Spike indicator | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

MTF cycle spike indicator 6 replies

What data releases cause a big price spike? 4 replies

Up Spike Before Jobless Data 12 replies

I can't understand this enormous spike... 15 replies

Spike at 2:00am Pacific Sept 23 4 replies

Attachments: Spike indicator
Exit Attachments

Spike indicator

  • #1
  • First Post: Jan 28, 2022 9:05pm Jan 28, 2022 9:05pm
I personally find that instruments with many spikes are dangerous for my trading strategies. So I want to be able to avoid trades at spiky instruments in my robots. I have not seen any indicator that handle this, so here is the recipe of such an indicator. I don't have the time to code it at this moment. Anyone out there having the time?? Please let us have the mq4 code if you can manage.

Measure x number of candles backward.

If the candle is Long
SpikeUp = High[x] - Close[x]
SpikeDown = Open[x] - Low[x]
TotalSpike = SpikeUp + SpikeDown

If the candle is Short
SpikeUp = High[x] - Open[x]
SpikeDown = Close[x] - Low[x]
TotalSpike = SpikeUp + SpikeDown

Then sum the TotalSpike from the number of bars backward that you want.
You can average the result.

Pretty simple but useful I think.

A large number gives a risky situation in my strategies.
I think also that a small number will help to find trending instruments.

Note of cause, that the indicator can look at the history. It is of no use in the case of a sudden spike because of NEWS.
MetaTrader 4 - so many advantages.
  • #5
  • Edited 11:06am Feb 1, 2022 10:32am | Edited 11:06am
Let me explain why I excluded the posts above.

If people do not understand what I write - it is ok. But when they call me a fool then I will not listen to them. They should use their time somewhere else. My time is to valuable. I will not use it on such persons. My IQ is much better than average (was measured by a professional). I have an engineering degree. And I have been in the trading game for 25 years. Furthermore I have programmed a myriad of robots and I use more hours at trading every day than most people. I know what I am doing.

I feel that I owe this community to share some of my personal stuff. If a person don't like it, then just find somewhere else to read. My suggestion in this thread is an idea. Maybe it is to difficult to get working, but it is worth a try. I will programme and test it myself when I get some time.

Of cause we cannot use this as a stand alone indicator. It can be part of a confluence.
MetaTrader 4 - so many advantages.
  • #6
  • Feb 2, 2022 6:55am Feb 2, 2022 6:55am
Quoting RiskFighter
Let me explain why I excluded the posts above. If people do not understand what I write - it is ok. But when they call me a fool then I will not listen to them. They should use their time somewhere else. My time is to valuable. I will not use it on such persons. My IQ is much better than average (was measured by a professional). I have an engineering degree. And I have been in the trading game for 25 years. Furthermore I have programmed a myriad of robots and I use more hours at trading every day than most people. I know what I am doing. I feel...
RiskFighter,
You explanation for why those post was removed makes sense to me. Your thread & your idea, so you have that right.
I enjoy your post & ideas. Keep them coming. Best of trades to you.
  • #7
  • Feb 2, 2022 8:03am Feb 2, 2022 8:03am
Quoting acetrader
{quote} RiskFighter, You explanation for why those post was removed makes sense to me. Your thread & your idea, so you have that right. I enjoy your post & ideas. Keep them coming. Best of trades to you.
Thank you :-)
MetaTrader 4 - so many advantages.
  • #8
  • Feb 2, 2022 9:17am Feb 2, 2022 9:17am
Quoting RiskFighter
I personally find that instruments with many spikes are dangerous for my trading strategies. So I want to be able to avoid trades at spiky instruments in my robots. I have not seen any indicator that handle this, so here is the recipe of such an indicator. I don't have the time to code it at this moment. Anyone out there having the time?? Please let us have the mq4 code if you can manage. Measure x number of candles backward. If the candle is Long SpikeUp = High[x] - Close[x] SpikeDown = Open[x] - Low[x] TotalSpike = SpikeUp + SpikeDown If the candle...
If you can draw the picture on the chart explaining it, I can pass it to a Russian coder.
Poor English language skills, but excellent programming talent.
Practice makes a person perfect
  • #9
  • Edited 10:18am Feb 2, 2022 9:37am | Edited 10:18am
Quoting simnz
{quote} If you can draw the picture on the chart explaining it, I can pass it to a Russian coder. Poor English language skills, but excellent programming talent.
This was just my idea and anybody who want it can take it. I can code that bit myself in 10 minutes, so there is no need to pass it to anybody.

