Golden Zone Power Mining Indicator

Golden Zone Power Mining Indicator

The golden level concept was born from the quest to find only the most profitable and highest probability S/R (support/resistance) levels to trade from: Those that give us high reward for the least amount of risk. Accordingly, I open a thread a few month ago discussing this trading approach.

I am now releasing what I consider to be one of the most dynamic and advanced S/R level detection indicators so far on FF. It does not just generate levels defined by recent highs or lows but also across all time frames. The strongest levels tend to be those that are formed by the largest number of highs and low and are located deeply within price ranges. This indicator will find them for you.

For a tutorial on trading golden levels: Click Here

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This indicator is not only very powerful but also fun to use as you move the verticals lines and the S/R levels change in realtime. Chart and S/R (support/resistance) analysis becomes fun and is no longer a chore.

The Golden Level Miner will dig up S/R levels that would be hard to find with the naked eye. It will account for highs and lows that go back years (as far back as the data feed goes) or only those within the time frame determined by the vertical lines.


How to use the Golden Zone Power Miner




Approach #1 (long-term): The GL power miner will calculate levels from the highs and lows for each respective time frame by default. When you switch between the time frames it will regenerate the levels based on the new TFs highs and/or lows. Set DeleteLevelsOnTfChange to false if you want to keep the levels drawn as you switch between the TFs. This way you get to see which levels are the most significant as they are generated several times across several TFs and overlap, creating stronger price reaction zones.

After generating level on a particular TF. If you wanted to inspect the levels on a different time frame with having the indicator generator new levels on the TF you want to switch to, then set both DeleteLevelsOnTfChange and DeleteLevelsOnTfChange to false.


The following GBP/JPY chart shows golden levels generated by the H4 and the Daily TFs by setting DeleteLevelsOnTfChange to false and switching between them.
The indicator not only nailed several turning points that were worth 100s - 1000s of pips, but also revealed the zone that caused price to halt after the Brexit news.



Approach #2 (short-term): (The really fun one). Use one or two vertical lines to limit level mining to a specific time range. As you move them (one or both) across the time range you will see the most significant levels being generated in real time. If you only use one vertical line, the indicator will use the last (most recent) price bar as one of the starting points. This approach is particularly useful if you want reveal golden levels for a specific price range (using two vertical lines) or want to only get the most recent levels (using one vertical line). If you want to prevent the indicator from generating levels every time you switch between TFs, set DeleteLevelsOnTfChange to false. This is useful if you want to only generate levels by using vertical lines only so you can focus on specific ranges when searching for levels.

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You always want to look for levels within ranges that price is about to approach. This is where approach #2 comes in. (If you wish, you can then confirm the strength of the level by switching TFs (approach #1) to see if the level also pops up on higher TFs and further back in time.) Approach #1 on its own will usually give you good scalp or swing trades.

Take this example in EUR/USD: Price dropped outside of the range (golden box) and then turned back toward it. At what level within the range was price likely to bounce from (so we can take a short trade)? The indicator revealed the needed levels and offered us up to three potential entries.





The following video shows approach #2 in action on EUR/GBP. We draw two vertical lines around the price range that price is approaching and within which we can expect
a price reversal or at least a bounce. The indicator draws 5 levels, 4 of which are clustered close together and exist deep within the range at an excellent price to short from. Adding the trend line as a confluence factor gives all the reason to take a short from this zone.




Another example on NZD/JPY. Note how price broke the red level (defined only by the ranges outermost lows) from which most traders would have taken the short, while the first set off golden levels is touched almost to the pip.




TIP #1: If you want to get an overview of where most golden levels are clustered, set the NumberOfLevels to a higher number. Note that with a higher number it will take some time to generate them on lower time frames as there are more highs and lows for the indicator to calculate.

TIP #2: You can always add your own horizontal levels on top of the generated golden levels. The levels you add manually will remain on the chart as you change the vertical lines and/or time frames and generated level get removed.

TIP #3: Since it can be time consuming to delete the individual levels that the indicator generates, download the Golden Level Remover to the MT4 script folder and set a hotkey combination (ex.: Ctrl+X) to efficiently remove all generated levels drawn on a given chart.




IMPORTANT: The golden power miner will dig up lots of nuggets and do the heavy lifting for you, but sometimes they need to be dusted off. Always verify that the levels match the definition of the golden level method and that there arent better levels nearby that the miner may have missed. Please read the short outline at the following link to learn more about golden level trading:

Golden Level Trading Tutorial


Enjoy and play around with the settings.

Happy and profitable mining!

Q

Thank you very much for this amazing tool Quinton!!

One question though, the vertical lines that you mention, I don't have them on my chart, and I don't know why?

Amazing work, thank you very much for sharing this !!

