The Equilibrium, a key to success!

The new Bionic Pullback Indicator


Hello dear subscribers,

Over the past few weeks, we've been busy setting up and optimizing the tick charts. That's why I posted fewer posts, as the time was huge. Nevertheless, we have come a step further in the findings.



The development of the supply and demand indicator and the Bionic candle served to identify the strongest zones within a trend. Within a downtrend, here an example in H1, there are strong and weaker moves down. As soon as the course goes up again you can see that he overcomes the weak movements downwards, while he fails at the strong movements and is pushed down again. The goal is to filter out the strongest movements to identify future reversals. This was possible with the previous color setting of the Bionic candle, but not as clear.



In my previous post I have written some information about this. A key advantage is that you only see the last decisive pullback within a candle. Thus, the strength of a candle can be seen at a glance. The larger the last pullback, the weaker the movement. However, the limitation of these movements is in the M1, since this is the smallest time unit. To bring the stops below 1pip, I have to be able to look closer into the candle. This is often only possible in a tickchart.



Let's look at a concrete example. On Friday the 08.03.19 between 14:28 to 14:45 CET there was suddenly a strong movement within 5 minutes at 23 pip and then a movement around 27 pip down. In the following 7 minutes the course went up again. In the past it was difficult for me to draw a resistance zone from this movement, because in this case I only had 17 candles and the candles were often not clear enough.



In the 32 Tickchart I received in the same time 228 information about the strength of the individual movements. That was an average of 13 candles per minute. This immediately enabled me to identify the strongest zones within these uncontrolled movements. You can see very well how the strongest movement at point 1 ensures that at point 2 the decisive downward trend is initiated. The two underlying candles also showed a strong movement and had an influence on the price performance. You can see that the course just before point 2 starts to weaken.
What does it mean to identify the strongest candle within a downward movement? This strongest candle means that most of the sales have occurred at this price level at this time. The likelihood is very high that when the price goes up again, it will be in this strong price level again to strong sales.

However, there is no guarantee for this because the strength of the lower resistance is crucial to the uptrend. And if the lower resistance is stronger than the upper resistance, the upper resistance zone is broken by the upward trend.



First let's look at a very interesting discovery. As a rough example, I'm using the EURUSD in H1 from Jul to Aug 2018. We see a downtrend and immediately thereafter an uptrend of 440 pip each.

In the downtrend we can see that the bullish pullbacks within the Bionic charts are much stronger than the bearish pullbacks. In the uptrend, the bearish pullbacks within the Bionic charts are much stronger than the bullish pullbacks. This is not about the number of pullbacks, but about the size.

In the indicator I developed, you can see these pullbacks very nicely and you can see that in a downtrend bullish pullbacks are much stronger. When a downtrend is strong, the effort to turn it over is very high. As long as the bullish pullbacks are small within the downtrend, the downward trend is strong. As soon as the pullbacks get bigger, the trend weakens.



At points 1,2 and 3 we detect the strongest movements down and record our resistance zones there. At point 4 we identify the strongest upward movement and record our resistance zone there. They recognize how exactly the zones are to be identified.



To make it easier for most, I switched the colors of the pullback indicator. So you can immediately tell if it is a strong uptrend or downtrend.



Please note that these calculations are the relevant pullback for me. Within most candles, there are two pullbacks, which are presented in the form of a shadow. The lower shadow of a bullish candle is not relevant for me, as the price went up significantly above the open afterwards. The upper shadow of a bearish candle is not relevant for me, as the price went down significantly over the open afterwards. The pullback in the Bionic chart is for me the last relavant price movement just before the Close. Of course, there are exceptions in some cases, but they were not taken into account.



I have created the two important indicators for you here. The Bionic chart Historam pullback indicator, which on the chart instead of the normal candles, filters out only the pullbacks of a move. The Bionic Pullback Indicator below shows in the overview the strength of the respective trend.

However, you always have to keep an eye on all the movements in order to draw possible conclusions. As already mentioned, a time-based chart is clearly at a disadvantage compared to a tick chart. Although the indicators running in the tickchart, they still need to be adjusted.

I am convinced that in many situations you can now identify the trend reverses faster. But it is like all a matter of time and exercise. The small pullbacks seem to be a crucial key to success, but unfortunately there is no basic statement in forex, which always holds. That would speak against the principle of the stock market.

