Expert Advisor Builder

hi all

i thought that it is maybe a good idea to start a thread about the EA Builder from this page:

http://sufx.core.t3-ism.net/ExpertAdvisorBuilder/

lets discuss it here and help each other with the use of it

i have tried today my first experiment to build a simple "Moving Average cross EA".

it is a simple EA only to try the builder. the EA should buy when the

5 EMA cross the 20 SMA
cross up -> long
cross down -> short

close positions with TP or SL and with the cross in the other direction.

so far so good it opens the positions as it should be. but what i dont understand why doesnt it close the position when there is a cross in the other direction? it only closes the position with the TP or SL.

what did i wrong with the close logics?

i have attached the file which you can load in the EA-builder to see the settings.

thx

In the order section at the bottom select non-use or increase the stoploss and other settings. The low levels are giving you early exits. I modified it and added MA inputs.

'=': This means 'When the left value is equal to the right value'.
'<>': This means 'When the left value isn't equal to the right value'.
'<': This means 'When the left value is less than the right value'.
'>': This means 'When the left value is greater than the right value'.
'<=': This means 'When the left value is equal to / less than the right value'.
'>=': This means 'When the left value is equal to / greater than the right value'.

I have found this code its easily adapted to work with the ea builder ..

Add this to variables
//*********************************** *********************************** **************************
extern bool AutoMoneyManagement = True; // percent of accout to risk based on theextern bool
extern double PercentToRisk = 0.5; // $500 0.01... $1000 0.02... $1500 0.03 ect..
extern double Lots = 0;
//*********************************** *********************************** ****************************
Add this to the start function
//*********************************** *********************************** *********************************
double Risk = PercentToRisk / 100;
if (AutoMoneyManagement)
Lots = NormalizeDouble(AccountBalance()*Ri sk/StopLoss/(MarketInfo(Symbol(), MODE_TICKVALUE)),2);
//*********************************** *********************************** *********************************



Now all it need is a code that lot increase when losing .. i have found this code,, but it is no compatabe with ea builder

!! plz help id like to add something like this to it !!

//verables
double lotincreasewhenlosing = 2;


//+------------------------------------ ------------------------------+
//| Calculate optimal lot size |
//+------------------------------------ ------------------------------+
double LotsOptimized()
{
double lot=Lots;
int orders=HistoryTotal(); // history orders total
int losses=0; // number of losses orders without a break
//---- select lot size
lot=NormalizeDouble(AccountFreeMarg in()*MaximumRisk/5000.0,10);
//---- calcuulate number of losses orders without a break
if(lotincreasewhenlosing>0)
{
for(int i=orders-1;i>=0;i--)
{
if(OrderSelect(i,SELECT_BY_POS,MODE _HISTORY)==false) { Print("Error in history!"); break; }
if(OrderSymbol()!=Symbol() || OrderType()>OP_SELL) continue;
//----
if(OrderProfit()>0) break;
if(OrderProfit()<0) losses++;
}
if(losses>1) lot=NormalizeDouble(lot+lot+losses/lotincreasewhenlosing,2);
}
//---- return lot size
if(lot<DisMmIfLotsUnder) lot=Lots;
if(lot> MaxLots) lot=MaxLots;
return(lot);
}

1. Identifies Trend

The Wave Principle identifies the direction of the dominant trend. A five-wave advance identifies the overall trend as up. Conversely, a five-wave decline determines that the larger trend is down. Why is this information important? Because it is easier to trade in the direction of the dominant trend, since it is the path of least resistance and undoubtedly explains the saying, “the trend is your friend.” Simply put, the probability of a successful commodity trade is much greater if a trader is long Soybeans when the other grains are rallying.
2. Identifies Countertrend

The Wave Principle also identifies countertrend moves. The three-wave pattern is a corrective response to the preceding impulse wave. Knowing that a recent move in price is merely a correction within a larger trending market is especially important for traders, because corrections are opportunities for traders to position themselves in the direction of the larger trend of a market.
3. Determines Maturity of a Trend

As Elliott observed, wave patterns form larger and smaller versions of themselves. This repetition in form means that price activity is fractal, as illustrated in Figure 2-1. Wave (1) subdivides into five small waves, yet is part of a larger five-wave pattern. How is this information useful? It helps traders recognize the maturity of a trend. If prices are advancing in wave 5 of a five-wave advance for example, and wave 5 has already completed three or four smaller waves, a trader knows this is not the time to add long positions. Instead, it may be time to take profits or at least to raise protective stops. Since the Wave Principle identifies trend, countertrend, and the maturity of a trend, it’s no surprise that the Wave Principle also signals the return of the dominant trend. Once a countertrend move unfolds in three waves (A-B-C), this structure can signal the point where the dominant trend has resumed, namely, once price action exceeds the extreme of wave B. Knowing precisely when a trend has resumed brings an added benefit: It increases the probability of a successful trade, which is further enhanced when accompanied by tradition[IMG]file:///C:/Users/Luke/AppData/Local/Temp/msohtml1/01/clip_image002.jpg[/IMG]al technical studies.

