FINAL UPDATE: I originally created this thread with the best of intentions to share a useful tool to alert people to potential 3-bar engulfing patterns. I know many of you have found it useful and PM'd me saying so. I sincerely appreciate that support, but I won't be developing it any further than the latest version so please don't ask anymore. In any case it already has many great features in that were previously asked for.
Thanks for the great support from virtually everyone along the way who gave me lots of encouragement and support throughout. All except FXCyborg who started to unjustifiably attack me. He didn't like the idea that I created an indicator to identify the setups and fire off alerts. So sad, particularly when I have never criticised anyone on FF. I He'd clearly lost his way and ultimately ended up banned from the Forum anyway.
Hope many continue to enjoy the great indicator and bring many green pips to all.
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As discussed and promised in FXCyborg's main thread ("High Level Accuracy Method With Little To NO Draw-down"), the attached indicator identifies the 3-bar engulfing patterns that are the core component of his high profitable method. This thread is not about discussing his method but instead providing a useful tool for quickly identify the patterns and thus potential levels to trade from.
FXCyborg's thread and discussion can be found here - https://www.forexfactory.com/showthread.php?t=877939
So please limit the discussions here to the use of the indicator only, experiences using it, possible improvements and sharing parameters that may be useful for others to use. DO NOT USE THIS THREAD TO DISCUSS THE METHOD AT ALL - THAT SHOULD BE DONE IN THE MAIN THREAD. LIMIT THIS THREAD TO DISCUSSION ABOUT USING THE INDICATOR ONLY. SIMILARLY DON'T CLUTTER FXCYBORG's MAIN THREAD UP WITH DISCUSSIONS ABOUT THIS INDICATOR THERE.
The indicator is parameterised and thus flexible in how it can be applied. It can be used in a 'strict' mode that only looks for ideal setups thus limiting the number of patterns it identifies. Or used in a more flexible mode so that it picks up more patterns, but the trader then has more to evaluate. Each to their own how they want to use it. There is no right way. In the end it is purely attempting to identifying potential 3-bar engulfing patterns for further consideration if a trade should be made or not when the pullback happens. It is up to the individual trader, based on the other rules and context as described by FXCyborg if the pattern is at a level to be traded or not.
The indicator is not an excuse to not use your brain!!! You have to evaluate the context around the patterns and determine if a potential trade exists or not.
The images below are examples of it capturing all the trades on various time frames that FXCyborg made in his opening post. I have been trading for many years and never considered dropping down to the 1-min chart as I felt there was too much noise. How wrong I was.
Side note: As I have been testing the indicator today, I am up just over 5 percent trading just off the 1-min chart (cross referencing against higher time-frames of course). No way near at FXCyborg's level, but I am just starting out and pleased with the results so far I still have much to learn and take in and that will come with more screen time and studying the main thread. But I'd personally like to thank FXCyborg for revealing this method. BIG MASSIVE THANK YOU
Indicator Parameters:
Below is a description of the parameters used by the indicator to make it flexible.
BodyPercentageCheck, default = 70 percent.
Ensure the body of bars 1 and 2 are similar in size. So, using default the smallest body must be at least 70 percent of the larger one. For example, if one body was 5 and the other 10 (50 percent) it wouldn't fulfil this criteria if default of 70 was used.
M1_MinBody, default 2.0 pips for 1 minute timeframe (tf).
Ensures that the size of the body range between the open of bar 1 and close of bar 2 is a minimum pip size. (Note: If 'Discretionary Logic' is turned on (see later parameter) then it uses the lowest low to the close of bar 2). There is one value for each MT4 timeframe so M5_MinBody (5 min tf) to MN_MinBody (Monthly tf)
The idea is to filter out very small bull bar movements for bars 1 and 2. For example, would we be interested in two small bull bars where the body range was only 2 pips on the M30 timeframe? Probably not, as it is an insignificant move even if there is an engulfing bar next. So, setting the minimum pip movement for each timeframe filters out those moves that are so small to not be worthy of consideration.
Note: The default values provided here was me looking particularly at EURUSD and captures all of FXCyborg's example trades on his opening post (see images below). But of course, they will probably need to be different for each currency pair as daily ranges vary. Of course, if you don't want this filter applying set the values to 0 for each of these xx_MinBody parameters and the body range will not be checked at all when trying to identify the 3-bar pattern.
DiscretionaryLogic, default = true & DiscretionaryMultiplier, default = 1.33.
As people have commented in the main thread, there is some discretion in the requirement for the bodies of bars 1 and 2 been similar in size particularly when the engulfing bar looks good. Even the examples in the opening post by FXCyborg highlight this. These parameters attempt to apply that discretion and still highlight potential 3-bar patterns even if the body comparison check isn’t fulfilled.
