MBoxAlgos

* MBoxAlgos *

The MBoxWave Algorithmic Buy / Sell Signals (ALGOs for short) are a system for identifying trading opportunities using Wyckoffian concepts. The BIG advantage of what sets these signals apart from any others is that they use Wyckoff concepts in analyzing Waves, Volume, Buying / Selling, Effort / Result, Cause / Effect, etc... It allows you to easily scan charts for certain conditions to meet a criteria and then showing a signal that a potential trade setup has occurred.

MBoxAlgos is designed to be used with XPrecisionSwing, however it can be used Standalone. More about that below.

* WHAT THE SCRIPT DOES *

MBoxAlgos analyzes the waves from the XPrecisionSwing indicator using various different algorithms to compare the waves. Once the comparison of the waves is done and if it fulfills certain criteria, an Algo Signal will be drawn on the chart above or below the wave. This script can be used standalone, but it is recommended to use in conjunction with the other MBoxWave indicators as well. Generally, in order to gauage the strength of the signal it is recommended to look at the underlying analysis that the other MBoxWave indicators are showing. The more confluence there is amongst the other indicators, the stronger the algorithmic signal is. This is important for forecasting how far price can potentially move.

* HOW IT WORKS *

There are 3 main Algorithmic Signals that can be drawn on the chart. Using various combinations of the signals and in addition to Buy / Sell imbalances we can create up to 11 different alerts that satisfy various conditions. Some alerts are more powerful than others.


- Three Stooges Algo -
The Three Stooges Algorithm analyzes patterns in waves to identify areas of supply / demand imbalances. This can be used to gain an edge in the markets.

Blue # - Buy Signal (Imbalance in Supply on Decreasing Supply. Presents buying opportunity)

Red # - Sell Signal (Imbalance in Demand on Decreasing Demand. Presents selling opportunity)

Blue - Trend Buy Signal (Same as Buy Signal, but also in a trend. Higher Highs / Higher Lows)

Red - Trend Sell Signal (Same as Sell Signal, but also in a trend. Lower Highs / Lower Lows)

To achieve either a buy or sell signal there must be 3 consecutive up waves / 3 consecutive buy waves that show either Decreasing Supply or Decreasing Demand


- Effort / Result Pullback Algo -

The Effort / Result Pullback Algorithm analyzes pullbacks in which effort is wasted on an up or down wave and little result in price is achieved. The most effective use for these signals is to combine with MCumulativeDelta / MBoxHistogram to confirm Buying / Selling and determine areas that are overbought / oversold to find optimal entries. Works especially great in trend trades.

Blue PB - Buy Pullback (Considering the length of the wave, Volume, Selling on the last down wave relative to the previous down wave is excessive. Combines with no new Low)

Red PB - Sell Pullback (Considering the length of the wave, Volume, Buying on the last up wave relative to the previous up wave is excessive. Combines with no new High)

Blue - Trend Buy Pullback (Same as Buy Pullback, but also in a trend. Higher Highs / Higher Lows)

Red - Trend Sell Pullback (Same as Sell Pullback, but also in a trend. Lower Highs / Lower Lows)

To achieve either a Pullback Buy or Sell signal, the length of the Pullback wave must be less than the previous wave of the same direction. The Volume or Buying / Selling of the pullback wave, relative to its length must exceed the Volume or Buying / Selling of the previous wave of the same direction (This is what the Effort / Result part is). For Buy Pullbacks, the pullback wave must close higher than the previous down wave. For Sell Pullbacks, the pullback wave must close lower than the previous up wave.


- Springs & UpThrusts Algo -

The Springs & UpThrusts Algorithm analyzes wave and Volume and Buying / Selling patterns to find turning points in the market. When combined with MCumulativeDelta / MBoxHistogram, one can see areas that are either overbought or oversold and these make for great entry points. The best way to trade Springs & UpThrusts is when there is confluence with Supply / Demand.

Blue SP (Spring) - Buy Signal

Red UT (UpThrust) - Sell Signal

To achieve either a Buy or Sell signal, the Spring or UpThrust needs to be in range of price in the previous waves / area. It also analyzes Volume and Buying / Selling to filter out signals based on Order Flow. Literally the definition of the Spring is that it springs up like from a springboard. And likewise, an UpThrust thrusts upwards, but then quickly falls.

