Pivot Point Squeeze, high probability system

Quoting GCTrader1

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And a happy new year to all!

Im sure this year will be a great trading year with lots of volatility! Im dubbing 2008 as "Money '08"

I know I haven't been trading during this Christmas new year break but there was some great opportunities out there. Did anyone get this one from last night?

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Quoting eastcity

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guess121,

Here is a rough MT4 code. The first part, without the pivots, I have got to work but for the pivot part I am more uncertain. Hopefully it can be of some use for Alexish/Jon, it needs to be cleaned up and improved.

Ola

extern bool ShowAlert = true;
extern bool AlertBuy = true;
extern bool AlertSell = true;
extern int BBPeriod=18;
extern int StdDeviation=2;


int start()
{
//----

int cnt, ticket, total;
double A = 6.2;

if(Bars<100)
{
Print("bars less than 100");
return(0);
}

total = OrdersTotal();
if(total < 100)
{

double MedianPriceCur = (High[0] + Low[0]) / 2;

int MODE_MA = MODE_EMA; // method of the calculation of averages
int PRICE_MA = PRICE_CLOSE; // method of the calculation of averages
int PERIOD = PERIOD_H1; // the period to work with

//parameters of averages
double MacdCur, MacdPre, SignalCur;
double SignalPre, MaCur, MaPre;

double B = iCustom(NULL,0,"Bollinger BandWidth",ShowAlert,BBPeriod,StdDeviation,0,0);
double B1 = iCustom(NULL,0,"Bollinger BandWidth",ShowAlert,BBPeriod,StdDeviation,0,1);

MacdCur=iMACD(NULL,0,5,13,1,PRICE_MA,MODE_MAIN,0);
MacdPre=iMACD(NULL,0,5,13,1,PRICE_MA,MODE_MAIN,1);
SignalCur=iMACD(NULL,0,5,13,1,PRICE_MA,MODE_SIGNAL,0);
SignalPre=iMACD(NULL,0,5,13,1,PRICE_MA,MODE_SIGNAL,1);


double M = SignalCur;
double M1 = SignalPre;


int digits = 4;
double NB = NormalizeDouble(B, digits);
double NB1 = NormalizeDouble(B1, digits);
double NM = NormalizeDouble(M, digits);
double NM1 = NormalizeDouble(M1, digits);

// This is the buy setup which detects when the bollinger bandwidth
// (with number of periods equal to B) has made a new low followed
// by an increase in bandwidth below the trigger line(L) and the
// MACD is trending up.

bool trend = (NM > NM1);

if(((NB * 10000 - NB1 * 10000) >= 1) && (NB1 < L) && (NM > NM1))
{
trigger = 1;

}

// This is the exit setup which detects a turnaround in the MACD histogram.
// The turnaround threshold is determined by A

if(100 * ((MathAbs(NM1) - MathAbs(NM))) >= A)
{
trigger = 0;
}

// This is the short sell setup which detects when the bollinger bandwidth
// has made a new low followed by an increase in bandwidth below the trigger
//line and the MACD is trending down.


if(((NB * 10000 - NB1 * 10000) >= 1) && (NB1 < L) && (NM < NM1))
{
trigger = -1;
}

// This is the exit setup which detects a turnaround in the MACD histogram.
// The turnaround threshold is determined by A

if(100 * (MathAbs(NM1) - MathAbs(NM)) >= A)
{
trigger = 0;
}

//PP = (DHIGH(1) +DCLOSE(1) + DLOW(1))/3

double DailyBar = 0;
double PreviousHigh = iHigh(NULL, PERIOD_D1,DailyBar);
double PreviousLow = iLow(NULL, PERIOD_D1,DailyBar);
double PreviousClose = iClose(NULL, PERIOD_D1,DailyBar);
double PP = (PreviousHigh+PreviousLow+PreviousClose)/3;

//rtwo=(pP+dhigh(1)-dlow(1))

//rone=(pP*2)-dlow(1)

//sone=(pP*2)-dhigh(1)

//stwo=pP-dhigh(1)+dlow(1)

double rtwo = PP + PreviousHigh - PreviousLow;
double rone = PP * 2 - PreviousLow;
double sone = PP * 2 - PreviousHigh;
double stwo = PP - PreviousHigh + PreviousLow;

// P is the pivot point deviation

double P;
double PIVOT = P;
bool prevtrend;


//if((trigger == 1) && (MedianPriceCur < (PP + PIVOT)) && (MedianPriceCur > (PP - PIVOT)) || (MedianPriceCur < (sone + PIVOT)) && (MedianPriceCur > (sone - PIVOT)) || ((MedianPriceCur < (stwo + PIVOT)) && (MedianPriceCur > (stwo - PIVOT))))

if(trigger == 1)
{

if(AlertBuy == true) {

Alert("SQUEEZE buy order triggered for "+Symbol()+" on the "+Period()+" minute chart.");

//BUY 1 SHARES AT MARKET REALTIME


}
}
}

// if(trigger == 0)
{
//Alert("SQUEEZE sell order triggered for "+Symbol()+" on the "+Period()+" minute chart.");
//SELL 1 SHARES AT MARKET
//}

// if((trigger == -1) && (MedianPriceCur < (PP + PIVOT)) && (MedianPriceCur > (PP - PIVOT)) || (MedianPriceCur <(rone + PIVOT)) && (MedianPriceCur >(rone - PIVOT)) || ((MedianPriceCur < (rtwo + PIVOT)) && (MedianPriceCur > (rtwo - PIVOT))))

if(trigger == -1)
{

if(AlertSell == true) {

Alert("SQUEEZE sell order triggered for "+Symbol()+" on the "+Period()+" minute chart.");
//SELLSHORT 1 SHARES AT MARKET REALTIME

}
}
}

//if(trigger == 0)
//{
// Alert("SQUEEZE sell order triggered for "+Symbol()+" on the "+Period()+" minute chart.");
//EXITSHORT 1 SHARES AT MARKET
//}

Ignored

Quoting Scarlett

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The indicator drawn by Alexish is stunningly beautiful and it is a great "heads up."

