Joe Ross consolidation Indicator - help needed | Forex Factory

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Joe Ross consolidation Indicator - help needed

  • #1
  • First Post: Edited 3:24pm Jul 12, 2020 11:14am | Edited 3:24pm
Hi,

The indicator maybe useful for those that find it hard to avoid ranging markets since those are the times were normally people lost money or at least I did.
I try to find ways to define ranging markets indicators and so on without success. I believe that markets move in trends then stop range and then move again.

The simplest and most accurate way to find those ranging periods is Joe Ross definition of Cluster congestion.

Basically you have 5 candles minimum on the pattern.

The first candle is the "important one" or the reference one.

Then the next 4 (minimum number of candles after the 1st one) candles will close or open <= than the high of the first candle and the 4 candles will close or open >= than the low of the first candle. (The high or low of the 4 candles are not important).

The congestion zone will end when after the 4 candles (or more) a candle will open and close (or close and open) > the first candle high or a candle open and closes (or closes and opens) < the first candle low.

I have created an indicator trough eabuider but is a little crab. It shows and arrow when the formation has taken place but is not very clear.

The perfect situation would be to have an indicator that after the 5 bar pattern draws a line on the high and low of the first candle, the line will continue until the congestion ends

Can someone with programming skills help make an improved version?

Thanks
Kind regards
Attached File(s)
File Type: mq4 consolidation.mq4   4 KB | 1,852 downloads
  • #2
  • Jul 12, 2020 7:27pm Jul 12, 2020 7:27pm
Quoting Frag8383
Hi, The indicator maybe useful for those that find it hard to avoid ranging markets since those are the times were normally people lost money or at least I did. I try to find ways to define ranging markets indicators and so on without success. I believe that markets move in trends then stop range and then move again. The simplest and most accurate way to find those ranging periods is Joe Ross definition of Cluster congestion. Basically you have 5 candles minimum on the pattern. The first candle is the "important one" or the reference one. Then the...
i think figuring out ranging market is easy and we cant figure out when market gonna range... we will find ranging market after it had established.
  • #3
  • Jul 12, 2020 8:55pm Jul 12, 2020 8:55pm
Joe Ross

Ledges, Range and Congestion trading ...

Google "Law of Charts" and you may get lucky and find one of the pdfs.
But here is one website link where you can read it:
https://forex-strategies-revealed.co..._of_Charts.pdf

"Law of Charts" {link} download.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #4
  • Jul 12, 2020 9:14pm Jul 12, 2020 9:14pm
Quoting Frag8383
Hi, The indicator maybe useful for those that find it hard to avoid ranging markets since those are the times were normally people lost money or at least I did. I try to find ways to define ranging markets indicators and so on without success. I believe that markets move in trends then stop range and then move again. The simplest and most accurate way to find those ranging periods is Joe Ross definition of Cluster congestion. Basically you have 5 candles minimum on the pattern. The first candle is the "important one" or the reference one. Then the...
Some one has tried to find range market with flexBox ( Range Zone )
and
some one has tried to find MM liquityGaps

With those, I am sure you will find some solution. - gap -> range -> gap ....
Attached File(s)
File Type: mq4 FlexBox.mq4   4 KB | 1,506 downloads
File Type: ex4 MMLiquidityGaps.ex4   51 KB | 1,292 downloads
  • #5
  • Jul 13, 2020 2:39am Jul 13, 2020 2:39am
Hi all,

The problem is not to find the consolidation/congestion zones, that problem has been solved and Im happy with the way that Joe Ross finds them.

Of course we are going to find them after the fact otherwise you will have a crystal ball and know in advance all that is going to happen, you can know that a certain support resistance is going to stop and oscillate but that is not the point.

The markets move range - trend - range - trend and so on - if you trade when the market stops ranging you will avoid the ranging periods.

the indicator that I uploaded tells you when the range has taken place but is not a well done indicator and you have to count back bars to find the reference bar. I trade different pairs on the 1 min chart and I have to be quick that is why I need help creating the same indicator but a better version.

