Two candle strategy

[vsaran]

50% level is nothing but High Low of first candle divided by 2 i.e half level.

But why you have taken first and second candle combined to arrive at 50% level?

 

[karthik_sri]

Kathik, Please check 2 black bars at around 12:10 and 12:15 ! Do they qualify for trades? Dont they meet the criteria? Unable to pin point the candle time as I dont have intraday LT chart ?

Hi RKK,
Yes that also qualifies!! Left it purposefully to see whether it has captured the eyes of all.

http://i.imgur.com/54aGBD7.png

 

[karthik_sri]

this can be coded easily, have you tested it through afl too ?

I dont have programming knowledge! I have not tested with AFL

 

[karthik_sri]

Even the 2 black candles of 11.40 and 11.45 also qualify for the setup. Right Karthik?

Yes Aarav...that also qualifies...

http://i.imgur.com/fGoqHxn.png

 

[Happy_Singh]

//Karthik's 2 Bar Strat
Bull	= 	Ref(C,-1) > Ref(O,-1) AND C > O AND H > Ref(H,-1) AND L > (Ref(H,-1)+Ref(L,-1))/2;
Bear	= 	Ref(C,-1) < Ref(O,-1) AND C < O AND L < Ref(L,-1) AND H < (Ref(H,-1)+Ref(L,-1))/2;
Filter =  Bull OR Bear;

PlotShapes(7*Ref(Bull,-1),colorBlue,0, L);
PlotShapes(8*Ref(Bear,-1),colorRed, 0, H);

Hi = HHV(H,2);	Lo = LLV(L,2);	SL = (Hi+Lo)/2;
LT = 2*Hi-SL; 	ST = 2*Lo-SL;

if( SelectedValue(Bull)) {
	Plot(SelectedValue(Hi),"Long BO",colorBlue,styleDashed,0,0,9);
	Plot(SelectedValue(LT),"Long Target",colorBlueGrey,styleDashed,0,0,9);
	Plot(SelectedValue(SL),"Stop Loss",colorBrightGreen,styleDashed,0,0,9); }
if( SelectedValue(Bear)) {
	Plot(SelectedValue(Lo),"Short BO",colorRed,styleDashed,0,0,9);
	Plot(SelectedValue(ST),"Short Target",colorLime,styleDashed,0,0,9);
	Plot(SelectedValue(SL),"Stop Loss",colorBrightGreen,styleDashed,0,0,9); }

Version 2, with more visual aids for trading the chart . . . select the 2nd bar on the setup and the Entry/Exit & SL lines will be shown. ..

Cheers

Happy

 

[Vertigo_1985]

I dont have programming knowledge! I have not tested with AFL

ok..i will test when i get time and let you know the results...

 

[Happy_Singh]

ok..i will test when i get time and let you know the results...

Hi

I believe its not going to be so straight forward

The rules are good for visual trading, but if you want to automate then need to add loads of exceptions . . .

for e.g what do you do when the rules are obeyed but the bars are tiny . . . tincy wincy ones . . . or one of them is a WRB . . .
many such things like if it is first part on the rally/decline or exhaustion phase . . .
when trading visually all these things are intuitively eliminated :thumb:

Anyway looking forward to your tests

Cheers

happy

 

[kumudhan]

what about stoploss?

 

[Vertigo_1985]

Hi

I believe its not going to be so straight forward

The rules are good for visual trading, but if you want to automate then need to add loads of exceptions . . .

for e.g what do you do when the rules are obeyed but the bars are tiny . . . tincy wincy ones . . . or one of them is a WRB . . .
many such things like if it is first part on the rally/decline or exhaustion phase . . .
when trading visually all these things are intuitively eliminated :thumb:

Anyway looking forward to your tests

Cheers

happy

i know a lot of filters would be needed but he hasn't mentioned any yet..maybe he can now...

 

[Purushotham]

Yes Aarav...that also qualifies...

http://i.imgur.com/fGoqHxn.png

Dear karthik Sri
From the above chart, sell trigger candle is not the next candle of the two candles..... Please explain....

I am thinking that we will take buy/sell in the next candle only other wise we will close the setup and look for the next setup.