Figure 2-1
4. Provides Price Targets

What traditional technical studies simply don’t offer — high probability price targets — the Wave Principle again provides. When R.N. Elliott wrote about the Wave Principle in Nature’s Law, he stated that the Fibonacci sequence was the mathematical basis for the Wave Principle. Elliott waves, both impulsive and corrective, adhere to specific Fibonacci proportions, as illustrated in Figure 2-2. For example, common objectives for wave 3 are 1.618 and 2.618 multiples of wave 1. In corrections, wave 2 typically ends near the .618 retracement of wave 1, and wave 4 often tests the .382 retracement of wave 3. These high probability price targets allow traders to set profit-taking objectives or identify regions where the next turn in prices will occur. [IMG]file:///C:/Users/Luke/AppData/Local/Temp/msohtml1/01/clip_image004.jpg[/IMG]
Figure 2-2

5. Provides Specific Points of Ruin

At what point does a trade fail? Many traders use money management rules to determine the answer to this question, because technical studies simply don’t offer one. Yet the Wave Principle does — in the form of Elliott wave rules.
Rule 1: Wave 2 can never retrace more than 100% of wave 1.
Rule 2: Wave 4 may never end in the price territory of wave 1.
Rule 3: Out of the three impulse waves — 1, 3 and 5 — wave 3 can never be the shortest.
A violation of one or more of these rules implies that the operative wave count is incorrect. How can traders use this information? If a technical study warns of an upturn in prices, and the wave pattern is a second- wave pullback, the trader knows specifically at what point the trade will fail – a move beyond the origin of wave 1. That kind of guidance is difficult to come by without a framework like the Wave Principle.
What Trading Opportunities Does the Wave Principle Identify?


Here’s where the rubber meets the road. The Wave Principle can also identify high probability trades over trade setups that traders should ignore, specifically by exploiting waves (3), (5), (A) and (C). Why? Since five-wave moves determine the direction of the larger trend, three-wave moves offer traders an opportunity to join the trend. So in Figure 2-3, waves (2), (4), (5) and (B) are actually setups for high probability trades in waves (3), (5), (A) and (C). For example, a wave (2) pullback provides traders an opportunity to position themselves in the direction of wave (3), just as wave (5) offers them a shorting opportunity in wave (A). By combining the Wave Principle with traditional technical analysis, traders can improve their trading by increasing the probabilities of a successful trade. Technical studies can pick out many trading opportunities, but the Wave Principle helps traders discern which ones have the highest probability of being successful. This is because the Wave Principle is the framework that provides history, current information and a peek at the future. When traders place their technical studies within this strong framework, they have a better basis for understanding current price action.
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Figure 2-3
How To Use the Wave Principle To Set Protective Stops

I’ve noticed that although the Wave Principle is highly regarded as an analytical tool, many traders abandon it when they trade in real-time – mainly because they don’t think it provides the defined rules and guidelines of a typical trading system. But not so fast – although the Wave Principle isn’t a trading “system,” its built-in rules do show you where to place protective stops in real-time trading. And that’s what I’m going to show you in this lesson. Over the years that I’ve worked with Elliott wave analysis, I’ve learned that you can glean much of the information that you require as a trader – such as where to place protective or trailing stops – from the three cardinal rules of the Wave Principle:
1. Wave two can never retrace more than 100% of wave one.
2. Wave four may never end in the price territory of wave one.
3. Wave three may never be the shortest impulse wave of waves one, three and five.
Let’s begin with rule No. 1: Wave two will never retrace more than 100% of wave one. In Figure 4-1, we have a fivewave advance followed by a three-wave decline, which we will call waves (1) and (2). An important thing to remember about second waves is that they usually retrace more than half of wave one, most often a making a .618 Fibonacci retracement of wave one. So in anticipation of a third-wave rally – which is where prices normally travel the farthest in the shortest amount of time – you should look to buy at or near the .618 retracement of wave one.
Where to place the stop: Once a long position is initiated, a protective stop can be placed one tick below the origin of wave (1). If wave two retraces more than 100% of wave one, the move can no longer be labeled wave two.
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Figure 4-1
Now let’s examine rule No. 2: Wave four will never end in the price territory of wave one. This rule is useful because it can help you set protective stops in anticipation of catching a fifth-wave move to new highs. The most common Fibonacci retracement for fourth waves is .382 of wave three. So after a sizable advance in price in wave three, you should look to enter long positions following a three-wave decline that ends at or near the .382 retracement of wave three.
Where to place the stop: As shown in Figure 4-2, the protective stop should go one tick below the extreme of wave (1). Something is wrong with the wave count if what you have labeled as wave four heads into the price territory of wave one.
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Figure 4-2
And, finally, rule No. 3: Wave three will never be the shortest impulse wave of waves one, three and five. Typically, wave three is the wave that travels the farthest in an impulse wave or five-wave move, but not always. In certain situations (such as within a Diagonal Triangle), wave one travels farther than wave three.
Where to place the stop: When this happens, you can consider a short position with a protective stop one tick above the point where wave (5) becomes longer than wave (3) (see Figure 4-3). Why? If you have labeled price action correctly, wave five will not surpass wave three in length; when wave three is already shorter than wave one, it cannot also be shorter than wave five. So if wave five does cover more distance in terms of price than wave three — thus breaking Elliott’s third cardinal rule — then it’s time to re-think your wave count.
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Figure 4-3
About the author: Jeffrey Kennedy is an active trader and educator working for Elliot Wave International. He helps to create many of the educational materials offered by EWI. Additional education materials can be found at EWI's website.

















