- Also added a Price Action candle for "Last S/R Break", this also a good continuation indication.
- Added option to select a different moving average types for directional MA line.
- Modified some default settings, using HullMA instead of and standard settings(12,26,9).
This is a trend following indicator and alert for Binary Options based on patterns and -
NOTE: original system was a forex trading system.
This code combines a number of indicators to create an overall trading strategy.
The indicator recognises and displays some useful candle named defined patterns that are used to support trend continuation:
- Bearish + PinBars
- Dark Cloud Cover
- Piecing Line
- Bullish + Harami
- Bullish + Candle
- Bullish + Last S/R break
- Yellow = - breakout/continuance
- Orange = Outside Bar - breakout/continuance
- Aqua/Fuschia = Up/Down Shaved Bars - Buying/Selling pressure
- Red/Green = Possible reversal PinBars - Reverse Down / reverse Up
The upper/lower break lines are also draw, if the (optional) last break line is broken by a highlighted bar then this indicates a stronger trend conformation.
The indicator DEUTER 2 colour(12,26,9) you can visually see the histogram colours with direction - needs "MACD DEUTER 2 colour" indicator.
This multi-indicator set up is suitable for 1hr, 4hr and with 1-4 candle expiry.
References and Inspiration from:
- When a red or green dot appears at the bottom, that is the event to evaluate the position: is it in a strong trend or is it slowin down, is MACD showing strong support, what do the previous candles look like ie. short wicks and good size bodies indicate good contination support, etc...
- Don't use the CM Price action bars unless you understand them. You will get plenty of good entries from the default set up.
- Don't trade near nor directly after major market news (sometime better no trade day) for at least 30mins before and after..
- High probability trades occur when the MACD passes through zero or a few bars after, so look for candle pattern alert or the bar passing through the last Fractal break line in direction of trend.
- Do not trade when the MACD is flat and close to the zero line, this indicates a ranging market.
- You can add optional EMA(20) trend line, when HullMA(20) above EMA(20) trade calls only, when HullMA(20) below EMA(20) trade puts only. The crosses also normally act as a confirmation of trend direction changing.
- The indicator should be effective on currency pairs, commodities and even indices but stick to just a few major ones and practise them, suggested expiries are:
15min Chart use 1hr expiry.
30min & 1hr Charts use 4hr or end of day expiry.
4hr charts use end of day or end of next day expiry.
Daily charts end of week or even longer.
- When looking for End of Day positions, start looking for a MACD zero cross with matching alert or Fractal break after the London session starts.
- Please practise this system in DEMO first, before committing real money, be patient the more you practise the better and more confident you should be. If after two weeks practise you are not showing any profit in DEMO, then it might be time to look at a different indicator that will suit your trading style.
Please be aware that this indicator tool has a diverse amount of settings that can be altered to suit your trading style, the default settings will not suit everybody.
hope that helps.