Consecutive Candles Williams %R and Volume with 55EMA Baseline
First of all I would like to give thanks to rpasupathy for the idea, Wolf300 and IceRice for their collaboration on the consecutive candle indicator(found here https://www.forexfactory.com/showthread.php?t=908563) and Jimmy for the volatility/volume indicator. A special thanks goes to VP from NoNonsenseForex for his ideas and video and blog series. https://nononsenseforex.com/
This post will be for future updates...and will explain the premise behind this thread.
Please do not post non related information, we need this to stay on track and clear to follow.
The system is comprised of the consecutive candle indicator for 2 confirmations.
Then there is a second confirmation indicator.
There is a baseline to filter further.
Finally there is a volume/volatility indicator.
For a trade we first need Williams %R to go above -20 line or below -80 line.
Then we need the consecutive candle indi. to print an arrow in our desired direction (if we are below the -80 line we look for an up arrow, above the -20 line we look for a down arrow).
Then we need the indi. to print a candle with a dot (preferably with a lower/higher close than arrow candle).
For this to be a valid signal we need 3 things.
1/ Williams % to now move below -20 line or above -80.
2/ Williams % to be below the 55ema (set to first indicator data) for a sell or above the 55ema for a buy.
3/ Volume/volatility indicator is yellow or green (grey=no trade).
If all the above is met we can trade in the desired direction.
The following chart shows a buy and a sell following all the above rules. Exit is close of a candle when Williams%R crosses the opposite -20/-80 line.
Numbers in yellow boxes are pips gained in the respective trades.
SL is up to user...I would suggest a protective one only.
Chart is 1hour.
There are some nuances to the confirmations...If we get a signal to trade but the volume/volatility indicator does not agree we can still take the trade if another candle with a dot prints and volume now agrees. This is a valid signal as long as an opposite arrow does not show up. If it does then we do not trade. We must then wait for a full re-confirmation from all indicators. See below;
1/ Williams %R goes below -80 line
2/ Trade to buy is confirmed by all indis. but volume bar is grey (no trade).
3/ An opposite arrow prints...now we wait for a whole new set up.
4-5/ A whole new buy is confirmed but again volume is grey (no trade).
6/ Another opposite arrow prints...now we wait for a whole new set up.
7-8/ A whole new set up is confirmed and this time the volume bar is yellow/green...so a buy trade is executed.
9/ Exit trade after close of first bar where Williams %R is above -20 line.
Another nuance is when the confirmation candle closes and Williams%R is already above/below the -20/-80 lines, then there is no trade.
The Williams %R is found in MT4 under oscillators set to 100.
Place a 55EMA on the Williams%R and choose "first indicators data" from the menu.
The Consecutive Candle I am using is V1-02 set to default. There are other versions on the "My Last Humble Request" thread in Platform Tech forum.
Here is the Volume/volatility indicator.VolumeAndVolatility update.mq4
Here is the Consecutive candles indicatorconsecutive candles 1_02.ex4
The other 2 indicators are in MT4---Williams%R and a 55EMA
Finally here is my templatewilliams2.tpl
I will post some charts with examples in the next few posts. They will center on XAUUSD 15min to daily charts. I will also be testing the other XAU pairs on the daily and WTI, but these I will only be plotting trades and not actually trading.
Feeling great to be the first subscriber to this thread! Best of luck Chris.
OK here are screen shots from XAUUSD 5min to daily charts, these are only for proof of concept, so don't look at them too hard lol.
The 5min trades are shown on a 15 min chart so they would all fit.
The two open trades you see are live trades from 4hr chart (top one) and the 30min chart (lower one) there are plotted trades without #s because they would still be open.
HAHA...as a small test (not including the 5min chart) there are two mistakes in the charts one is a missed trade and the other is a wrong trade (not confirmed) can anyone spot them...bit of fun.
Can you add the other indicators to this thread please?
do not know how to load the Williams%R or 55EMA to first post sorry
First - thanks. Did you tried any other symbols or just XAUUSD? Anyway it seems too good...