Overall design

The wave principle posits that collective investor psychology (or crowd psychology) moves from optimism to pessimism and back in a natural sequence creating specific Elliott wave patterns in price movements. These swings create patterns, as evidenced in the price movements of a market at every degree of trend.
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From R.N. Elliott's essay, "The Basis of the Wave Principle," October 1940.
Practically all developments which result from (human) socio-economic processes follow a law that causes them to repeat themselves in similar and constantly recurring series of waves of definite number and pattern. R. N. Elliott's model, in Nature’s Law: The Secret of the Universe says that market prices alternate between five waves and three waves at all degrees within a trend, as the illustration shows. As these waves develop, the larger price patterns unfold in a self-similar fractal geometry. Within the dominant trend, waves 1, 3, and 5 are "motive" waves, and each motive wave itself subdivides in five waves. Waves 2 and 4 are "corrective" waves, and subdivide in three waves. In a bear market the dominant trend is downward, so the pattern is reversed—five waves down and three up. Motive waves always move with the trend, while corrective waves move opposite it.
Degree

The patterns link to form five and three-wave structures which themselves underlie self-similar wave structures of increasing size or higher "degree." Note the lower most of the three idealized cycles. In the first small five-wave sequence, waves 1, 3 and 5 are motive, while waves 2 and 4 are corrective. This signals that the movement of the wave one degree higher is upward. It also signals the start of the first small three-wave corrective sequence. After the initial five waves up and three waves down, the sequence begins again and the self-similar fractal geometry begins to unfold according the five and three-wave structure which it underlies one degree higher. The completed motive pattern includes 89 waves, followed by a completed corrective pattern of 55 waves.
Each degree of a pattern in a financial market has a name. Practitioners use symbols for each wave to indicate both function and degree—numbers for motive waves, letters for corrective waves (shown in the highest of the three idealized series of wave structures or degrees). Degrees are relative; they are defined by form, not by absolute size or duration. Waves of the same degree may be of very different size and/or duration.
The classification of a wave at any particular degree can vary, though practitioners generally agree on the standard order of degrees (approximate durations given):

1. Grand supercycle: multi-century

· Supercycle: multi-decade (about 40-70 years)
· Cycle: one year to several years (or even several decades under an Elliott Extension)
· Primary: a few months to a couple of years
· Intermediate: weeks to months
· Minor: weeks
· Minute: days
· Minuette: hours
· Subminuette: minutes
Elliott wave "personality" and behavioral characteristics

Elliott described each wave as exhibiting a characteristic volume behavior and a "personality" in terms of attendant momentum and investor sentiment. The "personality" of a wave reflects the psychology of the moment. Understanding how and why the waves develop is key to the application of the Wave Principle and confirms a correct wave count. That understanding includes recognizing the characteristics described below.
These wave characteristics assume a bull market in equities. The characteristics apply in reverse in bear markets.







