Help Creating "Key of the Day" Indicator idea (based on Larry Pesavento)
In the following Link we can find a lot of information related to Intraday trading, indeed the folder is called "DAY TRADE UNIVERSITY" there are a lot of documents and files info we could use in our "Key of the day EA". But first of all we need the indicator and the first code.
What do you think about this INDICATOR and EA Idea?
THank you
Please don't worry, i just found the forum place related to programming. Soon i'll be back with the indicator.
Daniel,
Good day.
I did like your idea though i am too new in forex to digest this sort of info....But have you got an indi or EA for this method?
Thanks
daniel1983:
Please don't worry, i just found the forum place related to programming. Soon i'll be back with the indicator.
Please don't worry, i just found the forum place related to programming. Soon i'll be back with the indicator.
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Hello,
I found a really interesting idea while i was reading Larry Pesavento book of "Fibonacci ratios with Pattern recognition".
This was created for commodities, but i think this could be used in forex too as every start of a candle is the end of the last one, and this is used in a dayli basis, so the code could be usefull too.
The idea is based on the chapter "The opening price", page 109 i looked around the forum looking for any indicator or EA based on this and couldn't find one. Maybe it exists, maybe it can be added to those gartley based EA's.
Textually the INDICATOR should do the following:
- Trade in the direction of the opening price
- "Key of the Day" (Opening + High + Low divided by 3) with this technique. If prices are above Key of Day,
only go long. If below Key of Day, only go short.
- Keep in mind that in day trading—and also position trading—you must be concerned with both the Price and the Time
Axis. Some people who day trade will inadvertently lose money because they forget about the Time Axis. They think
they are trading just for several days when, in fact, they put a trade on for a day trade and it turns into a position
trade which gaps the opposite of what position they are holding, resulting in a loss.
- When you are day trading, you should be out on the close. (I think this should be for every market opening, the principle behind the importance of the opening price probably stems from the fact that the markets arc open only six hours a day. That leaves 18 hours for decision making to occur.
- You must remember not to use yesterday's closing price when using the opening price principle.
If this becomes a good idea i would like you to help me creating this indicator, and later an EA's. I would call it "The Key of the Day EA". Maybe somebody can tell me if this indicator exists, or if it does exist as an EA.
Textually the EA, should work adding Fibonacci numbers into the openings and closing as it is shown in this example:
- The first example of how to use the opening price is illustrated on page 112; this chart shows the market opened at Price A then began to react downward and continue down. People who bought near the high of the day are now concerned whether the market is going back up through the high or have a key reversal to the downside. As you can see, after a period of time, the market reached support. This support is at a major Fibonacci number, the (.618) retracement off the opening price. The market has held there and has now started to move higher.One of our favorite day trading techniques is to buy that (.618) retracement from the opening price with a stop at the (.85) retracement. In other words, if the market dropped more than 25 percent below the (.618) you would be able to say that you were wrong; your stop limitation is very small and you would be able to profit as the market moved higher. As evidenced in this example, the market did, in fact, move higher and you turned a profit at the end of the day.
illustrated Picture extracted from book:
What do you think about this Indicator Idea?
Have you seen any EA working this principles?
U would like help to code the indicator, later the EA, and start making backtest (when i learn how to do this).
Thanks for wathing,
Happy Trading!!