A semi automated trading routine

_60_X_Reversal_3x 26-50

#property copyright “Copyright © 2017, Macdulio”
#property description “V1.0”
#property description “60 -X- reversal by Macdulio”
#property description “puts out 3, limit orders exipring in 3 hours”
#property description “with 26 pips stops and 50 pips targets”
#property description “with equity adjusted size, 1.5 then 3 pips apart”
#property description “program it on ALT + X”
#property description “don’t forget to remove the EA”
#property description “once the orders are placed”
#property link “http://forexfore.blog”

#include <stdlib.mqh>
#include <WinUser32.mqh>

extern int magic_number = 47;
int counter = 0;
extern double Leverage = 3.0;
extern int OrdersNow = 5;
extern int Slippage = 3;
extern int Stop_Loss = 26;
extern int Take_Profit = 50;
extern double AF=1.3;
extern double LT=17;
double pivot[];
double PriceL ;
double PriceH;
extern int maxlines = 15;
extern int displaylength = 55;
double lines[];
double mid[];
extern int pipApart2 = 1;
int i,pos,c_b=Bars;
int init()
{
ArrayResize(lines, maxlines);
ArrayResize(mid, c_b);

ArrayInitialize(lines, 0);
ArrayInitialize(mid, EMPTY_VALUE);
return(0);
}

int start()
{
int expiration;
double Price = WindowPriceOnDropped();
int slippage;

mid[0]=EMPTY_VALUE;

pos=0;
for (i=0; i<=c_b-1; i++)
{

if (iATR(NULL,60,3,i)>iATR(NULL,60,3,i-1) && iATR(NULL,60,3,i)> iATR(NULL,60,3,i+1) && iATR(NULL,60,3,i)>0.0010 && iATR(NULL,60,3,i)>(iATR(NULL,60,3,i+1)+iATR(NULL,60,3,i+2)+iATR(NULL,60,3,i+3))/3*1.25) mid[pos]=iHigh(NULL,60,i)-(iHigh(NULL,60,i)-iLow(NULL,60,i))/2;
if (iATR(NULL,60,3,i)> iATR(NULL,60,3,i+1) && iATR(NULL,60,3,i)>0.0010 && iATR(NULL,60,3,i+1)>iATR(NULL,60,3,i+2) && iATR(NULL,60,3,i+2)>iATR(NULL,60,3,i+3) && iATR(NULL,60,3,i+3)>0.0010) mid[pos]=iHigh(NULL,60,i)-(iHigh(NULL,60,i)-iLow(NULL,60,i))/2;
if (High[i+2]<High[i+1] && Low[i+2]>Low[i+1] && High[i+1]-Low[i+1]>(High[i+2]-Low[i+2])*2 && iATR(NULL,60,3,i+2)>0.0010) mid[pos]=iHigh(NULL,60,i)-(iHigh(NULL,60,i)-iLow(NULL,60,i))/2;

if (mid[pos]!=EMPTY_VALUE) pos=pos+1;

}

 

i=0;
while(i<2 && pos>0)
{
if (i==pos) break;
if (mid[i]!=EMPTY_VALUE) lines[i]=NormalizeDouble(mid[i],5);
i++;
}

double account = AccountEquity();
double Lots = NormalizeDouble(LT/3000000*account*AF*Leverage,4);

double price12,price2;

int ticket1,ticket12,ticket2,error;
int NrOfDigits = MarketInfo(Symbol(),MODE_DIGITS);
int PipAdjust;
if(NrOfDigits == 5 || NrOfDigits == 3)
PipAdjust = 10;
else
if(NrOfDigits == 4 || NrOfDigits == 2)
PipAdjust = 1;
expiration=CurTime()+10800;

slippage = Slippage * PipAdjust;

 

PriceL = lines[0]+10*Point;
PriceH = lines[0]-10*Point;

price12 = NormalizeDouble(PriceH+pipApart2*Point*PipAdjust,Digits);
price2 = NormalizeDouble(PriceL-pipApart2*Point*PipAdjust,Digits);

PriceH = PriceH+3*Point;
PriceL = PriceL-3*Point;

 

for (i=OrdersTotal()-1; i>=0 ; i–)
{

if(OrderSelect(i,SELECT_BY_POS,MODE_TRADES)==false)
{
Print(“Access to orders list failed with error (“,GetLastError(),”)”);
break;
}
if (OrderMagicNumber()==magic_number )
counter = counter +1;

