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  • #21
  • Edited 6:26pm Dec 21, 2009 4:15pm | Edited 6:26pm
Quoting stevegee58
I know about them but don't want to give away my best secrets.

Ding Dong !!!!!!!!!!!!!!!!!!!!!!

Thanks Stevegee58,


we are working in the right direction

One cuestion,

Do you use some filter?
  • #22
  • Dec 21, 2009 4:30pm Dec 21, 2009 4:30pm
Quoting CodeMeister
Most indicators, including candle patterns work better on the higher timeframes because the signal to noise ratio is better. But of course you get fewer signals and trading on the higher time frames requires more patience. I don't think there's an indicator anywhere (other than something trivial) that doesn't provide false signals and I don't mean programming errors. It simply is very difficult to program something that has to anticipate dozens of variations and pick the valid ones.
Thanks for your words

You seem a person with a great experience...
  • #23
  • Dec 22, 2009 1:23pm Dec 22, 2009 1:23pm
Locilia, I'll have to admit not knowing much about what you are attempting and the charts do not show enough detail. Are you using step progression, engulfing patterns, gaps or any of the other common candle patterns? May be I should take a course in coding.
  • #24
  • Dec 22, 2009 1:50pm Dec 22, 2009 1:50pm
Quoting localia
Ding Dong !!!!!!!!!!!!!!!!!!!!!!

Thanks Stevegee58,


we are working in the right direction

One cuestion,

Do you use some filter?
Well, here's something to consider. If price is above the 20 EMA, then 60% of the bars will have the close higher than the open. Since the odds favor long positions, why take shorts?

If you have an open/close pattern that also has a statistical edge, you can improve the edge by taking trades only in the direction of the statistical bias.

If you do statistical studies like this, you can find edges you can add together for a profitable system.
You are in a maze of twisty little passages, all alike.
  • #25
  • Edited 5:18pm Dec 22, 2009 4:29pm | Edited 5:18pm
Quoting Bankshot
Locilia, I'll have to admit not knowing much about what you are attempting and the charts do not show enough detail. Are you using step progression, engulfing patterns, gaps or any of the other common candle patterns? May be I should take a course in coding.
Pay attention to stevegee58

He said

"" There are all kinds of useful open / close patterns with a statistical edge, not just 2-bar patterns. In fact, there are 3 -, 4 -, and 5-bar patterns with even better edges. "
  • #26
  • Edited 4:57pm Dec 22, 2009 4:44pm | Edited 4:57pm
Quoting stevegee58
Well, here's something to consider. If price is above the 20 EMA, then 60% of the bars will have the close higher than the open. Since the odds favor long positions, why take shorts?

If you have an open/close pattern that also has a statistical edge, you can improve the edge by taking trades only in the direction of the statistical bias.

If you do statistical studies like this, you can find edges you can add together for a profitable system.

I will work in this direction, thanks for you comments.
  • #27
  • Dec 27, 2009 6:45pm Dec 27, 2009 6:45pm
Quoting localia
I will work in this direction, thanks for you comments.

Working in patterns


Someone wants to help with more patterns?
Attached Image (click to enlarge)
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  • #28
  • Dec 28, 2009 5:16am Dec 28, 2009 5:16am
Quoting localia
Hello friends !!!!!!!!

I´m very interested in patterns like this

if((Open[i+1]>Close[i+1])&&(Close[i+1]>Open[i])&&(Close[i]>Open[i+1]))

Swing up;

if((Close[i+1]>Open[i+1])&&(Open[i]>Close[i+1])&&(Open[i+1]>Close[i]))

Swing down;

( I´m not a good coder but I have modified the indicator attached of Yurily Tokman )

Anybody Know any good patterns??

Hi Localia, the logic you use there is the engulfing pattern. A better pattern is a specific type of engulfing pattern, known as the outside bar pattern. This is the first indicator that I am posting.

