JustUncleL

Two Bar Break Line Alerts R1.0 by JustUncleL

This indicator with default settings is designed for BINARY OPTIONS trading. The indicator can also be used for Forex trading with some setting changes. The script shows Two Bar Pullback Break lines and alerts when those Break lines are Touched (broken) creating a short term momentum entry condition.
  • For a Bullish Break (Green Up Arrow) to occur: first must have two (or three) consecutive bear (red) candles which is followed by a bull (green) candle creating a pivot point . The breakout occurs then the High of the current Bull (green) exceeds the highest point of the previous two (or three) pivotal bear candles. The green channel Line shows where the current Bullish BreakOut occurs.
  • For a Bearish Break(Red Down Arrow) to occur: first must have two (or three) consecutive bull (green) candles which is followed by a bear (red) candle creating a pivot point . The breakout occurs when the Low of the current Bear (red) drops below the lowest point of the previous two (or three) pivotal Bull candles. The red channel Line shows where the current Bearish BreakOut occurs.

The break Line Arrows can optionally be filtered by the Coloured MA (enabled by default), a longer term directional MA (disabled by default) and/or a MACD condition (enabled by default) as a momentum filter.

You can optionally select three Bar break lines instead of two. The three bar break lines are actually equivalent to Guppy's Three Bar Count Back Line method for trade entries (see Guppy's video reference below).

Included in this indicator is an ability to display some basic Binary Option statistics, when enabled (enabled by default) it shows Successful Bars in Yellow and failed Bars in Black and the last Nine numbers on the script title line represent the Binary option Statistics in order:
  • %ITM rate
  • Total orders
  • Successful Orders
  • Failed Orders
  • Total candles tested
  • Candles per Day
  • Trades per Day
  • Max Consecutive Wins
  • Max Consecutive Losses
You can start the Binary Option statistics from a specific Date, which is handy for checking more recent history.

HINTS:

BINARY OPTIONS trading: use 5min, 15m, 1hr or even Daily charts . Trade after the price touches one of the Breakout lines and the Arrow first appears. Wait for the price to come back from Break Line by 1 or 2 pips, the alert arrow must stay on and candle change to black, then take Binary trade expiry End of Candle. If price pull back and arrow turns off, don't trade this candle, move on you probably don't have momentum, there will be plenty of other trigger events. The backtesting results are good with ITM rates 65% to 72% on many currency pairs, commodities and indices. Realtime trading has confirmed the backtesting results and they could even be bettered, provided you are selective on which signals to trade (strong MACD support etc), that you are patient and disciplined to this trading method.

FOREX trading: the default settings should work with scalping. For longer term trades try with settings change to a more standard MACD filter or slower to catch the longer term momentum swings and the idea would be to trade the first Break Line alert that occurs after a decent Pullback in the direction of the trend. Setting the SL to just above/below the Pivot High/Low and set target to two or three times SL.


References:
Jun 23
Release Notes: Release R1.1 - Minor update
  • Added alarms for when Trend Direction changes as indicated by the ma color changing.
  • Also added optional highlight arrows to indicate change.
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JustUncleL
Spent a week working with this script.

Unfortunately, it doesn't work for me.

Main problem:

1. Disappearing arrow (after you bought the option). Does not affect script statistics, but you lose money.

2. Sometimes the red arrow disappears and later turns green on the same bar! Plus for statistics, but you're losing money.

3. An arrow appears, but the bar does not turn black until it closes. Plus for statistics, but you couldn't buy the option.

If someone uses the script successfully and can help me, I will be happy!

I will be glad to your comment.

Thank you all!
+1 Reply
JustUncleL dimanikitin
@dimanikitin, This trading technique is quite tricky and relies on catching the price at the right point, as you are dealing with the current candle, which can take quite a bit of practice. The arrows will continue to rebuild until the bar closes, whereas the statistics are calculated on closed candles, so only represent potential results and guide you to what Pairs / Time Frames to focus on. Also the time of day can also be important, some traders trade just for a few hours after Tokyo and/or London open.

I cannot guarantee any trader will be profitable with any of my scripts, my scripts are only tools, most profits come from how a trader can make use of the tools available, together with good money management and trading skills.
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dimanikitin JustUncleL
@JustUncleL, Thanks for your comment.

I have no problem catching the price at the right moment (when the candle turns black). But somehow it doesn't work for me.

Tomorrow I will try to trade at the opening of London (and possibly Tokyo).

Hope it gets better!

I really want to successfully trade on this script, I see great potential for myself.

Thank you for your work and comments.
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Hello uncle! Thanks for the script. What broker allows you to choose the expiration "to the end of the candle"?
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JustUncleL dimanikitin
@dimanikitin, That refers to any Binary Options Broker, where you select time expires. I have not tried this script much with a FX broker, you could perform it manually on the longer Time frames.
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This is a great indicator! After moving from MT4 it's really a breath of fresh air. The only problem I'm having is the alerts aren't working, is there a way to get them to work?
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this system confirmed by a SmartBook or a Bookmap would give you an excellent source of income
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hello, where I send you 50% of my income generated ... in Peru you already have a new friend, thank you very much for your excellent work tools
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Hello uncle, what if the alert for breakout arrows does not work?
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@Vorgomel, Please show example, could be a settings thing or could need a Browser refresh.
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