Look at this screenshot. Would you trade that?? That spiky situation is some time typical for a range. We must avoid it, and counting the amount of spikes and the size of them is one way to be warned about the situation.

Problem is, that your human eye tells you to keep away. But the computer do not have an eye. You need to tell it by measuring the former bars. And that is what my little algorithm does.

Then the questions are queued: Haw many bars back will you examine? What is the number of spikes hat you think is criminal? This is different from instrument to instrument. And you can never build the future on the history.

Yes I know that. But that is trading in a nutshell. You have to look into the past in order to get wise. But future is different.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 21 KB
MetaTrader 4 - so many advantages.
  • #10
  • Feb 2, 2022 9:45am Feb 2, 2022 9:45am
Nobody called you fool. 25 year of trading , you have seen all. You shoud have almost impenetrable skin. But let it be.
Have you thought about this scenario ?
For me left one has bigger "spike"
Attached Image (click to enlarge)
Click to Enlarge Name: spike.jpg Size: 8 KB
I might be wrong , I have been wrong before
  • #11
  • Feb 2, 2022 9:50am Feb 2, 2022 9:50am
Quoting RiskFighter
... I can code that bit myself in 10 minutes...
So please do it and share results. You have spent in this thread more then 10 min extra 10 dosen't make any difference.
I might be wrong , I have been wrong before
  • #12
  • Feb 2, 2022 10:01am Feb 2, 2022 10:01am
Quoting Mandariin
Nobody called you fool. 25 year of trading , you have seen all. You shoud have almost impenetrable skin. But let it be. Have you thought about this scenario ? For me left one has bigger "spike" {image}
This is not a question of how 2 bars behave. This is about having a series of bars with big spikes. You can buy Long, and suddenly a big spike take out your stop loss. And visa versa. You can then make another trade, and the same thing happen. You just need to keep out of that situation.

So my algorithm tell your robot not to trade this situation.
MetaTrader 4 - so many advantages.
  • #13
  • Feb 2, 2022 10:14am Feb 2, 2022 10:14am
Quoting RiskFighter
{quote} This is not a question of how 2 bars behave. This is about having a series of bars with big spikes. You can buy Long, and suddenly a big spike take out your stop loss. And visa versa. You can then make another trade, and the same thing happen. You just need to keep out of that situation. So my algorithm tell your robot not to trade this situation.
ok I understand and maybe for buys long lower shadow is even favorable and only long upper shadow bad ?
I might be wrong , I have been wrong before
  • #14
  • Feb 2, 2022 10:28am Feb 2, 2022 10:28am
Quoting Mandariin
{quote} ok I understand and maybe for buys long lower shadow is even favorable and only long upper shadow bad ?
Yes, but the wise action is to run as fast as you can and find another instrument to trade.
MetaTrader 4 - so many advantages.
  • #15
  • Feb 2, 2022 10:54am Feb 2, 2022 10:54am
I think I got calculation right but indicator its quite spiky too.
Gray is 20 EMA
Attached Image (click to enlarge)
Click to Enlarge Name: NAS100[M] 1 Min #1 2022-02-02 18_50_19.293.png Size: 29 KB
I might be wrong , I have been wrong before
  • #16
  • Last Post: Feb 2, 2022 11:00am Feb 2, 2022 11:00am
Quoting Mandariin
I think I got calculation right but indicator its quite spiky too. Gray is 20 EMA {image}
Jep. You use it on Nasdaq. Indices are much more spiky than FOREX. This indicator cannot be used on indicies, gold or whatever. They are way too often parallel and spiky.
MetaTrader 4 - so many advantages.
0 traders viewing now