Definition of a pin bar (indecision candle) - page 2

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Dominik Egert: Good statement Fernando. In fact it could show profitable to do a coin flip on such a candle to make the decision in which direction the market would go from such a candle.

Thanks🙏! Also a good point 👍 about the coin flip!

 

Do either of you perhaps know any existing tool for mt4 with available (downloadable) mql4 file - the tool that:

- can identify indecision candle

- does not work on ratio method since it's too risky for potential misidentification of candle being or not being indecision

- includes all type of indecision candles and not just e.g. evening star or doji or whatever few of them are (but all)

I have been searching around, e.g. here:

https://www.mql5.com/en/market/mt4/free?filter=pin%20bar

or

https://www.forextrading200.com/pin-bar-indicator-mt4/

or

https://www.earnforex.com/metatrader-indicators/Pinbar-Detector/


Regarding the first link: I don't want to "test the luck" just to check if existing tool really does what I'm expecting or not because I would be just adding to MT random tools without clear vision. Second problem is that I have always had problems downloading the files from Marketplace of this website mql. This problem is that I don't even know if those tools, even if they are free of charge, come with mql4 file. So I thought if you know perhaps any existing tool that doesn't work on ratio method and can identify indecision candles?

Dominik you have already mentioned "HEX Hiking Ashi", whatever this is, but it doesn't seem to be found in Codebase section. Besides this, I don't even know if it really excludes ratio method and really includes all indecision candles. I have seen several different indecision candle identification tools such as:

https://www.mql5.com/en/code/13158

But this one puts too much attention into length of shadows which are not the only parameter in trying to find out whether the candle is indecision or not. Such method would not work if indecision candle doesn't have both or one shadow(s) or very small one(s).

One of the reasons why I'm so much against defining the ratio is the following image in the following tool:

https://www.mql5.com/en/code/26001

See where the guy typed ''Reversal'' in the image file. That candle is definitely not indecision one and this is disaster that could happen if working with ratio.

I'm not asking for your opinions on above tools but I'm asking the question I started this single message with.

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I see that what I wrote had no effect! I wish you the best of luck in your search! Good bye!
 
Extended Heikin Ashi Indicator (by @Dominik Egert)
 
I am sorry, I don't know such a tool. Either for MT4, nor for MT5.

I doubt the existence of such a tool.

The closest I got from a coding point of view is the HEX indicator, which is based on Heikin Ashi.

BTW Heikin Ashi is also the basis for the Action Threshold Software, which can be found on the internet.

From my personal point of view, I have spent loads of workdays developing candlestick recognition algorithms and I concluded after implementing quite a few methods, they are way to instable to make determined decisions based only on them appearing.

In backtests they showed a 50/50 ratio and are as good as flipping a coin. So I decided to replace them with a random generator. The results were very comparable.

As an example, let's say you use 1M chart and trade only London session. This gives you about 480 periods. Now let's say you get an average of 4 indecision periods per session. And only 2 of them are in fact showing indecision. This gives you no possible chance to do it right.

But when you combine this with a good money management, you turn your actions into profits.

Now when you go this way and apply the HEX indicator, you will make good money with it, maybe.

Why does the HEX work? Because it uses a unique feature of heikin candles. The wicks or shadows of them only appear on both sides when the market reaches a liquidity level.

Why is that so? Because that's where the comparison with water comes into play. The market likes to stay at liquidity. This is the point of gravity. And this is the point where you are in indecision.

You could now try to find the next liquidity level from there to determine the direction in which the market might move with the highest probability.

But what is more likely to happen? A far away huge liquidity level or a close by and smaller liquidity level? Well, you don't know. And no analysis what so ever will be able to tell you.

After all, when institutions want to execute an order, they need liquidity. And they will liquidate orders and positions to achieve their goals.

But if they are not part of the game in such a moment, behavior of the market is different. Because it's driven by other parties.

Trend moves are mostly driven by huge order executions over time. Ranging markets are mostly driven by small traders.

So if the participants at market change (an institution shows up or leaves) markets change their behavior accordingly.

Since there is no way of knowing, all you have is the price. And all you can do is see what the price does.

It has nothing to do with candles, it's about periods of time. This is why mostly these are phases composed of multiple candles, or periods.

An example: imagine you would have an EA to execute huge orders and it begins to place parts of them in the market. As price begins to run away, it stops and waits for price to come back. Then it continues it's work. There you will see indecision candles, but they are in fact no indecision candles. Because the EA is just holding back until price is again where it needs to be.

Of course this is only a theoretical example and situations are more complex, but to give you an idea of what you are facing and the hope to solve a problem which you think will get you ahead. It won't. You are not the first to try.


 
Fernando what you provided (the link) is for mt5 and not mt4. Even if it was for mt4, there is nothing that would show the tool does NOT involve defining a ratio.  Heikin Ashi is completely different than definition whether or not the candle is indecision.
 
Andrei0: Fernando what you provided (the link) is for mt5 and not mt4. Even if it was for mt4, there is nothing that would show the tool does NOT involve defining a ratio.  Heikin Ashi is completely different than definition whether or not the candle is indecision.
I merely provided the link to the code that @Dominik Egert mentioned as called "HEX Hiking Ashi Indicator", which he accidentally misspelled and you were not able to find, even though the misspelling was obvious. That is all! If you however, were not able to understand why @Dominik Egert suggested you look at his code, then please take it up with him. He has already explained it, but it seems you were not able to grasp it.
 
Disillusion is painful.


 
What about combining the doji or indecision candle with a fractal?

And let the left candle of the indecision candle be the opposite (bull/bear) of the right candle to the fractal candle.

Could that maybe help?
 
Fractal indicator has no relevance to the actual definition of a single candle whether it's indecision or not. The candle stands on its own and cannot be matched to anything in finding this out with maybe exception of a lower time frame to come to a conclusion whether the price did major movement during that time (candle on larger time frame) and if it did not, then it's indecision. Anyway, I guess I will try to find some more tools if something will be able to identify the indecision candles and separate them from decision candles without risking inaccuracy. Thank you very much anyway for your time.
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