TickCandle Scalping Tool
This set of three indicators gathers all the information necessary for an efficient scalping.
The three indicators of this series are:
- TickCandle which displays charts in Ticks with several add-ons (MM20, MM50... Bollingers, Combos, DeMarker oversold and overbought areas and more),
- VolumeDeltaTick, which displays real volumes of sellers and buyers and the volume delta (difference between the two) of an instrument (real volume should be available, on a Future instrument for example),
- RsiTick which displays the RSI (Relative Strength Index) of a tick chart.
At the very beginning, I was looking for a reliable and proven scalping technique, I studied Bob Volman, his 70 Ticks charts and double dojis, I also followed traders who use "Combos" to find entry points into a trend.
So, I wrote this indicator, I realized that the display of "double dojis" on a Tick chart was relevant, but that this approach also made it possible to better anticipate trend reversals.
To resume, those indicators allow you to analyze the trend in depth to anticipate its movements.
Combos? What does it mean
A Combos is the meeting point between:
- Bollinger opposite to the trend.
This trend-following method is very simple, first you need a strong established trend on an indice, a currency or any instrument.
During a pullback, when prices, MM50 and opposite Bollinger meet (marked with arrows on the indicator), you can set a stop pending order above (if bullish) or below (if bearish) prices at the level of the MM20, in addition MM50, MM100 and ADX should be well oriented. The signal is given at the breakout of the MM20 at the time the combo was created, another signal is given at the breakout of the level 50 of "RsiTick" indicator, these breakouts should occur very quickly, in less than 5 to 12 or 15 ticks candles, if prices do not break the MM20 during this time, cancel your pending order and wait for another opportunity.
If real volumes are available on your instrument, you can use VolumeDeltaTick indicator and keep an eye on the current trend.
The first objective is the opposite Bollinger, but of course, prices can go further.
Studying the behavior of the instrument is very important before openning an order, it is here that Double Doji give us interesting information, Double Doji shows a hesitation of the market. To be efficient, a Double Doji should pierce the MM20 (a tolerance is, however, permitted). Sometimes, a Double Doji marks a pause in a trend, but often, it marks a trend reversal.
A lot of times, at the end of a trend, DeMarker enters the oversold or overbought area, this is marked by pink crosses on the indicator, it may be time to close your position.
This trading method can be used with any instrument.
- Ticks in candle: Number of ticks in a candle (default 70)
- ADX Level: Above this ADX level (M1), the color of candle changes - above this ADX level (M5), the color of arrows changes
- Max Dojis Size: Max size of a Doji (0 for Future instrument)
- Double Dojis / MM20 Tolerance (points): Distance maximal between a Double Doji and MM20 to be regarded as a Double Doji.
- Max Candle (CPU): number of candles max to manage, low value will save ressources of your computer (CPU).
-- RsiTick Indicator --
- Display RSI indicator: true/false
-- VolumeDeltaTick Indicator --
- Display VolumeDeltaTick indicator (Future only): true/false
- VolumeDeltaTick: Period of the EMA
- VolumeDeltaTick: Smoothing period
-- Bollingers --
- Display Bollinger: true/false
- Alert on Combos: true/false
- Max dist MM50/Bollinger/Prices (Ticks): Distance maximal between MM50, prices and Bollinger to form a combo.
Record ticks values
It is not realistic to record all the ticks of all instruments (huge volume of data), so these indicators collect ticks data in real time, hence the display of this indicator will be reset to 0 every time you will restart it.
Tick volumes are not available in the MetaTrader 5 strategy tester, so in this case, volumes displayed are generated randomly and have no meaning.