It does this by checking the body size of the engulfing pattern. Using the default value, if the engulfing body is 1.33 times bigger than the MinBody value (see above) for the time-frame it will highlight the 3-bar pattern even though the bodies of bar 1 and 2 and not comparable in size.
So, in plain English what this is doing is if we have a good engulfing bar but the two bull bars before it are not really comparable in size ('Body Percentage Check' above) then the pattern is still identified. Intuitively this seems to make sense and without something along these lines those discretionary opportunities would not be identified. Of course, if you want strict rules to be followed regarding the bars 1 and 2 bodies comparable in size switch it off by setting the value to false.
IgnoreBigEngulfing, default=true.
FXCyborg mentioned that the engulfing bar is not to engulf the bodies of both the preceding bars, just the prior body only. This applies that filter.
See his comment here: https://www.forexfactory.com/showthr...0#post11978970
PopupAlert, default-true & Notifications, default=false
Pretty self-explanatory. When a valid 3-bar pattern is detected you have the option to send an alert with an audible alarm. Uses the built in Metatrader alerting system. Similarly, you have the option to send notifications to your Mobile device using the Metatrader built in notification system.
Usage
Happy to make this indicator available to the Forex Factory community and distribute the object for personal use only. But please do not ask for the MQL4 source code I will not be giving my hard work away for others to rework. I'm sure you understand.
Other Comments/Notes:
Thanks for the great support from virtually everyone along the way who gave me lots of encouragement and support throughout. All except FXCyborg who started to unjustifiably attack me. He didn't like the idea that I created an indicator to identify the setups and fire off alerts. So sad, particularly when I have never criticised anyone on FF. I He'd clearly lost his way and ultimately ended up banned from the Forum anyway.
Hope many continue to enjoy the great indicator and bring many green pips to all.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As discussed and promised in FXCyborg's main thread ("High Level Accuracy Method With Little To NO Draw-down"), the attached indicator identifies the 3-bar engulfing patterns that are the core component of his high profitable method. This thread is not about discussing his method but instead providing a useful tool for quickly identify the patterns and thus potential levels to trade from.
FXCyborg's thread and discussion can be found here - https://www.forexfactory.com/showthread.php?t=877939
So please limit the discussions here to the use of the indicator only, experiences using it, possible improvements and sharing parameters that may be useful for others to use. DO NOT USE THIS THREAD TO DISCUSS THE METHOD AT ALL - THAT SHOULD BE DONE IN THE MAIN THREAD. LIMIT THIS THREAD TO DISCUSSION ABOUT USING THE INDICATOR ONLY. SIMILARLY DON'T CLUTTER FXCYBORG's MAIN THREAD UP WITH DISCUSSIONS ABOUT THIS INDICATOR THERE.
The indicator is parameterised and thus flexible in how it can be applied. It can be used in a 'strict' mode that only looks for ideal setups thus limiting the number of patterns it identifies. Or used in a more flexible mode so that it picks up more patterns, but the trader then has more to evaluate. Each to their own how they want to use it. There is no right way. In the end it is purely attempting to identifying potential 3-bar engulfing patterns for further consideration if a trade should be made or not when the pullback happens. It is up to the individual trader, based on the other rules and context as described by FXCyborg if the pattern is at a level to be traded or not.
The indicator is not an excuse to not use your brain!!! You have to evaluate the context around the patterns and determine if a potential trade exists or not.
The images below are examples of it capturing all the trades on various time frames that FXCyborg made in his opening post. I have been trading for many years and never considered dropping down to the 1-min chart as I felt there was too much noise. How wrong I was.
Side note: As I have been testing the indicator today, I am up just over 5 percent trading just off the 1-min chart (cross referencing against higher time-frames of course). No way near at FXCyborg's level, but I am just starting out and pleased with the results so far I still have much to learn and take in and that will come with more screen time and studying the main thread. But I'd personally like to thank FXCyborg for revealing this method. BIG MASSIVE THANK YOU
Indicator Parameters:
Below is a description of the parameters used by the indicator to make it flexible.
BodyPercentageCheck, default = 70 percent.
Ensure the body of bars 1 and 2 are similar in size. So, using default the smallest body must be at least 70 percent of the larger one. For example, if one body was 5 and the other 10 (50 percent) it wouldn't fulfil this criteria if default of 70 was used.
M1_MinBody, default 2.0 pips for 1 minute timeframe (tf).
Ensures that the size of the body range between the open of bar 1 and close of bar 2 is a minimum pip size. (Note: If 'Discretionary Logic' is turned on (see later parameter) then it uses the lowest low to the close of bar 2). There is one value for each MT4 timeframe so M5_MinBody (5 min tf) to MN_MinBody (Monthly tf)
The idea is to filter out very small bull bar movements for bars 1 and 2. For example, would we be interested in two small bull bars where the body range was only 2 pips on the M30 timeframe? Probably not, as it is an insignificant move even if there is an engulfing bar next. So, setting the minimum pip movement for each timeframe filters out those moves that are so small to not be worthy of consideration.