Wave 1: Wave one is rarely obvious at its inception. When the first wave of a new bull market begins, the fundamental news is almost universally negative. The previous trend is considered still strongly in force. Fundamental analysts continue to revise their earnings estimates lower; the economy probably does not look strong. Sentiment surveys are decidedly bearish, put options are in vogue, and implied volatility in the options market is high. Volume might increase a bit as prices rise, but not by enough to alert many technical analysts.
Wave A: Corrections are typically harder to identify than impulse moves. In wave A of a bear market, the fundamental news is usually still positive. Most analysts see the drop as a correction in a still-active bull market. Some technical indicators that accompany wave A include increased volume, rising implied volatility in the options markets and possibly a turn higher in open interest in related futures markets.
Wave 2: Wave two corrects wave one, but can never extend beyond the starting point of wave one. Typically, the news is still bad. As prices retest the prior low, bearish sentiment quickly builds, and "the crowd" haughtily reminds all that the bear market is still deeply ensconced. Still, some positive signs appear for those who are looking: volume should be lower during wave two than during wave one, prices usually do not retrace more than 61.8% (see Fibonacci section below) of the wave one gains, and prices should fall in a three wave pattern.
Wave B: Prices reverse higher, which many see as a resumption of the now long-gone bull market. Those familiar with classical technical analysis may see the peak as the right shoulder of a head and shoulders reversal pattern. The volume during wave B should be lower than in wave A. By this point, fundamentals are probably no longer improving, but they most likely have not yet turned negative.
Wave 3: Wave three is usually the largest and most powerful wave in a trend (although some research suggests that in commodity markets, wave five is the largest). The news is now positive and fundamental analysts start to raise earnings estimates. Prices rise quickly, corrections are short-lived and shallow. Anyone looking to "get in on a pullback" will likely miss the boat. As wave three starts, the news is probably still bearish, and most market players remain negative; but by wave three's midpoint, the Prechter Point, "the crowd" will often join the new bullish trend. Wave three often extends wave one by a ratio of 1.618:1.
Wave C: Prices move impulsively lower in five waves. Volume picks up, and by the third leg of wave C, almost everyone realizes that a bear market is firmly entrenched. Wave C is typically at least as large as wave A and often extends to 1.618 times wave A or beyond.
Wave 4: Wave four is typically clearly corrective. Prices may meander sideways for an extended period, and wave four typically retraces less than 38.2% of wave three. Volume is well below than that of wave three. This is a good place to buy a pull back if you understand the potential ahead for wave 5. Still, the most distinguishing feature of fourth waves is that they often prove very difficult to count.


Wave 5: Wave five is the final leg in the direction of the dominant trend. The news is almost universally positive and everyone is bullish. Unfortunately, this is when many average investors finally buy in, right before the top. Volume is lower in wave five than in wave three, and many momentum indicators start to show divergences (prices reach a new high, the indicator does not reach a new peak). At the end of a major bull market, bears may very well be ridiculed (recall how forecasts for a top in the stock market during 2000 were received).


Pattern recognition and fractals

Elliott's market model relies heavily on looking at price charts. Practitioners study developing price moves to distinguish the waves and wave structures, and discern what prices may do next; thus the application of the wave principle is a form of pattern recognition.
The structures Elliott described also meet the common definition of a fractal (self-similar patterns appearing at every degree of trend). Elliott wave practitioners say that just as naturally-occurring fractals often expand and grow more complex over time, the model shows that collective human psychology develops in natural patterns, via buying and selling decisions reflected in market prices: "It's as though we are somehow programmed by mathematics. Seashell, galaxy, snowflake or human: we're all bound by the same order."
Elliott waves rules and guidelines for correct wave counts

In counting Elliott waves there are three rules that can never be broken in a correct count: Rule 1: Wave 2 cannot go below the low of wave 1., Rule 2: Of the three impulse waves—1,3 and 5—wave 3 can never be the shortest. Rule 3: Wave 4 can't end in the area of wave 1, except in the rare case of a diagonal triangle. A violation of these rules implies that the operative wave count is incorrect. <[5]> Elliott also noted additional technical aspects of waves to be used a guidelines to correct wave counts: "Most motive waves take the form of an impulse, i.e., a five wave pattern (as shown in the above chart) in which subwave 4 does not overlap subwave 1 and subwave 3 is not the shortest subwave. One motive wave in an impulse i.e., 1,3 or 5 is typically extended, i.e., much longer than the other two. There are two rare motive variations called diagonal triangles, which are wedge shaped patterns that appear in one case at the start(wave 1 or A and in the other case only at the end( wave 5 or C of larger forms. Corrective waves have numerous variations. The main ones are named zigzag, flat and triangle... These three simple corrective patterns can string together to form more complex corrections..... In impulses waves 2 and 4 nearly always alternate in form, where one correction is typically of the zigzag family and the other is not. Corrections usually terminate within the span of wave 4 of the preceding impulse of the same degree. <[6]>
Fibonacci relationships