Conclusion:

Based on the findings so far, we will continue to optimize and expand these pullbacks in the future. It is crucial to get a deeper insight into the candle. This information must then be adapted to the particular situation in order to make possible derivations. I still think that the candle is absolutely enough to make a trading decision. For a rough overview, I also recommend using the supply and demand indicator. You will find detailed information and instructions here on the blog.

The way seems to be the right one, but we will significantly improve the calculations over the next few years to make even better decisions. Who manages to take big profits within the small movements, for the big trend consequences are no longer relevant. Then it does not matter if we are now in an uptrend towards 1.25 or even further down. Every trend moves up and down in wavy lines and we want to take those wavy lines with us. Very small stops with big lots means a small risk for me within a short time. The shorter I stay in the market, the lower the risk of being stopped by unforeseen movements.

This trading style involves a lot of time and experience. In recent years, I have noticed that it is easier for me to anticipate short-term movements more accurately than long-term movements. Therefore, I would prefer 10 to 15 trades in a day rather than a trade to hope the price moves in my direction. With this style of trading a long-term equilibrium can be traded profitably and low volatility phases. So there is no reason to look for rewarding trades in other unpredictable currency pairs. With 3,000 trades within one year, a high level of experience is also created at the same time. But this decision must be made at the end of each trader for himself.

I wish you now that these indicators help you a little bit to capture the market faster and to identify trend reversals even more precisely. I am happy about your experience.

A successful trading week

best regards

that's quite cool Bionics

Very interesting topic, it probably could be helpful for research papers, I’ll try to share some more information about micro structures very soon, still I’m working on it.

Hello MTX, hello FireXForex,

Thank you for the nice compliment and the encouragement. Since I work with this approach, the odds have improved significantly. The goal will be to look closer into the candle and get more efficient information. The key seems to be the upper pullback. But I am convinced that we are only at the beginning of an interesting discovery. My Java course has helped to create some basics to program simple individual help indicators. As it seems, the simplest things are the most effective. Nevertheless, there are still many questions that are open. But I have a lot of time to do some experiments besides trading. The interesting thing about this approach: Any trader working with it is independent of costly trainers, indicators or market information. I believe that together we will take a big step forward over the next few years. For this we need the exchange with each other. The information that I pass on here are self-developed and I hope that in return many traders participate in this approach. I know that this kind of trading means a lot of effort, but a successful trading on the stock market unfortunately requires a lot of effort. I am looking forward to a successful future.

best regards

Additional Bionic strength indicator


Hello dear subscriber,

Attached Image (click to enlarge)

In yesterday's post, I showed you two key indicators that will help you identify trend reversals more easily. For this you have once received the Bionic Chart indicator, which shows the color of the pullbacks and an additional graphical overview. Since the candle in the Bionic Chart differs significantly from a Basic Chart, I would like to make two more indicators available today for your convenience.

As I have already said, for me in the current trading bionic pullbacks are crucial factors for a possible trend reversal. In the Bionic Chart, only the bearish pullbacks are displayed in an uptrend, while in a downtrend only the bullish pullbacks are displayed. Depending on the selected time unit, candles that do not contain a pullback are also produced. I would like to elaborate on that today.

Attached Image (click to enlarge)

In the Basic Candle Chart, strong candles without shadows are displayed when:

Bullish candle open / low and close / high are the same
Bearish candle open / high and low / close are the same

You will soon realize that these candles are very rare. The probability of finding such candles becomes greater the smaller the unit of time is.

Attached Image (click to enlarge)

As already written, the lower shadow on a bullish candle in the Bionic Chart is completely uninteresting as it clearly overcomes the open. As soon as the high and close are on a level, this candle is drawn without a pullback as a gray candle. The same is true of the bear candle just the other way around. Of course, this is completely clear that with this form of presentation there are significantly more strong candles in the Bionic Chart than in the typical candle chart. At the same time I already get more information about a trend strength.

Attached Image (click to enlarge)

As you can see there are different candles with different strengths in the Bionic Chart. As soon as a pullback is created, the candle strength is clear and clear. The gray candles without pullback are a challenge though.

