Big Shadow IndicatorNaked Forex Big Shadow Indicator for TradingView
Big Shadow Indicator is a pattern recognition indicator for Forex, Stocks, Indices, Futures, Commodities, and Cryptos.
When you have a Big Shadow on your chart then this is a strong signal meaning that you might be ahead of a reversal. You can take other elements (momentum, trend, volatility, price action, fundamentals) to build a complete strategy and confirm your entries. Beware that you might not make money just following the arrows generated by the pattern recognition.
The Big Shadow pattern is a simple and effective pattern to trade.
The strategy that comes with the Big Shadow is based on price action.
Inputs:
MaxBars: number of bars back used to calculate the indicator
BuySignals (true/false): you can filter signals and decide to show BUY signals or not. Default settings is true (no filter).
SellSignals (true/false): you can filter signals and decide to show SELL signals or not. Default settings is true (no filter).
Alerts:
The alerts are managed by TradingView trading platform features and not by the indicator itself. You must use Big Shadow Sell less than zero and Big Shadow Buy greater than zero as settings for the alerts.
Trading rules:
For BUY: wait for a bullish Big Shadow to print on a support zone after a down trend. Wait for price to break high of the Big Shadow candle (5 pips above the high for H1 and higher time frames). Immediately enter in the trade once high is broken. You also can use a BUY STOP order placed 5 pips above the high of the candle (plus spread). Stop Loss should be placed below the low of the Big Shadow candle. If order is not triggered in the next candle then trade is invalidated and should be canceled.
For SELL: wait for a bearish Big Shadow to print on resistance zone after an up trend. Wait for price to break the low of the Big Shadow candle (5 pips below the low for H1 and higher time frames). Immediately enter in the trade once low is broken. You also can use a SELL STOP order place 5 pips below the low of the candle. Stop Loss should be placed above the high of the Big Shadow candle. If order is not triggered in the next candle then trade is invalidated and should be canceled.
The Big Shadow indicator can be used with any time frame.
The Big Shadow indicator can be used with any class of asset: Forex, Stocks, Indices, Futures, Commodities and Cryptos.
Other indicators: you might also be interested in the Kangaroo Tail Indicator (very good pattern which is part of the Naked Forex)
For updates of this description please visit our website (see signature below). Beware that due to TradingView house rules we are not allowed to update the present description nor to mention our website. At the time you are reading this description it might be outdated information.
For any question or request please feel free to contact me in private. I usually answer all requests at reception.
Bigshadow
Big Shadow by Walter Peters v1.1Version 1.1 is here!
This is an indicator for the Big Shadow (engulfing candle) that Walter Peters teaches in his course (fxjake.com) and book "Naked Forex". I have really been diving into this one and back testing it like crazy. The results have been great and I will be publishing them on the nakedforexnow.com forum soon since it probably isn't appropriate to do it here.
If you like it, please reach out to me @fredferrell on the forum. I would love to discuss back testing results with other traders.
