For Miyagi - Funnel indicator research

Miyagi, I am very happy with the Funnel indicator we just finished working on together. Thanks again for your time and energy and patience.

Attached is our Funnel indi, plus 2 more which perform similar tasks, but each in thier own way. But as you can see, all 3 target and point out zones of either extreme activity (i.e, "heat" or "heatmap"), or zones of extreme consolidation.

The SqDynamic indicator is the principle indicator to my Stairsteps Breakout thread, coded by Squalou. This was coded exclusively for my breakout system.

Since you are becoming so skilled now with coding in your own right, I was wondering if you would be interested in working with me to take and build the work of these 4 indicators into one "super indi" that singles out specialized consolidation and heat zones?

What do you say, are you up for the challenge?

FxH

I was so surprised to see the thread title has my name on it!
Will enjoy working with you again.

Adding other people's codes could be difficult, so hopefully you are more interested in ideas behind them...

Miyagi,

It's perfectly fine that our super indi be comprised of just your codes alone. If you can interpret the other codes and indis and reprogram them into your own language that will be great.

There is no rush on this project, so for now take your time and get to know the indis I provided, and let me know when you feel ready for the next steps. I have no idea where this will lead us. I have no idea what the finished indi will look like. But I do use them all individually already, and if we can somehow distill the best parts of all 4 indis into one, I may not know what it will look like, but I do know what it will do for an experienced trader.

For example, the attached pic shows a trade I took just last night using only our Funnel indi. 35 of the easiest pips I've ever made.

This is going to be fun!

FxH

Sounds great, FxH. I will try those indicators first.

OK, here is something which will work very well with what we are attempting to put together. This will, in fact, do the work of at least 2 of the other indis on the list. I am calling this one the BreakBar.

It's a very simple concept with big potential. The idea is to create a floating area of Support and Resistance in the shape of a bar.

The bar has 3 colored zones: The Upper Break Line, the Lower Break Line, and the Center Zone.

Each of these 3 zones is customizable for height in pips. For example, it could be set p for UpperBreak (5p), LowerBreak (5p), and Center (15p), for a total height of 25p.

The BreakBar is situated on the chart according to the center line marked in grey here. (Note: The grey line is for example only; we don't need it for the finished indi.) There should be A/B/C selections for how it is placed. For example, A would be Bar Open, B would be Bar Close, and C would be Bar Center. The bar used for this calculation is the last closed bar on the chart. The current bar is not used in these calculations. Although, Bar High and Bar Low will probably be the most common settings for this part.

And we need a length choice. This would be in bars. So if set for "20", the total length of the BreakBar would be 20 back bars.

This indi should be multi time frame.

It should have a magic number so that multiple instances can be used at the same time. This way, one example could be set for "Bar Open", and another set for "Bar Close", creating a Hi/Lo frame of Support & Resistance. If this is the case (and it will be, at least for me), please make it so that the indis recognize that there is more than one example in use at the same time, and place your famous {18p} artifact between them.

Price flags should stick out from the left side of the indi where the Upper & Lower Break Lines are situated.

As usual, all the various components should be selectable by size and by color.

Let me know what you think...

I didn't see that one coming, FxH.
Actually have tried something like an attached pic (just a test code) since marketprofile indi seemed interesting to me.
Totally different from yours, and I really appreciate your bringing different ways of thinking.

I shall start working on this soon and probably I need to ask you something in the process,
since I am not sure how to use it right now... hopefully I can discover it myself =)

Right. I was thinking about the possibility of adding the heatmap aspect into this at little later on. But it could be that this alone does the job I am looking for. But if added in, it would operate in the open space between 2 Breakbar on the same chart. So something for you to keep in mind as we go on...

What I didn't mention before was a "hit" alert. Remember the fractals? I was thinking about an alert feature, where we are warned when -n- fractals occur within the body of a (single) BreakBar. For example, we set it for "4". So then, any time we get 4 or more fractals occuring within the (25p) body of the BB over (20) back bars, we get an alert. If multiple BB's are in use (as I will be using it), then the alert will specify which BB is giving the alert, e.g., "Lower Range BreakBar Contains 4 Fractals", etc. (Obviously, for us the more fractals per BB, the better.)

There are other indicators that work like fractals. ZZ Semafor, for example. Or simply counting tops/bottoms of normal bars. We will need to experiment a little to see which ones give us the best results overall. But for now at least let's start with fractals. I like the fact that it takes several chart bars to create one fractal. This shows pattern-building, which I like very much.

Here is how I see it working together. As you can see, it combines most of the features of our other indis into one...