Thanks a lot Quinton.
You really are a great guy.
God bless you
regards
valter

the vertical line is not from the indicator, just add in one or two vertical line manually....

btw, thanks a lot Quinton, profitable trading to you

Quinton, what is your approach to enter the market when price come to the Golden Level, PA?

You add them. I think the videos show it but I'll make it clearer in the description.

Q



>> Learn More About Golden Levels

Thanks for the kind words, valter!

Q



>> Learn More About Golden Levels

Hi infinipipz,

I have talked about this in the other thread, but it probably deserves its own section in the tutorial. I really depends on the level. There are some levels that are so well defined that I would expect a bounce regardless of what PA is doing (even if it sneaking right up to the level or crashing down onto it). These kinds of trades might only results in 20-30 pip scalps but I would certainly expect a reaction. The best and most predictable PA (in terms of how price will behave around a level) exists between these two extremes. You don't want too much ranging action (and retracements) right in front of the level or close to it since too many orders get triggered bit by bit before price reaches the level and this takes the wind out of momentum's sails so to speak as orders are no longer triggered as a cluster. On the other hand, when price comes crashing down with high momentum (and almost no retracement) as in after the Brexit vote or other fundamental news, I would not trade from any but the best levels (and even then I would lower position size and increase stop size).

In the end, PA that is not too flat or too volatile is always the best, this kind of PA exhibits clearer retracements making it easier to spot when price has completed a full trend cycle (5 impulse waves) or at least is ready to take a break from the current trend and retrace enough for us to take a profitable trade.

In this kind of environment price is not being driven by short-term fundamental news (volatile) or nothing at all (ranging, flat), but by fundamental drivers that are more stable over a period of time causing a smooth trending action. Market participants are engaged but not as fickle as during fundamental news and not as absent as during ranging periods.

Hope this helps.

Q


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This is a truly useful indicator. Thank you Quinton.

Having installed it can I now suggest an addition.?

It would be very useful to have horizontal limit lines as an option too. Either self setting at a distance from price or manually set.

This would give S&R within a price range. More specifically, the current price range.

I found that when installed without the vertical lines, the line count which appears to start at the top of the chart, was used up long before the actual price level was reached.

Hi Q I just got Windows 10, I was able to download the Golden Mining BUT I can't Launch it..Any Help?? Thanks for the GREAT Work Tom

Hi,

Part of this is by design, since you usually only want the deepest set levels defined by a high number of highs and lows. The indicator should prevent you from taking trades from levels that are not well priced and located only at the extremes of ranges (and therefore only defined by highs or lows, not both).

Could you share a chart (example) so I might better understand the functionality you are talking about?

Best,

Q



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https://www.mql5.com/en/charts/53778...securities-llc

Ucad 3093 golden level on 1hr for short?

If at all only for very short-term scalps. Price is a bit too aggressive on the long side for my taste and has already been ranging up against those levels over the past week. I like to take trades from levels that haven't been visited in awhile so that orders from other market participants have time to accumulate and then create strong momentum away from the levels as clustered orders get triggered together.

For example, two weeks ago not far from the price range you mentioned, price, after having moved out of the price range defined by the two vertical lines, turned back into it. A cluster of 4 levels revealed where a short entry would have been perfect. The fact that price was in an unstable parabolic state created even more profit potential (300+ pips).

Q



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With number lines set to 5 all the lines are well above current price. Using the vertical lines to enclose a price section within the same range as the current price is ok but will only provide a small sample from which the indicator can gather information.

If the sample limiting lines were horizontal, either manually placed, or built into the indicator, then all the available historical data for that limited price range would be available to the indicator.

In the case of the EURUSD H1 shown, the last time we were at this price level was way back in 2003 The lines given by the indi are not anywhere near the correct range for current price action.

I have also shown EURUSD W1. Even here with the number of lines increased the lowest golden level line given runs along the tops of the current range, yet there are obviously several reasons to place another golden level below the range too. Ignore the green line. It was left over from a previous indicator and I forgot to erase it. !

If we could manually set a sampling range at say +/- 500 pips from the current price, the indi could look at the whole history available for that range. This would give a very accurate view of levels in the vicinity of current price. Automatic moving of the sample range with price would be good but should be stepped in price increments to reduce load on the pc.

Thanks for your time, It sure worked for a good scalp!

>> Learn More About Golden Levels

Hi Tom,

Did any of the other custom or pre-installed indicators break after the win 10 upgrade?

Q



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No problem. Turned into even more than just a scalp.

Q


>> Learn More About Golden Levels

Hi Your indicator seems great. Question from what point/s do you draw your vertical lines as when you move the lines the S/R keep changing. I'm not sure how exactly to use any suggestions would be appreciated.

Thanks in advance.