Recognize Break and Retest of price level

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dsmanyp
24
dsmanyp  

Hi fellows,

I wanna build a trading boot which recognize a break and retest pattern of support or resistance line.

The support or resistance level is known by the bot, it will be a parameter given by the user of the bot. The bot DO NOT have to detect this support or resistance level.

See picture...The only thing the bot has to do is to recognize if on this support or resistance  happens a break and retest pattern and send a trade.

How I could develop the logic to recognize such a pattern or are there any article or helper classes which can do that for me? 

Would be glad for any hint or ressource.


Thanks!



Masimpe Chandala
880
Masimpe Chandala  
Hi yes this can be done possible. However, breakouts work best in trending markets. When its sideways the scenario may be different and very low or no trades may be picked at all. But you can take advantage of OHLC price of previous day candle to determine the Support and Resistance Zones successfully.
Pavel Shutovskiy
76504
Pavel Shutovskiy  

Hello, perhaps this article will help you

https://www.mql5.com/en/articles/3442

TradeObjects: Automation of trading based on MetaTrader graphical objects
TradeObjects: Automation of trading based on MetaTrader graphical objects
  • www.mql5.com
Geometrical constructions on symbol charts have been remaining one of the most popular trading tools for decades. The advanced technologies make it easier to apply support or resistance lines, historical price levels and entire patterns, for example channels and Fibo grid. Algorithmic trading software allows us both to analyze standard patterns...
Icham Aidibe
11609
Icham Aidibe  
dsmanyp:

Hi fellows,

I wanna build a trading boot which recognize a break and retest pattern of support or resistance line.

The support or resistance level is known by the bot, it will be a parameter given by the user of the bot. The bot DO NOT have to detect this support or resistance level.

See picture...The only thing the bot has to do is to recognize if on this support or resistance  happens a break and retest pattern and send a trade.

How I could develop the logic to recognize such a pattern or are there any article or helper classes which can do that for me? 

Would be glad for any hint or ressource.


Thanks!



You call "retest" the pullback of a wave, its amplitude isn't always enough to "retest" and sometimes it even reverses ...

Maturity teachs to get ready to close some deals in loss, you won't never ever avoid it, you have to accept it : even E.W model is a theory, not a gospel. 

Sergey Golubev
Moderator
112855
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Market Condition Evaluation based on standard indicators in Metatrader 5

Sergey Golubev, 2013.01.31 16:30

Why false breakout? Look at the image (this is Merrill's patterns for downtrend):

 

and look at GBPUSD M1 chart for now:

 

So, the pattern on GBPUSD chart is same as M3 Merrill, right? And the evolution of this M3 pattern was on the following way: M8 - M4 - M3. That is why it was false breakout.

 


Sergey Golubev
Moderator
112855
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Market Condition Evaluation based on standard indicators in Metatrader 5

Sergey Golubev, 2013.01.31 16:51

Merrill's patterns for uptrend:

 

 

and it looks like W10 with evolution as W4 - W5 - W10:

 

 


Sergey Golubev
Moderator
112855
Sergey Golubev  
And this is the indicator for those patterns - FivePattern - indicator for MetaTrader 5

Forum on trading, automated trading systems and testing trading strategies

Something Interesting

Sergey Golubev, 2017.04.17 20:05

Just to remind about interesting indicator: FivePattern - indicator for MetaTrader 5

This is the indicator to show М & W Wave Patterns by Merrill and support/resistance levels.

===============

About Merill Patterns:

This is Merrill's patterns for downtrend:


Merrill's patterns for uptrend:


===============

And this is some other patterns:



Icham Aidibe
11609
Icham Aidibe  
Sergey Golubev:
And this is the indicator for those patterns - FivePattern - indicator for MetaTrader 5


I didn't know that one ! Gonna read about, thanks for sharing.

Dua Yong Rew
5645
Dua Yong Rew  
If you are thinking of how to write the code, I would use ihighest of ihigh and ilowest of ilow of xx bars of the near past and find if the support and resistance falls in between these two values.

You can write a boolean function as it can only tells you if it break or retest. Then do your other calculation
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