Repetitive patterns and other patterns - page 25
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... channel ... interesting results ...
I don't have any results, because I started applying the channel recently, thanks to the author of this thread, and I wanted to bring some new things to the table. For me, the channel is one of the components of TA that form a general opinion of possible targets, nothing more, it requires a comprehensive approach. In comparison, for me, Wolfe wave is also a tool, and seems more reliable...
I don't have any results, because I started applying the channel recently, thanks to the author of this thread, and I wanted to bring some new things to the table. For me, the channel is one of the components of TA that form a general opinion of possible targets, nothing more, it requires a comprehensive approach. In comparison, for me, Wolfe wave is also a tool, and seems more reliable...
I think if the new top was higher/lower - could also be explained - just by different constructions
Where did 23 come from?
23 has nothing to do with it. I was just comparing myself to the character in the film "Fatal Number 23", who seemed to see 23 everywhere. I suggest you watch that film, it's an interesting twist.
In my opinion channels can be used as a false signal filter.
Exactly, that's how you should apply the channel. Only, to my surprise, everyone draws the channels differently. Sperendeo suggests using the last low and the two previous highs for the down channel. But his job is to recognise the flip. DeMark suggests a similar technique: take the last two highs (swing points, pivots) and draw the upper limit of the channel down(https://www.youtube.com/watch?v=1vw24Yku0Vk). You can find a lot of channels by this drawing as a swing is a bar whose high is higher than the previous and the next one. Many people here draw channels on the first two highs. We should program all these different methods to build channels, run it through history and collect statistics. The one which gives more accurate price target prediction will be the right one.
Here's an attempt to code my channel construction method. The code is attached. It's raw. I need to fine-tune it.
The essence of the method is as follows:
The indicator does not re-draw. I welcome help in optimising this indicator.
In my opinion the channels can be used as a false signal filter.
In my Champion EA trading is not implemented in channels, but on a rebound from trend lines, which are built on all pairs of the last five fractals with a given dimension.
However, I fooled with trails a bit, they mostly don't work, therefore the Expert Advisor successfully plummets)).
The system is not a pattern, but it is similar to trading in a channel. There and there is a bounce from levels. So. When many resistance levels are built, we need a filter for those levels. Do you have any thoughts in this regard? We may use it for channels as well.
By the way, I was making channels long ago on 4. There was a certain kodobase indicator that built the channel and that was how it all started. It's very good at finding inputs. But I still haven't come up with a good filter.
Recently I have had an idea, looking at CCI in another terminal, that I can use it to make a filter. Unfortunately, I have not found such a CCI in MT. I have to write it. I am attaching the screenshots below.
This is what the settings look like.
The formula is
CCI (Commodity Channel Index).
The formula:CCI = (P - MA(P, N)) / (k - MD)
P - price of selected type
MA(P, N) - moving average of the selected type
k - selected coefficient
MD = ∑(|P(i) - m|, N) / N - the average deviation
m = ∑(P(i), N) / N
The CCI shows that the market is overbought when its values go above 100, and oversold when its values go below -100. Donald Lambert, the developer of this indicator, recommends to set the period equal to one third of the average distance between significant highs and lows.
Who has time, maybe you can sketch it out? Let's go over it together.
I won't get around to it for a while.
The upper limit of the channel is the same as in FAQ: you built it through the first top and the subsequent maximum. I think you should build the channel so its width is minimal and at the same time, the price does not cross its parallel boundaries. In this case, the channel will look as shown in my drawings with many crossings of the lower border.
Vladimir, excuse me, but you haven't understood me or Rustam, imho. As far as I understand, Rustam hasn't drawn a channel, but a mark-up of possible variants. That's just my impression, nothing more - the editorial opinion may not coincide... :).
Now - about my point of view. I don't like quoting myself, my favourite, but I have to:
" ... In a wide variety of processes, the concept of a "channel" arises when, due to insufficient controllability of an object, it is not possible to immediately establish its movement strictly along the required trajectory.
For example, when an aircraft is coming in for a landing. The right-to-left wagging along the course and up and down the glide path forms the appropriate channel. The boundaries of such channel should converge to a given point where one would like to land (consolidation, though).
But to get to the point, in our case, the channel is formed due to the inertia of the market when there is no news in the period of reaching the support/resistance level/boundary. People know, that by the rule of two CG one must either close or open, if something dividing by something else is similar to 1.618 or 0.618,- that makes them nervous, and everyone is nervous in his/her own way. Here you have inertia. And there is no news - it seems there is nowhere to run. And so it begins: Breakdown - Recoil ... . I usually draw these things in the form of borders parallel to the channel axis (but not symmetrically), according to the "confirmed" distance from it. The axis is a support/resistance level/border or a trend when it is broken. The fact of breakdown of the axis after the breakdown of a new extremum relative to the axis is used as a confirmation signal. ... "
In other words - for me there is only one channel - the channel of support-resistance line breakdown - sloping or horizontal - whatever.
Now I will add a picture from the same chart, formed by the same Expert Advisor, but on the minutes (it is also visible on the old chart, but you have to strain your eyes):
As you have understood, it is a breakout channel of the trend level (again Sperandeo). You may have drawn it as I did, but I will do it faster and more useful :)
I know the axis of the channel even before the signs of the channel appear, while you don't. Now look at the chart:
1. The first break of the centerline; after some time, a pullback, a breakdown of the centerline in the opposite direction (a signal for fixing the lower limit of the channel), and an upward move, up to the upper limit. However, this boundary will be fixed only after the second breakdown of the channel centerline downwards.
2. Small fluttering movements that do not change the channel borders, up to the retest of the lower border, its rollback (without crossing the centerline), and its further breakdown. That is where I opened a short position.
CCI (Commodity Channel Index)