The Equilibrium, a key to success!

A special Easter present


Hello dear subscribers,


At Easter I would like to make you a special present once. We private traders are a special species and should stick together in this tough market and help us out. A good trader learns every day and constantly questions his strategy to become effectively better.

On May 8, 1985, our former Federal President Richard von Weizsäcker made a historic speech. The headline read: If you close your eyes to the past, you become blind to the present and thus to the future. I have successfully applied this sentence in my life and asked myself if this does not work in stock market trading.

Let's do a test and learn from the past to get better in the future.

One of the reasons why I only trade the EURUSD is based on the fact that there are a lot of price data. On August 10, 1953, the US dollar was first listed on the Frankfurt Foreign Exchange. This year he reached a mean of around 2.10 euros for one dollar. Until the early 1970s, the exchange rates were set by the D-Mark to the US dollar according to the Bretton Woods system. Only then did a flexible exchange rate develop according to supply and demand in the foreign exchange market.

The euro was only created in the year 2000 and was introduced in 2002, but the price calculations DM / USD were converted accordingly into EURO before that. Thus, today we have 580 months with concrete course calculations OHLC. In the H4 chart, however, these courses only become clearer and clearer from 1989 onwards. With the Bionicchart you can also present the courses much clearer.



The monthly candle has the highest priority, as it clearly and clearly reflects the price trend. I have now downloaded 2,320 OHLC data from the last 580 months to find out in which relationship the bulls and bears are. As a basis, I took my developed Bionickerze, which works only with HLC and renounces the Open. This creates, as you know, only a wick, which I would like to call a pullback. Within a candle we have a bullish or bearish movement and a pullback. I once examined and analyzed these movements in more detail.

Please note that in this post Pip is supposed to represent an abbreviation of pipette, as pipettes are displayed in the Metatrader.



Of the 580 monthly candles, there have been 307 bullish and 273 bearish candles so far. Although there were also two Doji in 1974 and 1999, which I did not take into account, as the courses were not clear there. The distribution of bulls and bears is almost identical to this day.

The average bullish candle had 3,401 pip and a pullback of 1,011 pip while the bearish candle reached 3,591 pip and had a pullback of 1,077 pip. The average bullish candle performance was 2,390 pip and the average bearish candle yield was 2,515 pip. This shows that the bearish candle is on average 5% larger than the bullish candle. This proves that it goes down faster on average than up.
Conclusion: The bulls and bears are almost evenly distributed, even if it does not look like this at first glance.



In the 580 months bullish candles reached a total of 1,043,963 pips and a pullback of 293,979 pips. The bearish candles reached 980,460 pip and a pullback of 310,241 pip. Add the bullish candles and the bearish pullbacks and all bullish candles with the bullish pullbacks, we get a distribution of 48% bearish moves to 52% bullish moves.
Striking were the pullbacks inside the candle. Over the entire 580-month period, the pullback was an average of 30% in both bearish and bullish candles. That should be very interesting for our Fibonacci friends.



If we compare the pure bullish and bearish candle movements, we come to the result of 63.503 pip in favor of the bulls. All pullbacks added together give a minus of 16,262 pip. The total result is thus 47,241 pip in favor of the bulls. From 1971 to the present day, we have an average bullish increase of 81.5 pip per month. If we now calculate the lowest price of 0.58796 and the now calculated close of 1.12446, 58.796 pip come out. Why is this difference of more than 11,000 pips created? If you look at the chart, you will see that the candles partially overlap. If the candles were to connect exactly to the next candle the result would be correct.

So we note that in the EURUSD to this day the bulls as well as the bears are in balance with each other. This also corresponds basically to all physical laws and also the laws of nature: What I give in a maximum, I can also take out maximum again. Exactly this aspect is very in line with my trade approach of supply and demand. I just wanted to go one step further to find out to what extent these bullish and bearish moves are crucial to a possible trend reversal.



At point A and B I have again listed the difference between a normal candle and the bionic candle. At point C you will see different Bionic candles from left to right, from the pure bullish candle to the pure bearish candle.

I have now developed an indicator that records all bullish movements above the zero line and all bearish movements below the zero line, but according to the calculation principles of the Bionic candle. We remember the Bionickerze I renounce the Open. The indicator records both the pure candle movement and the pullback within a candle.



Now let's take a look at the last 38 month candles in EURUSD with the new indicator. Crucial for the consideration are the three previously known trend reversals, which are each marked with an arrow. At point A is the redesigned indicator that records both bullish and bearish moves. Below point B is an indicator that compares the percentages of the individual values on the whole. This makes it possible to show the proportionality of the pullbacks more efficiently. The indicator has yet to be created, but is only marginally important to our contribution today.



To make it easier, I have shown the standard candle. We start with the red arrow in May 2016. There we see a strong candle going down. Two things stand out. At points A and B you can see how the bullish strength wears off. At point 1 you can see that it is a strong move as there is only a very small pullback. It is not a question of downsizing this bearish candle, but it is a matter of determining if a big downtrend is initiated or not. During the session, you will notice that after the strong downtrend, a small uptrend has taken place again, followed by a stronger downtrend. The mere fact of knowing that a price is in a prolonged downtrend gives the opportunity for very interesting trading approaches.

At point 3 in January 2017, a turnaround is emerging. Again, we find that it is a strong bullish candle with a very small pullback. At the same time we see at point C and D how the bearish movements get smaller and smaller. Again, bullish trading after closing would have been a mistake as the price went down. However, one could already have seen here that a new trend reversal was launched. This phenomenon of the small pullback I have already described several times in my previous blogs.



Let's take a look at the third example from February 2018. In this case, you could not see a reduction in bullish movements in the two previous candles, but there was a significant increase in bearish pullbacks. Here, the bottom indicator to bear the very clearly shows that the last bullish candle before the turnaround was significantly weaker than the two candles before. After point 1 they see on the indicator how the bears dominate towards the bulls.

In principle, I would like to emphasize once again that it is not about entering into a trade based on this information. Rather, this information serves a possible long-term prediction of a trend. So it's all about defining the overall trend order. In smaller time units I can then find out the middle and smaller trend sequence.



Now let's look at the indicator in MT4. As you can see, the large movements with a small pullback are so-called key candles, which can give an indication of a possible trend reversal. However, as traders, we know that there will not be 100% reliability, as the market is always good for a surprise.

I have now colored the trend once, you can clearly see how the bearish movements in the downtrend dominate and vice versa. In addition, you can see how the pullback becomes stronger before a turnaround. Of course you should pay attention to the resistance zones with the help of demand and supply. The strongest resistance zones are always inside the strongest candles, so the ones with the smallest pullback

The interesting thing about this indicator is that both the strong moves and the pullbacks are listed. This shows at a glance where the main direction is going. As soon as the pullback increases in a major move, there is a high probability that a turnaround will be initiated. Of course, this indicator works in all time units and also on all tick charts. Try it yourself, I am sure that over time it will be easy for you to identify potential long-term reversals more quickly. In addition, I recommend you in the future to work with the Bionic Chart because it shows all the pullbacks at a glance.

This indicator is an auxiliary indicator and optimal for preparing the trending. Please note that the last candle is meaningful only after the close. Of course, you can also show the pullbacks in other colors, or just leave them out, then you only have the bionic net movement.

At this point, I wanted to thank you once again for your cooperation and the great ideas that we have worked out over the last few months and look forward to the coming years with you. I am convinced that we are taking a small step each month.

I wish you all a great Easter and a few contemplative days in the circle of your loving family.

I am looking forward to your feedback

Lovely wishes

Supplement to Post 901

Hello dear subscribers,

I had the fun to compare the monthly analysis with a daily analysis. Unfortunately, only from June 1972 did meaningful day candles exist, so that I could only compare just under 50,000 records of 12,463 days.



