This is an indicator for the Big Shadow ( candle) that Walter Peters teaches in his course (fxjake.com) and book "Naked Forex". I have really been diving into this one and back testing it like crazy. The results have been great and I will be publishing them on the nakedforexnow.com forum soon since it probably isn't appropriate to do it here.
If you like it, please reach out to me @fredferrell on the forum. I would love to discuss back testing results with other traders.
//Based on Big Shadow Strategy by Walter Peters (fxjake.com and nakedforexnow.com) //Coded by Fred Ferrell //Updates for 1.1: Adding alerting, fixed two errors (1. candle pattern recognition 2. wrong direction calulation for roomToTheLeftPeriod) study(title = "Big Shadow by Walter Peters v1.1", overlay = true) PercentageFromClose = input(15, minval=0, maxval=99, title="Percentage of candle measured from high to close on bullish setups and low to close on bearish setups") PercentageFromCloseFormula = PercentageFromClose * .01 roomToTheLeftPeriod = input(7, minval=0, maxval=100, title="Room to the left interval check") range = high - low higherHigh = high > high lowerLow = low < low //Largest candle range within last 10 days. Need to find cleaner code. largestCandle = high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low and high-low > high-low //Bullish Big Shadow bullishEngulfing = open > close and close > open and close > open and close - open > open - close percentageFromCloseUp = close >= (high - (range * PercentageFromCloseFormula)) roomToLeftUpHigh = falling(low,roomToTheLeftPeriod) bullishNote = largestCandle and higherHigh and lowerLow and bullishEngulfing and percentageFromCloseUp and roomToLeftUpHigh barcolor(bullishNote? green : na) plotshape(bullishNote, title="Bullish Engulfing Candle", location=location.belowbar, color=lime, style=shape.arrowup, text="Bullish\nBig\nShadow") alertcondition(bullishNote, title="Bullish Big Shadow Alert", message="Bullish Big Shadow") //Bearish Big Shadow bearishEngulfing = close > open and open > close and close < open and open - close > close - open percentageFromCloseDown = close <= (low + (range * PercentageFromCloseFormula)) roomToLeftDownLow = rising(high,roomToTheLeftPeriod) bearishNote = largestCandle and higherHigh and lowerLow and bearishEngulfing and percentageFromCloseDown and roomToLeftDownLow barcolor(bearishNote? red : na) plotshape(bearishNote, title="Bearish Engulfing Candle", location=location.abovebar, color=red, style=shape.arrowdown, text="Bearish\nBig\nShadow") alertcondition(bearishNote, title="Bearish Big Shadow Alert", message="Bearish Big Shadow")