ONE indicator needed to complete 400-700+ pips/week system

Hello all.

I have a system I am working on. It involves reading candlesticks and fractals.

Heres how it works:

- Trade only H1 charts.

- Trades only last for 1 Hour. Close it whether its in profit or not.

- Trade only big movers (G/J & E/J) [For now]

- For LONG entries: The candle has a LOWER LOW than the previous candle, and the "body" closes in the UPPER HALF of the bar.

- For SHORT entries: The candle has a HIGHER HIGH than the previous candle, and the "body" closes in the LOWER of the bar.

- If the previous or current candle has a HIGHER HIGH and a LOWER LOW, no trade is taken.

Now the debacle here is this:

I do not look at every single candlestick and place trades using the above rules. I look for a fractal to appear on the close of that candle, then use the strategy stated above. The problem I ran into (and I didn't know this at the time) is Fractals repaint, disappear, and severely lag. And let me tell you, if this weren't the case, this system would net you 400-700+ pips a week. EASILY.

So my goal now is to find a better (non-lagging, non-repainting, or non-disappearing, or whatever you wanna call it) fractal indicator, or similar indicator.

Now that I know how fractals work, or at least I think I now know, that finding a non-lagging fractal indicator is near impossible. From what I understand, having it not lag, defeats the purpose.


So here Is my proposition to you my good folks:

Lets try to find and share an indicator we can use to replace this fractal indicator. If we can find one that doesn't lag, etc... Then this could be one of the best systems in history to hit this forum.

Attached is a screenshot of what your chart should look like (with the fractal indicators attached).

PS: Don't mean to confuse anyone with the colors of the text and lines on the pic. Some are blue some are green, it doesn't matter. I just forgot to keep the colors the same as the text and lines! lol

I think your problem is that you don't seem to understand what a Fractal is and how it is formed. Fractals can only be confirmed as fractals when a number of bars have been completed either side of the fractal.

These basic fractals are composed of five or more bars. The rules for identifying fractals are as follows:

1. A bearish turning point occurs when there is a pattern with the highest high in the middle and two lower highs on each side.
2. A bullish turning point occurs when there is a pattern with the lowest low in the middle and two higher lows on each side.

If you can predict where fractals are going to be formed you will be doing well. However sometimes you can jump the gun as the fifth bar is forming to try and gain a small edge, but until that fifth bar is formed, you don't have a fractal.

I understand how fractals work. And yet I don't see how much of an importance they really are, seeing as how when a fractal does in fact show up, the potential move is over with already.

Fractals are good for picking recent highs/lows and generally are useful when you want to trade breakouts.

Yep, Ronald is correct and I use them in my trading for exactly that purpose. Look back at your chart and consider the swing points high/low (Fractals) as areas of support and resistance. As Ronald said, if you you trade breakouts or retracements then they are a useful tool.

Most indicators that try to pick out swing points need a number of bars to form before they depict the swing point itself. If you find one that can predict that it would be interesting. I am failry sure it would be guessing or based on fib's or something but it would be interesting.

Thanks for the info guys.


Anyone else have any input/ideas?

Fractals don't really repaint. MT4 just signals them before the close of the bar. If they would wait to place them until the close of the bar, they would never repaint. As you will notice that they never repaint once they are they at the close of a bar.

Higher Low and lower High...
Kinda my cup of tea...

Sonic

Actually I always wait till the close of the bar that has a fractal.

It almost always disappears a couple bars later, thus the trade would have never been taken in the first place.


Please guys, no one has any suggestions AT ALL?

I think sonic just gave you one.

I'm sorry but I don't understand.

Have you done any reading from Bill Williams about Fractals?

I guessing that you haven't. If you had, you would not even need the indicator to know where a fractal get's placed. It is already known. MT4 just quotes it too early.

Here...try this one

As fopr sonic's advice. Higher highs and lower lows are a good indication on which way the market is going to go. Fractoals give you the high and low points.

I'm sorry to say I don't think it will work.
In fact, if fractals would stay like you see the past, you wouldn't need a different indicator to make a million dollars in one day (actually one million dollars in one day) from a $10 account.
The same happens with most of indicators that repaint.
Right now there's a thread of a system based on an indicator that repaints. If it's still there in a month or two and people is making money with it, I'll sell my house to invest all that money in Forex

I guess there's a very GOOD reason why Metaquotes still allows that to happen.
If somebody knows the reason, please share.

You are basically looking for wiseman 1

check this thread out...and download the zip file..

http://www.forexfactory.com/showthread.php?t=105154


Sonic