Of course, the fluctuation range in the daily analysis is about 3.6 times higher than in the monthly chart. Nothing changes in the overall result. The bears had a share of 49%, while the bulls had a share of 51%. There can be no better evidence of a balanced trade relationship. When I charge a 50 amp battery, I can only take 50 amps. If the battery is empty, it must be recharged.

I hope that the new indicator will help you.

I wish you a happy Easter.

best regards

Forecast for the next few weeks


Hello dear subscribers,

a long-term outlook of possible price action is purely speculative and almost impossible, yet many traders need a medium-term outlook to orientate themselves and align future trading decisions accordingly.



After the EURUSD went to 1.11, there was another demand market and the price so far has risen by 140 pip.
I suspect the course will now run up to Zone A (1,13530 - 1,13730). I tried to narrow down the zone to 1.1366 - 1.1364. Within this zone, there is a stronger demand market, which will push the price down again. On the way to 1.13600 there are two stronger resistance zones for me.

In zone C 1,11835 to 1,11904 there is a smaller resistance zone that will not halt the medium-term uptrend to 1.13600.

Zone B, 1,12787 to 1,12892, seems to be a bit stronger and could push the price down for a few days. Nevertheless, the course will continue from there to 1,13600.
Zone A could push down the course more, if the strength is enough to push it to 1.11850, it is very difficult to answer. Should the price break the 1.11800, a breach of 1.11 is expected.

In H4 we are in an uptrend up to 1.13600. Of course a course runs in wavy lines and we have to look for decisive reversal points in the smaller time units.
With the Bionicchart we can see the candle thickness at a glance and draw possible resistance zones from it. However, a statement on such a long time is pure speculation and impossible. If I was right, it was pure luck, if I was wrong I have to look where my mistake was. No matter what comes out of it, what matters is the learning effect and that we get a little better every day.

Although we can not foresee the future, we can help shape you a little.

I wish you another successful trading week

best regards

Long-term independence

Attached Image (click to enlarge)

Dear Subscriber,

For the MetaTrader, there are already countless EA and indicators that were developed from an idea by a trader or programmer. The indicators were usually based on a system with which the developer had had good experiences and who brought his system forward. There are three types of indicators here. EA carry out independent trading decisions according to defined rules. Trade indicators that provide entry and exit information and, finally, auxiliary indicators that provide the trader with important information to help him find the optimal entry and exit points.

Every trader tries at the beginning of his career to develop the optimal strategy for him. Once he has found the optimal strategy, it is about optimizing this strategy to reduce risk while increasing profits. This is usually a process that takes many years.
This process is similar to a sport. Already as a child we try different sports and if we are lucky, we find the sport that we enjoy very early. After learning the basics, it's about optimization. Diligence, discipline, ambition, fighting spirit, motivation and many more qualities. These qualities are required to become a professional in the chosen sport. 90% of athletes fail because time, nutrition, money, health or other things are incompatible with their lives. Finally, you give up and run this sport only incidentally. From our own experience we know that if you do not train several times a week, you forget important skills. So it is in stock market trading.

Whichever strategy you use in trading, as the courses happen to be random, there is never a right or wrong. No one can predict the courses on a permanent basis, but we can develop strategies to help us make assumptions, turn the odds in our favor. The big players in the market have the distinct advantage over us smaller traders that they can move the prices decisively. Of course, every smallest purchase or sale moves the price, but it does make a difference if you place 1 lot or 100,000 lots.

So for us smaller traders only the opportunity to let us drift with the course, but we need to know where the course is going in the future. We benefit from our experience and strategy, which we have developed over many years. If you have been trading for several years you will have developed a strategy that is unique. Often this strategy is a combination of experience and intuition. Although you can teach this unique strategy to other traders, your way of trading always remains unique. "When two people do the same thing it is far from being identical."

On this basis, every trader would need to have his own indicators tailored to him, so to speak. A tailored suit that sits 100% right. In Formula 1, a race car is tuned exactly to the driver, if another driver would drive with it he would have no chance to win the race. Let's take a closer look.

When I started trading many years ago, the indicators were a guarantee for me to win. In principle, I needed an independent institution that told me to buy or sell because I did not trust myself. Indicators took control of me and I tried thousands of different indicators. There were three phases in the search for the Holy Grail. Enthusiasm and motivation when I discovered an interesting indicator. Then came doubt and disillusionment and finally the consequence that it is not the right one. And so it went for many years until I realized that due to the different market movements no indicator can function properly in the long term. The fastest indicator is the price chart, but with the closing price of the last candle, the price type was already past.

I focused exclusively on the price chart to determine resistance zones. Here, the identification of equilibrium helped me within supply and demand. This approach provided a breakthrough and profits were higher than losses. I had found my way and now it was about this system to optimize for me.
The first step was to analyze the strength of the supply and demand zones in order to draw conclusions for a future price development. The ZigZag indicator served as the basis for visualizing the strength of the supply and demand zones. The Bionic supply and demand indicator was born.
I have always had problems to interpret the standard candle correctly, after all, this candle is a reflection of all purchases and sales that have taken place within a certain period of time.

Several years ago, I came to the conclusion that the obsolete view of OHLC did not meet my requirements and I was looking for a solution. With the basic idea: "Less is more" I tried to optimize the information within a candle. The simplest things are often the most successful ones and so one day I came up with the idea to renounce the open. As a result, there were only two instead of five movements within a candle. In addition, one could draw conclusions about the candlestick through the pullback inside a candle, the Bionicchart was born.

With the help of the Bionic supply and demand indicator and the Bionicchart, the resistance zones were easier to locate, but the identification of a turnaround with a stop of a maximum of 1 pip was still a challenge. I searched for more solutions and had an idea. For the first indicators, I had the help of a great programmer from Germany. Although we speak the same language, it has often been difficult to explain how I imagine the indicator to be calculated. This led to misunderstandings and extended the programming time significantly.

If you had to explain it all in a foreign language, the misunderstandings would be much higher. The big problem, if you have the idea as an indicator, you first have to explain the correct calculation basis to the programmer. After that, the programmer sits down and develops the indicator. Then he is checked for errors and must be improved again and again. When it is finally developed and used, it is clear that this indicator is not the holy grail either. After a few missions, it may well be that this indicator disappears again.

We can only say with certainty if an indicator helps if we use it. And as a rule, the expectations are usually higher than the result. In my case, that was a bit different, as I had previously done extensive Excel calculations and drawings on the chart, which looked very promising.

Several months ago, I had more ideas that I discussed with the experienced programmer. Unfortunately, he was not feeling well at the time and was not able to help me with this problem. He advised me to try it myself once. Although I had made my certified Master in Java over 2000 hours last year, when I saw the build-up of the MQL4 file, it did not necessarily take me any further at first.

I just started to open the MetaEditor and upload a similar indicator. Then I started to deal with this programming language and started to program. If I got stuck I get help from the internet or I saved the file and continued the next day.

There are many aids to MQL4 programming including:

https://docs.mql4.com/


Within the first week I had programmed my first indicator, gradually increased the level of difficulty and learned every day. As a beginner, it is very helpful to create simple blueprints first over Excel, because there you can check the functionality directly. If the indicator does what you expect, you can easily program it in Mql4.

The bottom line is not that you're a professional programmer, but rather the creative idea. Programming can be learned as well as a language, it's just a matter of time and utility. As a full-time trader, I have a few hours each day that I have not used efficiently. I am now investing this time to refine my strategy. An entrepreneur should always invest in his company and since time is the most valuable asset, I kill two birds with one stone.

Sure, my way of programming is still adventurous and experimental, but the indicator does what I expect of him and that's what matters. You learn the basics of calculation from other indicators and suddenly see things in a different light. If an indicator does not do what I expect it to do, I'll simply change the code. That is fast, efficient and gives a certain independence. But it will be some time before I do professional programming, but I like to take that time.

