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Pivot Point Squeeze, high probability system

  • #261
  • Dec 14, 2007 8:42am Dec 14, 2007 8:42am
Just got home to see my trade going nicely! In at 8746 and since i was heading out, set a TP at the S2 line at 8670...smashed it! anyone see this trade?

http://img253.imageshack.us/img253/9...xaudusdex8.png
  • #262
  • Dec 14, 2007 9:40am Dec 14, 2007 9:40am
I hadn't been watching the aussie; on the settings I was using it had only thrown up two trades in the last month or so - but they were both winners and this makes three...


Quoting GCTrader1
Just got home to see my trade going nicely! In at 8746 and since i was heading out, set a TP at the S2 line at 8670...smashed it! anyone see this trade?
  • #263
  • Dec 14, 2007 10:41am Dec 14, 2007 10:41am
Ironball,

I am sure GCTrader is using his new code for this... GCTrader... I give up... whats the new code that works on all pairs?

Thanks,
Guess

Quoting Ironball
I hadn't been watching the aussie; on the settings I was using it had only thrown up two trades in the last month or so - but they were both winners and this makes three...
  • #264
  • Dec 15, 2007 12:10pm Dec 15, 2007 12:10pm
[FONT='Verdana','sans-serif']GCTrader1,
I understand your system as below. Please correct me if I am wrong.[/font]
[FONT='Verdana','sans-serif']Wait for the Bollinger bands to narrow. Then when Bollinger band widens and bandwidth is greater than 0.0056 and price has broken the pivot line and squeeze is blue/pink - you enter long/short. Am I correct? What do you mean by ‘breaking’ the pivot line? Do you mean the candle has to close below it then you enter or as price breaks through it you immediately enter?[/font]
[FONT='Verdana','sans-serif']Thank you.[/font]
  • #265
  • Edited Dec 16, 2007 4:40am Dec 15, 2007 12:11pm | Edited Dec 16, 2007 4:40am
[FONT='Verdana','sans-serif']FXHermit,[/font]
[FONT='Verdana','sans-serif']I believe you are trading this system using MT4. Can you please direct me to the post which contains your indicators and template? Many thanks.[/font]
  • #266
  • Edited 4:33pm Dec 15, 2007 4:13pm | Edited 4:33pm
Hi Eagle eye,

If you have a read of the doc on the 3rd page of this thread you should get the jist of it. Entry is triggered by an increase of the bollinger bandwidth while being constricted. Entry is just one part of this strategy, the exits are just as important. Have a read of Forex conquered by Person for a better understanding of pivot points and confluences. When the bandwidth is constricted along a pivot point then it makes the break from it all that more meaningful. i.e the move should be significant. The bandwidth value 0.0056 is an arbitrary number that works well but I am working on the code for this to autoupdate itself especially when changing time frames and different pairs. As soon as I have it worked out I will post it for all to enjoy! ;-)

I use It-finance charts which I get from IG, but also available from www.prorealtime.com

GCTrader
  • #267
  • Dec 16, 2007 4:46am Dec 16, 2007 4:46am
Hi,
I have an account with CMC. I did exactly like below and I got the squeeze indicator with a line of black bars (see below). Can someone take a look and tell me where I am going wrong. MAC Doug, are you using CMC, can you help please.
Thanks


Quoting GCTrader1
Ok im going to do this storybook style...

Firstly, here is the code as shown in my program.

http://img526.imageshack.us/img526/8...board03eq6.jpg


Here are the variables shown in my program exactly as they should be entered.

http://img89.imageshack.us/img89/222/clipboard04yh1.jpg

http://img206.imageshack.us/img206/3...board05zt3.jpg


http://img206.imageshack.us/img206/6...board06ow2.jpg

This system of course can be used on different pairs but the settings will have to change depending most largely on volatility. I stick to euroyen as this works very well and have no need to look elsewhere. If you find the need to be trading all the time, then find a scalping system as this system is high probability and consequently a few trade a week system. Rest assured tho that those trades have the highest chance for success which in my mind is better than the need to feed my ever dwindling need to always be in the market.

If you have any more questions or if my storybook style didnt help, let me know and i will do my best. Glad I can help some of us educated traders have an alternate source of income other than trading time for money...

GCTrader
Attached Image (click to enlarge)
Click to Enlarge Name: Squeeze.JPG Size: 422 KB
  • #268
  • Dec 16, 2007 7:35am Dec 16, 2007 7:35am
HI Eagle Eye,

Change the settings to Bandwidth to 0.0056 and MACD to 6 and Trigger to 18.

That should do the trick.

Regards,
Guess
  • #269
  • Dec 16, 2007 7:36am Dec 16, 2007 7:36am
Sorry Bandwith to 18 and Trigger to 0.0056.
  • #270
  • Dec 16, 2007 10:22am Dec 16, 2007 10:22am
Quoting guess121
Sorry Bandwith to 18 and Trigger to 0.0056.
Thanks for your reply. I did that as you can see from attached shot. Firstly, when I change to 0.0056 it changes autmatically to 0.006. secondly, nothing shows up on the squeeze indicator.

