123PatternsV6 revisited

I haven't had chance to play yet. Rob said he will put in some filters that can be switched off to leave decision to traders.

The indi was actually doing a great job to signal a valid 1 2 3 at the round number. The fact that it was counter trend is something for the trader to decide whether he wants to take or not.

Just apply your own filter (ie keep your hand off the button) and only take trend signals (unless of course its around London close then you can look at counter days trend trades).

hi. please remember that the v7 is in testing phase and as such is not always working as intended.

one thing you could do to filter which side of the trades you want to take is to use a slow moving macd next to your chart. i personally like to use the cci to measure force but there are many oscillators/momentum indicators that you could use.

edit: vantage beat me to it :-)

Thought I would chime in because I use supply and demand to trade and saw sell and buy zones so figured worth a read. Very interesting thread with some great minds in here. I am by no means close to a pro as I am a student just like most on here. I still make the bone headed mistakes and prolly more than most because I try to predict rather than go with the flow.

So I posted this pic of what i see why it failed. And remember i am not picking on you just letting you know why go long? I make these same mistakes still at times and dont want to see you lose like i did and still do. Basically dont make a bad habit because I am fighting through mine right now.

Also on your chart if you did take that trade you had a chance to get out of it with some gain. If you take a countertrend keep your stop tight and if you do get in profit early move stop to breakeven and let it ride. Hey if it goes your way then congrats you found the turning point , if not you lost nothing. Where you want to move a stop to BE is up to you. I know some at 5 pips move it and some at 15 pips. Up to you but remember when taking a CT its very very very risky. Keep your stop TIGHT.

If you stick with the original indie and play tops and bottoms looking for zones with the arrow you will be fine. Just realize where the trend is. Ask yourself did this swing make a higher high or lower low? If it made a higher high and retraces back to your arrow on the indie then you have a better shot of a winning trade. If it didnt you may get something out of it but look close to where it may stall. Same goes for a lower low. Just a few mistakes I have done and still do from time to time.

Good luck fellas and ladies.

hello again
you right but in this indi we have some filter option such as cci(144) and volume but this indi require be complete and other filter option add to this indi for good act.
regards

my friends, pls let it be known to all of us that we cannot rely 100% on indicators alone to base our trading decisions, like "red dot sell, blue dot buy" first thing we have to know is how the indi works and why. if im not mistaken vantage had already threw out something about trading with the main trend of the day. its already shouting sell! sell! sell! from the begining of London session, therefore if we go long the crowd will be against us.
i had a false signal on my platform as well like yours and the pic below, but the main idea is to learn to hunt 123 pattern nakedly and have the indi confirm it if it will have its chance, and still i will keep this great indi on my chart coz its doing its job.

this is what i mean, even the indi give false signal the main trend is always dominant, and still the indi is doing its job.

hi,
I ask question: if main trend in chart are downtrend, what time we can inter buy signal in indicator? how we know the downtrend want to end and see buy signal in indi and inter?
sorry my english not good
regards

You answered your own question in your question.... downtrend... do not go long in a downtrend... very low probability

I have some ideas for indi signal filter:

 

1. I must have more than 1 candle in between 1 and 2 and 2 and 3
2. The pull back or rally from 2 to 3 must reach the 31.8 of the 1 to 2 move

I wanna from rob to appriciate itemes above to indi parameters change


regards

Version 7 is a work in progress and I seek to add ideas that may improve it.

I believe it is critical to identify the LL, LH, sequence using fractals.

I have added the fractal zigzag to the chart to help illustrate what I believe are the more important 123 patterns. The fractal zigzag is a guide only, but a useful one. It is not perfect.

To me, the critical 123 patterns should be based on LL, LH, fractals and I have shown that sequence on the chart. So these particular LL, LH, locations are based on fractals.

I did not add the fractal indicator as it clutters the chart. With a bit of practice you can easily locate fractals on your own and establish the LL, LH, sequence. Same withe fractal zigzag, the human eye is much better at locating these things, but indicators help with the learning curve.

