This indicator with default settings is designed for BINARY OPTIONS trading. The indicator can also be used for Forex trading with some setting changes. The script shows Two Bar Pullback Break lines and alerts when those Break lines are Touched (broken) creating a short term momentum entry condition.
For a Bullish Break (Green Up Arrow) to occur: first must have two (or three) consecutive bear (red) candles which is followed by a bull (green) candle creating a pivot point. The breakout occurs then the High of the current Bull (green) exceeds the highest point of the previous two (or three) pivotal bear candles. The green channel Line shows where the current Bullish BreakOut occurs.
For a Bearish Break(Red Down Arrow) to occur: first must have two (or three) consecutive bull (green) candles which is followed by a bear (red) candle creating a pivot point. The breakout occurs when the Low of the current Bear (red) drops below the lowest point of the previous two (or three) pivotal Bull candles. The red channel Line shows where the current Bearish BreakOut occurs.
The break Line Arrows can optionally be filtered by the Coloured MA (enabled by default), a longer term directional MA (disabled by default) and/or a MACD condition (enabled by default) as a momentum filter.
You can optionally select three Bar break lines instead of two. The three bar break lines are actually equivalent to Guppy's Three Bar Count Back Line method for trade entries (see Guppy's video reference below).
Included in this indicator is an ability to display some basic Binary Option statistics, when enabled (enabled by default) it shows Successful Bars in Yellow and failed Bars in Black and the last Nine numbers on the script title line represent the Binary option Statistics in order:
%ITM rate
Total orders
Successful Orders
Failed Orders
Total candles tested
Candles per Day
Trades per Day
Max Consecutive Wins
Max Consecutive Losses
You can start the Binary Option statistics from a specific Date, which is handy for checking more recent history.
HINTS:
BINARY OPTIONS trading: use 5min, 15m, 1hr or even Daily charts. Trade after the price touches one of the Breakout lines and the Arrow first appears. Wait for the price to come back from Break Line by 1 or 2 pips, the alert arrow must stay on and candle change to black, then take Binary trade expiry End of Candle. If price pull back and arrow turns off, don't trade this candle, move on you probably don't have momentum, there will be plenty of other trigger events. The backtesting results are good with ITM rates 65% to 72% on many currency pairs, commodities and indices. Realtime trading has confirmed the backtesting results and they could even be bettered, provided you are selective on which signals to trade (strong MACD support etc), that you are patient and disciplined to this trading method.
FOREX trading: the default settings should work with scalping. For longer term trades try with settings change to a more standard MACD filter or slower to catch the longer term momentum swings and the idea would be to trade the first Break Line alert that occurs after a decent Pullback in the direction of the trend. Setting the SL to just above/below the Pivot High/Low and set target to two or three times SL.
1. Disappearing arrow (after you bought the option). Does not affect script statistics, but you lose money.
2. Sometimes the red arrow disappears and later turns green on the same bar! Plus for statistics, but you're losing money.
3. An arrow appears, but the bar does not turn black until it closes. Plus for statistics, but you couldn't buy the option.
If someone uses the script successfully and can help me, I will be happy!
I will be glad to your comment.
Thank you all!
JustUncleL
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@dimanikitin, This trading technique is quite tricky and relies on catching the price at the right point, as you are dealing with the current candle, which can take quite a bit of practice. The arrows will continue to rebuild until the bar closes, whereas the statistics are calculated on closed candles, so only represent potential results and guide you to what Pairs / Time Frames to focus on. Also the time of day can also be important, some traders trade just for a few hours after Tokyo and/or London open.
I cannot guarantee any trader will be profitable with any of my scripts, my scripts are only tools, most profits come from how a trader can make use of the tools available, together with good money management and trading skills.
I am new in pine script and trying to write a script. Can you help writing it?
Buy Signal:
1. A red mother/momentum candle 2. There are at least 2 candles(maybe 3,4,5 or max 10) closed within the body of the previous red momentum candle. these candles will be red or green doesn't matter as long as they are closing inside the previous momentum candle 3. After these 2 candles(maybe they are 3,4,5, or max 10), the next candle breaks the momentum candle in opposite direction. i.e. means its a green candle
The Setup is called Momentum Candle Breakout or Dominant Candle Breakout as per the books and It is used for scalping.
Can you help out in scripting this setup??
Thanks, Aamer
Crucialblockchain
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@JustUncleL great script. Any possibility of adding an option where triangle only appears when the candle closes in a given time frame. If you're on 5min chart but 1 hour candle does not closes above/below breakout line or even if you can add triangle and alert at chart time frame where triangle appears if candle closes. This is avoid repaint of triangle
vishalbhenwal92
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I am Working
aamersaeed2368
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Hi JustUncle,
Hope you are well.
I am new in pine script and trying to write a script. Can you help writing it?
Buy Signal:
1. A slightly big red(momentum) candle than average ( we can find it on 80% body and 20% wicks basis) 2. There are at least 2 candles(maybe 3,4,5 or max 10) closed within the body of the previous red momentum candle. these candles will be red or green doesn't matter as long as they are closing inside the previous momentum candle 3. After these 2 candles(maybe they are 3,4,5, or max 10), the next candle breaks the momentum candle in opposite direction. i.e. means its a green candle
The Setup is called Momentum Candle Breakout or Dominant Candle Breakout as per the books and It is used for scalping.
Unfortunately, it doesn't work for me.
Main problem:
1. Disappearing arrow (after you bought the option). Does not affect script statistics, but you lose money.
2. Sometimes the red arrow disappears and later turns green on the same bar! Plus for statistics, but you're losing money.
3. An arrow appears, but the bar does not turn black until it closes. Plus for statistics, but you couldn't buy the option.
If someone uses the script successfully and can help me, I will be happy!
I will be glad to your comment.
Thank you all!