Below is a quote from Hanover:


Quoting hanover
The attached indicator - which I wrote a long time ago - will highlight OBs (and much more), but somebody will need to add an alert to it.
Quoting hanover
It plots white arrows to highlight outside bars (higher high, lower low than preceding candle), and optionally also yellow arrows for other candles whose body engulfs the previous candle's body. It can be attached to an MT4 chart of any pair, any timeframe. You can attach it to multiple chart timeframes if you wish.
Quoting hanover
The parameters work as follows:
MinBarHeight, MaxBarHeight - candles whose height (in points) falls outside this range will not be highlighted.
Quoting hanover
CloseWithinXpct - the close must be within the top X% of the candle, for a bullish candle, and in the bottom X% for a bearish candle. Set to 100 if this doesn't matter.
Quoting hanover
MinBodyPct - the body must be at least X% of the total candle height. Set to 0 if this doesn't matter.
Quoting hanover
MustFollowOppColor - set to true if the OB must be of opposite color to the candle that it engulfs. Set to false if this doesn't matter.
Quoting hanover
EngulfMarginPct - applies to engulfing body candles only, as opposed to OBs. The body must be at least X% in height, relative to the height of the previous candle's body. e.g. if the body must be at least twice as high, enter 200.
Quoting hanover
EngulfTolerance - applies to engulfing body candles only, as opposed to OBs. Allows a tolerance of X points between the close of the previous candle, and the open of the current candle. Setting this to a negative value means that only OBs, as opposed to engulfing body candles, will be highlighted (i.e. no yellow arrows on the chart).
Quoting hanover
StartHour, EndHour - Candles falling outside this time range will not be highlighted.
Quoting hanover
Difference between the larger and smaller arrows: This is a very rough attempt to highlight (with larger arrows) OBs/engulfing bodies that occur at the end of a trend (signaling a possible reversal), or during a pullback (signaling a possible continuation of the original trend).
This is for the first indicator.. OB-ident



The second indicator is more general and recognises all types of engulfing patterns, shooting stars, doji, hanging man, and dark cloud cover. Different reversal patterns. But it does not recognise the outside bar pattern differently to other engulfing patterns. The OB is probably the best 2 candle reversal pattern in my opinion.


The first indicator was written by Hanover here at FF. While Carl Sanders wrote the 2nd one. So if you want someone to improve these indicators then, they are the coders to contact. Hanover does do a lot of good coding work.
Attached File(s)
File Type: mq4 OB ident.mq4   6 KB | 637 downloads
File Type: mq4 Pattern_Recognition_Master_v3.mq4   27 KB | 625 downloads
  • #29
  • Dec 28, 2009 12:04pm Dec 28, 2009 12:04pm
Quoting aquaart
Hi Localia, the logic you use there is the engulfing pattern. A better pattern is a specific type of engulfing pattern, known as the outside bar pattern. This is the first indicator that I am posting.


Really thanks for your contribution.

These indicators are an interesting tool.

I´m working in this direction and I think that Market is a great pattern..

This is just the beginning
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  • #30
  • Dec 30, 2009 2:33pm Dec 30, 2009 2:33pm
Hi Localia, you've been quiet for too long. Anything new or have you been busy unrapping presents?
  • #31
  • Edited Dec 31, 2009 2:14am Dec 30, 2009 4:25pm | Edited Dec 31, 2009 2:14am
Quoting Bankshot
Hi Localia, you've been quiet for too long. Anything new or have you been busy unrapping presents?

Someone left these presents near my chimney

Do you want to play with me??


Happy new year 2010


EDIT: I´ve received some messages about these indicators, PM please I will share for free...
  • #32
  • Dec 30, 2009 5:21pm Dec 30, 2009 5:21pm
Quoting localia
Someone left these presents near my chimney

Do you want to play with me??


Happy new year 2010
This looks very interesting. Have you tried a backtest?

I have also noticed that D1 and H4 are much more tradable (mean-reverting) than H1 or M30. I think I have an idea why - "real traders" come to work in the morning and they have to push the pair in some direction (ie, you have a 100 mil line and you've got to do something with it - buy or sell). Then, the next day they push it in the other :-p. On H1 this is not visible. This is a simplist explanation, so don't shoot, but the basic idea is this.

BTW, you might wanna try M5 also. I saw the same kind of behaviour there.

I will look at your system in the next weeks because it looks similar to what I'm trying to build.
  • #33
  • Edited 7:13pm Dec 30, 2009 5:45pm | Edited 7:13pm
Quoting Adal
This looks very interesting. Have you tried a backtest?

I have also noticed that D1 and H4 are much more tradable (mean-reverting) than H1 or M30. I think I have an idea why - "real traders" come to work in the morning and they have to push the pair in some direction (ie, you have a 100 mil line and you've got to do something with it - buy or sell). Then, the next day they push it in the other :-p. On H1 this is not visible. This is a simplist explanation, so don't shoot, but the basic idea is this.