}

double increment = NormalizeDouble(15 * Point * counter, 5);

if(Bid<price12 && counter<4 )
{

ticket12=OrderSend(Symbol(),OP_SELLLIMIT,Lots,price12+increment,slippage,price12+increment+Stop_Loss*Point*PipAdjust,price12+increment-Take_Profit*Point*PipAdjust,”BEE 60 SELL LMT 3H 260/500″,magic_number,expiration,Black);
if(ticket1<1)
{
error=GetLastError();
Print(“Error = “,ErrorDescription(error));
return(0);
}

}

if(Ask>price2 && counter<4 )
{

ticket2=OrderSend(Symbol(),OP_BUYLIMIT,Lots,price2-increment,slippage,price2-increment-Stop_Loss*Point*PipAdjust,price2-increment+Take_Profit*Point*PipAdjust,”BEE 60 BUY LMT 3H 260/500”,magic_number,expiration,Black);
if(ticket1<1)
{
error=GetLastError();
Print(“Error = “,ErrorDescription(error));
return(0);
}

}

Sleep(490000000000000);
return(0);
}

 

 

 

 

A lot of ideas can be derived from the lingo, if you tune your own interpreting abilities.

– How is your defense?

What if this question does not refer to stop losses, but rather it is a reference to the ultimate low risk trade?

Wave 1 – smart money buys. Wave 3 – institutions buy. Wave 5 – retail buys. – Heard this one?

What do I think? I think: – Penetrating re-test of Wave 1: Smart money buys. Wave 5: smart money sells out. And that is all there is you need to know.

Now, all you need to do is:

1. become a Wave 1 defender.

2. figure out how to spot a Wave 1.

3. place your pending order with a stop loss of 15 pips

4. get the exit condition right (2. rejection at a deflector)

 

Wave 1 is usually miniscule compared to the full move.

I do not pretend that I have the accurate, always working automatized code for finding a wave 1.

What I’ve got so far is three lines that would find the last 3 crucial ones and would include some other, unwanted ones as well.

 

And a quick remark about where you would be looking for these waves to start from: from the deflectors.

Deflectors are:

– LEMAs (414, 828, 1556)

– Recent outlying values = fresh new highs / lows

– Higher time frame consolidation weights – I started plotting these and calling them maggots

 

If you consider these you would suddenly start to understand the “path of least resistance” expression a whole lot more intimately.

 

 

 

 

 

The title is merely a reference for a connection to the previous post.

As it turns out, if I want to be precise and come up with a mathematical formula for what really a consolidation is, I cannot call the following thing a consolidation:

That thing is burning time, which sounds like a consolidation, but if I define a consolidation by quick zig zag moves, that change the level of consolidation by at 5 percent in every 3 bars and reach a high charge towards the end, that flat thingy just does not qualify. What should it be called then? Pause? Partial recharge? Temporary exhaustion? It is basically a cobra lifting its head up a little for a second strike.

Life is funnier still. The thing on the left that I initially called an aborted consolidation, did in fact consolidate the price when it broke the high of the range it printed. So, our cobra bumped its lifting head into this golden bar, and price cracked it before the pause took place. Maybe one should not use time frames below 1h for consolidation values.

On the monthly, we re-tested and got rejected from the consolidation level with the giant arrows. It would make sense to come down for a re-test of the previous base, or at least build another base. Did I say 1.1750? Make that 1.18 for now. The 4h Lema is at 1.2065.

I said on these columns before, that the largest moves come from losing the overbought/oversold condition. Here is a most recent example.

Could anyone have known where the bottom would be before hand? I certainly did, thanks to my comfort levels. (Imagine how easy it could be to pick strikes for options!) Did anyone know where the bounce would come up to? Sure, 50% is was a great bet, but in reality, it was the Lema’s cloud.

That candle with the wick back testing the cloud, is a Kiss Good Bye, or a KGB.

 

KGB examples. The first circle was a french kiss. You can also see the gap down touching down at the bottom of the upper reversal zone (shaded). Gaps are signs of being in a wave 3.

Now, if you want to manage funds, you need to start using fund manager tools and apply fund manager thinking.

The sample size for the comfort levels – on TOS was set to 14 * 5.5 * 24 for Forex pairs and 14 * 5 * 23 – 20 for other. These numbers were as close as you can get to the maximum feed provided by the broker. The above images were 1H samples.

