Following on from the previous Pullback Candle which smashed over 100 likes - here we have the strategy behind the indicator.
Signal = Pullback Candle (This will alert on all timeframes and markets when selecting the Alert function for the Signal Entry = When the Pullback Candle is confirmed ie 16:00 - the strategy will enter within the next two candles. Stop loss = 0.25 ATR multiple which means we have a tighter stop loss - if greater than 1 then the stop loss will be more in percentages!!! Take Profit = 1.5 Risk to Reward Model
Ema filter - There is a function to modify when looking into trades so as this is a bullish setup we want trades to be over the ema and using this filter will only show trades above the 200ema Time filter - If you want to backtest Uptrends - locate the time of the start and the end of the uptrend - input this data into the settings and this will bring up the trades in that time period.
Most efficient to use this script is only in uptrends and this signal is a bullish signal - when using a ema filter we wont get trades under this so narrow down good trades for automation.
!!!!TO ENHANCE THE SYSTEM - USE TECHNICAL ANANLYSIS FOR CONFLUENCES
Most inefficient way to use the script is when price is in a downtrend and the win rate falls dramatically.
The pullback candle has a R-Expectancy of R5 so profits can be elongated when trading manually.
As the pullback candle occurs often in a trend we could pyramided trades to say have 5 trades in the same direction but the way i would trade this is to alert R1.5 then look to R2 and above to take profits manually.
(((P.S coders.... i need help to work on a profit extension code where exit long when price is below the 9ema (this seems simple but proving difficult) - this would be included onto the script if received.
Hi, I was trying out this trading system. I wonder, what is the rule that determines the signal candle and the entry candle? Thanks
Kirandeepc
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Sorry Brother I can't Help you as I don't know Coding and can't cheers you with Coin. I have Only Good Wishes from Core of my Heart to turn your Every Effort into Achievement. Bruh! Ema due to Lag causes late exit, Try Using HMA or Read Book " Rocket Science to Retail Trader" By Jhon Ehler. He published Many Codes and Explain All in a Crystal Clear way.
LuxTradeVenture
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@Kirandeepc, thank you for your detailed response, i will look into the book you have reccomended to improve on my skillset... do you have any other reccomendations?
I wonder, what is the rule that determines the signal candle and the entry candle?
Thanks