Attached Image (click to enlarge)

Here is an example in the 1 minute chart of this morning. At least 10 gray candles without pullbacks were created within 65 minutes. Depending on the shape of the candle, it can sometimes be difficult to tell immediately if it is a bullish or bearish candle.

Here I have followed different approaches to make the gray candles visible. First, I added another indicator to the Bionic Chart that shows only the gray candles in each color. The problem was that my tidy chart became very confusing. I tried to color the strong candles in different shades of gray but that too was confusing.

Attached Image (click to enlarge)

Finally, I have overcome the use of an indicator, which is displayed in a separate window. This shows at a glance how big and strong each candle has been. This leaves my main chart clearly arranged to draw dark blue resistance zones.

Attached Image (click to enlarge)

My basic approach has been Equilibrium for many years. An Equilibrium is relatively fast to identify in the chart and I have already written about it a few times. An equilibrium within a candle is called doji. This doji arises whenever the open and close are on a price level. In the Bionic Chart, this doji is also relatively difficult to recognize. A doji always means agreement on the price and, at the same time, an uncertainty.

Attached Image (click to enlarge)

For those of you for whom this uncertainty may be important, I've added another indicator that shows you this doji in a separate window. For myself, this uncertainty is already evident from the current course, so I do not work with this indicator myself. But he helps in the beginning in identifying the doji.

Attached Image (click to enlarge)

Overall, the chart image would now look like this. The main chart should be cleaned up and still give as much information as possible in order to mark resistance zones efficiently.

The Bionic Pullback Indicator helps identify the current trend direction. As we noted earlier, in a bullish trend there are strong bearish pullbecks while in a bearish trend there are strong bullish pullbacks. In this indicator, only the colors were turned over to capture the trend direction faster.

Underneath you can now see the two new indicators that you can download at the end of the article. Which indicators they use for this is purely a matter of taste, I myself usually only use the Bionic chart indicator because this already provides me all the information. However, the bottom indicators might help you get a baseline in the beginning. After that I recommend to delete all indicators and to work only with the Bionic Chart.

In principle, these indicators under the main chart are a kind of support wheel on the bicycle. When I learn to ride a bicycle, I am glad to use these support wheels in an emergency. As soon as I can ride a bicycle I do not need them anymore. The more information I get as a dealer, the more insecurity arises. Successful action comes only through clarity, but for starters, I would recommend these indicators.

A very important aspect for me is the supply and demand indicator, here I prefer working with the strength numbers that are displayed at the end of each trend.

A little tip on the edge:

As soon as an uptrend may be over and the price is already heading down, just draw a line above the last high. Now look for a reference price on the left side within the same price level and consider the strength of this candle. This often gives them a lot of information about the strength of the possible trend sequence.

Unfortunately, the statements in a time-based chart are often very inaccurate and not clear. At some point you should consider if you do use a tick chart.

The clear advantage of this approach is the rapid identification of the trend strength. Now try to find out for yourself which strength prevails. They'll quickly find that they'll make more accurate trade decisions over time.

I wish you a lot of success and look forward to your feedback.

best regards

Attached File(s)

Bionic Indikators.zip   16 KB | 1,475 downloads

Pullback test 10 sec chart vs tick chart


Hello dear subscriber,




As I have already said, for me in the current trading bionic pullbacks are crucial factors for a possible trend reversal. In the Bionic Chart, only the bearish pullbacks are displayed in an uptrend, while in a downtrend only the bullish pullbacks are displayed. These little pullbacks seem to be a crucial key to success.

Thus, the strength of a candle can be seen at a glance. The larger the last pullback, the weaker the movement. However, the limitation of these movements is in the M1, since this is the smallest time unit. To bring the stops below 1pip, I have to be able to look closer into the candle. This is often only possible in a tickchart.
However, that also works with a time chart in seconds. I have already posted a very good and free indicator. I have now tested this seconds chart indicator with different settings. I was looking for the smallest seconds unit where the indicator could already give me good pullback information. The smallest time unit in which this was possible corresponded to 10 seconds. Now I had to calibrate this 10 second chart with the Tick Chart. To compare the pullbacks, both charts had to generate about the same number of candles. Yesterday on 3/15/2019 from 21:20 to 22:00 CET, we reached about the same number of candles with an 8-tick chart as in a 10-second chart.