Thanks in advance.
Attached Image (click to enlarge)
Click to Enlarge Name: squeeze2.JPG Size: 379 KB
  • #271
  • Edited 5:34pm Dec 16, 2007 3:59pm | Edited 5:34pm
I have been "out of the office" for a few days but am back for a little while before wrapping up (is that a pun?) for the holidays.

Being a firm believer that there is beauty and genius in simplicity, I have tried to keep the following as straight forward as possible. I have decided that only four basic indicators are needed to create an MT4 equivalent of GCT's methodology (at least that is all that I personaly feel that I need). Please be aware that this setup is ment only for the EUR/JPY 1 hour timeframe. It may well work effectively with other timeframes and currency pairs but that is up to you to determine.

The four indicators required are:

1. Bollinger bands with an 18,2 setting applied to the price chart. This is a standard indicator available in MT4 and does not need to be downloaded.

2. Bbsqueezedemarker8 as attached below.

3. Bbhistotest2 as attached below.

4. Pivot lines as attached below.

Each of the indicators should be saved into your MT4 platform's Indicators folder. That is usually done by following the path: Crogram files/your MT4 name/Experts/Indicators. The "your MT4name" is usually the name of the provider (broker) where you got your Demo(live) account. As an example in my case it is Strategybuilderfx.

I have also attached a template for the chart - that should make it easy to setup your chart. The Squeezedemarker8 Template should be saved in a similar manner as the indicators but into your MT4 Templates folder. (crogram files/your MT4 name/Templates)

After you have done that you should close (if it was already open) and then reopen your MT4 platform. You can now attach the template to a 1 hour EUR/JPY chart and it should look like the example that I have attached. You may wish to set the Magenta dots for Bbsqueezedemarker8 to a width of 2 to make them easier to see. This can be done in the properties box. The same can be done for the Green and Red dots of the Bbhisto.

I will go through "How to read the indicators" in the next couple of posts as well as present a bit of interesting info pertaining to the Bollinger Squeeze method so please bear with me for a bit till I have a chance to do so.
Attached Image
Attached File(s)
File Type: mq4 BB_Squeeze_Advanced_v2demark.mq4   14 KB | 1,227 downloads
File Type: mq4 bbhistotest2.mq4   3 KB | 975 downloads
File Type: mq4 Pivot%20Lines[1].mq4   14 KB | 966 downloads
File Type: tpl squeezedemarker8.tpl   5 KB | 934 downloads
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #272
  • Dec 16, 2007 4:12pm Dec 16, 2007 4:12pm
O.K as you have probably figured out right away, a Bollinger band squeeze is indicated by the Bbsqueezedemarker8 indicator when it prints a series of Magenta dots. I have marked them on the example chart with white triangles. When a Magenta dot first prints, that is our heads up that there may be an up coming trading opportunity.
Attached Image
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #273
  • Dec 16, 2007 4:25pm Dec 16, 2007 4:25pm
So, let's pretend that we are in a Bollinger sqeeze. If we now closely watch the Lime coloured demarker line cross the waterline (the 0.0 line) of the Bbsqueezedemarker8 indicator - that is our trade entry. I have marked them with yellow arrows on the example chart. Obviously some moves are better than others and this is something that we as traders must always contend with, hence we employ the usual protective measures such as stop losses, take profit and money management.
Attached Image
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #274
  • Edited 7:52pm Dec 16, 2007 4:35pm | Edited 7:52pm
The Bbhisto Green and Red dots can be used as a confirming indicator when it flips from one colour to the other. However, I find that this can be a bit of a lagging indicator and can sometimes put you into the trade a bit late. I have marked the flips with white rectangles on the example chart. I am not overly enamoured with this indicator and may decide to drop it at some point. The beautiful thing about the squeeze is that it can be traded just on chart visuals alone and does not need too many indicators to be tradable. To my way of thinking, anything that does not contribute in a meaningful way should be dropped and I find this indicator to be a bit marginal so in the future I may op for just the Bbsqueeze under the chart.
Attached Image
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #275
  • Edited 7:56pm Dec 16, 2007 4:50pm | Edited 7:56pm
For those of us who pride ourselves with having nerves of steel, there is sometimes an early entry opportunity. On the Bbsqeezedemarker8 indicator when the Lime demarker line crosses the 0.2 or -0.2 level we can sometimes get a bit of an earlier entry therby adding a few more pips to the trade (see yellow arrows on example chart). A bit of caution is in order as sometimes this is not followed by a waterline crossing and the trade may turn against us rather quickly. Like everything else in Forex, there is no "Holy Grail". That of course should not deter us from at least attempting to come close and I think that this strategy is as good as any at doing that.
Attached Image
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #276
  • Dec 16, 2007 5:08pm Dec 16, 2007 5:08pm
[quote=fxhermit;1761951]I have been "out of the office" for a few days but am back for a little while before wrapping up (is that a pun?) for the holidays.