Note: The default values provided here was me looking particularly at EURUSD and captures all of FXCyborg's example trades on his opening post (see images below). But of course, they will probably need to be different for each currency pair as daily ranges vary. Of course, if you don't want this filter applying set the values to 0 for each of these xx_MinBody parameters and the body range will not be checked at all when trying to identify the 3-bar pattern.
DiscretionaryLogic, default = true & DiscretionaryMultiplier, default = 1.33.
As people have commented in the main thread, there is some discretion in the requirement for the bodies of bars 1 and 2 been similar in size particularly when the engulfing bar looks good. Even the examples in the opening post by FXCyborg highlight this. These parameters attempt to apply that discretion and still highlight potential 3-bar patterns even if the body comparison check isn’t fulfilled.
It does this by checking the body size of the engulfing pattern. Using the default value, if the engulfing body is 1.33 times bigger than the MinBody value (see above) for the time-frame it will highlight the 3-bar pattern even though the bodies of bar 1 and 2 and not comparable in size.
So, in plain English what this is doing is if we have a good engulfing bar but the two bull bars before it are not really comparable in size ('Body Percentage Check' above) then the pattern is still identified. Intuitively this seems to make sense and without something along these lines those discretionary opportunities would not be identified. Of course, if you want strict rules to be followed regarding the bars 1 and 2 bodies comparable in size switch it off by setting the value to false.
IgnoreBigEngulfing, default=true.
FXCyborg mentioned that the engulfing bar is not to engulf the bodies of both the preceding bars, just the prior body only. This applies that filter.
See his comment here: https://www.forexfactory.com/showthr...0#post11978970
PopupAlert, default-true & Notifications, default=false
Pretty self-explanatory. When a valid 3-bar pattern is detected you have the option to send an alert with an audible alarm. Uses the built in Metatrader alerting system. Similarly, you have the option to send notifications to your Mobile device using the Metatrader built in notification system.
Usage
Happy to make this indicator available to the Forex Factory community and distribute the object for personal use only. But please do not ask for the MQL4 source code I will not be giving my hard work away for others to rework. I'm sure you understand.
Other Comments/Notes:
- Please be aware that this is just a tool and highlights all the 3-bar patterns regardless of location and other trading context. Absolutely it does not mean you trade every pattern, and you have to apply the other criteria that FXCyborg is kindly informing everyone about in the main thread. It is your responsibility to apply common sense in using this. Plus remember, you are NOT trading the signal you are trading the pullback to the correct level.
- I have not attempted to optimise the parameters in anyway. It is for everyone to experiment and come up with what they personally feel are good parameters so as to identify those patterns a trader maybe interested in. But the provided defaults seem to work pretty well with EURUSD at least. It is a trade off between making things too strict and not getting many signals and having too many that clutter the charts. I suggest people back test this to their own satisfaction and add a comment in this thread if they have found something that may be of value for everyone. Please share and discuss what you find. Plus of course the parameter sets will no doubt vary between current pairs that exhibit different volatility and daily ranges.
Think that is about it for now.
Hope you all find it useful. Enjoy ... and green pips to all
Version History
Version 1.01 - 12 February 2019.
- Improvement in 'Discretionary Logic' to capture engulfing bar. If engulfing bar body is xx% of the entire range (low to high) of bars 1 & 2 then considered as an engulfing bar. (Value used for xx% is the BodyPercentageCheck defined previously).
Version 1.10 - 18 February 2019.
- Major change and improvement in how 'Discretionary Logic' works. Got rid of the DiscretionaryMultiplier parameter. Now when DL turned on and bars 1&2 are not comparable in size the engulfing bar does not have to be a minimum size (just as long as it engulfs bar 2). Now far, far better at capturing those patterns that do not conform to the 'strict' pattern requirement. (YOU'LL LOVE IT I'M SURE )
- Added logic to define the 'Min Body' move for each time frame to be expressed as a percentage of recent bar range volatility. A volatility percentage can be set for each time-frame or optionally use the new DefaultVolatilityPercentage to apply globally if not defined at time-frame level. Still have option to define it in pips if wanted, or you can mix the two approaches as have full control over the MinBody parameters..
- Will update the detailed parameter description explaining full detail later when I get chance but I'm sure you'll grasp it as very intuitive. ENJOY, GREEN PIPS to all.
Attached File(s)
HLA 3-bar method.ex4
23 KB
|
4,100 downloads
HLA 3-bar method v1.01.ex4
24 KB
|
3,452 downloads
HLA 3-bar method v1.10.ex4
26 KB
|
6,946 downloads
|
Uploaded Feb 18, 2019 8:30am
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