This was a good starting point to compare the statement of the Pulllbecks. Basically, one can say first that both indicators provide good pullback information. However, I wanted to know exactly which of the two chat views provides the better values. If we know how accurate these values are, the better statements we can make about possible trading decisions.



Let's first look at the 10 second chart. In the uptrend we can see very well how strong the red pullbacks are formed. Overall, we get about 20 pullback information bear in this uptrend. In the subsequent downward trend there are 24 pullback information bulls.



In the 8th tickchart we have about the same number of candles within the same time period. Within the uptrend we get 27 pullback information bear, while in the downtrend we get 31 pullback information bull. This means that we receive about 30% more information within a tick chart during the same period.

30% more information is already worlds in the forex market and can already decide on success and failure with such a value. Those who can do without 30% of the information could also work with the free 10 second chart. Basically, this is still better than with the M1, In this chat I have within the same period within the uptrend only 10 Pullback Information Bear or 9 Pullback Information bull received.

This makes a 10 second chart already 100% better than the M1. With the tickchart you can then improve this value by another 30%. In the forex market, it's like racing, if you own a good race car, it's always going to be about improving that race car every day. Because every last improvement could make sure that they will one day become world champions.
Being world champion means minimizing risk and loss while increasing profits. After all, we fight small traders against two big opponents, the big players and sometimes the brokers. To win against them you have to be well rested and question and optimize your setup every day.

I hope that you get some interesting information , wish you a nice weekend and a successful trading start on Monday

best regards

Addendum to Post 881/883 and 885

Hello dear subscribers,

Within the next week we will create a video for these contributions to show this interesting pullback effect.

best regards

Video sec chart vs tick chart

Hello dear subscriber,

As promised, I once made a video comparison between a 10 seconds chart and a 12 tickchart.
The course was in a downtrend throughout the day today. As already written, the upper pullback of a bullish candle and the lower pullback of a bearish candle seem to have an interesting effect. In a downtrend there are more bullish pullbacks, while in an uptrend there is more bearish pullbacks. Let's take a closer look at this effect.



Here you see a downtrend in the EURUSD first and then a small uptrend. During the uptrend, more and stronger bearish pullbacks emerge than bullish pullbacks. Let's take a closer look at the red pullbacks in the current price. As long as the pullbacks are very small or there are no pullbacks at all, the course is strong. Larger pullbacks may signal a small or large trend change.

Underneath is an indicator that shows the pullbacks once more on a zero line. In the indicator, the doji were filtered out, so there are fewer red pullbacks in the indicator than in the price. Since there is only one pullback in a candle within the Bionic chart, you can immediately see the price strength at a glance.
The decisive factor is how many red or green signals I now receive within the course of the price. I did a comparison for that.



In the video you could already see in the overview, that the tickchart delivers more signals than the seconds chart. Let us now come to the evaluation.



As we are in a downtrend, the bullish pullbacks of bearish candles are a defining feature.

In the same period, in 10 seconds chart 39 candles bull with 21 signals and in 12 tickchart 37 candles bull with 21 signals. That's about the same value. It gets interesting with the bearish candles.

During the same period, chart 38 candles bear with 12 signals are produced in 10 seconds and 52 candles bear with 26 signals in the 12 tickchart. Of course, there were more bearish candles in the tickchart, although oddly enough, the number of bullish candles in both charts is the same.

If we now bring the bearish candles in both charts to a common denominator, we come to the following conclusion:

In the 10 sec chart, we receive a signal on average in every third candle.

In the 12 tick chart we receive a signal on average in every 2nd candle.

This means that we receive 50% more signals in the tickchart than in the second chart.

In the 1 minute chart we received only 6 signals during the same period. The more signals I receive, the more accurate statements can be made. It's just a question of determining the current price strength in order to be able to make more effective trading decisions in my marked resistance zones. Pay attention to these signals in the future, I am convinced that it will help you.

I wish you a nice evening.

best regards

The last 6 months ....


Hello dear subscriber,

Over the past 6 months, we have made some progress in the area of Equilibrium. Let's take a quick look back to understand these steps.