The four indicators required are:

1. Bollinger bands with an 18,2 setting applied to the price chart. This is a standard indicator available in MT4 and does not need to be downloaded.

2. Bbsqueezedemarker8 as attached below.

3. Bbhistotest2 as attached below.

4. Pivot lines as attached below.

Fxhermit,
Thanks a lot for sharing and explaning everythings. You said we need to save template however I cannot see any you posted. Am I missing something? Secondly, when I add bollinger bands in MT4 do I say 18 for period and 2 for deviations? How about apply to (close, open, high,low, etc) and shift sections? Are we keeping defaults for them?
  • #277
  • Dec 16, 2007 5:21pm Dec 16, 2007 5:21pm
Quote
Hi,
MAC Doug, are you using CMC, can you help please.
Thanks
I cant get the code to work properly either but I have a mate, johhny forex who is good with IT Finance code. I am waiting for him to make it work as it just frustrates the crap out of me wasting my time trying to figure out something that I dont understand.Ill let you know as soon as I have working indicators .Meantime I just watch the indicators and trade it manually. The set ups are cleary visible without the indicator telling you so. My hope is to get the code working and then set up email alerts like CGT is doing, so I dont have to watch the screen. I am also going to give fxhermits mt4 set up a go, (if I can get that to work! - lol)
BTC Return This Year: na
  • #278
  • Dec 16, 2007 5:26pm Dec 16, 2007 5:26pm
GCTrader1 has made some mention of using a dynamic entry level trigger and is, I believe, currently working on the code for such for the IT Finance platform. In keeping with this concept, I have attempted to do the same with the Bbsqeezedemarker8 indicator.

Thanks to the coder's who initially created this indicator and to those who so kindly made some great modifications to it, we are able to also have a dynamic entry signal. One of the features of this version of Bbsqeeze is that it includes demarker as an oscillator. Those of you who have some experience and knowledge with demark trendlines know that trades are based on price breakouts of the demark trendlines which are drawn according to a defined set of rules. I am not going to get into the theory of demark trendlines here - if you are interested, just do a little search - there is lots of info right here on Forex Factory as well as elsewhere and will keep you busy reading for a while, I'm sure . Suffice it to say that the Lime coloured demarker oscillator reacts to price in a dynamic way. We want entry signals based on price expansion (volatility) after a sqeeze and that is pretty well the same as a demark trendline breakout. Thus, in my humble opinion, this indicator should suit our purposes nicely. Just thought you may want to know why I chose it.
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #279
  • Dec 16, 2007 5:29pm Dec 16, 2007 5:29pm
[quote=Fx97;1762010]
Quoting fxhermit
I have been "out of the office" for a few days but am back for a little while before wrapping up (is that a pun?) for the holidays.


The four indicators required are:

1. Bollinger bands with an 18,2 setting applied to the price chart. This is a standard indicator available in MT4 and does not need to be downloaded.

2. Bbsqueezedemarker8 as attached below.

3. Bbhistotest2 as attached below.

4. Pivot lines as attached below.

Fxhermit,
Thanks a lot for sharing and explaning everythings. You said we need to save template however I cannot see any you posted. Am I missing something? Secondly, when I add bollinger bands in MT4 do I say 18 for period and 2 for deviations? How about apply to (close, open, high,low, etc) and shift sections? Are we keeping defaults for them?
Sorry, I missed attaching the template. Please find attached to this post.
Bollinger is 18 for period, 2 for deviation, shift 0 and applied to the close.
Hope that helps.
Attached File(s)
File Type: tpl squeezedemarker8.tpl   5 KB | 554 downloads
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
  • #280
  • Dec 16, 2007 5:54pm Dec 16, 2007 5:54pm
Since this methodology is based on the Bollinger band squeeze concept, I would like to expound a little about the Bbsqueeze and how the Magenta dots are derived. This indicator actually uses the interaction between two indicators, the Bollinger bands (Green) and another indicator called Keltner channels (blue). The coding calculates when the Bollinger bands narrow to within the Keltner channel. This condition constitutes the start of a squeeze. I have attached a chart showing both the bollinger bands as well as the Keltner channel overlaying the price chart. The vertical blue lines that I have drawn on the chart show where Bollinger bands have entred within the Keltner channels. As you can see this corresponds with a printing of the Magenta squeeze dots.

Thought that you might also find the attached documents interesting. Thanks Akuma99.
Attached Image
Attached File(s)
File Type: pdf Not So Squeezy - Trading Manual.pdf   815 KB | 1,350 downloads
Stay calm, be brave, wait for the signs - Jasper Friendly Bear
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