On MT4 the sample size had to be different, you get less data here. And this number is different per time frame. On a 4h you can have 1590 sample, on daily, 1025 is scratching it.

I’m not going to go into embedding, saving again. Instead I can elaborate a little on the tracking/mapping part.

On the above example you can see circled when the price, after a long rally finally violated the 80% line giving you a pullback exceeding 20%. This Sing Of Weakness defined the point when the market stopped mapping and started tracking. In other words, it settled the working range.

So, now you have one tool, a large sample high and low, the 10% lines in between and the proper, fund managing thinking that is based on percentages.

These, 10% lines (and the 5% ones at times) are the dividers between you having to act or not act.

There is also the understanding the consolidations based on their location and length that would help you out. Consolidations are for alleviating an exhaustion condition, with enough time given, the level of consolidation gets worked up to high enough for continuing with a move (by setting a new weight point at the current location).

To recharge the 1h energy you need at least 4 hours, which is 8 candles on the 30 minute.

Now, if you are in Forex, you should be paying most attention to the 4h charts and the little brother, the 30m.

Now, what about the 5%’s? You need to keep an open mind and look up. Meaning, there may be an obstacle appearing on a higher time frame. Your evaluation points accordingly would be at the 5% strikes.

I.e. this wrapping around the 60% line is probably due to the 4h hitting the bottom of the upper reversal zone (from 95% to 85%, shaded).

As for why the 30 minute basis, your 3rd tool, the 3-daily ATR can answer that. 81 pips currently would allow for a 10% move carried out on a single day, the rungs on this frame are currently 71 pips apart.

 

Bonus image 1: Current Location of 1h LEMA+Cloud

Bonus image 2:  Location of 30m LEMA+Cloud (check where the 30 min consolidation was taking place…)

_LEMA_Triplet

An outcome of my recent, “condition + level” thinking.

It’s basically all Fractal levels plotted on the current time frame ruling out only a few, from right to left, those, that are within 5.5 pips of another one that was already registered.

As for the line suggestions, consider the current trend, the prevailing trend line, and then think of the red lines. I made the calculations based on noticed behaviour of the 30 minute readings.

_Fractal_Lines

Just a little upgrade to the label part of the Skid Rock.

1h readings are that I am most curious about, but this one works with local values.

Why the numbers so big? To be able to see them from the other side of the room.

Now there is also a discrepancy between the phone/tablet MT4 app iStochastic calculation and that of the desktop version. Somebody altered the code, for sure. Cannot correct this. On the phone I use the High-Low based calculation, on the desktop I went with the Closes.

The numbers should turn red (above 92) or green (below 5), like so:

Only in a wave 3 would you be able to sustain these numbers.

I had to convert the tens and the ones part of the double iStochastic reading and turn them into winding strings based on the integers received. There is a bit of rounding here of course.

 

int twodigits = NormalizeDouble(iStochastic(NULL,0,10,3,3,MODE_SMA,1,MODE_SIGNAL,0),0);

int tens = round(twodigits/10);

int ones = twodigits-tens*10;

string stens, sones;

 

switch(tens)
{
case 1: stens=CharToStr(140);
break;
case 2: stens=CharToStr(141);
break;
case 3: stens=CharToStr(142);
break;
case 4: stens=CharToStr(143);
break;
case 5: stens=CharToStr(144);
break;
case 6: stens=CharToStr(145);
break;
case 7: stens=CharToStr(146);
break;
case 8: stens=CharToStr(147);
break;
case 9: stens=CharToStr(148);
break;
default: stens=CharToStr(139);
break;
}

switch(ones)
{
case 1: sones=CharToStr(140);
break;
case 2: sones=CharToStr(141);
break;
case 3: sones=CharToStr(142);
break;
case 4: sones=CharToStr(143);
break;
case 5: sones=CharToStr(144);
break;
case 6: sones=CharToStr(145);
break;
case 7: sones=CharToStr(146);
break;
case 8: sones=CharToStr(147);
break;
case 9: sones=CharToStr(148);
break;
default: sones=CharToStr(139);
break;
}

_Skid_Rock_v1_2

 

Below: I don’t know how this looks to you with the 3 attacks on the skid rock support, but to me it looks like an accumulation. EOD may has printed the “root”.

Last Weekly Pro volume was just above 1.16, and nothing since. If this is an ABC correction up, it would imply A=C, and this would put price 1580 pips higher by the end, which is 1.32, the pivot/median weekly level on the comfort levels.