Price rises to probe the down trend line and then falls back to make a 123 pattern that I identified with black numbers. Point 3 is a pullback of 50%. The Fibonacci projection (green) is used on my black 1 2 3 (fractal) points to calculate a 161.8 target which is 1.3 pips away from the 50% entry.

Version 7 locates so many nice 123 patterns but if we could have to option of locating 123 based on fractals I think it would add a powerful component. I believe it could filter out a lot of the confusing situations.
Identifying the LL, LH, sequence on the fractals (and HH, HL, in a bullish trend) is very powerful.

Can it be done with zigzag, fractal zigzag or another way altogether? I am not a programmer but if it can be done, I think that adding 123 fractals to the method would worth exploring.

My two cents worth. Please look at the attached chart.

Wondering what is going to happen after seeing this pattern...

if you ask me today is a chop/flat/news day. it will be interesting to see how the indicator does today.

i would also like to point out that some of us might not want to hear both the sounds, when the price breaks a level and when the sound draws an arrow on the chart. if you ask me about that i would like an option to only hear either or both these sound alerts. if its not much to ask

actually this is the best time to prove that this indicator really works my friend. ill show the pics later it'll explain itself or you can check my trades today.

rob, can you adjust the dots to appear at least if possible simultaneous with the alarm and without the arrow?

Please see that post (link above) for details of the V7 beta test.

Here is my analysis of the London session.



The Euro bulls finally giving up the fight, chop chop

I have made changes to the 123PatternsV7 beta code.

Option now exists to show only Bulls or only Bears.
Used when trader has decided market is trending and does not want to see opposing entries.

To hide the Bulls set ShowBulls=False (eg in a downtrend)
To hide the Bears set ShowBears=False (eg in an uptrend)

Other changes:

 

1. ZigZag is gone! This is what was causing most of the repaint issues.
2. CCIFilter is disabled, Have not seen much benefit in this filter.
3. Status for time of entry, price of entry, pips moved above/below
4. Status for daily range, average daily range, and DR/ADR ratio
5. Status for ratio of last candle volume compared to average volume

See attached file below version 20111214 and the matching template.

Hi robdee and every body
thanks a lot for indi
when we have sell signal in indi(red candle) why indi show blue line(buy line)?

This is bound to be a really dumb question but then I am IT illiterate - the chart shift triangle doesn't show on your template and I can't work out how to get it there. Chart shift is enabled in the properties.

Welcome handy148, you are right, to make the triangle visible go to Charts.Properties.Colors.Grid and set it to a visible colour.

Hi davidtrader, yes you are correct.

V7 signals show both lines (buy and sell) coming from the body of the signal candle.

The idea here is suppose you have a sell signal and then later price breaks above the buy line. This is a good time to close the short and maybe change to a buy. (instead of just waiting to get stopped out)

Another way to think of the two lines is a sell zone. As long as price does not close above the sell zone then it remains valid. If two candles close above the zone then it is broken - no longer valid.

When this occurs the sell zone often becomes a buy zone. (resistance becomes support)

Hope that answers your question.

Robdee

With all this focus on V7 and the 5min charts I have been neglecting the big picture. So today I had another good look...

Nothing new really, the same big bearish 123-breaks are still in force.

Not even the big FED surprise could reverse that. They tried, they got all those central banks to agree, the media hype was awesome, and their timing was very good. However, as engineer Scotty reminds the captain, "Ye cannae change the laws of physics!" .

I have tweaked my 30-bar cycle to be slighty more accurate at 31-bars.
These cycles have been reversing on Fridays for the past couple of months.

One reason to keep 123PatternsV6 is because it is useful giving me the easy to read 123 analysis I want on the 4-hour chart.

See below...


Keep clicking on this chart until you see the full size image.

Look out below... first target broken, second target at 1.2730