I don’t know if I’m allowed to upload the Joe Ross "Day Trading Forex" Book but since I found it on FF I will upload it anyway

Kind Regards
Attached File(s)
File Type: pdf JoeRossForex.pdf   2.4 MB | 9,547 downloads
  • #6
  • Jul 13, 2020 3:23am Jul 13, 2020 3:23am
I will post a chart with examples once a finish trading
  • #7
  • Edited 6:29am Jul 13, 2020 6:08am | Edited 6:29am
Ok here we go with the examples,

I will try to be as clear as I can, but please take into account that English is not my fisrt language

1- Reference bar - after the bar 1 you have 4 bars and this is very important, the 4 bars the close OR open are <= than the high of the reference bar and the close OR open are >= than the low of the reference bar
2- Is where the congestion or consolidation area ends – you can see that the open and low are below the low of the reference bar
Obviously we know when we have a reference bar after the 4 bars and never before- 4 bars are the minimum after the reference bar

3- Reference bar
4- End of congestion or consolidation – in this case you can see that the congestion or consolidation is more than the minimum 4 bars

5- Reference bar
6- End of congestion/consolidation

7- Reference bar
8- End of congestion/consolidation

9- Reference bar – in this case is part of the previous congestion zone but is not important
10- End of congestion/consolidation

First I will like to mention that I do not trade every end of congestion – I trade on the direction of the major trend (higher timeframe)

So the perfect indicator will show lines on the high and the low of the reference bar and will extend until you have a bar that is the end of the congestion.

Important – you do not look for a congestion area until you have end of congestion/consolidation bar, then you start to look again for congestions

Problems with my indicator

-Is not very clear is messy
-It does not tell you when the congestion /consolidation end
-The way it works is that after the 4 bars and the reference bars take place it will print an arrow- so you have to count back the bars to know the reference bar.
-Also will print a arrow when you have a congestion so basically a congestion inside a congestion so the chart looks messy and you get distracted because you have many arrows on the screen

Please someone help¡¡¡¡¡¡¡¡¡¡¡
let me know if you have any questions
Kind regards
Attached Image (click to enlarge)
Click to Enlarge Name: example - con-con.PNG Size: 16 KB
  • #8
  • Jul 13, 2020 6:31am Jul 13, 2020 6:31am
Quoting Frag8383
Ok here we go with the examples, I will try to be as clear as I can, but please take into account that English is not my fisrt language 1- Reference bar - after the bar 1 you have 4 bars and this is very important, the 4 bars the close OR open are <= than the high of the reference bar and the close OR open are >= than the low of the reference bar 2- Is where the congestion or consolidation area ends – you can see that the open and low are below the low of the reference bar Obviously we know when we have a reference bar after the 4 bars and never...
your chart no.7 is not a Reference bar

Attached Image (click to enlarge)
Click to Enlarge Name: reference bar 7.png Size: 36 KB




is this example close to what you want?

Attached Image (click to enlarge)
Click to Enlarge Name: EU M5 MCongestion.png Size: 20 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #9
  • Edited 6:51am Jul 13, 2020 6:33am | Edited 6:51am
Quoting emmanuel7788
{quote} is this example close to what you want? {image}
Very similar but you have congestion inside congestions that we dont want them to appear
  • #10
  • Jul 13, 2020 6:34am Jul 13, 2020 6:34am
i will make notes on your chart of what is right and wrong so is everything clear
  • #11
  • Jul 13, 2020 6:45am Jul 13, 2020 6:45am
1- refernece bar
2- End of congestion - so the lines should extend until that bar

3- reference bar - that on your chart did not signal- 2 was a end of the congestion so we start to look again for congestion - if you see the 4 bars after number 3 the close or open <= of the high of bar 3 and >= of the low of bar 3
4- end of congestion

5- the previous bar is the refrence bar and the other ones are congestion inside congestion which we dont want to show- this happens many times around the chart

I hope it helps
Attached Image (click to enlarge)
Click to Enlarge Name: EU M5 MCongestion.png Size: 25 KB
  • #12
  • Jul 13, 2020 6:52am Jul 13, 2020 6:52am
Quoting Frag8383
Ok here we go with the examples, I will try to be as clear as I can, but please take into account that English is not my fisrt language 1- Reference bar - after the bar 1 you have 4 bars and this is very important, the 4 bars the close OR open are <= than the high of the reference bar and the close OR open are >= than the low of the reference bar 2- Is where the congestion or consolidation area ends – you can see that the open and low are below the low of the reference bar Obviously we know when we have a reference bar after the 4 bars and never...
Make it easy......
Attached Image
  • #13
  • Jul 13, 2020 6:57am Jul 13, 2020 6:57am
Quoting mattkirby
{quote} Make it easy...... {image}
I see your point and I have tried before like that and that was precisely the problem for me, in your chart you can clearly see the breakout and then the pullback. but all that range is chop and I know it afterwards, my way I know only after 4 bars, it tells me when to get ready and also I can get in many times before the major breakout.