Since I work almost exclusively in the Tickchart, it was a great challenge to run the tickchart indicators. It took a few hours, but the result was very motivating.

As I have already described in a blog, the futures market is much easier to trade. A later change to another trading platform like Ninjatrader or Nanotrader is easy, because you take along and reprogram your indicators. So far this has prevented me from changing.

If you only drink a glass of milk every day, you should not buy a cow.

The point is now in what situation you are. If you're a full-time trader who has found his own personal strategy and wants to refine that strategy independently, I can give you the advice: Start programming. This is not about the money you can save, but about the time. If I have an idea, it's harder to explain this idea a stranger than just programming it myself. Maybe not at the beginning, because I first have to learn the basics, but in the long term, it pays off.

Focus on the essentials

My strategy is supply and demand, I focus exclusively on this and now try to make the auxiliary indicators fit for me. These indicators give me no entry or exit signals, they help me just the resistance zones to trend reversal easier to locate. In the tickchart, I am able to bring my stops in a range of less than 1 pip. I am very grateful to the programmer that he did not have time to program another indicator, so I was forced to become active myself. At first I was worried that I could ever do it, but with each passing day I became better and more efficient.

Of course, it will not effizient for all to start programming, it is always a question of each situation. Nevertheless, it is worth considering whether such a step could be worthwhile.

The first step is the hardest, but not necessarily the most decisive.

Of course, I will continue to publish my ideas and findings in this blog and I am pleased about suggestions that bring us within supply and demand forwards.

I wish you a successful trading week

Bionics balance sheet indicator





Hello dear subscribers,


Steve Nison, who introduced the candlesticks in the Western world, pointed out that the first so-called candlestick charts appeared after 1850. To a large extent, the development of candlesticks and charting is due to a legendary rice trader from Sakata known as Homma. Most likely, his innovative ideas were rigorously modified and then refined into years of trading, eventually leading to the system of candlestick charts we encounter on a daily basis as forex and CFD traders.

This candle shape has not changed until today. There were some changes with Renko and Heiken Ashi, of which the Heiken Ashi could prevail. Why was the candle chart no further development in the most important indicator? That would be like driving today in the car industry with old cars and technology. There were great innovations here and eventually the electric car might replace the petrol engine.

Maybe there were no big alternatives for the candles, because to see OHLC you need 4 visible signals. In addition, many traders work according to the market technique, the chart is almost irrelevant here. His analyzes and insights are based primarily on pre-defined mathematical and statistical calculations, which are based on the price and, if necessary, the trading volume. For a market technician, an indicator thus provides a clear statement, while the room for interpretation in charts is much larger. The chart technique thus represents a subjective analysis technique, the market technique an objective.

In the area of supply and demand I concentrate exclusively on the chart technique and try to identify resistance and support lines. There are special key candles for me, which show me exactly the resistance levels and initiate a turnaround.

I have found, after I started programming my own auxiliary indicators, that I am increasingly able to achieve stops of 0.5 Pip or less, which significantly optimizes the price / earnings ratio. But as already written, I am still at the beginning and it will take some time to make it a comprehensible derivation.

For me, supply and demand are movements that stretch and relax like a rubber band. After the complete change to a non-time-based chart view, I only work with the following tick charts. 16, 32, 64, 128, 256, 512, 1,024, 2,048, 4,096, 8,196 and 16,392. These are roughly comparable to the 15 sec, 30 sec, M1, M2, M4, M8, M15, M30, H1, H2 and H4. I prefer to work in the 32 tickchart because I can exactly identify the key candles there.

Interestingly enough, I am able to successfully handle strong breakouts at key sessions or to take part in the strong moves without much risk.

An example of the key candles I have published on 4.0ktober 2018 in a video, but still in the 5 sec chart, which is much harder to act than a tick chart.



I have drawn the resistance lines with the key candles in seconds based on my experience. The goal is to allow each of you to realize the identification of these key candles in the same way with the help of auxiliary indicators and hints in this blog. This is not an easy path, but the hit rate should convince everyone of you. If you wish, we will talk more about it in the coming months. With the Bionicchart, it was a clear step forward for me, because my principle is: One thing is good, if you can not leave anything out.



Let's compare a normal Candle Chart Bull with the Bionic Chart Bull.
With the bullish candle, the wicks are always neutral. They run from open to low and back to open, from close to high and back to close. The actual candle body corresponds to the actual movement, in our case from open to close. Since the Bionic Chart dispenses with the open, only two movements are created instead of five movements. The first movement is from low to high and then there is a pullback within the candle from high to close. The actual candle body thus ranges from low to close. The fact that the neutral movements were eliminated in the bionic candle, creates for me a clear representation of the actual movements. Of course, in the lower wick indirectly a neutral movement has taken place, but for me that is no longer neutral, because it has run well beyond the open to the high. Usually, with a bullish candle, the upper wick is the last move before the price goes into close. Of course there are also isolated cases where this is exactly the opposite, but I do not want to consider these individual cases here. The fact is that after the close the candle is bullish and thus the lower wick does not apply to me. The upper wick is for me the most important and most recent pullback, because immediately after the close is reached.



This also changes the calculation of the strength inside the candle, which is important for me to identify the key candle. In the candle , a total of 40 pip of bullish movements occurred during 20 pip bearish movements. This puts the bullish strength at 66%. The Bionic Chart produced 40 pip bullish moves and 10 pip bearish moves. This puts the bullish strength at 75%. The key is that I only have to pay attention to the upper wick in the case of a bullish candle and only to the lower pullback in the bearish candle.



In a direct comparison of both different charts, one can see at a glance that the bionic candle immediately shows the bullish and bearish movements. The comparison is not quite correct because you normally would have to represent the wicks differently in the candle chart.



As a rule, I do not work with so many colors because they only confuse me on the chart. Usually I just let the pullbacks show because they are the crucial last move before the close. I have written in detail in some blogs.



Now you can go over to put the individual candles in an indicator next to each other to make the movements clearer. This approach is already good but has that in the bullish movements also bearish movements are included. I wanted to separate the bullish and bearish movements similar to a balance sheet, where also the income and expenditure are clearly separated.



This created the bionics balance sheet indicator. Here you can see at a glance on the upper side all bullish movements and on the lower side all bearish movements. In addition, the movements were still limited with two white lines, for a better overview. If you take a closer look you realize that the bears are already getting stronger before a small downtrend. At point A and B you can see that very well. The auxiliary indicator is to be understood as a harbinger of a possible future course of motion.



All indicators presented so far aim to identify the key candle that initiates a trend reversal. The supply and demand zones shown here in the main chart (point C) are suitable for those who are not yet so familiar with supply and demand. This makes it easy to see at a glance whether it is a sustainable trend and how the strength of the trend is changing. The numbers above show the average strength of the trend. I have modified these numbers again and brought them to the size of pipettes, since we can work with them in the Tick Chart. I will also make this modified indicator available within the next few days. At point A you can see the bionic balance sheet indicator, which I like to make available to you today.

In the last few weeks, I have been working on another help indicator that you can see at point B. This is about the percentage distribution of bullish and bearish movements. The indicator serves the goal of identifying possible reversals even earlier. As soon as the test run is completed, you will also receive this very interesting indicator.

Once the basic project is complete, they will have all the tools we can use to search for the key candles that will lead to a turnaround.



On May 1st at about 13:00 CET, I made a prognosis for the next few weeks. Basically, it is very difficult to make a long-term statement, but due to the supply and demand zones, I had the following idea:

In the 16,384 tick chart we can see a sustainable and strong demand zone at point B, which led me to suspect that supply zone A would not be overcome for the first time and that the trend reversal would have to take place within zone B. However, the price has fallen even earlier than I thought, exactly for this reason, long-term trend prospects pure chance forecasts.

