This post has been selected as an answer to the original posters question
If you have an inside bar, it is trending up and down at the same time.
(1) But let me suggest a concept that only uses the highs and lows of the bars:
translation up = higher high and higher low
translation down = lower high and lower low outside bar = higher high and lower low
inside bar = lower high and higher low
stitch up = higher high and equal low
stitch down = equal high and lower low flat top pennant = equal high and higher low
flat bottom pennant = lower high and equal low harmonic bar = equal high and equal low
lateral consolidation = extension of inside bars
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
My personal preference and requirements at this stage are for the methodology used for the first one. I try to do something similar to this , to sort of decline (durchdeklinieren) the price action as you have done. The method you have is neat, consistent and easy to do as the price action develops.
For my taste the information required to make this approach are two detailed. This can be useful, if you feed them into a neural network and let that operate by exploiting statistics. But as a discretionary trader I prefer aggregate information to protect myself from information overload. Simplicity beats sophistication.
The following 6 users say Thank You to Fat Tails for this post:
I modified one of @Silvester17`s Volume indicators so that it does what you want.
The VolumeTrendBars indicator displays the volume based on up/down close wherewith one can recognize if itīs a down or up bar.
The price bars can be colored regarding your request, LHīs + HLīs. You can also choose the period for the paint bars calculation (Period 1 equates your request). There is also a option for playing sound files.
If you donīt want the volume bars, just set them to transparent.
Hope this helps.
Ps. The first chart is set to period 1, the second to period 7.
Last edited by Abde; March 27th, 2014 at 08:34 AM.
The following 7 users say Thank You to Abde for this post:
many many thanks .. that is sort of perfect for what I want. I am trying to trail my trades on the DAX and it is proving to be very difficult. Too tight and you get knocked out of great positions, too lose and you quickly give back 50% or more of your profits on this fast instrument.
I am using 5 min time bars and making good progress - this will help me a lot when it comes to fast decision making.
The following user says Thank You to podski for this post:
How true this is with the DAX - Itīs a psychopathic beast LOL...
My experience is that itīs always a very good idea to incorporate volume into the trailing decision. I noticed that the highs/lows of bars where the vol exceeds the prior bars vol, are excellent spots for stop placements and they are also good, for initiating trades.
This is a nice simple tool. I am going to request a small improvement or two - are you able to do them or should I ask in the Create an Indicator thread ?
1. I will remove the volume bars
2. I would like to have an option to ignore inside bars. This is a little more complex but will work a little like the consolidation box in the Fat Tails illustration.
The following changes will need to be made
- add a classification concept (like in the PriceActionSwing indie) for each bar - UpBar, DownBar, InsideBar, OutsideBar
- the High Low comparison will need to count back but once an OutsideBar is there any subsequent inside bars don't count so the Period will need to be offset by these bars
There are no OutsideBars in the consolidation boxes of Fat Tails illustration. Do you want that inside bars didnīt get colored at all?
Can you provide a illustration of what you want? - A picture is worth a thousand words.