OK, this is my first try.

Number of fractals within the BB body and distance to the prior BB appear at the bottom of BBs in this version so that you can check to see how they are.

Note: This time I would like to use an external link where I can keep updating the code instead of posting 100 different versions in the process. Please use the following link to download or let me know if there are any problems.

Nice looking first try! I definitely am liking the symmetry.

Here we have 2 BreakBars showing at the same time by the same indicator. But in order to get it to do what I want, I need independent artifacts to work with. This will require a Magic Number input: One BreakBar (not a pair of BB's as shown here) per Magic Number.

Each indicator will have exactly the same inputs. Everything will be exactly the same, except for the Magic Numbers. But, of course, there will only be inputs for a single BreakBar, not 2 like there is now.

At it's most basic, this will allow for mirror-image artifacts, which is not possible now. But I am also thinking ahead to trading with this, and the ability to insert individual bars, I believe, will be advantageous.

So from this point (1) remove any extra commands and give us just the inputs for a single (3-part) artifact; (2) add in a Magic Number input, and place this at the top of the inputs list; (3) place the fractal information directly under the price flag; (4) give the price flag it's own color selection, independent of the breakbar.

By reaching this point we will have combined at least 2 other indis. The next set of mods to come will combine 1 more. About the only indi I can not add in as seamlessly is the heatmap indi which you like. It can be added in coding-wise, of course, (and probably will be) but it will become a backdrop image to the boxes. Which is fine too. But the next round of mods will make this indi start to perform like the Squalou indi does.

Miyagi, I would of course be very happy to show you how I intend to use these tools. It would be my pleasure. Feel free to PM any time...

Miyagi, I wanted to take a moment and compliment you on your improved coding skills. I see now how you have designed the price flags in a new way so that they are much easier to read. Very nice indeed. I can't wait to see what else you have learned...

Hopefully a better example of how it should look...

Thank you for your kind offer, let me enjoy thinking how you trade with these tools first before I ask you the answer.

I have added a code that has only one BB; 1) the inputs are just for a single artifact, 2) multiple instances can be added with different (magic) number settings, 3) fractal information appears at the lower left corner since I think this is appropriate even if there are no price flags with it, and 4) more color selection added, any part can be erased by setting its color to none.

But the problem is by this way multiple instances with different settings have to work in a cooperative way to achieve a state like in the post above. If you need a distance information then we have to develop a solution...

Here's my template for the moment. The 2nd pic is scaled out to M30. As you can see, this formation is only possible because of the Magic Numbers.

I might have spotted a small bug...

The box shown here is set for the High of the last 30 bars. But as you can see here, the box is setting maybe 2 pips short of this target for the highest bar of the group. Fixing this will be important for what comes later...

Here is a much more serious bug.

The 2nd artifact is set for -12 shift, 30 bars in size, and set for the Low of that zone. (I have triple checked the settings.) The box should be sitting approximately where I have placed the white box -- i.e., 42 bars back from the current candle, and at the lowest point of that zone.

Bug #1 repeats itself, but this time going the other direction. Now the box is 1 or 2 pips above the highest point of the zone...

Still ignoring the Low setting...

Oh, now I see what you mean...

I coded in such a way that BB is placed at a specific candle’s price with the BB’s center line as its reference level, as described in your post #5. But I guess you are already starting to think about squalou’s SSBO indi, that snaps boxes to the edge.

I have updated the code, so check to see if it works.

Right. That did it. Moving on...

The way these BB's are coded now, as they are floating all over the charts it is inevitable that they will meet and cross over each other. In so doing, it is even likely that what is now the bottom BB will switch and become the top BB for a time -- etc., etc.

We do not like this feature. The behavior we want when the 2 BB's meet is something a bit more static.

On the pic I have highlighted the thin 1-pip-thick line at the inside edge of both BB's. So then, when these 2 lines overlap exactly (not just touch, but overlap...) the 2 BB's lock together and become a single BB and begin to behave as the Squalou indicator does. (Note: This 1-pip line can be any height. Some traders might set it for 10p, or even 25p, etc.) Just like we do in my teaching thread, this newly-formed artifact is called a Consolidation Zone, or CZ. This new CZ will be the combined length and height of the 2 former BB's. In my attached pic, that CZ would be 42 bars long and 49p tall. The new CZ will have 3 parts: The blue top edge, the red bottom edge, and the gold center. The white lines go away. The sizes of these zones do not change, they just lock together to make a single CZ. From this point the will not unlock until certain criteria have been met. More on that later...