3 candle signal

[leftcoaster]

Thank you for your help.

I'm interested in a signal to let me know when the following price action (candlesticks) has been met:

To go LONG
1. Body of the latest candle is greater than body of each of the 2 previous candles
2. Previous candle must be bearish
3. Close of latest candle is higher than close of the previous candle

To go SHORT
1. Body of the latest candle is greater than body of each of the 2 previous candles
2. Previous candle must be bullish
3. Close of latest candle is lower than close of the previous candle

Can the signal also generate a Buy/Sell or with Stop Loss criteria and Target?

Thank you!

[Apprentice]

One clarification.

Previous candle must be bearish/bullish

Under the previous, you imply the second candle in a row?

[leftcoaster]

Yes.
If we numbered the candles 1, 2, 3 where #3 is the largest candle, #2 should be the opposite of #3 in terms of bullish/bearish.

Thanks for your help!

[Apprentice]

This is a signal that corresponds to your specification.
Please OK this one, to make it available to other users.

3 candle signal.lua

(2.44 KiB) Downloaded 872 times

[leftcoaster]

Hi Apprentice,

Thank you, thank you, thank you for an awesome job! It's so exciting! Your sample looks great!

As I've been test driving this new tool, I'm noticing that the signal only appears for the candles that I have on my screen. If I were on the Daily chart and scrolled back 2 years, no signals appear. If that's the case, could you modify the signal to be an indicator also so I can go back in at any point in time and analyze the chart. I would like to keep the 3 Candle Signal for future use. Once I backtest the 3 Candle Indicator, the 3 Candle Signal will be useful.

May I request that the 3 candle signal be modified into a '3 CANDLE' indicator please.

Thank you so much for a fantastic job! I greatly appreciate it!
Leftcoaster

[Nikolay.Gekht]

1. How do you change the 'Description' under Add Signal?

Just change the text inside quotes in the following text line of the signal:

Code: Select all

strategy:description("3 candle signal");


2. What is the main difference a signal & indicator?

An indicator is for analyzing the price histories. So, it can be applied to some chart of some time frame and then draw all those lines, bars, labels and so on.

A signal is applied just to a currency (e.g. EUR/USD), listens ticks and then (using, for example) indicators can estimate some current conditions conditions and then do some actions.

So, an indicator is a thing applied on chart when a signal is a kind of robot which just listens for the prices and does some actions.

In the current production version the signal can only show a text alert or play a sound. In the soon upcoming version (beta is already available here) the signal will be also able to send a email or execute, change or remove any order.

3. Can a signal actually also trigger an entry? If so, can I signal/trigger a stop loss and target based off of my entry? Or does TS have another way to do it all (enter upon signal, then trigger SL & target for exiting)?

Will be possible in the upcoming version.

4. I thought this was possible but don't know how to do it exactly: show the Daily signals on say a 4H chart?

Signal is not shown on the chart at all. It just starts and then does his dirty work in background.

However, there is an indicator called "show signal" which can be used to backtest signals. I.e. it takes the loaded chart and then simulates the prices using this historical data. So, you can see when signal would appear if it was started when the market was as it on the chart.

By default the backtest forces the signal to use the timeframe of the opened chart instead of the timeframe chosen in the signal parameters, but you can let the signal to work in it's own timeframe (and that timeframe will be also loaded for the simulation). Just set "Set the period of the signal to the chart period" parameter of the showsignal indicator to "false".

5. Currently, when I change the charts timeframe, the signals change. So in essence, it's like an indicator, which I like. But if that's the case, what does the Properties really mean? For example, when I loaded the signal, I selected 4H, Bid, GU. On a 4H, all the signals appear. Then I changed it to another timeframe, say a Daily or 5 minute and all the signals for that timeframe appear. Why is it necessary to specify Properties? I figure I must be not utilizing it correctly.

I'm going to prepare the detailed article about testing the signals. I would be really appreciate if you will be able to find a minute to criticism my explanations.

BTW, there is another thing you should know about the "showsignal" indicator. In the current version this indicator simulates the market only once. If new older or newer data appears, it does not recalculate. So, if you want to retest the signal on this new data just re-apply it (for example by right-click on the indicator label, then choose "Change Indicator" and just click "Ok" to re-apply the indicator with the same parameters). The upcoming version recalculates the signal every time when new data appears.

I hope this helps. Please feel free to write any additional question you can have about this problem.

[leftcoaster]

Thank you for the explanation. It's extremely helpful! I will read it more carefully to fully digest and understand the power of these tools! You guys rock!!

Thanks,
Leftcoaster

[leftcoaster]

Hi Nikolay,

Thank you for your quick reply! It actually came in as I was editing the post you replied to...how funny! Could I refer you back to the post above your explanation....

"Thank you, thank you, thank you for an awesome job! It's so exciting! Your sample looks great!

As I've been test driving this new tool, I'm noticing that the signal only appears for the candles that I have on my screen. If I were on the Daily chart and scrolled back 2 years, no signals appear. If that's the case, could you modify the signal to be an indicator also so I can go back in at any point in time and analyze the chart. I would like to keep the 3 Candle Signal for future use. Once I backtest the 3 Candle Indicator, the 3 Candle Signal will be useful.

May I request that the 3 candle signal be modified into a '3 CANDLE' indicator please.

Thank you so much for a fantastic job! I greatly appreciate it!
Leftcoaster"

Sorry for making you go in circles...

[woopsowew]

Consider the fund and the live account a realtime test ground for the
signal provided by the forex master here on this forum.

The account will also stand witness on the effectiveness of the signal
and its provider.

[leftcoaster]

Hi,

I've been testing this signal out on GU/H4 chart, haven't tried it on the others. My 1st target is either 25 pips or the next 50/00 levels. My 2nd target, I move to breakeven after the 1st target is reached then I let run. Let me know how your testing goes on it.

Cheers,
Leftcoaster