In this overview, we see a monthly chart in EURUSD from 1980 to today. I chose this chart because the monthly candle shows the most accurate display. Within any chart there is no top and bottom. The lowest point was 0.5650 and the highest point was 1.60190 which was reached in the EURUSD. This range is not a guarantee because over the next few years the price could well go above or below the last few points.

Within the current range there are resistance zones that have been active at a similar price level over the last few years. The more course information I have available, the more specific statements I can make about possible future resistance zones. We have already talked about the referencecourse, which are very important.

A course could be thought of as a kind of rubber band. When he goes up, the rubber band is stretched, at a certain point it does not continue and the course goes down again. The rubber band relaxes again. In principle, almost all traders work with resistance zones and support zones. Whether this is determined with Fibonacci, MACD and RSI or offer and demand zones is a question of your own trading style. The key question is when reversals arise. To get to the bottom of this mystery you have to know the power of the rubber band.



The first step was the development of the Bionic chart. This candle consists of high, low and close. This creates within the candle only a pullback that ends with the Close. This made the overview much clearer. In addition, the average strength on the HH and LL was visualized using the ZigZag calculations. This made it possible to determine the respective strength within a current trend.



This resulted in the relevant supply and demand zones for me. Based on the width of these zones, one can determine the sustainability of a trend. You can quickly see if the strength of a trend is increasing or decreasing. Pullbacks within a trend can be identified more quickly and provide information about the trend sequence. We have already talked about this in detail.



Having been able to determine the strength of the supply and demand zones, we had to go a step further. The smallest unit of a supply and demand zone is the candle. To determine the strength within a candle, only the pullback was made visible. In a bullish candle the red bearish pullback and in a bearish candle the bullish pullback.

The smaller this pullback is, the stronger the candle. Finally, we found that a tickchart delivers 50% more signals than a comparable second chart.
On the chart you can see four downtrends from the highest point 1 from 1.60190. After these downtrends, the price has gone up again. Let's look at how we can use the pullbacks to determine when we could expect another downtrend. We agree that a monthly chart shows very large resistance zones, and these resistance zones can then be significantly reduced in smaller time units.



Let's start with point 1. The first downtrend consisted of three candles point A, B and C. Now look at the three pullbacks. We find that Pullback A is the smallest and the candle was strongest. From low to close, we draw our resistance. We recognize that the uptrend has stopped within this strongest movement and has gone down again.



The second downtrend consisted of seven candles. The second candle was the strongest because she did not have a pullback, the next, stronger candle was the first candle as she had the smallest pullback of all the other candles. As the price went up he stopped within the two strongest candles and then went down again.



As the price went down, make sure to turn it up within the strongest bullish candle. The price was now up to the second strongest candle and finally turned down.



The third downtrend consisted of eight bearish and eight bullish candles. You can see very well that in the beginning the bullish candles were very weak due to the big pullback. Only at the end of the course did the bullish candles become stronger, which finally led to a turnaround. Of the eight bearish candles, the third was the strongest. And it was exactly this resistance zone that started to rise before the course turned again.



Finally, let's move on to the fourth downtrend. This downtrend consisted of ten bearish candles and a bullish candle. The strongest candle was at point A the second strongest candle at point B. Point B has already started and has pushed the course down. We now know that there is another resistance zone at point A, which once again pushes the course down as soon as it arrives in this zone.
Of course, the whole game works the other way round so they are able to identify the zones where the downtrend is going into an uptrend.



If you compare the two chart images with this knowledge, you will see that with the help of the Bionic Chart you will get much more information at a glance than with the normal candle chart. The strength of the candles can be seen with a glance in the Bionic Chart. That's exactly why I wanted to develop a clearer candle presentation.

In the next few years the goal will be to look closer into the candle. The normal chart will not bring us further here, as we get 50% better signals in the tick chart. Perhaps a combination of several different tick charts will provide more accurate results. The programming of the indicators for this is certainly a small challenge, but we still have a lot of time, after all, New York was indeed not built in a day.

I wish you an exciting and successful trading week and a nice rest weekend

best regards

New Density strength indicator!!

Hello dear subscribers,

The Density Indicator is an interesting development as it shows the strength of each candle. A few months ago, has a high impact member and very creative trader palpite on my idea, dividing the Density Indicator into two different colors. Thus, the candle strength was displayed for each of the bullish and bearish movements. Thanks again to palpite for this work.



