I'm brainstorming the design of an indicator (and ultimately an EA) confirming entries on the amount of ticks it takes for a candle to forge new ground. It will initially be used in cooperation with an already existing system based on exploiting discrepancies with moving averages between time frames.
Now, before I'm trampled for being a turbo noob, let me just say I know the pitfalls of getting lost on the charts of lesser time frames. I make my decisions based on H4 and above, exploiting inconsistencies on all the time frames beneath. This exploitative view has given way to an idea which might effectively follow market movers throughout their respective days, sessions and general hourly samples. Obviously, all trades in the FX market are placed anonymously and the goal of this system is not to attempt to anticipate what can often seem to be spontaneous movement (aka noise). This will not replace a proper understanding of how and when profit-taking can occur intra-day, nor is it intended to replace any sort of scalping technique which must ultimately fail. This is an attempt to very accurately confirm visualized trends in the most technical manner possible over time.
I have seen an EA which is able to isolate a certain range of specified hours (Sundays, early London hours, late mornings in Tokyo, etc). I believe this capacity was simply used as the confines in which the EA was permitted to execute trades, but I feel it offers a much wider scope of market analysis.
I need to speak for a second toward the manner in which I'm considering using the individual "tick" in a productive manner. I'm sure you're anxious to hear it. I tried to explain this idea to a fellow trader and he was under the impression I was trying to gauge the market pressures using volume. But I do not believe volume differentiates between short and long contracts. And even if it did, I wouldn't want to deal with those numbers. It's much easier defining price action in MT4's unit of movement, the tick. I don't want to deal in terms of contracts at all, rather inside the context of the rudimentary variables inherent to MT4: OHLC data and time.
Effectively, above and below each candle would exist two numbers representing directional strength in both the easiest and most technical of contexts, the tick. The indicator would divide the amount of total graphical movements both upward and down by the amount of pips contained in the candle (either real body or all data, or hopefully some set ratio of precedence therein ascribing greater importance to the real bodies rather than the ranges... like exp. ma's). Putting that data into circumstantial context (against averages of other samples, larger or smaller), we have just defined/quantified a very, very important variable. In technical terms, we have just defined the rate at which both bullish and bearish trends are accelerating (or decelerating) graphically inside whatever period we're considering. And in human terms, we are now able to see which market movers are failing to get the job done and are losing the battle against time (much to their bosses' very expensive dismay).
If this were to be further developed into an EA, backtesting could prove quite valuable in examining separate hourly influences throughout the global trading day exclusively over time.
The exploitative capacities of this system occur when the average directional influences from separate time frames are examined against one-another, potentially giving exponential importance to the most recent in the lesser time frame. And I suppose it could be used down to M1. But I don't personally want anything to do with that and I certainly don't recommend it. That'd be a great way to go insane now that I think about it. This is just a manner of keeping track of every tick without staring at the screen 99% of the time. Not only is this ultimately more efficient than using the single minute as the lowest common denominator in making decisions, it would also enable what I consider to be the most practical measure of technical market analysis ever conceived (random events obviously notwithstanding). Over the course of say, the last 5 or 7 years, the manual compilation of monthly data on a pair will allow one to rather specifically define the forces necessary to influence a potential change in direction. And then, should this notion translate into an automated EA, backtesting would produce a working history of successes and losses based on very specific samples (allowing trades to be placed only on certain days, during certain sessions or even parts of sessions, etc.) The trader could simply look for the necessary ratio between the bullish and bearish pressures to properly execute trades in relation to the previous day, week or month! Any ideas to further this indicator/advisor would be greatly appreciated. This is the first time I've gotten any of these thoughts out so I hope it made sense to someone. I should restate the fact that this indicator would initially only be used as confirmation to an already existing system based on moving averages, a system of exploiting lesser time frames against established trends on larger periods.
Thanks in advance and many, many thanks for reading!
Best,
-R
Now, before I'm trampled for being a turbo noob, let me just say I know the pitfalls of getting lost on the charts of lesser time frames. I make my decisions based on H4 and above, exploiting inconsistencies on all the time frames beneath. This exploitative view has given way to an idea which might effectively follow market movers throughout their respective days, sessions and general hourly samples. Obviously, all trades in the FX market are placed anonymously and the goal of this system is not to attempt to anticipate what can often seem to be spontaneous movement (aka noise). This will not replace a proper understanding of how and when profit-taking can occur intra-day, nor is it intended to replace any sort of scalping technique which must ultimately fail. This is an attempt to very accurately confirm visualized trends in the most technical manner possible over time.
I have seen an EA which is able to isolate a certain range of specified hours (Sundays, early London hours, late mornings in Tokyo, etc). I believe this capacity was simply used as the confines in which the EA was permitted to execute trades, but I feel it offers a much wider scope of market analysis.
I need to speak for a second toward the manner in which I'm considering using the individual "tick" in a productive manner. I'm sure you're anxious to hear it. I tried to explain this idea to a fellow trader and he was under the impression I was trying to gauge the market pressures using volume. But I do not believe volume differentiates between short and long contracts. And even if it did, I wouldn't want to deal with those numbers. It's much easier defining price action in MT4's unit of movement, the tick. I don't want to deal in terms of contracts at all, rather inside the context of the rudimentary variables inherent to MT4: OHLC data and time.
Effectively, above and below each candle would exist two numbers representing directional strength in both the easiest and most technical of contexts, the tick. The indicator would divide the amount of total graphical movements both upward and down by the amount of pips contained in the candle (either real body or all data, or hopefully some set ratio of precedence therein ascribing greater importance to the real bodies rather than the ranges... like exp. ma's). Putting that data into circumstantial context (against averages of other samples, larger or smaller), we have just defined/quantified a very, very important variable. In technical terms, we have just defined the rate at which both bullish and bearish trends are accelerating (or decelerating) graphically inside whatever period we're considering. And in human terms, we are now able to see which market movers are failing to get the job done and are losing the battle against time (much to their bosses' very expensive dismay).
If this were to be further developed into an EA, backtesting could prove quite valuable in examining separate hourly influences throughout the global trading day exclusively over time.
The exploitative capacities of this system occur when the average directional influences from separate time frames are examined against one-another, potentially giving exponential importance to the most recent in the lesser time frame. And I suppose it could be used down to M1. But I don't personally want anything to do with that and I certainly don't recommend it. That'd be a great way to go insane now that I think about it. This is just a manner of keeping track of every tick without staring at the screen 99% of the time. Not only is this ultimately more efficient than using the single minute as the lowest common denominator in making decisions, it would also enable what I consider to be the most practical measure of technical market analysis ever conceived (random events obviously notwithstanding). Over the course of say, the last 5 or 7 years, the manual compilation of monthly data on a pair will allow one to rather specifically define the forces necessary to influence a potential change in direction. And then, should this notion translate into an automated EA, backtesting would produce a working history of successes and losses based on very specific samples (allowing trades to be placed only on certain days, during certain sessions or even parts of sessions, etc.) The trader could simply look for the necessary ratio between the bullish and bearish pressures to properly execute trades in relation to the previous day, week or month! Any ideas to further this indicator/advisor would be greatly appreciated. This is the first time I've gotten any of these thoughts out so I hope it made sense to someone. I should restate the fact that this indicator would initially only be used as confirmation to an already existing system based on moving averages, a system of exploiting lesser time frames against established trends on larger periods.
Thanks in advance and many, many thanks for reading!
Best,
-R
