Entry Setup indicator

• 08/01/2017 at 4:20 PM #42235
  robertogozzi

  I was wondering if there is any indicator showing when a setup, either Long or Short, presents for a trade to be eventually entered.

  I admit I did not spend much time investigating. I was just willing to experience a bit, so I ended up with this code:

  Entry Setup indicator

  DEFPARAM CalculateOnLastBars = 1000 // initialization of variables Up = close > open Dn = close < open ONCE PipDistance = 0 // ----------------------------- Macd ------------------------------------ IF Macd1 < 1 OR Macd1 > 999 THEN Macd1 = 12 //default 12 ENDIF IF Macd2 < 1 OR Macd2 > 999 THEN Macd2 = 26 //default 26 ENDIF IF Macd3 < 1 OR Macd3 > 999 THEN Macd3 = 9 //default 9 ENDIF MacdVal = MACD[Macd1,Macd2,Macd3](close) MacdSignal = MACDline[Macd1,Macd2,Macd3](close) Up = Up AND MacdVal > MacdVal[1] AND MacdSignal > MacdVal Dn = Dn AND MacdVal < MacdVal[1] AND MacdSignal < MacdVal // ----------------------------- Rsi ------------------------------------- IF RsiNum < 1 OR RsiNum > 999 THEN RsiNum = 14 //default 14 ENDIF IF RsiUpperLimit < 1 OR RsiUpperLimit > 999 THEN RsiUpperLimit = 70 //default 70 ENDIF IF RsiLowerLimit < 1 OR RsiLowerLimit > 999 THEN RsiLowerLimit = 30 //default 30 ENDIF IF RsiMiddleLimit < 1 OR RsiMiddleLimit > 999 THEN RsiMiddleLimit = 50 //default 50 ENDIF RsiVal = Rsi[RsiNum] Up = Up AND RsiVal > RsiVal[1] AND RsiVal > RsiMiddleLimit Dn = Dn AND RsiVal < RsiVal[1] AND RsiVal < RsiMiddleLimit // ----------------------------- Stochastic ------------------------------ IF Stoc1 < 1 OR Stoc1 > 999 THEN Stoc1 = 8 //default 8 ENDIF IF Stoc2 < 1 OR Stoc2 > 999 THEN Stoc2 = 3 //default 3 ENDIF IF Stoc3 < 1 OR Stoc3 > 999 THEN Stoc3 = 3 //default 3 ENDIF IF StocUpperLimit < 1 OR StocUpperLimit > 999 THEN StocUpperLimit = 80 //default 80 ENDIF IF StocLowerLimit < 1 OR StocLowerLimit > 999 THEN StocLowerLimit = 20 //default 20 ENDIF StocD = Stochastic[Stoc1,Stoc2](close) StocK = Average[Stoc3](StocD) Up = Up AND StocK > StocD Dn = Dn AND StocK < StocD // ----------------------------- Moving Averages ------------------------- // variable AVGTYPE can hold values: // // 0 = SMA // 1 = EMA // 2 = WMA // 3 = Wilder MA // 4 = Triangular MA // 5 = End point MA // 6 = Time series MA // IF FastAvg < 1 OR FastAvg > 999 THEN FastAvg = 3 //default 3 ENDIF IF SlowAvg < 1 OR SlowAvg > 999 THEN SlowAvg = 9 //default 9 ENDIF IF AvgType < 0 OR AvgType > 6 THEN AvgType = 1 //default 1 (Ema) ENDIF MAfast = Average[FastAvg, AvgType] MAslow = Average[SlowAvg, AvgType] //Up = Up AND MAfast CROSSES OVER MAslow //Dn = Dn AND MAfast CROSSES UNDER MAslow Up = Up AND MAfast > MAslow Dn = Dn AND MAfast < MAslow // ----------- Draw Arrows on return (some pips below BAR) --------------- IF Up THEN DRAWARROWUP(barindex,low - (PipDistance * pipsize)) coloured(50,205,50) //green ELSIF Dn THEN DRAWARROWDOWN(barindex,high + (PipDistance * pipsize)) coloured(255,0,0) //red ENDIF RETURN Up OR Dn