When you see a Spring form, before taking the trade you should confirm that Supply is diminishing and see some signs of the area being oversold. Likewise, when you see an UpThrust form, also check that Demand in weakening or signs that the area may be overbought. Doing this will help you find optimal trade entries.


- Double Algo -

Double Algo is when 2 Algorithms trigger at the same time. This requires 2 of the following: Buy or Sell Imbalance, Three Stooges, Effort / Result Pullback, Spring or UpThrust


*** TRIPLE ALGO *** Special Note ***

This is a very powerful algorithm. Triple Algo is when all the Algorithms fire off. Triple Algos can often start large moves up or down. If it fails, often price will go in the opposite direction. With the proper Risk Management and Trading Plan you can solely trade Triple Algos alone and nothing else. There are people that do this and they are called Triple Algo Traders.

Triple Algo is when 3 Algorithms trigger at the same time. This requires 3 of the following: Buy or Sell Imbalance, Three Stooges, Effort / Result Pullback, Spring or UpThrust. Please note, it is not possible for a Pullback and Spring / UpThrust to fire at the same time, that is why it is a Triple Algo and not Quadruple.

There is a settings to Enable Drawing a Label Outline around a Triple Algo to see them more easily on the chart. This is Enabled by default.


* Using with XPrecisionSwing *

If you load MBoxAlgos and XPrecisionSwing together you will want to make sure that the swing size is this same in both indicators' settings. This is so that the Signals and Waves from XPrecisionSwing will match visually.

MBoxAlgos uses the Buy / Sell Imbalances data from the XPrecisionSwing indicator. To see this visually, enable the XPrecisionSwing indicator

- Definition of Buy / Sell Imbalances (Visually seen with XPrecisionSwing) -

If you see a positive blue number on the bottom of a DOWN Wave, this means that there was more buying than selling even though price moved down.
If you see a negative red number on the top of an UP Wave, this means that there was more selling than buying even though price moved up.


Alerts on Buy / Sell Imbalances can function without loading XPrecisionSwing. You just will not see it visually, however you can still set alerts on Buy / Sell Imbalances in MBoxAlgos standalone.


* SETTING ALERTS AND COMBINATIONS *

There are a total of 11 different alert combinations.

1. Buy / Sell Imbalance
2. Buy / Sell Imbalance + Effort / Result Pullback
3. Buy / Sell Imbalance + Springs / UpThrusts
4. Buy / Sell Imbalance + Three Stooges
5. Double Algo
6. Effort / Result Pullback
7. Springs / UpThrusts
8. Three Stooges
9. Three Stooges + Effort / Result Pullback
10. Three Stooges + Springs / UpThrusts

11. *** Triple Algo ***

Alerts can be set very easily with the instructions below.

1. Right Click Chart -> Add Alert...

(Ignore Caution Warning. It is guaranteed that these alerts will *ONLY* trigger on Confirmed Signals and will NEVER repaint)

2. Select Condition to be "MBoxAlgos"
3. Select an Alert Combination like "Triple Algo", "Buy / Sell Imbalance", etc...
4. Set Trigger to "Once Per Bar"
5. Customize Any other Alert Options you want


* AUTHOR *
This script is published by MBoxWave LLC

Release Notes:

Update for Release

Release Notes:

Release

Release Notes:

Explanation of the Algo Filters

The Algorithmic Filters allow to fine tune the trading strategy you want to use with the Algorithmic Buy / Sell Signals. You can use the filters to optimize your trading strategy. For example, if you want to find both trend and countertrend trades that make sense, you would use the Smart filter. If you want to find only trending trades, use the Trend Following filter. If you want to only find high probability countertrend trades, use the Countertrend filter. Technical details below.

Algorithmic Filters

• Smart - Filter out signals that are countertrend (to EMA 200) during a strong trend (ADX > 25)

• Trend Following - Filter out signals based on the underlying trend only (EMA 200)

• Countertrend - Only show signals that are countertrend (to EMA 200) when the trend has become weak (ADX < 25)

Release Notes:

Added chart interval to the alerts

Added MGannSwing mode which is an alternative algorithm for calculating the swings which is used by the algorithms. By default it uses a swing size of 2, which means it takes 2 higher highs or 2 lower lows to start a new wave. If you load with XPrecisionSwing, you should match the mode and swing size.

Release Notes:

Add Exceptions for MGannSwing Mode
If bar low is lower than previous swing low, start downswing
If bar high is higher than previous swing high, start upswing