R. N. Elliott's analysis of the mathematical properties of waves and patterns eventually led him to conclude that "The Fibonacci Summation Series is the basis of The Wave Principle."[2] Numbers from the Fibonacci sequence surface repeatedly in Elliott wave structures, including motive waves (1, 3, 5), a single full cycle (5 up, 3 down = 8 waves), and the completed motive (89 waves) and corrective (55 waves) patterns. Elliott developed his market model before he realized that it reflects the Fibonacci sequence. "When I discovered The Wave Principle action of market trends, I had never heard of either the Fibonacci Series or the Pythagorean Diagram."[2]
The Fibonacci sequence is also closely connected to the Golden ratio (ca 1.618). Practitioners commonly use this ratio and related ratios to establish support and resistance levels for market waves, namely the price points which help define the parameters of a trend. See Fibonacci retracement.
Finance professor Roy Batchelor and researcher Richard Ramyar, a former Director of the United Kingdom Society of Technical Analysts and Head of UK Asset Management Research at Reuters Lipper, studied whether Fibonacci ratios appear non-randomly in the stock market, as Elliott's model predicts. The researchers said the "idea that prices retrace to a Fibonacci ratio or round fraction of the previous trend clearly lacks any scientific rationale." They also said "there is no significant difference between the frequencies with which price and time ratios occur in cycles in the Dow Jones Industrial Average, and frequencies which we would expect to occur at random in such a time series."
Robert Prechter replied to the Batchelor–Ramyar study, saying that it "does not challenge the validity of any aspect of the Wave Principle...it supports wave theorists' observations," and that because the authors had examined ratios between prices achieved in filtered trends rather than Elliott waves, "their method does not address actual claims by wave theorists."The Socionomics Institute also reviewed data in the Batchelor–Ramyar study, and said this data shows "Fibonacci ratios do occur more often in the stock market than would be expected in a random environment."'
Example of the Elliott wave principle and the Fibonacci relationship
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From sakuragi_indofx, "Trading never been so easy eh," December 2007.
The GBP/JPY currency chart gives an example of a fourth wave retracement apparently halting between the 38.2% and 50.0% Fibonacci retracements of a completed third wave. The chart also highlights how the Elliott Wave Principle works well with other technical analysis tendencies as prior support (the bottom of wave-1) acts as resistance to wave-4. The wave count depicted in the chart would be invalidated if GBP/JPY moves above the wave-1 low.
After Elliott

Following Elliott's death in 1948, other market technicians and financial professionals continued to use the wave principle and provide forecasts to investors. Charles Collins, who had published Elliott's "Wave Principle" and helped introduce Elliott's theory to Wall Street, ranked Elliott's contributions to technical analysis on a level with Charles Dow. Hamilton Bolton, founder of The Bank Credit Analyst, provided wave analysis to a wide readership in the 1950s and 1960s. Bolton introduced Elliott's wave principle to A.J. Frost, who provided weekly financial commentary on the Financial News Network in the 1980s. Frost co-authored Elliott Wave Principle with Robert Prechter in 1979.
Rediscovery and current use

Robert Prechter came across Elliott's works while working as a market technician at Merrill Lynch. He has published The Elliott Wave Theorist monthly since 1979 and written 25 books on the theory. His fame as a forecaster during the bull market of the 1980s,. George Soros said in late October 1987, 'Mr. Prechter's reversal proved to be the crack that started the avalanche',brought the greatest exposure to date to Elliott's theory, and today Prechter remains the most widely known Elliott analyst.
Among market technicians, wave analysis is widely accepted as a component of their trade. Elliott Wave Theory is among the methods included on the exam that analysts must pass to earn the Chartered Market Technician (CMT) designation, the professional accreditation developed by the Market Technicians Association (MTA).
Robin Wilkin, Global Head of FX and Commodity Technical Strategy at JPMorgan Chase, says "the Elliott Wave principle… provides a probability framework as to when to enter a particular market and where to get out, whether for a profit or a loss."
Jordan Kotick, Global Head of Technical Strategy at Barclays Capital and past President of the Market Technicians Association, has said that R. N. Elliott's "discovery was well ahead of its time. In fact, over the last decade or two, many prominent academics have embraced Elliott’s idea and have been aggressively advocating the existence of financial market fractals."
One such academic is the physicist Didier Sornette, visiting professor at the Department of Earth and Space Science and the Institute of Geophysics and Planetary Physics at UCLA. In a paper he co-authored in 1996 ("Stock Market Crashes, Precursors and Replicas") Sornette said,
"It is intriguing that the log-periodic structures documented here bear some similarity with the 'Elliott waves' of technical analysis …. A lot of effort has been developed in finance both by academic and trading institutions and more recently by physicists (using some of their statistical tools developed to deal with complex times series) to analyze past data to get information on the future. The 'Elliott wave' technique is probably the most famous in this field. We speculate that the 'Elliott waves', so strongly rooted in the financial analysts’ folklore, could be a signature of an underlying critical structure of the stock market."
Paul Tudor Jones, the billionaire commodity trader, calls Prechter and Frost's standard text on Elliott "a classic," and one of "the four Bibles of the business" --
"[McGee and Edwards'] Technical Analysis of Stock Trends and The Elliott Wave Theorist both give very specific and systematic ways to approach developing great reward/risk ratios for entering into a business contract with the marketplace, which is what every trade should be if properly and thoughtfully executed."