In the comparable H4 chart, the offer zone at point C is significantly larger than the demand zone at point D. However, the ZigZag calculations in the time-based chart show incorrect values. That's one reason why the tickchart is preferred by me.

Whether the concrete prognosis is correct or not is in principle completely irrelevant. It is more important to know where the medium-term trend is going. This enables me to take the decisive moves with me. On Thursday, the 9th of May, at 8:00 CET, I wrote to a friend who is also a member of FF that today I expect a strong uptrend in EURUSD. He asked me why. I answered: We have a strong resistance zone between 1.12130 and 1.12200. The course has already tried to break this zone six times in the 16,384 Tick Chart. Either the course manages to break through this zone or he will fall heavily back to the 1,111. That's just a guess.

After the London Open, the price dropped by 25 pip and then back to my special zone 1.11835 to 1.11904, which I published a few days ago. From 14:00 CET the price went up almost 70 pip. Of course, the prognosis was lucky, but it is an advantage if you have this assumption before due to the key candle and then get the right entry.

In the next few months we will be dealing more with the key candles, and I am convinced that we will all benefit from them. I admit that the nature of the trade is a big challenge as many systems are easier to apply. But maybe the fact that over 90% of trader losing more money than winning is a good reason to change the point of view. I would be happy if I could contribute to that.

The stock market is like Monopoly, only at the end you know what mistakes you have made.

I wish you a great rest weekend and keep your fingers crossed for the new trading week to be a great success.

best regards

Is a tickchart really beneficial?


Hello dear subscribers,

Today I would like to go back to the different chart presentations in the MT4. Basically, we get three essential data from the broker. On the one hand, the courses in the form of OHLC data, the time and the volume, ie the number of trades concluded by the trading participants. In our main chart there is always a fixed value and two variable values.

In a M5 candle chart, time is the fixed value. Of course, I can also switch to a M15 or H1, but even there time is a fixed value. For this we have two variable values, the volume and the price data that change.

In a Renko chart, the price data is the fixed value, which of course you can set individually. There are also two variable values on the one hand the volume on the other hand the time.

In a tick chart, the volume is the fixed value. This means nothing else, for example, that in a 32 tick chart, after 32 trades a new candle is formed. In this case, that is the price data and the time the variable value. In the tick chart, it does not matter if only one contract or 100 contracts are traded in a trading transaction.

For the optimal setting of the main chart, it is crucial which trading style you follow and what data is required for you to create a possible derivation.

My trading direction is scalping, I prefer to trade the trend against the trend or the pullback within a trend, as these movements are usually relatively fast. Within an equilibrium, of course, I am dealing with the trend, as pullbacks are less profitable there. In principle, the trend direction plays a subordinate role.

In the area of demand and supply, it is always importend for me to find the key candle, which is responsible for the resistance zone and will initiated a turnaround.

As a countertrend trader, you need very precise information within a short time to quickly and efficiently determine resistance zones that lead to a turnaround. Since I often trade between 4-10 pip, it is essential to achieve a 0.5 pip stop to create a maximum risk of 1 pip. Otherwise, the effort would not be worthwhile. The M1 chart is unsuitable for this type of trading and in the past I have dealt with the seconds chart. However, this had the disadvantage that it took some time in offline mode until a certain number of candles was displayed.

I was able to narrow down this disadvantage with the tick chart, as it shows me directly all the candles. Another advantage is that a great many candles are created in a large number of trading transactions, such as for business figures or meetings in the Tick Chart, and there are few candles for pre-trading and night trading.

Especially in the case of strong eruptions, where only a strong candle is created in the M1, there are considerably more candles in the tickchart, which simplifies identification of the resistance zones. The tickchart produces almost the same volume in each candle, but you can not analyze any volume spikes. However, that did not matter to me in the past, so I did not have to do without anything in this area.

Compared to a time-based chart, the tick chart is much better in terms of support and resistance. This puts me in a position to work out the resistance zones even more precisely, which fits perfectly with my personal trading style.

In the tick chart the price data and the time are the variable factor. For example, as each candle ends after 32 trades, I am able to see exactly in which candle the number of contracts increases significantly. This information makes it easier for me to identify supply and demand zones.



I would like to give an example of the different form of presentation. I used the course data from May 9, 12:00 CET to May 14, 08:00 CET. The relevant price development of this period can be seen here in the EURUSD M5.



First of all, I drew a line every 4 hours in the time-based chart M5. As you can see, the distance between these lines is the same except at the start of trading after the weekend.



The same procedure I have now applied in a 256 Tickchart, since this is similar to the M5. As you can already see here, the zones are different, although each is 4 hours. It can be seen immediately, as soon as the volume increases, the zones become significantly larger. So when there is a lot of movement in the market, significantly more candles are produced which make it easier for me to detect resistance zones and support zones more quickly.



Next I proceeded to draw the marked zones with the bionics candle. The advantage is, as I have already written in that there are only two movements within this bioniccandle. Again, you can clearly see that in the time-based lower chart, the candle width is the same, while in the upper tick chart, the candles depending on the volume have a different width. Since time is unimportant to me, I am able to immediately recognize in which candle a strong movement has taken place.



Let's compare the first two candles of the different chart representations. The volume is slightly different, but that is also clear, since in this case the candle was simply cut in the middle in the tick chart and therefore it must come to a different volume. Basically, you can assume that within 4 hours the volume is the same. The difference is not really noticeable here either. Nevertheless, one can notice immediately that in the tick chart, the second candle is wider and thus it is clear that within this candle more subordinate candles were formed.



In direct comparison, you can see the differences immediately. Pay attention only once to the first strong outbreak in the M5 and Tickchart. By having more candle information, I am also able to more easily determine my resistance zone. Whereby this is a 256 tick chart and I rather act in 32 tick chart.



In order to translate the 256 tick chart into a 4 hour chart, I took the trouble to deposit the price with the bioniccandle. And that is the decisive advantage for me, if there is a lot of movement, more candles are created, and if there is less going on it will be less candles. Personally, I do not work with the background zones, the pure price scale is absolutely sufficient for me. Of course, there are now indicators in the background that give me more information, we have already and we will talk in more detail.

As a medium-term swing trader or day trader, this approach should be rather uninteresting, but it could be very beneficial for the entrances and exits. As before, I generally recommend to refrain from standard indicators and to work with the pure chart. Auxiliary Indicators may provide additional information as far as they are personally tailored to you.

That is why I started to program my own indicators because I know exactly what kind of information I need in order to implement a successful trade. Since the indicators I need do not exist on the market and I'm just getting started programming Mql4, sometimes it takes a bit longer. With Java, it would be a lot easier, but what takes a long time will be really good.

I wish you a very successful trading week

best regards

Addendum to Post 906 Is a tickchart really beneficial?




Hello dear subscribers,

To be able to differentiate the 3 different chart representations better, I have created an overview. As I have already written, of 3 values the broker delivers to us only one value fixed while two values are variable. Time, OHLC and volume are available and you decide what is important to you. It should be noted here that the different chart representations have both advantages and disadvantages.

For the tick chart, I chose primarily because the most optimal solution is to recognize the increase in lots directly in the chart. Since the volume in a candle is always the same, a larger candle must inevitably contain a higher number of lots, otherwise it could not be larger than the candle in front of it.

As a small trader, we can not influence the market, so the big players have to pull us along. For this we have to be able to recognize and read the traces of the big players. The tickchart offers me this possibility, even if I never know the exact number of lots used. However, I find the big players simpler and thus able to estimate where the path can go. Resistance zones in the area of supply and demand are much easier to analyze and stops of 0.5 pip are very often feasible.
This increases the opportunity risk ratio while reducing a potential loss. 10 pip are very often achievable in the EURUSD during the day and with a total risk of 0.5 pip stop and 0.5 pip spread it is easy to reach a risk ratio of 1:10. With a chance risk ratio of 1:10, I could run 90% of 10 trades in the loss without losing overall. Another advantage is that you are only very short in the market and thereby further minimizes the risk. With a total risk of 1 pip, 20 or 30 lots are easier to trade and easier to accept a loss.