With the development of the Bionic chart, the candle has been reduced to the essential elements. As a result of the fact that the Open was dispensed with, the last pullback before the close could be displayed within a candle. This eliminates the Wicks and the candle gives at a glance the real strength again.



The Density Indicator is a great development and is in line with the candle chart, but it is not compatible with the bionic chart. You can see that clearly in the picture. The lower wick in the bullish candle and the upper wick in the bearish candle are ignored in the Bionic chart, as at the time of the close this wick was clearly overcome. The last wick is the deciding point. The smaller this Wick, the stronger the Bionic candle. That should also be noticeable in the density indicator.



Point A shows the density indicator for the Bionic chart, while point B shows the density indicator for the candle chart. In our example, the uptrend is just over and a downtrend begins. At point 1 you can see that the revised Density Indicator shows a significantly stronger candle than at point B. Likewise at point 2, it starts as an uptrend.
Basically, there are more stronger candles with the Density Indicator for the Bionic chart, but this makes the overall picture more harmonious and balanced. A slowing and increasing trend can be identified faster, but one should adapt to the basis of calculation of the Bionic charts.
Just give it a try, it may help you.

I wish you a great weekend.

best regards

Good Morning Bionics, I live in EST zone, that’s why. Quick question for you, might be a newbie/foolish one for you.,

As you mentioned aboved post# 891:-



A price goes up until it comes to a resistance zone that is so strong that the number of sales contracts is greater than the number of buy contracts. Then the price goes down until it comes back into a resistance zone



Why resistance twice, may be a typo. HOW PRICE/CANDLE/MARKET KNOWS THAT THIS IS RESISTANCE/SUPPORT ZONE??? Because Price/Candle/Market NOTHING but an indicator,IMHO.

Plz answer.

[quote=loveandpeace;12208485]Good Morning Bionics, I live in EST zone, that’s why. Quick question for you,

Hello loveandpeace,

Thanks for pointing out, that was a mistake. With many different languages, it is always difficult to communicate or express correctly. I hope it is easier and more understandable now.

best wishes

[quote=Bionics;12208548] what about my other question??

Filters are important for martingale protection. In this case the filter protected from the great oscillation that had in the price. When the spread returns to normal the EA will continue the grid with fewer levels than it would have if it were off.

[quote=loveandpeace;12208580] Resistance zones are defined and represented differently by each trader. There are several ways to find these zones. Fibonacci, MA, RSI, MACD, etc.

A price can never know that it is a resistance zone, but the price is the result of the number of lots of different market participants. If the number of lots of sellers is greater than the number of lots of buyers, the price drops or vice versa.

With the Bionicchart within a tick chart I am able to analyze the strength of the purchases and sales in the individual price levels. From this I can make an assumption that makes it easier for me to create resistance zones. The resistance zones created by me, however, are based purely on suspicion, because no one can predict exactly what will happen next in this market.

Therefore, it is always about pure speculation, but with tools and experience can lead to a higher profit than loss. Unfortunately there is no guarantee for that.

Best regards

Thanks for your detailed & honest explanation, different time frame, different Resistance/Support zones, and Market Makers also KNOW, lol.



If it is pure speculation, do not you think it is gambling?? IMHO.

No one can accurately predict the stock market performance over the long term. But you can not call the stock market a game of chance . I would rather call it a strategy game, in which you always have the opportunity - in addition to the methods of fundamental and technical analysis - to determine your maximum losses per investment from the outset and thus to monitor your risks. For 90% of the traders, the stock market business ends in a minus, that's understandable, because I also took years to find my way around this market. If I had not started with demo accounts back then, I would have been broke for a long time.

Basically, you should do money management but in any case insofar as you think about the distribution of its capital and is aware of how much money you put on the line. In the beginning you lose and the others win and when you find your way you win and the others lose. If you lose, it must not hurt you. Either because you have enough money or because you have sound money management.

If I had known then, against which big players and professionals I compete, I do not know if I would have done it. Today I'm not worried anymore, because when you've spent 40,000 hours in front of the screen, you'll notice the same behaviors and patterns over and over again. Then it will be fun at some point and the profit is a nice side aspect.