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  DEFPARAM CalculateOnLastBars = 1000   //                     initialization of variables Up               = close > open Dn               = close < open ONCE PipDistance = 0 // ----------------------------- Macd ------------------------------------ IF Macd1 < 1 OR Macd1 > 999 THEN    Macd1  = 12                                               //default 12 ENDIF IF Macd2 < 1 OR Macd2 > 999 THEN    Macd2  = 26                                               //default 26 ENDIF IF Macd3 < 1 OR Macd3 > 999 THEN    Macd3  = 9                                                //default 9 ENDIF MacdVal                     = MACD[Macd1,Macd2,Macd3](close) MacdSignal                  = MACDline[Macd1,Macd2,Macd3](close) Up = Up AND MacdVal > MacdVal[1] AND MacdSignal > MacdVal Dn = Dn AND MacdVal < MacdVal[1] AND MacdSignal < MacdVal   // ----------------------------- Rsi ------------------------------------- IF RsiNum < 1 OR RsiNum > 999 THEN    RsiNum = 14                                               //default 14 ENDIF IF RsiUpperLimit < 1 OR RsiUpperLimit > 999 THEN    RsiUpperLimit  = 70                                       //default 70 ENDIF IF RsiLowerLimit < 1 OR RsiLowerLimit > 999 THEN    RsiLowerLimit  = 30                                       //default 30 ENDIF IF RsiMiddleLimit < 1 OR RsiMiddleLimit > 999 THEN    RsiMiddleLimit = 50                                       //default 50 ENDIF RsiVal                      = Rsi[RsiNum] Up = Up AND RsiVal > RsiVal[1] AND RsiVal > RsiMiddleLimit Dn = Dn AND RsiVal < RsiVal[1] AND RsiVal < RsiMiddleLimit   // ----------------------------- Stochastic ------------------------------ IF Stoc1 < 1 OR Stoc1 > 999 THEN    Stoc1  = 8                                                //default 8 ENDIF IF Stoc2 < 1 OR Stoc2 > 999 THEN    Stoc2  = 3                                                //default 3 ENDIF IF Stoc3 < 1 OR Stoc3 > 999 THEN    Stoc3  = 3                                                //default 3 ENDIF IF StocUpperLimit < 1 OR StocUpperLimit > 999 THEN    StocUpperLimit = 80                                       //default 80 ENDIF IF StocLowerLimit < 1 OR StocLowerLimit > 999 THEN    StocLowerLimit = 20                                       //default 20 ENDIF StocD                       = Stochastic[Stoc1,Stoc2](close) StocK                       = Average[Stoc3](StocD) Up = Up AND StocK > StocD Dn = Dn AND StocK < StocD   // ----------------------------- Moving Averages ------------------------- // variable AVGTYPE can hold values: // //       0 = SMA //       1 = EMA //       2 = WMA //       3 = Wilder MA //       4 = Triangular MA //       5 = End point MA //       6 = Time series MA // IF FastAvg < 1 OR FastAvg > 999 THEN    FastAvg        = 3                                        //default 3 ENDIF IF SlowAvg < 1 OR SlowAvg > 999 THEN    SlowAvg        = 9                                        //default 9 ENDIF IF AvgType < 0 OR AvgType > 6 THEN    AvgType        = 1                                        //default 1 (Ema) ENDIF MAfast                      = Average[FastAvg, AvgType] MAslow                      = Average[SlowAvg, AvgType] //Up = Up AND MAfast CROSSES OVER  MAslow //Dn = Dn AND MAfast CROSSES UNDER MAslow Up = Up AND MAfast > MAslow Dn = Dn AND MAfast < MAslow   // ----------- Draw Arrows on return (some pips below BAR) --------------- IF Up THEN    DRAWARROWUP(barindex,low   - (PipDistance * pipsize)) coloured(50,205,50)  //green ELSIF Dn THEN    DRAWARROWDOWN(barindex,high + (PipDistance * pipsize)) coloured(255,0,0)   //red ENDIF RETURN Up OR Dn

  As you can see it evaluates Macd, Rsi, Stochastic and Moving Averages, either UP (long) or DOWN (short) and displays an arrow accordingly. Other indicators/Oscillators may be added.

  It allows many variables (some of them, especially limits, not yet used for the most part) to be tailored by the user.

  Many default values come from some (not much) testing on daily Eur/Usd bars.

  It returns either ZERO (no setup) or NOT ZERO (1 or -1)  for “good” setups. A trade may entered according to the colour of the arrow on the chart, after considering other patterns, support and resistance areas etc….

  Variable “PipDistance” was meant to be the distance, in pips, above/below the candle to make it more visible, but it did not work as expected, so I reset it to ZERO by default.

  I always check that if variables are either < 1 or > 999 they will default to embedded values.

  It could be used in automated strategies by cheking if the returned value is either -1 or 1 (0 = no setup).

  If there is already some PRT code published about setups I would appreciate receiving a link.

  Any suggestion or further development is encouraged, if anyone is interested.

  Roberto

   

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  AVT, Nicolas

  

  robertogozzi

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  08/01/2017 at 7:29 PM #42265
  Nicolas

  Nice idea Roberto, thanks for sharing. May I change a bit your code? You could have code the periods’ range of indicators like this instead:

  Macd1 = max(macd1,1) Macd1 = min(macd1,999)

  1 2	Macd1 = max(macd1,1) Macd1 = min(macd1,999)

   

  

  Nicolas

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  08/01/2017 at 8:06 PM #42268
  AVT

  Going to test that, Roberto. Thanks

  

  AVT

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  08/01/2017 at 9:18 PM #42274
  robertogozzi

  Anything you like Nicolas, any suggestion/improvement is welcome.

  I also think I should change the last line as follows:

  RETURN Up OR (Dn * -1)

  1	RETURN Up OR (Dn * -1)

  so that it returns 1 for UP and -1 (instead of 1) for DOWN,  because the way it is now it always returns either ZERO for no setup or 1 for any setup, no matter if a Long or Short one!

  

  robertogozzi

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  08/01/2017 at 9:23 PM #42275
  robertogozzi

  Nicolas, can your two-line code be shrinked to:

  Macd1 = max(min(macd1,999),1)

  1	Macd1 = max(min(macd1,999),1)

  ?

   

  

  robertogozzi

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  08/02/2017 at 8:07 AM #42284
  robertogozzi

  Sorry, I wrote SHRINKED, but it should have been written SHRUNK.

  

  robertogozzi

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  08/02/2017 at 9:08 AM #42288
  Nicolas

  Yes Roberto, it is far more elegant like you did 🙂

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  Nicolas

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  08/02/2017 at 8:46 PM #42364
  Derek

  Hi Roberto!

  I have created whole trading systems in probuilder a while back and my generalized solution to your initial question was to create different statuses for different indicator combinations. This was important to me to efficiently factor in the time it took for a set-up actually leading to the actual event and the trade.

   

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  Derek

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