Don`t read this thread..Make Money with it. - page 27

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Market Condition Evaluation based on standard indicators in Metatrader 5

Sergey Golubev, 2013.01.31 16:30

Why false breakout? Look at the image (this is Merrill's patterns for downtrend):

 

and look at GBPUSD M1 chart for now:

 

So, the pattern on GBPUSD chart is same as M3 Merrill, right? And the evolution of this M3 pattern was on the following way: M8 - M4 - M3. That is why it was false breakout.

 

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Market Condition Evaluation based on standard indicators in Metatrader 5

Sergey Golubev, 2013.01.31 16:51

Merrill's patterns for uptrend:

 

 

and it looks like W10 with evolution as W4 - W5 - W10:

 

 

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Best method to identify trend in forex

Sergey Golubev, 2018.06.29 08:09

Chart Patterns for Futures/Equities/Options/Forex Traders

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I placed those pictures/illustration about patterns just to keep everything in one place.

Just an example with gartley bullish (the developing pattern):

[Sergey Golubev]

This is interesting article with EA  - 

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Reversal patterns: Testing the Double top/bottom pattern 

The analysis conducted in the article "How long is the trend?", shows that the price remains in trend for 60% of the time. This means opening a position at the beginning of a trend yields the best results. The search for trend reversal points has generated a large number of reversal patterns. The Double top/bottom is one of the most well-known and frequently used ones. 

• Introduction
• 1. Theoretical aspects of the pattern formation
• 2. Pattern trading strategy
• 2.1. Case 1
• 2.2. Case 2
• 2.3. Case 3
• 3. Creating the EA
• 3.1. Searching for extremums
• 3.2. Pattern search
• 3.3. Developing the EA
• 4. Testing the strategy
• Conclusion

[Atakan Baykal]

Interesting

[Sergey Golubev]

Wedge Chart Pattern

• Wedge Pattern - indicator for MetaTrader 4;
• Trading Classic Chart Patterns by Thomas Bulkowski - the post (book); 
• How to Trade the Wedge Chart Pattern Like a Pro - the video post. 

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Forum on trading, automated trading systems and testing trading strategies

Press review

Sergey Golubev, 2019.05.21 07:15

How to Trade Wedge Chart Patterns (based on the article)

• "Looking at the wedge chart pattern, it’s easy to see why it’s so popular with traders. This is because it’s easy to identify, and therefore has a bit “self-fulfilling prophecy” aspect to it. The fact that it also has a simple measuring tool built into it doesn’t hurt either, as it is very simple to use as a tool."
• "The first thing that we need to do is identify what a wedge actually is. A wedge is simply two trendlines that converge towards an apex. In other words, price is compressing from both selling and buying pressure. It’s like a triangle but doesn’t converge in a horizontal manner. In other words, you may have an uptrend line as per usual, but at the top of trading during the last several candlesticks, the sellers are becoming a bit more aggressive, compressing the market. In this example, it’s what is known as a “rising wedge.” A rising wedge shows compression in and uptrend that signals that there could be something wrong. We are losing some of our momentum, and as a result the highs just aren’t as impressive as they once were. The beauty of this pattern is that a break down below the uptrend line signals that we are going to the bottom of the pattern itself, denoted by the blue line. Beyond that, what’s even more important is that at the very least most traders around the world will see that the trend line had been broken. So even if they are trading wedge patterns, almost all traders pay attention to trendlines. When they get broken, the catch is everybody’s attention."
• "The stop loss would be placed on the other side of the pattern, and in this case it’s an easy 1:2 risk to reward ratio. By paying attention to the wedge, you are noticing that the market is running out of momentum, and that an eminent reversal may be coming. Wedges can be bullish as well."
• "Like almost all chart patterns, there is the opposite as well. In that case, you are talking about the “falling wedge.” As you can see on the chart below, the US dollar had been falling against the Canadian dollar quite sharply, and then drifted a bit lower. Notice that the trajectory of the lows weren’t as strong as previous, and then of course the highs were becoming as aggressive as well."

[rohim98]

Much appreciated Simba

Much thanks for the information. I glanced through the substance and it truly has all the info(and more) that I am keen on. I requested the book, yet it will take likely seven days to get it.

At any rate, it will intrigue perceive how we can apply those to FX.

[Sergey Golubev]

Patterns with Examples (Part I): Multiple Top

Contents

• Abstract
• About the reversal patterns
• Why Multiple Top — its specific features
• Can the Double Top concept be extended?
• Writing code to render Multiple Top
  • Class map
  • Identifying tops and bottoms
  • Selecting tops to work with
  • Determining the pattern direction
  • Filters for discarding invalid patterns
  • Checking the result in the MetaTrader 5 Strategy Tester visualizer
• Further development ideas
• Conclusion

[Sergey Golubev]

Improved candlestick pattern recognition illustrated by the example of Doji

One of the advantages of candlestick patterns is their simplicity: their description consists of only a few phrases, while the analysis handles only a few bars or even only one and thus it is accessible even to beginners.

Another advantage is the absence of specific requirements regarding the terminal and the hardware, as the analysis does not build any resource-intensive indicators. This fact was especially important decades ago, when computers were not as advanced as they are today. Many of the candlestick patterns were introduced in those days.

However, behind the simplicity of candlestick patterns, there is also a serious drawback, which can be eliminated by using the significantly increased capabilities of modern trading automation tools. This disadvantage is connected with the rough rounding of market situations to bar limits, which of course affects the efficiency of trading.

[Sergey Golubev]

Forum on trading, automated trading systems and testing trading strategies

Creating an Algo based on pattern/candlestick recognition

Sergey Golubev, 2024.08.17 07:27

Pattern Recognition Using Dynamic Time Warping in MQL5

Pattern recognition has always been a valuable tool for traders. Whether it's identifying unique combinations of candlesticks or drawing imaginary lines on a chart, these patterns have become an integral part of technical analysis. Humans have always excelled at finding and recognizing patterns—so much so that it is often said we sometimes see patterns where there are none. Therefore, it would benefit us to apply more objective techniques when identifying potentially profitable patterns in financial time series. In this article, we discuss the application of Dynamic Time Warping (DTW) as an objective technique for finding unique patterns in price data. We will explore its origins, how it works, and its application to financial time series analysis. Additionally, we will present the implementation of the algorithm in pure MQL5 and demonstrate its use through a practical example.