CORRECTIVE WAVES

Markets move against the trend of one greater degree only with a seeming struggle. Resistance from the larger trend appears to prevent a correction from developing a full impulsive structure. The struggle between the two oppositely trending degrees generally makes corrective waves less clearly identifiable than impulsive waves, which always flow with comparative ease in the direction of the one larger trend. As another result of the conflict between trends, corrective waves are quite a bit more varied than impulsive waves.
Corrective patterns fall into four main categories:
Zigzags (5-3-5; includes three variations: single, double, triple);
Flats (3-3-5; includes three variations: regular, expanded, running);
Triangles (3-3-3-3-3; four types: ascending, descending, contracting, expanding);
Double threes and triple threes (combined structures).
ZIGZAGS (5-3-5)
A single zigzag in a bull market is a simple three-wave declining pattern labeled A-B-C and subdividing 5-3-5. The top of wave B is noticeably lower than the start of wave A, as illustrated in Figures 11 and 12.
Occasionally zigzags will occur twice, or at most, three times in succession, particularly when the first zigzag falls short of a normal target. In these cases, each zigzag is separated by an intervening "three" (labeled X), producing what is called a double zigzag (see Figure 13) or triple zigzag. The zigzags are labeled W and Y (and Z, if a triple).






FLATS (3-3-5)
A flat correction differs from a zigzag in that the subwave sequence is 3-3-5, as shown in Figures 14 and 15. Since the first actionary wave, wave A, lacks sufficient downward force to unfold into a full five waves as it does in a zigzag, the B wave reaction seems to inherit this lack of countertrend pressure and, not surprisingly, terminates near the start of wave A. Wave C, in turn, generally terminates just slightly beyond the end of wave A rather than significantly beyond as in zigzags.
Flat corrections usually retrace less of preceding impulse waves than do zigzags. They participate in periods involving a strong larger trend and thus virtually always precede or follow extensions. The more powerful the underlying trend, the briefer the flat tends to be. Within impulses, fourth waves frequently sport flats, while second waves rarely do.
Three types of 3-3-5 corrections have been identified by differences in their overall shape. In a regular flat correction, wave B terminates about at the level of the beginning of wave A, and wave C terminates a slight bit past the end of wave A, as we have shown in Figures 14 and 15. Far more common, however, is the variety called an expanded flat, which contains a price extreme beyond that of the preceding impulse wave. In expanded flats, wave B of the 3-3-5 pattern terminates beyond the starting level of wave A, and wave C ends more substantially beyond the ending level of wave A, as shown in Figures 16 and 17.
In a rare variation on the 3-3-5 pattern, which we call a running flat, wave B terminates well beyond the beginning of wave A as in an expanded flat, but wave C fails to travel its full distance, falling short of the level at which wave A ended. There are hardly any examples of this type of correction in the price record.








HORIZONTAL TRIANGLES (TRIANGLES)
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility. Triangles fall into four main categories as illustrated in Figure 18. These illustrations depict the first three types as taking place within the area of preceding price action, in what may be termed regular triangles. However, it is quite common, particularly in contracting triangles, for wave b to exceed the start of wave a in what may be termed a running triangle, as shown in Figure 19.





Although upon extremely rare occasions a second wave in an impulse appears to take the form of a triangle, triangles nearly always occur in positions prior to the final actionary wave in the pattern of one larger degree, i.e., as wave four in an impulse, wave B in an A-B-C, or the final wave X in a double or triple zigzag or combination (see next section).
COMBINATIONS (DOUBLE AND TRIPLE THREES)
Elliott called sideways combinations of corrective patterns “double threes" and “triple threes." While a single three is any zigzag or flat, a triangle is an allowable final component of such combinations and in this context is called a "three." A double or triple three, then, is a combination of simpler types of corrections, including the various types of zigzags, flats and triangles. Their occurrence appears to be the flat correction's way of extending sideways action. As with double and triple zigzags, each simple corrective pattern is labeled W, Y and Z. The reactionary waves, labeled X, can take the shape of any corrective pattern but are most commonly zigzags. Figures 20 and 21 show two examples of double threes.




For the most part, double threes and triple threes are horizontal in character. One reason for this trait is that there is never more than one zigzag in a combination. Neither is there more than one triangle. Recall that triangles occurring alone precede the final movement of a larger trend. Combinations appear to recognize this character and sport triangles only as the final wave in a double or triple three.
All the patterns illustrated here take the same form whether within a larger rising or falling trend. In a falling trend, they are simply inverted.
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The Broad Concept

The basic rhythm of the market unfolds as five waves up and three waves down. Each advancing wave (1, 3 and 5) is called an impulse wave and each down wave (2 and 4) is referred to as a corrective wave. .
The diagram below shows how the basic cycle can be further dissected to reveal each impulse wave containing five waves, including the bear market impulse moves.
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The basic tenets of the theory are:
1. Action is followed by reaction
2. Movements in the direction of the trend divide into five waves and moves against the trend corrective waves divide into three waves

3. The cycle keeps repeating it self in ever expanding magnitude from Sub-minuette through nine categories to the Grand Super-cycle

4. The wave pattern exists irrespective of time. Waves may be stretched or compressed, but the underlying pattern is constant.
As a result of Prechter's work in the 1970's two more tenets emerged. They are:
Wave three is never the shortest.
Wave four never overlaps wave 1.
If wave four does overlap wave 1 then the move is probably not an impulse move, but an ABC correction.
Impulse Waves - Variations

Extensions
Any of the five impulse waves in one cycle, three up and two down, can result in an extension. Extensions are more common in wave five and three than wave one, but nevertheless can exists in any impulse wave. Not only primary impulse waves can extend but extensions within extensions can also exist, in the case of a telescopic type market.

