Attached there's an indicator called DiNapoli Targets. (Mike Ichenko, spasibo!!
In fact this is an effective targeting system for manual trading. The question is whether is it possible to get it fully automated. The system is based on a breakout a level called Start line and Fibo extentions as targets.
Backtesting is impossible since there's virtually no history. Forward testing is the only way to evaluate this.
A friend of mine has already done some work (thanks Jacob , this is Alex).
Attached are DiNapoli targets with audible alerts.
A High-Low Zigzag has the same Length parameter as the indicator itself and it helps to see the whole picture. However DN Targets does not trade every swing. There are cases when it closes a profitable trade and waits for another providing that a trader has not closed it manually.
My suggestions for a possible EA.
I think it would be wise to completely follow its behaviour.
When in neutral mode (no trade) - it should place buy stop or sell stop orders and SL/TPs accordingly.
To close all orders if it decides to close an already loosing position with current market price. (In fact Stop Line is practically never reached).
If again a neutral mode follows there goes the same sequence.
To open a new trade by market order immediately if indicator decides to sharply reverse the position. SL should be placed on Stop Line. In this condition, however Target 1 or even Target 2 may be already out of the game. Then it can be Target 3, Fantasy and Crazy lines levels as T/P.
May pips be with all of us
did you scrap this system/indicator already or did you incorporate it into your trading?
I use it from time to time and trade manually.
If you are going to try this system then you have to keep in mind the following things:
1. This system doesn't like ranges especially with high amplitude and sharp
reversals. Thus /\ -like tops and \/- like bottoms are not its favorite ones.
Round tops and bottoms are what it likes.
2. If you turn this system into a simple reverse one, i.e trade every swing you will definitely loose. Always use the targets as TPs.
3. Always pay attention to the the highest high and the lowest low of the group of the six bars excluding current (0) bar. (Default settings). The breakout of this level will change the whole picture.
4. Once you entered the trade on, say, H1 then you'd better monitor the market using minor TFs (5-15) for the possible exit. Again targets on H1 shall be used as exits.
Good luck then,
thank you for your reply.
I setup my charts over the weekend on 1h and noticed this early asian session that the signals changed direction from before the weekend (from the nfp). But on the 1h TF the start line was already gone long time and the price was already around the target levels.
Do you know how the start line is calculated?
On lower timeframes you can mostly catch the start line prices.
Have you tried to combine this indicator with others of dinapolis tools?
My plan was to use the daily signal for the direction filter for that trading day.
E.g. cable is on a down swing on the daily chart right now, so I am looking for sell opportunities on intraday TFs.
Additional I plotted dinapolis DEMA.
So the strategyI will test this week is:
Take signals only in the direction of the current daily swing on intraday TF`s.
Entry is the Dinapoli Tragets Start Level.
Target used: Target Line 2
Exit: SL as per indicator or reversal signal or DEMA lines crossing in the other direction.
Taking Trades between GMT 7 - 19.
Ok, I just checked the source code and the start lines are calculated like this:
(A - B) * 0,318 + C
(B - A) * 0,318 + C
This means that some of the signals invalidate themselves, since the start line and targets produced by A B and C are buched up together, because the relating swings are insignificant. Like now in the asian session. So these signals are getting filtered already by themselves.
I never used other DiNapoli tools since I don't see any advantage of DEMA and preffered Stoch over good old ones.
DiNapoli Targets is a simple breakout system and it deals with the price only.
Joe just attached Fibo extentions to make the product more attractive.
You want to combine it with Dema to pick up top and bottom. I assume that it is possible but not in each case.
Using D1 as a filter for intraday trends is prudent but again it is not always the case. When the daily trend is about to end you may be caught on a strong intraday counter trend movement.
In sharp reversal your Start line together with Target 2 will be taken out in one tick, so take some look to other targets.
If you are trading cable it is able to move 50-70 even a fig during asian session.
I advise you use Hi/Lo Zigzag. Unlike other zigzags this one is a trading system in itself. It has the same settings with DiNapoli.
If you use them together you will see that sometimes DiNap Targets make a "hole" in a trend i.e it enters a bit later.
On daily charts it could be significantly later.
When you encounter strong bars forming a trend then keep in mind that one sharp reversal would make a disaster since you sixth bar lowest would be much far away from the battle field.
ok, will stay in touch
Where do you get the indicator Hi/Low ZigZag from?
It is here in this forum. Everything is in this forum.
I think it was talking about High_Low v2 (ZigZag).
Thanks New Digital.
Just a quick question.
I have downloaded and installed the indicator SHI_Silvertrend Sig and it only updates when I go into properties and come out again. UIs this the only way it updates?
There is the thread about this indicator here.
It may be the bug.
I have these two indicators.
Sometimes I am using this indicator instead or together with High/Low zigzag. But not as signal indicator. As an indicator to confirm this zigzag or to filter or confirm something. This indicator can not be used as the signal indicator because it's changed itself on the data (the same with zigzag).
But it can be used as an other confirmation which may come even more early than zigzag (and much more early than the main signal for buy or sell).
Of course this "much more early signal" from this indicator can be changed anytime.
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