New Trend Decider

NEW PRICE REVERSAL CANDLE INDICATOR.

When a (first buy price action candle formed or three continuous buy candles closes higher than previous close) after sell price action candle then buy price action candle is called BUY PRICE REVERSAL CANDLE.

When a (first Sell price action candle formed or three continuous sell candles closes lower than previous close) after buy price action candle then Sell price action candle is called SELL PRICE REVERSAL CANDLE.

New Price Reversal Zig Zag:

Following condition should be checked when a price reversal candle indicator is formed. NOT FOR ALL CANDLES.

Price Reversal Zig Zag Low:

When a buy price reversal candle is formed, scan all candles till Previous Zig Zag high and lowest point of all candles price point is marked as zig zag Low.

Price Reversal Zig Zag High:

When a sell price reversal candle is formed, scan all candles till Previous Zig Zag low and lowest point of all candles price point is marked as zig zag high.

Parameter:

Total number of candles to draw: 1500 Default

Timeframe: Current as default.

Higher Lower Indicator:

Indicator used: New Price Reversal Zig Zag

ü  When a high zig zag price reversal is formed, mark higher wick part of zig zag high candle area as Zig Zag Resistance area. This area continued to be marked until next price reversal Zig Zag high is formed.

ü  When a Low zig zag price reversal is formed, mark low wick part of zig zag high candle area as Zig Zag Support area. This area continued to be marked until next price reversal Zig Zag low is formed.

If current zig zag high price reversal candle is closed above Zig Zag Resistance area, then it is Higher High (HH)

If current zig zag high price reversal candle is closed below Zig Zag Resistance area, then it is Lower High (LH)

If current zig zag high price reversal candle is closed within Zig Zag Resistance area, then it is Same High (SH)

If current zig zag Low price reversal candle is closed above Zig Zag Support area, then it is Higher Low (HL)

If current zig zag Low price reversal candle is closed below Zig Zag Support area, then it is Lower Low (LL)

If current zig zag Low price reversal candle is closed within Zig Zag Support area, then it is Same Low (SL)

*Two Letter should be written above candle high and low.

New Trend Decider:

Buy: [Higher low (HL) or Same Low (SL)] And [Higher High (HH) or Candle closed above Zig Zag Resistance area]

Sell: [Lower high (LH) or Same high (SH)] And [Lower Low (LL) or Candle closed below Zig Zag Support area]

Rest of any combination is No Trend (GREY).

Higher Trend decider:

New Trend decider is buy and Price is below resistance line -Buy Pull back – Lighter green

New Trend decider is Sell and Price is below Support line - Sell Pull back – Lighter RED

For all other scenario, Higher trend decider is same as new trend decider.

Trend Strength:

This indicator result is shown top right – that is output expected.

Indicator Used: New Trend Decider, Higher Trend Decider.

Expert Advisor:

Volume:

There should be two option:

1)       Trade based on % of outstanding balance.  If given Zero, then it is not used.

2)       Trade based on $ of given.

Trade Execution:

Buy:  When new Trend Decider is buy- Last closed candle.

Sell: When new Trend Decider is Sell- Last closed candle.

Number of trades per trend in Trend Decider: <Parameter>

Intraday Closure: (Trailing stoploss and should be checked ever tick, when price point is hit, trade is closed. )

Buy: Zig Zag low - (n*ATR) à This formula will be recalculated when new zigzag low is formed.  

Sell: Zig Zag high + (n*ATR) à This formula will be recalculated when new zigzag high is formed.  

Trade closure:

True /False option provided.

Buy:  

When a candle is below Zig Zag low Or New Price action indicator is turned Red Or Price hit =[Trade execution price + (Profit booking factor* Risk )]

Sell:  

When a candle is below Zig Zag high Or New Price action indicator is turned Green Or Price hit = [Trade execution price - (Profit booking factor* Risk)]