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The above diagram illustrates a fifth wave extension of a fifth wave extension, in descending magnitude. By the same token the same sort of extension within extension can exist in wave three, which is the next most common wave to make an extension.
Diagonal Triangles

These occur in the fifth wave generally as a result of the third wave going too far too fast. They borrow from the classic charting patterns of old and are essentially wedges, with each sub wave dividing into three. A rising wedge is bearish and often results in a sharp decline at least back to the inception point of the triangle began.
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Failures

Elliott used the word failure to describe the failure of the market to make a new high (or low) as a result of the fifth wave. The fifth wave falling short of the third wave is a failure, which, is an exceptionally bearish signal.

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Elliott Wave Principle - Variations

There are more variations in corrective waves than there are in impulse waves. Their complexity is often a function of the degree. That is as they become more varied they become more complex.
Corrections

Elliott suggested that market corrections generally fall into four categories:
Zigzag Correction

A zigzag A-B-C type correction has 5-3-5 sub waves. This includes the double zigzag variation.
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The zigzag correction is the most basic a-b-c type correction. The above example is obviously a bull market correction, with the impulse moves being against the trend in the next degree. The waves have been broken into their subcomponents.
Flat Correction

A flat correction is also an A-B-C type correction and has 3-3-5 sub waves. It also has variations called irregular and running corrections.

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The flat correction above is also a correction to a bull market. Wave C in any flat correction generally terminates very close to wave A rather than significantly lower as in a zigzag. the tell tale characteristic is of course the wave count, which is 3-3-5. This then gives rise to several variations while still adhering to the basic wave count.
Irregular Variations

There are two variations to the flat correction and both are referred to as irregular corrections.
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The B wave could actually make a new high, in the case of a bull market and the C wave could extend beyond wave A as in the above diagram. Flat corrections are seen as mild corrections as they do less damage to the underlying trend than their zigzag cousins.
If wave C drops below wave A (as in diagram 51) it can be interpreted as having a negative, dampening effect on the next impulse move, in this case higher.

If on the other hand, the C wave were to fall short of a wave A, (as in Diagram 52) it could be interpreted as strengthening, supportive for the underlying trend and the next impulse wave.
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Triangle Correction

A triangle correction is made up of five waves labelled as an 'a-b-c-d-e' type correction having 3-3-3-3-3 sub waves. There are four variations: ascending, descending, contracting and expanding.

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The above diagram is an example of an ascending horizontal triangle. It has a flat top and a rising bottom. The other variations are descending, contracting and expanding, which should be self explanatory. The important thing to look for is the 3 wave sub-count within each wave of the triangle.
Double threes and triple threes

A single three is any zigzag or flat consisting of three basic waves A-B-C. Double threes are as the name implies a combination of two threes, two zigzags or two flats. Triple threes are yet another three tacked on. The intermediate wave is referred to as an X wave.

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The example above is a double three made up of two flat corrections.
Complex Combinations

It is important to keep in mind which particular degree of complexity the structure is in. A correction may start off as a simple flat correction as in the example below (see diagram 55) the first a-b-c is merely the A part of the correction.
It's not until the C leg breaks below wave a of B, that we can actually say that the centre three wave, B wave, is complete and we can then look for a C wave decline. The C leg can be a 3 or 5 wave decline, as it is against the underlying trend of the market.

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During any correction the waves in the same direction as the underlying trend are always in 3's while the counter move waves, against the trend can be either 3 wave or 5 wave legs.
Associated Rules and Guidelines

The Rule of Alternation

This rule should be kept in mind at all times when analysing wave formations and projecting targets. Alternating patterns should be expected in all wave formations.
The most basic aspect of this rule can be applied to corrections and it virtually states that no two sequential corrections of the same magnitude will ever be the same type. For example if wave two is a simple correction, then wave four will most likely be complex.
Simple corrections are usually zigzag's or basic flat corrections, while complex corrections are more likely to be triangles, double threes, intricate flats or any other complex pattern.