However, one should trust that only with a certain experience and enough reserves in the background. You should only trade with money that you do not need. Of course we want to win and not lose, but it does not work without losing. A professional trader for me is Goldman Sachs, who gains 225 times out of 250 trading days. And that's why I'm trying to read their tracks, because where they want to go, I want to go there too. And if I find them, they will certainly take me on the journey, provided that they do not discover me before.

And that's exactly what makes me passionate about trading, every day is a challenge to find the big players in the market and travel with them, silently, damn fast and efficiently. Of course, this does not always work, but with the right tools, that's possible.

It is not the big ones who eat the little ones, but the fast ones the slow ones. That's our advantage we have.

best regards

Equilibrium the key to success


Hello dear subscriber,

The Tickchart, in combination with the Bionicchart and some auxiliary indicators, is the easiest way to identify the key candles within supply and demand that are leading to a concrete turnaround.

To make you more aware of the subject of supply and demand, I would like to post an interesting video to you. Thanks to Chris, who made me aware of it. What happens in a market when multiple buyers and sellers meet with the price? When does an equilibrium arise and what can we gain from it?



The identification of the key candle within supply or demand is currently the hardest part. When a turnaround has taken place, in most cases I have been able to clearly identify the key candle in the aftermath. Due to the fact that no course runs is the same and there are no concrete patterns in terms of supply or demand, this identification remains a challenge. But within the last few months, we have made significant progress in this area. Every day we approach more of a possible
solution.

The progress made so far is much greater than the regression, that is a crucial point.

I wish you a successful trading day today.

best regards

Hello Bionics,

Your thread is very interesting, can you define what to look for when looking for an equilibrium, are there specific patterns, or just the side ways trading. ?

Many thanks for this excellent thread.

Asw

On the right way


Hello Asw,

First of all, thank you for your compliment, I am pleased that you have found interest in supply and demand. I can not answer your question flat-rate, so I would like to make some detailed comments on this.

In the area of supply and demand I concentrate as Scalper / Countertrendscalper exclusively on the chart technique and try to identify resistance and support lines. However, the room for interpretation in charts is much larger, because it is a subjective analysis technique. Although I work exclusively with the candles in the main chart, the structure was still too confusing for me. The open was eliminated and from this the bioniccandle developed. My entrances and exits are derived exclusively from the chart technique, thus eliminating all standard indicators. In the field of charting I renounce patterns or specific candle formations.

The crucial market movements are caused by the big players, so you should follow their footsteps. As I have already described in the Post 906 and 907, a rough identification of the Lot used is only possible in the tick chart, so I renounce the trade on a time-based chart such as M1, M30 or H1. In the tick chart, the volume within a candle is always the same, so larger candles automatically indicate a higher number of lot.

If the supply outweighs the demand, the price goes down over a certain period of time and there is a supply market within the course. Within this supply market, key candles create supply zones that are turning the price downwards in the demand market. As soon as demand is stronger than supply, the price will rise again and a demand market will emerge. The price is now running up to the previously mentioned offer zones, which are turning down the price as resistance.



Example:

In the 32 Tickchart I have once again highlighted the highest lot in the chart with the blue and yellow movements within the bionic chart.

At point 1 and point 2 you will see the key candle that draws my resistance zone. The zones are 0.7 pip on average and can be brought to a size of 0.3-0.5 Pip using the 16 tickchars. With a spread of 0.5 pip you get to a maximum risk of 1 pip. As a rule, the entry is about the middle of the zone and the Stop 0.1 pip above the zone. At point 1 the trade would have been executed and in the further course of the exchange I would have identified the keycandle at point 2 immediately. That would have been worth the risk of staying longer in the first trade.

Had I tried to take the downtrend at point 2, my entry (sell limit) would not have been triggered. In the 16 Tickchart this Keycandle however becomes clearer and thus the entry would have shifted a little bit downwards.

As shown in my video post 905, I have in the past derived the keycandles and from them the zones based on my experience and a quick intuition. Since I achieved very high profit quotas with this procedure, I wanted to know exactly how this works for me. I wanted to transform my experience and intuition into a comprehensible and measurable guide. This resulted in this blog. However, I realized that I am not yet able to explain exactly what I am doing exactly.
In the last few months, I have made good progress, but I have to admit that I still act with intuition and experience every day without being able to explain in a comprehensible way exactly how I do it. But I believe that I will find a way to define my approach comprehensible. However, that will take a while. I hope that within this blog further suggestions come to reach the goal.

It happens from time to time that I enter a trade that runs in my favor and suddenly I close the trade and open a trade in the opposite direction, which then also runs in my favor. Why I do that, I can not explain myself, but I'm working on it.

If you ask successful athletes how and why they do certain movements, you will get the same answer. This blog helps me to write down my findings, much like a journal, so maybe that could be the right solution. All in all, I have already posted over 300,000 words in this blog, perhaps the answer has been written long ago and I'm just not aware of it. On some days I seem to be stuck with the explanation in a dead end and the next day the way becomes clearer again.

I will not give up and I know that with the help of these great people who have joined this blog, we will reach our destination faster. Thank you again for that.

I'll keep my fingers crossed for next week

best regards

Hello Bionics,

Many thanks for your reply, I will monitor next week.

Asw

Lot and Volume


Hello dear subscribers,

Now that we have talked in detail about the benefits of a tick chart, let's take a closer look at the volume and the lot. For this we have to start from some hypothetical assumptions, as there are innumerable possibilities in the order book that can not be generalized. Therefore I ask you to see the following calculations as a purely hypothetical assumption. In addition, a volume calculation in the interbank market is much less accurate than, for example, in the EURUSD Future which is traded on the stock exchange.



In the blog: How do I find the most efficient currency pair, I have already reported on the sales of individual currency pairs. The Forex market generates $ 6 trillion in sales each day. The six largest currency pairs (majors) of which manage just under 4 trillion dollars. The EURUSD ranks first with $ 1.7 billion. The EURUSD is not necessarily an exciting currency pair, but a very reliable one. Security will never exist in this market, but if I compare all currency pairs, the EURUSD is one of the safest currency pairs I can trade. In the EURUSD, the price / performance ratio of liquidity, volatility, unpredictable price movements, data history, speed of entry and exit, and the predictability of possible price development are right. In the area of supply and demand for me the best recommendation. The EUR / USD is the most traded pair in the Forex market. It is commonly regarded as the most important and most liquid currency pair, as the euro itself is considered the world's second most important reserve currency (after the US dollar) and the second most traded on the forex market. These factors make it easier for me to make decisions. That's why EURUSD is my first choice.



The EURUSD translates into an average of $ 1.7 billion per day. That's equivalent to 17,000,000 lots per day. In the last 5 years we had an average volume of about 92,160 per day. This means that an average trading deal includes 184 lots. Now, taking into account that your trades are included in the volume, it becomes clear what number of lots must be traded by the big players to reach an average of 184 lot / volume. Of course, the number of lots and volumes varies, so in this hypothetical assumption we can only assume average values.



First, I once analyzed how the distribution of sales between Asia, Europe and the United States are divided. Of course, this can not be calculated concretely, since market participants from Asia or the USA can also participate during the trading hours of Europe. Accordingly, we can only assume pure conjecture here. In the picture you can see an exemplary sales distribution of individual days between Asia, Europe and the USA. Again, you can see significant fluctuations, however, over some years set an average percentage of sales distribution.

