About the script:
This script is a full translation of my strategy. the strategy name is POTP (prince of the pit in memory of the legend trader Mr. Richard Denis). for any strategy you need entry point., stop point and exit rules. for the long and short opportunities, I used “dunchian channel “with average of 26 candles and these two lines above and below the charts will reveals the major support and resistance levels and with sup, res it will show you buy and sell opportunities. with calculation the average of last 14 candles closed price the script shows you the best place for your stop. Exit point are based on the 50 EMA plotted on charts and also lost the last sup or res on donchian.
How to use it:
First of all, always use it on 4H time frame because it will cover lots of your losses and also the candles on 4H charts are more accurate.
The channel has two colors, green and red. when the green is above the red its buy opportunities and vice versa. Your stop loss must be below the entry candle`s dot in long positions and above in short ones. If the price goes in favor, you can save some of your profit by moving the stop level. for this matter use the dots positon, when three of them formed a line and aligned, move your SL below them.
Exit rules; the first rule is if the red and green line switch position, clearly you have to close the position immediately. as the second exit rule; If points are formed twice opposite they direction of the trade you have to close the position, for example in long position if we see two points lower than the last ones it’s time to leave the table .as the last rule if the chart breaks the EMA with a solid candle against our trade direction, we will leave. with these set of rules most of the losses caused by a side market will be covered.
Tips: if the stop levels are too far, you can change the script time frame in to 2H, but do not leave the 4H chart time frame.
For the channel I`ve set the 26 candles and 14 candles for the stop loss points by default, in the script setting you can change it. feel free to change it and retest.
hop you enjoy …
This script is a full translation of my strategy. the strategy name is POTP (prince of the pit in memory of the legend trader Mr. Richard Denis). for any strategy you need entry point., stop point and exit rules. for the long and short opportunities, I used “dunchian channel “with average of 26 candles and these two lines above and below the charts will reveals the major support and resistance levels and with sup, res it will show you buy and sell opportunities. with calculation the average of last 14 candles closed price the script shows you the best place for your stop. Exit point are based on the 50 EMA plotted on charts and also lost the last sup or res on donchian.
How to use it:
First of all, always use it on 4H time frame because it will cover lots of your losses and also the candles on 4H charts are more accurate.
The channel has two colors, green and red. when the green is above the red its buy opportunities and vice versa. Your stop loss must be below the entry candle`s dot in long positions and above in short ones. If the price goes in favor, you can save some of your profit by moving the stop level. for this matter use the dots positon, when three of them formed a line and aligned, move your SL below them.
Exit rules; the first rule is if the red and green line switch position, clearly you have to close the position immediately. as the second exit rule; If points are formed twice opposite they direction of the trade you have to close the position, for example in long position if we see two points lower than the last ones it’s time to leave the table .as the last rule if the chart breaks the EMA with a solid candle against our trade direction, we will leave. with these set of rules most of the losses caused by a side market will be covered.
Tips: if the stop levels are too far, you can change the script time frame in to 2H, but do not leave the 4H chart time frame.
For the channel I`ve set the 26 candles and 14 candles for the stop loss points by default, in the script setting you can change it. feel free to change it and retest.
hop you enjoy …