Also I can trade minor pullbacks
  • #14
  • Jul 13, 2020 7:13am Jul 13, 2020 7:13am
Quoting emmanuel7788
{quote} your chart no.7 is not a Reference bar {image} is this example close to what you want? {image}
About your comments on my white chart you are right is not a referebce bar because is not the end of the congestion - the following bar is the end of the congestion and also the reference bar for the next congestion

And that is precisly my point whit the arrows and not knowing exactly where the congestion ends I get confused and is messy

Well spotted
  • #15
  • Jul 13, 2020 7:26am Jul 13, 2020 7:26am
Quoting Frag8383
1- refernece bar 2- End of congestion - so the lines should extend until that bar 3- reference bar - that on your chart did not signal- 2 was a end of the congestion so we start to look again for congestion - if you see the 4 bars after number 3 the close or open <= of the high of bar 3 and >= of the low of bar 3 4- end of congestion 5- the previous bar is the refrence bar and the other ones are congestion inside congestion which we dont want to show- this happens many times around the chart I hope it helps {image}
That are not a consolidation areas. Looks more fractals swings. This is consolidation areas
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot_20200713-132415.png Size: 485 KB
Click to Enlarge Name: Screenshot_20200713-132317.png Size: 284 KB
Try don't lose pants never...
  • #16
  • Jul 13, 2020 7:29am Jul 13, 2020 7:29am
Quoting braintheboss
{quote} That are not a consolidation areas. Looks more fractals swings. This is consolidation areas {image} {image}
Extricly speaking yes

Joe Ross call them cluster congestion that if they extend in time 21 bars they are consolidation zones.

Call them resting zones congestion or whatever you like they are the start of either a cluster zone or a consolidation zone

If you want more info on them above I attached his book
  • #17
  • Jul 13, 2020 7:39am Jul 13, 2020 7:39am
Quoting Frag8383
{quote} Extricly speaking yes Joe Ross call them cluster congestion that if they extend in time 21 bars they are consolidation zones. Call them resting zones congestion or whatever you like they are the start of either a cluster zone or a consolidation zone If you want more info on them above I attached his book
I don't read smoke sellers. A consolidation area it can be only one thing. And it's not you show in your captures
Try don't lose pants never...
  • #18
  • Jul 13, 2020 7:43am Jul 13, 2020 7:43am
Quoting braintheboss
{quote} I don't read smoke sellers. A consolidation area it can be only one thing. And it's not you show in your captures
Fair enough you dont have to follow the system if you dont want to, I dont follow his system or trade his way.

he has a definition or a way to define cluster, consolidation or whatever you want to call it and im interested on them. Again you dont have to use it if you dont want to

Below on the pic you can see that his way of defining the zones is not very different to how you have draw them
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_20200713-132317.png Size: 320 KB
  • #19
  • Jul 13, 2020 7:45am Jul 13, 2020 7:45am
Is more I use them because they are a way to define the zones with objectivity, no what I think or how i feel should be the zone.
And that to me is more important thann the exact area to the penny
  • #20
  • Jul 13, 2020 7:48am Jul 13, 2020 7:48am
Quoting Frag8383
{quote} Fair enough you dont have to follow the system if you dont want to, I dont follow his system or trade his way. he has a definition or a way to define cluster, consolidation or whatever you want to call it and im interested on them. Again you dont have to use it if you dont want to Below on the pic you can see that his way of defining the zones is not very different to how you have draw them {image}
I only see this. Where start and when finish area? Almost all chart have zones. Some even 3 candles length with different size. First you should learn the basics before try teach me about how works compression areas. And later maybe somebody will want help you...
Attached Image (click to enlarge)
Click to Enlarge Name: EU M5 MCongestion.png Size: 25 KB
Try don't lose pants never...
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