BTW, you might wanna try M5 also. I saw the...

Have you tried a backtest?

I'm working on it, but I´m not a great coder

CodeMeister said...

""Most indicators, including candle patterns work better on the higher timeframes because the signal to noise ratio is better.""

In this moment I´m working in a lot of patterns like these with combinations of Close, Open ,High, Low and Volume.

I will continue working Hard
  • #34
  • Jan 2, 2010 10:45am Jan 2, 2010 10:45am
Something interesting....


http://amibroker.com/library/detail.php?id=29
  • #35
  • Jan 2, 2010 11:04am Jan 2, 2010 11:04am
Quoting localia
Something interesting....


http://amibroker.com/library/detail.php?id=29

Another interesting code...


{-----------------indicator $XO_S1------------------------------}
Inputs: Length(1);
vars: SumBody(0), CumBody(0);
CumBody= CumBody[1] + (Close - Open) + iff(Close>Close[1],BoxSize,-BoxSize);
SumBody= SumBody[1] + CumBody - CumBody[Length];
Plot1( SumBody / (100 Point) , "Series",iff( SumBody >=0,3,2),2);
{----------------------------------------------------------------}
{-----------------indicator $XO_S2------------------------------}
Inputs: Length(1);
vars: SumBody(0), CumBody(0);
CumBody= CumBody[1] + (Close - Open) + iff(Close>Close[1],BoxSize,-BoxSize);
SumBody= SumBody[1] + (CumBody - CumBody[Length])/Length;
Plot1( SumBody / (100 Point) , "Series",iff( SumBody >=0,3,2),2);
{----------------------------------------------------------------}
Attached Image (click to enlarge)
Click to Enlarge Name: ----.GIF Size: 26 KB
  • #36
  • Jan 2, 2010 7:14pm Jan 2, 2010 7:14pm
Quoting localia
Someone left these presents near my chimney

Do you want to play with me??


Happy new year 2010


EDIT: I´ve received some messages about these indicators, PM please I will share for free...
Happy new year to you too.
By the way thanks for the indi's.
  • #37
  • Jan 2, 2010 8:36pm Jan 2, 2010 8:36pm
Quoting aquaart
Happy new year to you too.
By the way thanks for the indi's.


  • #38
  • Jan 4, 2010 4:53pm Jan 4, 2010 4:53pm
Two good indicators..
Attached File(s)
File Type: mq4 CandleStick_Pattern_indicator.mq4   16 KB | 624 downloads
File Type: ex4 herman Pattern Stoch 533.ex4   33 KB | 502 downloads
  • #39
  • Jan 5, 2010 8:44am Jan 5, 2010 8:44am
Quoting localia
Another interesting code...


{-----------------indicator $XO_S1------------------------------}
Inputs: Length(1);
vars: SumBody(0), CumBody(0);
CumBody= CumBody[1] + (Close - Open) + iff(Close>Close[1],BoxSize,-BoxSize);
SumBody= SumBody[1] + CumBody - CumBody[Length];
Plot1( SumBody / (100 Point) , "Series",iff( SumBody >=0,3,2),2);
{----------------------------------------------------------------}
{-----------------indicator $XO_S2------------------------------}
Inputs: Length(1);
vars: SumBody(0), CumBody(0);
CumBody= CumBody[1] +...
Pattern recognition master has a lot of the code that you would be looking for when it comes to the patterns that are highlighted at the website you gave.

Although I don't fully understand the code, it looks like its saying that
if...
any of these reversal patterns occur,
and
a number of these indicators (MACD, RSI, etc...) are over sold / bought
then
trade is a good idea.

DssBressert is a good stochastic (i think) based indicator however it uses a moving average as a filter. LINK is a spot where some traders are trying to make an EA out of it.
  • #40
  • Edited 11:34am Jan 5, 2010 11:00am | Edited 11:34am
Quoting aquaart
DssBressert is a good stochastic (i think) based indicator however it uses a moving average as a filter. LINK is a spot where some traders are trying to make an EA out of it.
DssBressert is not a good indicator for real trading ( in my opinion)...

I have created one similar indicator without repainting, and I can´t trade with it.
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