email saying there was a response. Hmmm.

 

Here's some more charts. I put up a few daily well know charts to make it easy on you followed by a 2min ES chart from today. I'm Eastern Standard Time. Session starts at 9:30 for me.

 

 

JJ, I think you do this on purpose, drop it on me for the weekend :o

 

Thank for the charts, I'll mull over them during the weekend

 

Through Trial and error I reproduced the Relative Volume Bands from TGuider if anyone is interested. I'll post a screenshot.

The only thing I don't know how to do and don't even know if it can be done is that as volume is increasing, the average lines will get thicker thus increasing the range that would be considered average.

You'll have to tell me if it can be done Blu-Ray. As is though it is a very good representation.

 

If you can send me the code, I'll take a look at it, I have an idea on how to get around this, but would need to know, if possible, what the parameters are for the thickening of the lines.

 

 

Cheers

 

Blu-Ray

[jjthetrader 10]

Thanks Blu-Ray. I will send the code as soon as I boot up my trading computer. I don't have the parameters for the thickening but if you left an input I'd do a trial and error. It's really not that important anyway if it can't be done. I'd like to paint the whole background of the volume indicator different colours just like in my tradeguider chart examples.

Talk to you soon.