Send reversal signals on same bar (3 line break chart)

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mno
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Send reversal signals on same bar (3 line break chart)

Postby mno » 17 Jul 2011

Hello,

This is my first post here. I hope I am positing in the right directory.

As you know Multicharts's line break charts are great. But by its nature, the line break charts will look different during realtime and compared to when the data is compressed after hours. Hence the signals you see during off trading hours in actually are the not real signals it generated during live trading hours. Regardless I believe it definately have potential to pick off tops and bottomes on spikes buy the problem is the signals will not generate reversals until its way too late in the game.

Here is good scenario:

We have up line bar, buy signal is generated (intrabar) then the up bar finishes its formation and Runs further then generates an exit long signal when its run starts to break down into a down bar. Great, made some $$

Here is a bad scenario:

Same situation. We have a up bar, buy signal is generated during intrabar and (here I am waiting that the up bar is not a head fake) but unfortunately it is and rather than going up further the up bar will shrink and shrink into a down bar and starts it down turn. Profit is now a looser and won't reverse until a big down bar is generated. Whipsaw loss.

During this situation, I tried to set a profit taker on the same bar but not successfully - again, this is on a line break chart.

Would appreciate very much for some advice and possible code to experiement. Thanks much!

MN

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TJ
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Re: Send reversal signals on same bar (3 line break chart)

Postby TJ » 17 Jul 2011

non-time based charts were never good for autotrading.

It is better to use a 3-line break indicator code,
convert it to a strategy,
then apply it on a time-based chart (eg. minute chart).

you can find the 3-line break indicator or 3-bar reversal indicators here:
http://www.tradersxchange.com/viewforum.php?f=48
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mno
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Re: Send reversal signals on same bar (3 line break chart)

Postby mno » 18 Jul 2011

TJ,

Thank you for your tip! Yes, it was quite frustrating to look vs. autotrading exotic charts with any success. I will try your recommendations.

MN


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