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Weeding out consolidation

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paysonwelch
319
paysonwelch 2013.02.16 05:47 

I have a somewhat profitable EA, I can target the longer trends with pretty good accuracy, however it is also sending signals during a trending market. What is the best way to detect a trending market? In the screenshot I would like to not send signals in market conditions highlighted by the red box. I would like to keep the signals in the blue boxes. Any advice is welcome, thanks in advance.



Andriy Moraru
1160
Andriy Moraru 2013.02.16 11:59  
The problem with your boxes is that it is impossible to know what color it will be before it's closed. It is easy to tell in hindsight which time period was consolidation and which - trend.
Dua Yong Rew
5423
Dua Yong Rew 2013.02.16 14:20  
rate of change
Steven Theobald
852
Steven Theobald 2013.02.17 04:30  

I say embrace the ranges as well as the trends.   See my post here:  How to identify and trade in a RANGE

TalonTrader

paysonwelch
319
paysonwelch 2013.02.17 14:21  
doshur:
rate of change
I'll check this out, thanks :) Do you know any indicators that are open source for ROC? I found one in the market but I always like to get the source if I can.
paysonwelch
319
paysonwelch 2013.02.17 14:25  
TalonTrader:

I say embrace the ranges as well as the trends.   See my post here:  How to identify and trade in a RANGE

TalonTrader

Hi TalonTrader, great article. Candles posted an indicator called breakoutbox.ex5, any chance you have a similar indicator with source code? The only reason I'm trying to weed out the ranges is because I just want this EA to trade the trends, then I can go make an EA that only trades ranges. It's a lot easier to make code to one thing and do it well instead of doing everything all the time ;) You can get more precision from specialization.

Steven Theobald
852
Steven Theobald 2013.02.17 15:57  
paysonwelch:

Hi TalonTrader, great article. Candles posted an indicator called breakoutbox.ex5, any chance you have a similar indicator with source code? The only reason I'm trying to weed out the ranges is because I just want this EA to trade the trends, then I can go make an EA that only trades ranges. It's a lot easier to make code to one thing and do it well instead of doing everything all the time ;) You can get more precision from specialization.

Excellent approach.  I am only a beginning programmer and I don't have any code yet.  I am strictly a manual trader right now.  I am eager to hear how it goes.

I think what first caught my attention was the "weeding out" verbiage--since most of my manual profits are made during periods of consolidation.   My garden has beautiful "weeds" !!

paysonwelch
319
paysonwelch 2013.02.17 19:14  
TalonTrader:

Excellent approach.  I am only a beginning programmer and I don't have any code yet.  I am strictly a manual trader right now.  I am eager to hear how it goes.

I think what first caught my attention was the "weeding out" verbiage--since most of my manual profits are made during periods of consolidation.   My garden has beautiful "weeds" !!

I tried some manual trading last year, did pretty good. If you want to auto trade you should be a good manual trader (my opinion anyway), I'm still learning though.  You should check out this indicator if you haven't already, it sets up support / resistance similar to your article:

https://www.mql5.com/en/code/1337

LinearRegressionChannel
LinearRegressionChannel
  • votes: 10
  • 2012.12.26
  • Nikolay Kositsin
  • www.mql5.com
Custom instrument of the linear regression. LR line, Support and Resistance lines values are in the buffers
Steven Theobald
852
Steven Theobald 2013.02.22 13:18  
paysonwelch:

I tried some manual trading last year, did pretty good. If you want to auto trade you should be a good manual trader (my opinion anyway), I'm still learning though.  You should check out this indicator if you haven't already, it sets up support / resistance similar to your article:

https://www.mql5.com/en/code/1337



Using MT4.  Found the old version.  Trying it out.  THANKS.
Steven Theobald
852
Steven Theobald 2013.02.23 04:28  

Paysonwelch, I like the action so far.  I can see how the channels help identify the areas of probable reversal and the angle shows me which direction I should NOT be trading.  THANKS so much.
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