First: I checked with Suri and he confirmed that both MSH and MSL are based on CLOSE.
Second:Weekly recap,first week,we had 3 trades,numbers1,2,3(by hand ) at the statement at post 28 of this thread
1-Dragon m5 on GJ=-36 pips
2-MSH on GJ H4=+101 pips
3-MSH on GU H1=+71 pips
NET TOTAL:+146 pips
Next week will keep forward testing this 2 patterns and will explain the next one "N-Bar Rallies/Declines"...of which there are several in the making.
how to apply this method?
isn't use fibonacci fan if im not mistaken>..
Thanks for the nice thread. Trying to be 100% clear on the pattern parameters you just described for the MSH. Please correct me if I am wrong.
So, in effect, we are looking for higher CLOSE followed by higher CLOSE followed by lower CLOSE as the setup... is this correct? The "higher high of close" terminology is throwing me a bit....
Simba, thumbs up! Please keep posting, patterns and fractals are by far the best in terms of risk/reward, been trading them for 4 years now.
Simba, can you try to translate MSH and MSL patterns definitions to mql4?
If i understend correctly this indicator show these patterns or No?
By looking at your code I would say not so,and by looking at the indicator I would confirm,I modified from 500 to 50,to have more visual examples..there are several msh and msl that are not arrowed..and some arrows that are neither pattern
int barH1 = iHighest(NULL, 0, MODE_CLOSE, 500, i+4);
int barH2 = iHighest(NULL, 0, MODE_CLOSE, 500, i+3);
if (barH1==i+4 && barH2 == i+3 && Open > Close && Close < Close ) MSH = High+ 5*Point;
int barL1 = iLowest(NULL, 0, MODE_CLOSE, 500, i+4);
int barL2 = iLowest(NULL, 0, MODE_CLOSE, 500, i+3);
if (barL1==i+4 && barL2 == i+3 && Open Close ) MSL = Close- 5*Point;
I would say..MSH would be :
Close(i+1)Close(i+3)...and then you have to code that "New Highs" issue..for the closes and for the highs...not necessarily among the last 500 bars...inverse for MSL..Anyway I am not a coder .
Thanks for your interest,I believe we can codify some of the patterns.
Will try to post my idea for a code of MSH,MSL...probably on Monday,and you can check it .
I bought this book and it is GOLD!
I probably won't use all the patterns but the ones I have looked at seem to work very well.(Iuse some at sup/res areas)
Simba, I am curious about hte fractal pattern(5 bar)...one of the examples in the book doiesn't seem to match the description(page 68 to be exact)
New Pattern:5bar Fractal
You are right,the example is not absolutely 100% as per the definition...but it is a 5BF,I hope my next explanation will help
the 5 bar fractal is either a 2-3 or a 3-2 combination of higher highs and lower lows or lower lows and higher highs...It is an extremely visual pattern,very difficult to explain(unless you use the wide definition I just wrote) and code,but easy to recognize once you have seen several of them.
The important thing ,at least in my case,when I see a 5BF,as long as it meets the wide definition,is not to be strict with the definition,but to be absolutely disciplined with the rules for entry...so,lets explain the pattern(keep in mind my previous wide definition )
1-A Fractal 5BF,consists of 5 bars,after a prolonged move.
2-After a down move a 5BF has 3 bars with higher highs and 2 bars with lower lows...or 2 bars with higher highs and 3 bars with lower lows
3.After an uomove a 5BF has 3 bars with lower lows and 2 bars with higher highs...or 2 bars with lower lows and 3 bars with higher highs
4-Rules for entry Short
4-1:After an upmove,wait for a 5BF to form(1,2,3,4,5 in the chart)
4-2:Wait for a new bar to CLOSE below the bar number 5 low:trigger bar(T in the chart)
4-3:Entry short below the LOW of the trigger bar(red entry line)
4-4:Place a stop order slightly above(3/5 pips +spread ) EITHER the HIGH of the Trigger bar OR the HIGH of the fractal formation
4-5:Target a major swing low prior to the fractal formation.
5-Rules for entry Long
5-1:After a downmove wait for a 5BF to form(1,2,3,4,5 at the bottom of the chart)
5-2:Wait for a new bar to Close above the bar number 5 High,trigger bar(T)
5-3:Entry long above the high of the trigger bar(red entry line)
5-4:Place a stop slightly below(3/5 pips)EITHER the LOW of the trigger bar or the LOW of the 5BF formation
5-5:Target a prior major swing high area.
I believe that a picture is worth a thousand words...so,please see attached chart.
2-Linuxser:Yes that would be a good idea