FredFerrell

Big Shadow by Walter Peters v1.1

Version 1.1 is here!

This is an indicator for the Big Shadow ( engulfing 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.
Remove from Favorite Scripts Add to Favorite Scripts
//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[1]
lowerLow = low < low[1]
//Largest candle range within last 10 days. Need to find cleaner code.
largestCandle = high-low > high[1]-low[1] and high-low > high[2]-low[2] and high-low > high[3]-low[3] and high-low > high[4]-low[4] and high-low > high[5]-low[5] and high-low > high[6]-low[6] and high-low > high[7]-low[7] and high-low > high[8]-low[8] and high-low > high[9]-low[9] and high-low > high[10]-low[10]

//Bullish Big Shadow
bullishEngulfing = open[1] > close[1] and close > open and close > open[1] and close - open > open[1] - close[1] 
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[1] > open[1] and open > close and close < open[1] and open - close > close[1] - open[1]
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")
Or you can use Price Action Tracker Software and get alerted as soon as a Big Shadow pattern is formed ( on all markets and time frames).
No coding or MT4 needed
Reply
Hi Fred
Thank you very much.
Can I use it also on the mt4 platform?
Best wishes
Reiko
Reply
FredFerrell PRO ReikosvenPahl
Reiko, no you will not be able to copy and paste this code for MT4. I don't have this coded to MT4 yet either, but I am hoping I don't have to if TV gets some brokers on this platform.
Reply
N FredFerrell
Hello :)

Are you planning on making more indicators which work with Walter Peters Strategies?
Reply
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out