The pure distribution of sales shows that Asia receives 15%, Europe 50% and the USA 35%. However, that's only half the story. If we take the average stock market hours as the basis for where the institutional traders are doing the main trading, we have to take a closer look at stock market times. In Europe, the exchanges have an average of 11 hours open, while in Asia and the US, the stock exchanges average on 6.5 hours a day. If we now compare the daily turnover of the individual countries with the stock exchange times, suddenly different revenue distributions arise. It makes a difference if I handle 1.000.000 lot in 1 hour or if I need 2 hours for it. Increasing the number of lot within a shorter time would increase volatility significantly.



If we compare the stock exchange times with the sales, Asia comes to 19%, Europe to 37%, and the USA to 44%. Of course, the time between 14 and 16 CET is the time in which there is often the highest volatility in the EURUSD, as Europe and the US are common in the market. However, I believe that the US is in first place in terms of volatility within the EURUSD, although it may not generate the most sales.



When Asia, Europe and the US trade, there is some overlap where several countries are trading simultaneously. I have created an exemplary day in the EURUSD by translating a volume of 92,160 and 17,000,000 lots. We start at 01:00 CET and end at 24:00 CET. By way of example, you will see that the number of volumes and lot change depending on the time of day. You can see that not the highest amount of lot / volume automatically generates the highest sales. (Compare 17:00 CET with 23:00 CET.)

Another interesting example can be found in the table. A tick chart has the advantage that it forms fewer candles with low volatility and forms more candles with higher volatility. A 16 tick chart always trades 16 trades and then a new candle is created. When starting against 01: 00 CET there is a low volatility, so only 1.6 candles per minute are formed. At 17:00 CET, on the other hand, there is high volatility and 12.5 candles are formed per minute. This makes it much easier to subdivide strong movements into high volatility and thus to better determine supply zones and demand zones. This makes it easier to generate the key candle that initiates a possible turnaround.

How do the Lot move the price?

In principle, changes in exchange rates arise through the supply and demand behavior of the market players. The exchange rate is where the supply and demand for a currency meet. Market players include both major investors (eg central banks of all countries, major international banks and companies) as well as retail investors.

Exchange rate changes have great macroeconomic significance and therefore play an important role in economic policy. Looking at changes in exchange rates over time, it can be concluded how market actors assess the development of an economy. A currency undergoes an appreciation when its price rises in the foreign exchange market; there will be a devaluation if their price on the foreign exchange market falls.



I have done an example calculation with constant lot but with different volumes. In Example A, we have a volume of 83,151 a day. You can see the average ATR in the different tick charts. In the 16 Tickchart arise over the day 5,300 candles with an average size of 0.54 Pip. That would mean an average fluctuation range of 2,862 Pip over the entire day. At a much higher volume, such as last week, the fluctuation range in the 16 Tickchart would already be 4,293 pip. The smaller the tick chart, the higher the pip range. Since you can act very badly in a 2-tick chart, I once assumed an average pip range of 5,000 per day.

By the way: If a strong spike of 30 pip or more is created, an 8-tick chart can show resistance zones much easier. In addition, there are significantly more trading opportunities for a scalper in a 8-tick chart than in a minute chart. Let's expect a fluctuation range of approx. 5,000 pip per day. The average daily high-low of EURUSD, however, is only 85 pip. How does it fit together? Stretching a tickchart that moves up and down in wavy lines would reach 5,000 pip. It contains both bullish and bearish movements.

17,000,000 lots move 5,000 pip a day. Imagine, the market consists of only 2 traders. If Trader A invests in rising prices at 1.12000 1 Lot while Trader B invests in falling prices at 1.12000 1 Lot, Equilibrium is created. If Trader A now invests 2 lots the price goes up. From this it can be deduced that not all of the 17,000,000 lots actually move the price, as Buy Order and Sell Order often balance each other out. If we assume that 50% of the orders result in equilibrium, that means that only 8,500,000 lots actually move the price. Of course, every lot will move the course, but not if it is slowed down by another lot.



8,500,000 lot / 5,000 pip = 1,700 lot

With this hypothesis, 1,700 lot would cause about 1 pip of movement. A spike of 30 pip needs 51,000 lot. However, this calculation is very hypothetical, since the big players often stop many traders before such a spike and thus take less market participants on the journey. In addition, we do not know where other traders have their limit orders or exits. Every entry or exit slows or accelerates the course. Orders already placed will no longer affect the price until they are redeemed.

If we now assume that a big player can handle the 30 pip spike without any obstacle, then it would be possible to do that with less than 51,000 lot. But even 40,000 Lot is an invested $ 4,000,000,000. This makes it clear the market conditions in which we move daily. Even if you make some $ 1,000 on such a spike, it does not matter to the big player, and he often will not even notice it. However, if the big player triggers a spike, he often takes many market participants with him. These participants will get off on the way up to realize their winnings. If that makes many traders at the same time, it slows down the spike considerably and the big player does not get that far. That's why spikes often come unexpectedly and traders are first lured onto a wrong track and then stopped out. Then the main peak runs in the opposite direction.

If we can not influence the market, we have to let the big players take us along. But very few of us benefit from the big players. There are 2 reasons for this. First, few people can spot the footprints of big players, and even if you recognize them, few people know what Big Boys are up to. The second reason is that the big players are the best traders in the world. Just think of Goldman Sachs, who makes profits from 250 trading days on 225 trading days. With a win rate of 90%, they actually take away all the money from us, but not the other way around.

The small traders exchange the money among themselves, the big player comes and most of it goes away. This means that if we get carried away by the big players, we will win, but so will the big player. The trader lose, who not know what's going on in the market right now. The only way to win, we have to follow the big players and from the trace read exactly what they are going to do next. The only option is the tick chart, because you can locate the lot there best. In the time-based chart this is not possible, if one attaches importance to the identification of the lot, one must say goodbye to the time chart.



Let's take a look at a 16 tickchart with Bioniccandles. The 16-tick chart produces about four candles per minute. On average, this produces over 5,000 candles per day. In my chart, I had an ATR of 0.5 pip at this time. Now we have the opportunity to see movements that are above average in order to identify the Big Boys. In this case, only moves that reached at least one pip, potentially including at least 1,700 lot, were displayed. It is important to use the size of the Bioniccandle. Bullish Candle Close-Low and Bearish Candle High-Close. The pullbacks within the bionickerzen are important factors that should be considered as well.

At the moment we are still experimenting with different forms of representation and calculations. Since all candles contain only 16 trades, a larger candle automatically contains a higher number of lots. Of course, even smaller traders who sell their trading at the same time can bring together 1,700 lots. The likelihood is less, since it has to be done within seconds at the same time. After the first experiences we have had, we were so excited that we will continue to pursue this approach. The resistance zones I have already deduced from this are much easier to locate and keep what they promise. But it will certainly take a while until we have a clear breakthrough in this area.

An indicator for the tickchart is being developed, but there are still some challenges that need to be addressed. In the tickchart, the requirements for my indicators are a bit more specific. That's why it will take some time.

The number of volume or lot used in this blog is purely hypothetical, as I mentioned earlier. But still, it's the only way to get an idea of the volume and lot this market handles on a daily basis.

Anyone who sets out to search for clues to locate the big players must, sooner or later, employ with this approach. I am convinced that this can only be beneficial.

I wish you a successful trading week!!

best regards

Thank you for the detailed research. A must read!!! Do you sleep

Hi Bionics,

You have very deep knowledge/expertise about Supply & Demand. Thanks for your sharing
Your work here. I have a question for you, we all have the same goal/aim, here, how to make
Money, whatever is the method or strategy, if it works for you, and if you find your edge, you
Are lucky, you are a millionaire.
Your Supply & Demand strategy/theory, do not you think the major banks, market makers and some
Other hidden institute, they want us( retailer ) to play those major Supply & Demand areas so they
Could make money from us. IMHO. Plz advise. thanks,

Hello rosalieone,

Thank you for the compliment, in fact, such a blog is a lot of work, but if it brings us further, the work has been worthwhile. While we will never find the Holy Grail, we are getting a little better every day. The market is dominated by the big ones, we just have to be faster, then we are winner from time to time.