However, there is more to it than simply looking at the indicator.

I noticed that you don't have any BBs which you need to be on the lookout for your trade. Remember, you are looking for that "squeeze". You can make a template of a more simple looking chart after you find your squeeze.

Also, remember the "heads-up" that is in the instruction is that you are looking for a Pivot Point. The last PP on the EURJPY chart in question was 165.49 which gave you a sell signal way back and you would be positive over 200 PIPs at this time.

I looked at the 30 minute chart which is the same as the 1 hour chart for half the time.

There you will see that the band bars have dipped underneath the line. You can take a signal on the 30, knowing that it is the same as the 60 for half the time.

When those dark green bars are continuing to "squeeze" lower you are still watching. When you finally get a bar that is even slightly higher then you are able to put an entry order in so that you will be swept into the trade.

As for confirming direction, I have a number of ways to figure it out and primarily I am using the PSAR which, if you put it on the chart with the default settings that MT4 gives you, immediately indicates direction and can give you a slightly earlier "heads up" for your entry order. The higher time frames are more reliable. (Caution: the smaller the timeframe, the more twists and turns; I like to look at the 4H chart for ultimate direction and trend and also to position in to the trade, not to merely scalp 20 or 30 PIPs).

We can get beaucoup PIPs with this system but we have to exercise a little creativity and tweaking. This system, however, as far as I can tell so far, usually tells us the truth about break-out and direction.

Most joyful New Year to all here!

PS My comments are to post 520 FX97. Thanks

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Quoting Scarlett

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The indicator drawn by Alexish is stunningly beautiful and it is a great "heads up."

Ignored

Quoting joyrider

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One more question, is the trigger value set at 0.001 for all currency pairs in the band squeeze v5?

Thanks.

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Quoting Fx97

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So, same period in 15 min chart. It is definitely more clear here. So should we trade 15 min chart for this system? Is it going to creat more false signals?

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Quoting joyrider

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In other words, before entering a trade we need to ascertain if the current price is above or below the pivot point then make either a long or sell order, but check the 4H trend first. Am I correct in saying that? I have all the things set up but do not know how to interpret the band squeeze v5 until your message came. They mentioned the trigger but I don't see any trigger. Now I just need to concentrate on the dark green bar and once it gets higher that's the signal to enter (subject to confirmation in 4H trend).

Thank you.

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Quoting joyrider

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One more question, is the trigger value set at 0.001 for all currency pairs in the band squeeze v5?

Thanks.

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Quoting Scarlett

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Hi Joyrider,

I am not trying to re-write this system; it is great.

Remember from Post # 1:

"It is a pivot point system that takes into account constricted activity around these points and helps you reach a conclusion as to trade or not"

GCT1 has an indicator on his charts that we don't have as of yet and it is the one called "position" that turns red or blue.

Ok, so we wait for a visual squeeze on the Bollinger Bands and also notice that the band indicator has dark green vertical columns that have gone under the red trigger line.

Each of those little green vertical columns has a number if you put your cursor on top of them and they are increasing, decreasing or staying equal. When they continue to decrease they are squeezing. When you see the next column under the trigger that increases even a little bit you have a signal that a breakout is coming. If you wait for the red or blue bar confirmation you will enter very late and miss alot of PIPs.

Also, remember that GCT1 says that you should have this on the chart:
"MA periods: 18
Standard deviation: 2"



For direction you can put on the PSAR from your MT4 indicator list or you can search for "FXSniper MA" indicator on the FF site and make your MA18 an FXSniper MA line that will change color and give you buy/sell direction. The point is that you need to know which way to go after you get your signal. In the absence of that very nice "position" indicator that GCT1 has, there are ways to put in an entry order with confidence.


Best to you....

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Quoting pip_bagger

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Does it look like there may be a signal on the AUDUSD???

It looks that way to me...

The only thing is that we haven't really had a squeeze for very long (and that big pin bar a couple of hours ago is sort of weird). But it is a squeeze.

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Quoting JohnnyFOREX

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Just a clarification sought ... for entry does the squeeze histogram indicator need to physically break from below the trigger line to above the trigger line, or simply be below the trigger line and start to increase from a minimum (ie. entering the trade before the histogram crosses back above the trigger line)?

Thanks, Johnny.

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Quoting GCTrader1

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Not even close

The reading is sitting at 0.008 atm which is fairly high. It did dip down to 0.0049 but the trigger level is sitting at 0.0032 so no trade for now. You have to remember not to force the trades as they will let you know who is boss soon enough!

GCTrader

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Quoting Scarlett

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Hi Joyrider,

For direction you can put on the PSAR from your MT4 indicator list or you can search for "FXSniper MA" indicator on the FF site and make your MA18 an FXSniper MA line that will change color and give you buy/sell direction. The point is that you need to know which way to go after you get your signal. In the absence of that very nice "position" indicator that GCT1 has, there are ways to put in an entry order with confidence.


Best to you....

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