Replies to post #50352 on Simple's Green Room

[gitonwithit]

"What I found was that, on a 15 minute chart, the power movement reversal candles happened most often when a candle of a different color exceeded the highs or lows of THE PREVIOUS TWO CANDLES. That's what I mean when I'm talking about breaks of support or resistance.

Let's say we've been watching a nice uptrend on a pair. (Note: I like the Heikin Ashi candles on the Dean Malone setup so I try to stick with those. They work best on this method. So, uptrend candles are blue on this setup.) After quite a few blue candles upward, the upward momentum begins to slow down. Finally, no new highs are being made. Then, the HA candles start to change color. But the question is "How do I know this thing is really going to reverse or just catch it's breath and head back up?"

Exactly! "Look, no hands ma!" er I mean no indies either!

[simplegreen]

GM board..outstanding post my friend.I put it on keep to refer to it later and see if it can beat the heatmap setup I am currently testing.

[drewbe121212]

Just commenting on this old post. Do you still play this candle Penny? I'm obsessed with making EA's right now and these rules seem fairly easy to throw into one.


A few comments... why did you take the trade in the first pink box?

The way I was interpreting these rules was that we had a two blue candles in a row, then a break of the low of those two candles with a red candle. Not a problem coding wise, but I want to get them down to an exact mathematical setup for obvious reasons.

Looking at this picture, the rules can be slightly altered to... get the low of the last two bull candles and sell when breaking that low. (All other indicators inline, of course; strictly speaking of candles)

I may have a slight issue calculating the stochastic 'angle', but we'll see. If you still use this, or have any adjustments or thoughts about putting it into an EA, let me know! This should get quite interesting...!