Improve an Binary O.. "next candle prediction" indicator by adding additional filter
Hello Guys,
After speaking to guys in our Skype Group (free for all skype group for BO traders/developers/newbies and pros combined) we thought share some interesting indicator here in TSD to see if any good developer may pick up a ride and make some magic 
Background (by Irvin, who posted the strategy):-----------------------------------------------------------------------------------------------------
I think it will be of great use in predicting / deciding the direction and size of the next candle.
I backtested my formula for this on EUR/JPY and EUR/USD and it gave astonishing results.
Speed of trade = (Price Change / Volume) per unit time.
= (Open-Close)/tick volume in the default period.
If SoT of current candle is greater than twice the average SoT of the selected period, next candle will be in the same direction of the current candle. (Our signals can be given at the close of the current candle).
Caution: If current candle is followed by same color 2-3 candles, no signal is to be given.
As an example:
Date E/J(Open) E/J(High) E/J(Low) E/J(Close) Volume(E/J) Direction Price change Speed
11/06/2012 03:56:00 102.456 102.456 102.429 102.429 96 DOWN -0.027 2.81
11/06/2012 03:57:00 102.429 102.429 102.398 102.413 158 DOWN -0.016 1.01
as speed is greater than 1.70 (average of 14 candles), it predicts that next candle will be down.
This indicator can be made to look like a speedometer or just the number can appear with the signal on the candle. I think this will help a great deal in making right decisions.
The theory behind this is that every rise or fall needs a force or inertia greater than the existing force, so as soon we see or capture such extra force, we can determine the next candle direction and values also.
-----------------------------------------------------------------------------------------------------
The story:-----------------------------------------------------------------------------------------------------
Following people started working on it but seems as didn't finished or finished but not published:
1. FXCodeBase.COM: Forex Chart Indicators and Development • View topic - Trade Speedometer
2. Accurately Predict the Direction of the Next Candle (Forex best kept Secret!)!)
Then, holyfire from Edge forum, given his hands on it, and offered both the indicator files and the template: Fixing Possibly very good prediction indicator - 5 Minute Strategies - Binary Options Edge
-----------------------------------------------------------------------------------------------------
Rules simple:-----------------------------------------------------------------------------------------------------
Three different dots above/below the candle it may move in the indicated direction , dots below call , dots above put.
Problem/s:
Some filtering missing which causes it to make too many false signals. From what one of our group members said, it will keep alarming up every tick.
-----------------------------------------------------------------------------------------------------
So anyone who want,willing,can and have some spare time - Lets make a magic with it
Rommark2 this would be the SOT14 version, just updated a bit alert wise, one thing not sure about is all the Volume calls are using +1.
Hmm think you could make so once all 3 dots there for call, it will give CALL arrow and when all 3 dots above it will give DOWN arrow? for easier usage? all in one indi file?
Thanks
Hmm think you could make so once all 3 dots there for call, it will give CALL arrow and when all 3 dots above it will give DOWN arrow? for easier usage? all in one indi file? Thanks
Hi,
this is an interesting topic but for months no one says anything. I have also read your posts here: Fixing Possibly very good prediction indicator - 5 Minute Strategies - Binary Options Edge
Can you talk about the current state: Does it work? Is there somewhere contributions to them?
Best regards
rmndschmidt
I took a good look at the original thread from other forum and have to confirm that this prediction theory was all wrong from the beginning. Even the creator's Excel draft data contains lots of mistakes and makes it around 50% accurate, not 90% as it was claimed. You should not waste time on it.
Did anyone end up doing anything with this strategy?
I had a look at just out of curiosity. It does come up with a decent amount of correct signals on the real time charts from watching them for a few hours although that's not enough to judge.
I currently use a strategy in Binary where I enter for the next 1 or 2 candles so this could of been a handy extra for confirmation of entry. It repaints a lot but it also seems to remove many of the correct signals aswell as the incorrect ones.
Would be good if this could be tweaked in some way to filter some of the signals and stop it repainting although I have no idea how to do that sort of thing lol.
Every one in this thread is dead.
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Hello Guys,
After speaking to guys in our Skype Group (free for all skype group for BO traders/developers/newbies and pros combined) we thought share some interesting indicator here in TSD to see if any good developer may pick up a ride and make some magic
Background (by Irvin, who posted the strategy):-----------------------------------------------------------------------------------------------------
I think it will be of great use in predicting / deciding the direction and size of the next candle.
I backtested my formula for this on EUR/JPY and EUR/USD and it gave astonishing results.
Speed of trade = (Price Change / Volume) per unit time.
= (Open-Close)/tick volume in the default period.
If SoT of current candle is greater than twice the average SoT of the selected period, next candle will be in the same direction of the current candle. (Our signals can be given at the close of the current candle).
Caution: If current candle is followed by same color 2-3 candles, no signal is to be given.
As an example:
Date E/J(Open) E/J(High) E/J(Low) E/J(Close) Volume(E/J) Direction Price change Speed
11/06/2012 03:56:00 102.456 102.456 102.429 102.429 96 DOWN -0.027 2.81
11/06/2012 03:57:00 102.429 102.429 102.398 102.413 158 DOWN -0.016 1.01
as speed is greater than 1.70 (average of 14 candles), it predicts that next candle will be down.
This indicator can be made to look like a speedometer or just the number can appear with the signal on the candle. I think this will help a great deal in making right decisions.
The theory behind this is that every rise or fall needs a force or inertia greater than the existing force, so as soon we see or capture such extra force, we can determine the next candle direction and values also.
-----------------------------------------------------------------------------------------------------
The story:-----------------------------------------------------------------------------------------------------
Following people started working on it but seems as didn't finished or finished but not published:
1. FXCodeBase.COM: Forex Chart Indicators and Development • View topic - Trade Speedometer
2. Accurately Predict the Direction of the Next Candle (Forex best kept Secret!)!)
Then, holyfire from Edge forum, given his hands on it, and offered both the indicator files and the template: Fixing Possibly very good prediction indicator - 5 Minute Strategies - Binary Options Edge
-----------------------------------------------------------------------------------------------------
Rules simple:-----------------------------------------------------------------------------------------------------
Three different dots above/below the candle it may move in the indicated direction , dots below call , dots above put.
Problem/s:
Some filtering missing which causes it to make too many false signals. From what one of our group members said, it will keep alarming up every tick.
-----------------------------------------------------------------------------------------------------
So anyone who want,willing,can and have some spare time - Lets make a magic with it
Thank you so much!