Best regards

[quote=loveandpeace;12286644]Hi Bionics, You have very deep knowledge/expertise about Supply & Demand. Thanks for your sharing Your work here.


Lot and volume

Hello loveandpeace,


Thanks for the kind words, I would rather consider my knowledge of demand and supply as pure speculation. In practice, I am much better than in theory. I use this blog as a diary to find out how my intuition works in practice. My way of dealing with supply and demand is completely nonsensical scientifically, maybe that's why it works. In a market ruled arbitrarily by chaos, one may not get very far with science. This is nothing else in gambling.

I agree with you that the big players are trying everything possible to mislead the other market participants before they reveal their true trading direction. However, the big players are more likely to fight each other than they do hunting on us small traders. If the average revenue per volume is 184 Lot, then it is usually about other market participants. But many small traders who want to get in the same price level can also be dangerous for the big ones.

In your theory there is even a lot of truth, especially the big players look at the Fibonacci, as many traders act accordingly. With small fishingtrades they then test individual zones to find the traders in the market. You know exactly what strategies the Fibonaccitraders are taking. The end, you have no chance. Personally, I find the Fibonacci zones very exciting and interesting, but I want to act away from the masses and for that one must not be assessable for others.

The way I define my zones is, as I found out, complicated and difficult to understand. As a countertrend scalper, I often enter the market when nobody dares. In a strong downtrend, occasionally smaller pullbacks are created by traders , who want to bring in their profits. For this they have to buy back their contracts. This buyback is as if another trader presses the buy button. The course go up. In this situation, I buy against a strong trend that wants down. The pullbacks are always very fast and short as the market is still on offer. Therefore, you have to be damn fast and not too greedy, because the pullback is over quickly and the market, go again strong down.

Of course I am also working with the trend, but I never get in where most start. My stops are never below the last low, but always on the key candle. HH, HL, LH and LL I do not notice at all, candle formations as well as messages or recommendations I do not care, I note for entry and exit only my personal zones.
Several years ago I worked with stops of 3-5 Pip, but with the help of my blog "Diary" at FF I reduced the stops to 0.5 pip. With the spread, I now have a total risk of 1 pip. Since the market is determined exclusively by the big players, I'm only interested in the. Every day I go in search of clues to find out what they are up to. In the tickchart you only need the candles for that.



In today's demand market from 10:30 to 14:30 you can always recognize the short and strong moves down. Of course, the price was still higher, but the imminent downtrend was already hinting.



At 14:40 the course went down 16 pip. The blue arrow already indicated an impending uptrend.



Of course, the price went down 4 pip and then went up 12 pip.

If you can identify the movements of the big players more easily and you are already forecasting an upward trend from the price, you do not have to go far down to find a resistance zone. Then you might manage to get in at the very lowest point. Trades and lottery have something in common. When you win the lottery you should not type numbers that all tap, because when you win, many others win and your profit is smaller. If you trade you have to get in there and get out, where nobody else goes in or out.

Since my trading style is so crazy I do not believe that the big players are dangerous to me, every day I get closer to them. They do not even notice me and the few contracts I'm dealing with. I have now also created a Fibonacci, so I know where I should not get involved. We just have to know where everyone wants to get in or out, and then we just avoid this price level like the devil the holy water.

That will not always work, but the goal should be clear, unlike others.

If you always do what everyone does, you also get what everyone gets. And 95% lose their money and that's exactly what I do not want in the future.


So we search together in this blog for places in the market where you can go in and out unnoticed. Then everyone has fun on the act and the time required is also very low.


I am looking forward to another nice time with all subscribers.

best regards

Bionic Bull Bear Average Candle Indicator


Hello dear subscribers,

In the past, I've been very fond of using the ATR indicator in the search for volatility. However, I realized at some point that the calculation of the usual ATR can not be applied to my Bioniccandle, because the basics of the calculations are completely different. In addition, it annoyed me that there was no distinction in the ATR between bullish and bearish movements. While it is true that the average candle size can be used to calculate the strength of the ATR, the distinction between bearish and bullish movements makes a big difference to me. This led to the idea of a new indicator that analyzes and calculates the bullish and bearish movements. This would enable you to recognize the different strengths immediately. The new indicator is not based on the calculation principles of the ATR, but is a new form of calculation in order to derive a possible trend strength. The simplest things are often the most effective.



On the chart you can see the day candles of the last 6 weeks. The upper image shows the values for the actual movements within the Bioniccandle. The lower image shows the values for the pullbacks within the Bioniccandle. Since the candles run up and down in a chart, it is very difficult to immediately recognize the average strength of each movement.



If you now transfer the bionic candel in an indicator, the candles are next to each other. Although the overview is already much better, there are still too many different movements within the bioniccandle for me.

Point A
The bullish bioniccandle has a bullish move and a bearish pullback

Point B
The bearish bioniccandle has a bearish move and a bullish pullback.

My goal now was to get the bullish and bearish movements on one side to see the difference between bulls and bears.



Let's take a look at the last five day candles in EURUSD. There were three main bullish and two bearish moves, as well as three bearish pullbacks and two bullish pullbacks. If I were to transfer the last five movements into a candle, I would see it as at points A and B.



In the upper right window you will see the new indicator. In the first line you can see all bullish movements of the last five candles shown in Pip. In the second line you can see all the bearish movements of the last five candles, which are also shown in Pip. The last line shows the addition of Bull and Bear candles. The color changes automatically. Green for bullish movements, red for bearish moves and gold for neutral moves.

Let's just reckon how we came up with the result that is displayed in the indicator.

In the diagram you can see the five candles with their bullish and bearish movements in pipette. If you now add the different movements together, you come to the result that the indicator indicates. In this case, all movements were added together from the last five candles. Within these five candles, the final result is a plus of 61.1 Pip.



Let us now turn to the individual settings.

Point A: Here you can decide whether the movements are added or an average is calculated.
Point B: Here you decide how many candles to calculate.
Point C: Here you decide on the size of the text display.
Point D: 0-3 determines in which corner the indicator should be displayed.
Point E: Here you can adjust the X or Y axis of the individual lines.



Now let's look at the average calculation of the last 5 candles. I have here again added a calculation that should clarify the whole. Instead of adding the different movements, the average is now determined. This means that in the last five candles, the bullish average was 27.9 pips, the bearish move was 15.7 pips, and the final result was 12.2 pips.



All you have to do is set the value to true and the average of the last five candles will be calculated. Of course you can calculate any number of candles. If only 3,000 candles are displayed in your chart, the indicator can also calculate only 3,000 candles.

Important:

The indicator also calculates the current candle that is just forming, so the values are allways changing.

The indicator becomes very interesting if you use a tick chart for it. Since I am still at the very beginning with my programming knowledge, there are certainly many things that I can optimize, but the calculation bases are correct. My thanks also to Georg, who gave me a helpful tip. Every beginning is difficult as it is known, but it is getting easier every day. With the development of the bionic chart many indicators are no longer applicable because the basis of the candle calculation has changed completely. That's why I'm gradually modifying the indicators that I like to pass on to you.

With the help of this Bionic Bull Bear Average Candle Indicator, I can see the strength of the bullish and bearish movements within a certain period of time. This could be helpful in determining a possible future trend.



Over the next few weeks, I'll be providing you with some more interesting indicators after they've gone through the testing phase.

