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KLEO CONSOLIDATION CHANNEL

As the name suggests, KLEO CONSOLIDATION CHANNEL is a price consolidation channel. This indicator is not just a tool for visual analysis. It contains a complete solution that can form the basis of the trading system. The indicator allows users to quickly test the system parameters, trade manually or use it as part of an Expert Advisor. The indicator works on various currency pairs and time frames. 

The indicator:

  • looks for price consolidation periods and creates Consolidation channel and Advance channel. The levels of the channels serve as landmarks for the market entry,
  • generates signals for opening and closing trades,
  • marks trades on the chart and displays their results,
  • calculates trading statistics.

By changing input parameters, we can immediately see potential trading results. In other words, the indicator allows users to test the system and select optimal parameter values for a particular currency pair and chart period.


1. Description

  • If the price change range for Period bars does not exceed Range points, it is considered that consolidation has started. Color of levels is yellow. The channel is recalculated when a new bar appears till the price movement range exceeds the specified limit.  
  • When the price exceeds the specified range, the channel recalculation is stopped and the levels are fixed. Color of levels is green. The levels are valid till the next consolidation starts.
  • Advance Channel is an additional (advance) channel used during consolidation. The default color is blue.
  • Channel levels are created with shifts of Shift from High and Shift from Low points.
  • In case of one of the level's breakthrough (depending on the open mode), the mark is displayed on the chart and the market entry signal is formed.
  • Trading time specified by Start time and Close time parameters is considered when opening trades. 
  • At the beginning of the next consolidation, the trade is closed, the mark is set at the close level and the result is displayed.
  • The following trading statistics is calculated for a period starting from Start and ending by Stop year: total profit, total loss, resulting profit, number of profitable/loss-making trades, profit factor. The statistics is displayed in the tooltip when hovering the mouse cursor over the trade result. Profit/loss values are calculated in points.
  1. Names of modes and parameters are written in bold type.
  2. All the input parameters are specified as for 4-digit quotes.
  3. Default colors are picked for the black on white color scheme of the chart.


2. Buffers

Buffer index Name and purpose
0 High level - Upper level of the consolidation channel. 
2 Low level - Lower level of the consolidation channel. 
4 Advance High level - Upper level of the advance channel.
6 Advance Low level - Lower level of the advance channel. 
8 Trade buffer - Signal buffer. At the moment of the channel's breakthrough, the buffer takes the value of the exceeded level. That serves as a market entry signal. The value is positive in case of a buy signal or negative in case of a sell one. The buffer value reset is a signal for the market exit.


3. Parameters

CONSOLIDATION  CHANNEL parameters  Description 
---------------Channel parameter------------------- Channel parameters.
Period Initial period of the consolidation.
Range  Maximum range of the price change ((High - Low) value for the Period period) to consider that prices are consolidating.
Shift from High Channel's upper level shift in points.
Shift from Low Channel's lower level shift in points.
------------------------Trading-------------------------- Trading
Show trades Show trades on the chart. On/Off - enabled/disabled
 Open mode  Market entry modes:
 Levels after consolidation - entering the market at the channel levels' breakthrough after the price consolidation, (Green)
 + Advance levels - entering the market during the levels' breakthrough after consolidation and advance levels, (Green+Blue)
 + Consolidation levels - entering the market during the levels' breakthrough after and during consolidation. (Green+Yellow)
 Start time  operation start.
 Close time  operation end. (Start time > Close time) means overnight working time. (Start time = Close time) means twenty-four-hour operation. Outside of working hours, the color of channel levels is white by default.
Color   Color of the trade result text and trade line.
 ------------------------Test period-------------------- Period for calculating statistics.
 Start  Start year.
 Stop  Stop year.

Be careful when changing Period and Range parameters!

  • if Period value is too big and/or Range one is too small, there may not be periods matching the specified parameters and therefore, the indicator cannot be generated.
  • The more stringent conditions are set by these parameters, the slower the calculation is performed.


4. Screenshots and video 

Screenshots Symbol Chart period
Period Range Shift from High / Low  Working hours  Start / Stop
1, 3 GBPUSD H1 5 20 20 / 20  Around the clock  2012 / 2013
2 GBPUSD H1 5 20 20 / 20  8:00 - 23:00  2012 / 2013
4 GBPUSD M15 5 10 10 / 10  Around the clock  2012 / 2013
5 GBPUSD M5 10 10 10 / 10  Around the clock  2012 / 2013
6, 7 EURUSD H1 6 15 15 / 15  Around the clock  2012 / 2013
8 EURJPY H1 5 25 10 / 10  Around the clock  2010 / 2013
9 EURJPY  H4 3 50 15 / 15  Around the clock  2010 / 2013

 

The first part of the video contains examples of working with the indicator. The second part presents a fragment of the indicator's operation in the strategy tester.

Warning
Tooltips do not display statistics in visualization mode.

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I wish you successful trading!

No reviews
Version 14.1 - 2014.01.16
Fixed minor bug.