The daily is particularly interesting, for it was too early to print another fractal on Friday. One of my next topics would be the letter “h”, when I get around to it. Basically you cannot successfully take out the fresh, terminal high/low within 5 samples.

The daily shows the need for more consolidation. 5 waves were spent. If you look at the triple low in line with the blue skid mark, it is a very similar low to what we just printed on the 30 min with the check marks. So, you are not going to get an immediate new high, but a lift off and a don’t look back. Check the cyan shaded pro volume locations: it looks like the root of the 3rd set of the triple waves.

1H comes back with an interesting result: there is a pro volume doji, that they may be protecting on every fall back, which may result in a gap up on Sunday.

If not, they still have 2 more entries lower, one at the overbought comfort level (black), and one just below it, as shown on the 30 min. Check the guidance numbers on the next one as well:

The momentum is heavily negative as well, which means a buy in an uptrend. Above 1.2250 you will have the 4h pivot taken out, and do not fight this. It would want up.

Since the pullback was larger than 25% and smaller than 40%, you would have to have 2 more days pass buy below the high of 1.2323 before you can decisively take it out. A try before that would fail back down. (With a deep pullback, you can rush things, and clear the obstacle on the 4th sample.)

I use the Fib as a percentage tool. I am looking for 25, 40 percent, just as I said. I do not believe in the notion of the “big boys have Fibonacci built in their tools”, for the big boys have 1 tool: a dial button on the phone.

One suicid way of taking out the high in 2 days would be to undercut the low of 1.2163, reverse the same day, and rally through the high on the next.  I am not suggesting that this would happen, and currently am positioned against it. Can you, with the knowledge just gained, tell me why the break of 1.2163 would be doomed to a failure?

 

 

Three reds pushing on the previous week’s high.

Everyone can see this:

Who can see this?

 

 

No, not trying to be an E.W. analyst here. There some ideas that were admittedly first found/acknowledged by them.

This is RSI2 and the thinking it prompts.

A Wave has to go overbought/ oversold at its peak to be called a wave (in general, >75 or <28), and the end of wave is closing the distance (80->44 or 23->54)  (Froot Loops)

SOB = Shot over the Bow – Warning of a direction change

On the 4h, get an idea of the wave you are in. Think ahead, i.e. in a Wave 2 scale in to the direction of wave 1 to be present at Wave 3 – and you do not need to sell until an SOB shows up (normally a wave 4).

Wave 5 normally would exceed Wave 3 if the overall direction is

The 30 min, 15 min can give you further details about a consolidation, the direction of the break, etc.

On higher time frames the odds are low that an SOB would register.

I do not count the Waves on 1H, but it is good time frame for finding RSI(2) divergences.

I put the hand and sleeve markers in (sleeve buy / sleeve sell).

_RSI2_Shaded

Enjoy!

 

 

 

 

 

 

The concept of a Measuring leg in the World of 4H is simple. It is a 12-sample Low or High RSI2 read, that does not fit the pattern.

Once the measuring leg is printed, you should have ample time (3-10x 4hours on avg) to set up your low risk entry.

If you have downloaded my Skid Rock, you would have the low risk levels themselves plotted already. I synced up the strips with Skid Rock’s Teal and Violet plots to further ease the thinking. There is only one more thing to be taken into consideration, and that is the single most crucial piece of information that can aid anyone’s trading. This is of course the answer to “Which Wave the price is in currently”?

To get good at this there are 2 images at the bottom for starters.

if (Period()==240 && RSI2[i]8){ LowBuffer[i]=8; HighBuffer[i]=92; }
if (Period()==240 && RSI2[i]>92 && RSI2[ArrayMaximum(RSI2,12,i+1)]<92){ LowBuffer2[i]=8; HighBuffer2[i]=92; }

_divergencepetr_s6

I have the oval plots (end of wave signals) now good enough do make proper counts with, at least on the long side. A Wave 4 can be a Shot over the bow, thus that particular measuring leg is not part of the count, merely part of the reversal. capeesh?

The last goodie I can give you for 2017. Happy New Year!

#property description “Skid Rock – break outs that matter”
#property description “to keep you on the right side…”
#property description “play the break, every time”
#property description “they are skid marks/divergences”
#property description “showing participants trapped”
#property description “stops beyond the lines!”
#property description “suggested use: 30 Min”

Skid Rock V1.1 in the downloads