At point A you can see the indicator published today that I have modified a bit. The values are now a bit more effective without the text. I think I can post the modified indicator the next few days if you have good experiences with today's published indicator and he'll help you. The calculation bases are the same, but it is shown in pipettes, because I work only in smaller tick charts.

At point B you can see the bioniccandles with the respective pullback on one level. This makes it much easier to capture potential reversals faster as the pullbacks are a crucial clue.

At point C we see the bullish and bearish movements, which have been brought into a percentage relationship to each other. This auxiliary indicator is very valuable in determining the future trend.

These are just a few examples that should help us all.



With the modified Bionic Bull Bear Average Candle Indicator it is possible to compare different time frames in the Tick Chart side by side. In this case, an 8, 16, 32, 64, 128, 256, 512, 1024, 2048, 4096 and 8192 tick chart were compared. This is very interesting because you can immediately relate the different movements to each other.

Now work with the new indicator and see if it helps you in your daily work. Within the next few weeks, I will provide you with additional help indicators that will hopefully help you. Since the indicators basing on the basis of calculation of bionic candies, I recommend you to work in the future with the bionicchart.

I wish you a lot of success and hope that you will reach the goals you wish for next week.

I'm looking forward to a feedback.

Have a nice rest weekend greetings

Bionic Bull Bear Overview 1.3. indicator

Hello dear subscribers,

As already promised in the post 917, I now provide you with the auxiliary indicator Bionic Bull Bear Overview 1.3.



3 days ago I published the average indicator at point A, point B is now a simplified representation. The concrete description can be found in the post 917. The indicator has been designed so that it fits comfortably in every corner and takes up little space. The size is in pipette, so that the Scalper, who act in small time units have a good overview.

I wish you a successful trading day



best regards

Bionic percentage balance indicator 1.2


Hello dear subscribers,


In Post 905 I introduced you in great detail to the Bionic balance sheet indicator. With this indicator you can see all bullish movements at a glance on the upper side and all bearish movements on the lower side. In addition, the movements were still limited with two white lines, for a better overview. In the last few weeks, I've been working on another help indicator that I'd like to share with you today. The Bionic percentage balance indicator. This is about the percentage distribution of bullish and bearish movements. The indicator serves to identify possible reversals even earlier.

The calculation is relatively simple, because the simplest things are often the most successful ones. There is an upper and lower level. The upper level displays all bullish movements and the lower level all bearish moves. Both levels each receive a range of 100%. The indicator now measures the ratio between the main motion and the pullback within the bioniccandle. This will enable you to look even faster and deeper into the candle.

While there is no upper or lower limit in the Bionic balance sheet indicator, as a candle can become indefinitely large, the Bionic percentage balance indicator calculates within a fixed range. Each movement within a candle is displayed in percent, no matter how big this candle is. That brings even faster information.




In the 256 Tickchart you can see an example. At point A in the Bionic Balance Sheet Indicator, it looks as if the Bear's movements are getting smaller and the price is going straight up. That's because the bearish candles in the chart become smaller. Since the Bionic percentage balance indicator calculates the percentage distribution, even stronger bearish movements are displayed. This is a sign to wait for something else.

At point C, a similar example can be seen, the bearish movements are decreasing, in the bionic percentage balance indicator the bearish movements are still strong and signal a further downward trend. After that, the price goes up again. However, you should not miss the bionics balance sheet indicator, because it shows the trends very accurately, the Bionic percentage balance indicator is a kind of filter to represent the specific strength of a single candle, no matter how big this is.

From time to time I like to work with the Bionic percentage balance indicator, but only in a tickchart, as a Renkochart or candlechart has no significance in terms of the lot used. The traders' invested lot are the only reason the price is moving, so every trader should pay close attention.



If you only work with this indicator without candlestick it is sometimes not clear at first glance where the main movement takes place. Therefore you can vary that in the settings. To make it clear, I drew the pullbacks in yellow within a bearish candle and marked the pullbacks in blue within a bullish candle.



In practice, I recommend the pullbacks just a bit darker.

Here are some hints:

These auxiliary indicators should not be used for entrances or exits.

The optimal use of these indicators is in the tickchart.

The calculation basis of the Bioniccandle was used.

Please take a look at post 905, 906, 907 and 912 before using the new indicator..

Post 905

https://www.forexfactory.com/showthr...9#post12267699

Post 906

https://www.forexfactory.com/showthr...7#post12271667


Post 907

https://www.forexfactory.com/showthr...3#post12272183

Post 912

https://www.forexfactory.com/showthr...4#post12286284


For me a big advantage is to sort all movements. The bullish movements upwards, the bearish movements downwards. That's how I can see at a glance what's happening in the market right now. Of course, any movement thereafter can go in a completely different direction, but as already described, the goal with these indicators is to identify the key candle.

When a course goes down, there are different strong movements that you can not see in the candlechart. The strongest internal movements within certain down candles in the tick chart, represent a strong resistance. This resistance can be accurately determined with the key candle on the smallest pip. And the help indicators should help us with this search.

An indicator is interesting when it shows us things that we can not recognize in the pure candle chart. In a candle, the movements are not filtered and sorted, so the bionic balance sheet indicator and the Bionic percentage balance indicator is an interesting supplement for me to filter out the strongest movements within a trend. This helps to identify the key candle.

I wish you a successful week

Best regards

Bionic Bull Bear Overview Percent Indicator


Hello dear subscribers,




In the post 917 I introduced you the Bionic Bull Bear Average Candle Indicator and in the post 918 additionally a simplified representation.

Today there is a very interesting expansion for this indicator. As you already know, the indicator calculates the addition or average of all bullish and bearish movements. To simplify matters, a percentage result has been added. If you need the basic calculation methods you can read Post 917 and 918.




So that you can get a first impression, I have created a small video. You can see the two indicators on the right side. The average of the last 5 candles has been calculated here. The calculation of both indicators is the same, only the presentation is different.




Let's look at Example A first. The chart shows a bearish candle. The main move down has a size of 9 pip, the pullback a size of 1 pip. If we now pull off the pullback from the main move, 8 pip remain. The result in percent would thus be 88.8%. In the table you can see more results.



Point A: In the past they were able to calculate from the current candle # 0 to the candle # 14 the average or the addition of all bullish and bearish movements.

Point B:

They are very flexible with the new indicator. For example, you can now use the indicator to calculate the fourth to twelfth candle or the second candle to the 20th candle.



Let us now turn to the individual settings.
Point A: Here you can decide whether the movements are added or an average is calculated.
Point B: Here you decide how many candles to calculate.
Point C: This is the value with which candle you want to start. Please note that the current candle starts with 0. So if you want to start in chart with the 15th candle, you have to enter a 16, because we do not start with 1 but with 0 when counting.

If you only want to look at the first current candle, you must enter a 1 for countCandles and a 0 for start. Please note that as soon as a new candle is formed, the calculation shifts one candle forward.

Point C: Here you decide on the size of the text display.
Point D: 0-3 determines in which corner the indicator should be displayed.




And to make the indicator a little clearer, I have created a complete percentage overview. The display shows pipettes so that scalpers can work with them in smaller time intervals.

At point B you will see 0.4 pip bullish and 0.3 pip bearish movements within the calculated period. The result is therefore at 30% in favor of the bulls. At point A you only see a percentage reading that shows 30% for the bulls and 0% for the bears.



Of course you can change the position. There is a little help for HD and Ultra HD screens. You can also move the display with X and Y Offset



One possible variant: You can examine different or the same time units. The indicator is very flexible and you will be able to calculate the addition or average of all candle sections. The results I have achieved over the last few weeks have been very interesting. Each trader has different ideas in the calculation settings, so you have to gain experience in the area.

I would be very happy if you report on your experiences at a later date. I hope that I could help you a bit and I look forward to your feedback.

best regards