Yesterday I knocked my head and start to realise that I have done it all wrong. I have been using indicator or trading system which try to indicate reversal. I was thinking why did I try to predict a reversal while I would have tens time more chances of success if I follow the trend direction. I started to use RSI for my theory but this time I will not sell when it over 70% and buy when it below 30%, I will sell/buy when it crosses 50% depending on it direction. This way it will confirm the direction of the trend but not the reversal point. I remember this is the Bagovino method which I read 10 months ago and going to try it.
- #2,074
- Jun 4, 2007 10:26am Jun 4, 2007 10:26am
Attached is the revised alert indicator called Bullseye.mq4. Also attached is a screenshot of the indicator. Finially I attached all the indicators and the template file of the screenshoot if anyone wants to run it in the same manner as me.
The revised indicator opens in a seperate window like the RSI does. It has 3 lines. The botom line is when the RSI crosses + or -. This is designated by a green or red diamond. The middle line is when the EMA's cross + or -. This is designated by a green or red finger. The third line is when both cross in the same direction. This is designated by a green or red crosshair.
I have also made it so each event can trigger an alarm (User settable in the Inputs tab of the indicator). This is all 6 alarms, EAM cross up, EAM cross down, RSI cross up, RSI cross down, Both cross up and Both cross down.
You can also set it to send emails on each individual event just as you set the alarms. This is again settable in the Inputs tab of the indicator.
The reason I am also posting the template file is you obviously do not want to have an email or alarm every time the RSI crosses the 50. Thus, I set up 9 Bullseye indicators on the template. One for each time period on MT4. This allows you the very most customization per period by setting the alarms and emails per period.
Oh, and as the Bullseye shows up on the open of the next bar, it is a very reliable way of getting in very quickly on a big move. If you notice the Red down Bullseye on the picture. I got in on the open of that bar after the alert. That bar alone was worth over 30 pips. Pic was taken on the 1H chart.
Hope you enjoy and if you have any questions, feel free to ask.
BTW, I am in no way taking credit for Jason Robinson's work. If it were not for his origional template, I would have never altered anything to make this indicator.
Also, tyvm Bagovino for your method.
I set up the Bullseye indicator and see that the Bullseye and the EMA cross is not always indicating correctly. Look at the two images below:
Look at the Data Window on left. The 5 EMA = 12 EMA, and yet the indicator is telling us 5 EMA < 12 EMA.
Loo at the Data Window. This is where the down hand and the bullseye should have signaled.
Can you fix this bug?