But you have to be aware that it can be over tomorrow. The stock market and the interbank market are developing rapidly. Deception, camouflage and confusion are the order of the day on the stock exchange. Who is creative and fast has a chance in this strategy game.
It should never be risked more than you can spare at the time.

Best regards

Thanks for your reply.

New Bionic Power Indicator


Hello dear Subscriber,


As I have already written several times, the candle chart is the quickest and most efficient indicator for me. With the Bionic Chart I could do without the Open, which led to a simplified representation of the candle. Within a current chart, candles are very difficult to compare because they are at different price levels. Exactly there are indicators, which have the task to simplify the overview.

A course goes up until it comes to a resistance zone that is so strong that it pushes the course down. Then the price goes down until it comes back into a resistance zone. Every trader would like an overview that shows exactly when the number of sellers is greater than the number of buyers or vice versa.

My first step with the Bionic Chart was to visualize the current strength within a candle. Due to the renunciation of the Open, only one wick was created within the candle. The upper wick for the bullish candle and the lower wick for the bearish candle. The smaller this wick in the current course, the stronger the candle. The strongest movement is a Bionickerze without Wick, but here it depends on the size of the candle and the other on which price level they are.




Here we see a price action in the EURUSD 32 tickchart of this morning between 8:45 and 9:15 CET. Two indicators have been incorporated, the new Bionic Power Indicator and for comparison the Price Linear Indicator.

The price linear indicator represents the candles on a zero line. The problem was that on the zero line the open of a candle was displayed. This inevitably leads to a unclear presentation. My goal was to show the low of a bullish candle and the high of a bearish candle on the zero line, which makes the picture clearer.




In this comparison, you can see that very well. Since there is no open in the bionic candle, the launch of a bearish candle is at high and the start of a bullish candle at low. In addition, I've filtered out the doji, as they signal no clear trend for me. In this overview, you can see that the presentation of the bionics indicator is much clearer. Now we just want to find out if this indicator also works more efficiently.




Today's morning session was twelve pip down and immediately after twelve pip up. At point A you see a strong candle that runs down and at point B a very strong candle that goes up. Candle C was the key for me because it broke through this resistance zone. Let's take a closer look at the downtrend and uptrend using the indicator.
It can be seen that there have been many bullish upward moments within the downtrend. There was relatively little downward momentum in the uptrend. While the downward trend ended with a stronger downtrend, the uptrend was strong but even. Looking at the indicator, it is noticeable that the uptrend was significantly stronger and more consistent than the downtrend. Let's take a closer look at the uptrend. The trend from point 1 to point B is much stronger than from point B to point 2. This confirms my drawn resistance zone.

If you only have this picture in mind, you know that the price trend will continue to run upwards with a high probability. Going up from point D would make no sense, as we do not know how far the pullback goes. However, what I can foresee: If the course penetrates from above into my drawn resistance zone, one can assume with a high probability that the course will turn and continue to run upwards. So I let the trend run for now and wait for it to come back to my resistance zone.




As we discovered later, the assumption was correct. With a stop of one pip you were able to reach a maximum of 18 pip. However, I got out at the first big reset and was able to reach 15 pip. Shortly thereafter, the course went down again by 15 pip and turned exactly on my marked resistance zone E.




The comparison with a bull bear indicator is quite interesting. From point A to point B it looks like the course is going up again. That's why you should never rely on indicators. Indicators should only be a help to find the right resistance zones.




Try it for yourself if the New Bionic Power indicator gives you a better overview of the trend. Please note, however, the changed calculation method.

The Bionic Power Indicator calculates the low for the bullish candle to the close, the close to the high does not pay attention, because it is a pullback.

With the bearish candle, the high is calculated up to the close, the close to the low is ignored, because this is also a pullback. So this is about the Bionic net candles, so the force that actually prevails in a trend.

The Price Linear Indicator is also available for you to compare the two indicators.

I wish you a successful trading week and I look forward to your feedback.

best regards

Attached File(s)

New Bionic Power without Doji 1.2.ex4   9 KB | 924 downloads

Attached File(s)

Price Linear.ex4   9 KB | 853 downloads

In the type of entry breakout, the order will be executed directly when the price has broken through a resistance or support.