I hardly believe there are no people here having problem finding Williams and MA.
cfudge, thank you very much for sharing...this looks very powerful,im using various timeframes as your screenshots....will observe behavior on other pairs....keep up you good work man :-)
This looks for me very promising. Please, is there any coder which can integrate that criterias to one indicator? that will be holy grail i think
At first, you download all these 3. Put the first 2 indicators in the indicator folder and the 3rd one in the template folder. Restart mt4. Then select the template "williams". Now will have your chart ready. Hope that helps. Thanks.
Is there a version for MT5, please?
Thanks for sharing your work on this cfudge, much appreciated! After adding to my charts and running some visual back-tests with your nuances in mind, it looks like you have a pretty solid system.
I'll start forward testing with you this week, it would be great to get involved and share any findings, I may add a currency pair or two into the mix as well.
Wishing everyone a profitable week.
I`m so glad that you started your thread about your profitable system !!
See, as I said, once it is in the right section a lot of people are very interested in your way of profitable trading
Please allow me to contribute a bit as you did great in the "my last humble request" thread. I hope this keeps on track and doesn`t confuse subs.
You and IceRice (the coder of consecutive candles indis and ea) are very serious about Volume to filter con can trades.
I know that ignoring Volume is usually a big mistake in trading. But developing v 01 and v 02 was more about to get in a trade as soon as possible,
when volume indicators or volatility indicators need a few candles to react later. Between the lines I wrote in our thread, it was about Price-Action - and Price-RE-Action.
My intention was to get in early to have the smallest SL (lower risk), AND be in the trade, BEFORE market RE-ACTS and killed my trade, may it right after a turn or a trend trade.
As I appreciate all I hear about improving, I had to study more about Volume and the power behind a move.
Here is what I found, and I must say I am amazed how simple this is and that is what I am looking for.
"Make things as simple as possible, but not simpler." Albert Einstein
ONLY to illustrate what I mean: First subwindow is current tf force showing what each candle did, second subwindow force indi of M30 and H1 (also each candle)
H1 layed above M30 (little trick as I like laying v02 above v01 consecutive candles). Aqua and yellow is H1. Check out the situations when all three align and dots or dots with arrow (change of direction) fit.
To make force indi lag and showing an average of x periods, just increase the periods.
Force Histo mtf nmc.mq4
IceRice is working on it, he PM me that it will be done next week.
OK...time for some hard truths about what is needed for this to be palatable for most people.
From the screen shots there is something missing in the equation...namely a SL...I have not used one during the testing because I felt it got us out of a lot of trades. Now, saying that, if you were to put the SL above the trigger candle on a perfect entry near the actual reversal then the SL works great.
If you look at post 8, the silver chart is a good example of the trades being at good reversals and it seems almost all those SLs were not hit (if above the entry arrows).
Alternately, the WTI chart is a different matter, quite a few of those would have hit SLs and the last trade with a loss of 56 pips would have been a loss of 93 pips.
The other subject that need attention is the exits...while I have been exiting when the Williams %R crosses the opposite -20/-80 lines it may be better to exit at the next signal.
Another example would be to add trades as Wolf300 suggests, on additional dots, when price is going in our favour, until we get a Williams %R cross on -20/-80 lines.
This all requires more testing on the charts...which equates to time and effort, it would be nice if people could take this on and test it more. We all would benefit in the long run.
Here is a doc. by Hanover, on how to test for repainting indicators on strategy tester. We are not worried about repainting but this technique could be useful to visually backtest the above scenarios.
Here is an easy way to test indicator repaint.docx
Subs. will try on Monday. Thanks and
[quote=wolf300;12255042]Hello Chris, I`m so glad that you started your thread about your profitable system !! See, as I said, once it is in the right section a lot of people are very interested in your way of profitable trading Please allow me to contribute a bit as you did great in the "my last humble request" thread. I hope this
In the above chart, you used candle indicator v 1-2, right? thanks.
in this case, not to clutter the pic for new consecutive candle traders, v 02 only.
You can find out, if dot or arrow with dot appears on candle whitch has a lower low AND lower close than prev. candle low (long viceversa).
So PA has more power than v 01 where a lower low than prev. candles low triggers. V 02 "can" be used to confirm v 01.
I know binnie, any additional indi is to much for you, but you have to admit, they can be very profitable cause confirming...hope you found ninja version of con can.
© Forex Factory