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The same rule can be applied to large magnitude complex corrections. A complex three for example will probably alternate between patterns. For example a large correction might start with a flat ABC type correction and then be followed with a zigzag. Alternatively if the correction started with a zigzag we could expect a flat to follow.
Strength of Trends

Corrective patterns provide a lot of information about the strength of an underlying or subsequent trend. The slope of the impulse waves can also be revealing with respect to the underlying trend.
In general zigzags indicate ordinary or normal conditions and therefore normal trend strength. Complex corrections on the other hand denote a strong trend and often occur prior to or immediately after an extension. Extensions are also a sign of strength.
Zigzag or double zigzags indicate ordinary strength
Flat and Irregular corrections indicate a strong trend
Running corrections reveal an unusually strong trend
Double and triple threes indicate a strong trend
Triangles indicate thrust, swift but short
Depth of corrective Waves

How low can you go? A vital piece of information is provided by Elliott wave theory when it comes to market corrections. The rule is that corrections, especially wave four corrections, tend to terminate within the range of the previous wave four by lessor degree. The most likely level of retracement is the bottom of wave for by lessor degree.
Wave equality

It is one of the tenets of Elliott wave theory that two impulse waves will always tend toward the same size in both time and price. It generally holds true for two non-extended waves and especially true if wave 3 is an extension. If two of the waves are not perfectly equal then the relationship is probably a multiple of 0.618.
Correct counting - Overlaps and Wave Length

Wave four should never overlap wave one
Wave three is often the longest and never the shortest
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Alternative Counting

There are often alternative counts, which is a tool that can be employed to isolate the correct count. Hindsight will always provide the ultimate resolution. But it is very handy to have a "if this happens, then it can't be this count and therefore it must be the alternative one" type of tool in our arsenal. Therefore there is an alternative to the above count.

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Time Frames

The most common time frame for an intra day chart is an hourly chart, however when analysing large samples of time an hourly chart can become unworkable. Percentage charts or semi-log charts are best when analysing large market moves that may span decades. Daily charts are of course most apt and a standard when applying Elliott wave principles.
The foremost aim of wave classification under the Elliott wave theory system is to determine where we are in the cycle. This is easy to do in a clear wave count, which is often the case for fast moving or extending markets. As long as you can see fives waves you've got a start.
It's not so easy in tired and choppy markets. Complexity and lethargy are often frustrating for any analyst, but especially for the Elliott wave analyst. It has often been suggested that when the market rests the trader should also take a rest.
Channels

Parallel trend channels can be employed to assist in determining a potential target and/or market developments. One can start drawing the channel at the termination of wave 2. The bottom trend line is an extension of the trend line drawn from the inception point of the new wave formation and the bottom of wave two. A parallel trend line can then be extrapolated from the top of wave one and provides a logical target fro the termination of wave three.
Quite often wave three will extend beyond the high side of the original channel, in which case the channel should be revised. A new top line should be drawn through the top of wave one and wave three, a parallel line is then drawn through the bottom of wave two and a new channel should be the result.
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What a post...

Hi guys. I saw you try to create EA based on MA but it will work till Range or flat.

I have one idea for EA based only one EMA. But I cannot code. If somebody answer my post, that he can code this strategy. I'll share here that strategy. When you will see that strategy, you will be surprised that "why I haven't seen this before yet"

Best regards.

I can use the EA builder above to code the cross MA for you.

I use ExpertAdvisorBuilder a lot for testing, but the real issue is that the base template it uses could benefit from having some extras built into it.

That is, the home page has the base template, we should put together a more extensive one that includes;

MM risk calculated lot size,
Hedging options,
Reverse trades options,
Martingale options

etc etc etc - all the usual stuff guys want added when a new EA is first published. Then we can load the expanded default template to built better bots.

Just for fun I did the simulation of 5 minutes EURUSD of your strategy and this is what I got - u can use the same settings for your EA - it is profitable in the last 5 months - 23% profit.

what is that software ??? lolll

let me guess ; copy / past ?

Forex Strategy Builder. Google it.

I am impress do you even use it for builder EA for real account ?

I tried this EA and it still does not always close the order when the fast EMA crosses the slower SMA, sometimes it does sometimes it doesn't. Anyone know what the problem is with it?

Hi All,

I'm interested to start off making EAs and would like to check with you guys the experts on where to find a good and free EA builder software. What is you guys' recommendation for a rookie like myself?

Many thanks in advance for your valuable advice...

PTL Builder is a free EA builder I know of. It supports MQL4, C#, VB.NET, EasyLaguage and its own PTL language. You can also import your existing MQL4, C#, VB.NET or EasyLanguage trading systems into it: http://www.profstation.com/automated...g_PTL_builder/

Also, using the PT multistation terminal, you can also write extremely simple strategies (if you are not a programmer) graphically right on the chart: Visual Advisor.

I just bought this one, seems to work ok

EAtree

I just posted an ea in the thread

http://www.forexfactory.com/showthre...33#post4163533