I must have somehow completely missed the rules on this. Could someone briefly tell me where the entries would be on this chart? Is it the yellow bars or the dark red? We're looking for the standard 3 bar reversal patterns here like what Stealth Trader mentioned at the beginning of the thread correct? Thanks!
mark, I have AmiBroker, but switched to Sierra because it was much easier. I had a hard time getting used to AB, not being a programing adept person. However, I may go back and revive it based on you coding. Can you post a AB chart with the 3 bar reversals? Thanks, Don
Hi jack, no this is not the same reversal bar as described by ST, this is different, if you can read the code I posted in txt format called 123 pivot that's very similar to what posted by ST. In this case the "colored" bar is the signal bar (it means you don't need a confirmation from the following bar as in ST 123 pivot), now it depends on how you want to use the signal, say you have a colored reversal long, you can enter at the close of the colored bar or you can wait and see if the next bar forms a Higher high than the colored bar and enter 1 tick above the high of the colored bar, say the following bar doesn't form a higher high you might discard the signal. There are many ways to develop a system using the signal. I'm trying to find the optimal entry without overfitting the system. I've tried with the choppiest charts I found in the last 2 months, and the worst case scenario you end up break even or paying a little bit of commissions, these are awfull choppy days (on avg 20 points range days..bleah)
BMW I just posted it the last version from iluv2trade, scroll up it's there in txt format I also posted a similar version where you can change the number of bars to calculate the reversal and a different way to plot the result, go back and find it
Ah ok thanks. I think I understand the chart and colors now. But what is the basis for the signal to begin with? Sorry, I have no idea how to read code! *nevermind, I think I figured it out. I was confusing myself for no reason!
On the ER2 probably two or three ticks. Havent traded the NQ that much but I would say on the NQ one point. My time frame of preference is 250 shares on the ER2, 1000 on the NQ. I get out when I am not comfortable with a trade, I set a stop, If i reach my uncomfort level I'll move my stop and exit the trade wherever this may be. My stops most of the time are bigger than my target when I am scalping like this. I know many will argue about risk reward of the trade but I do not view trades like this. I view a trade in terms of the probability of its success not it risk reward ratio. You can have a kick ass risk reward ratio but if your probability is not there, it is a sinking ship. P.