Advanced Accumulation/Distribution Indicator: Directional Arrows

Here is another indicator that I've been playing with: Advanced Accumulation/Distribution (A/D) (Mirror 2)

With this indicator I used the standard A/D that comes with MetaTrader, and applied price direction of the current bar. So, if A/D displays as an upward signal, but the price direction is downward, then an arrow pointing upward will display.

Now, this indicator will display a number of false signals, so you would be wise to incorporate another indicator(s) or method to filter out said signals.

Update: Advanced CCI with Bollinger Bands

In the previous post Advanced CCI was producing too many bad signals, and not enough of the good. So, I applied a filter of sorts: Bollinger Bands.

Now, the indicator I've made is nothing new. I've seen this type of indicator running around on various trading sites. The only difference is that I programmed the CCI indicator to have a Bollinger Band array attached to it (this was made very easy by MetaTrader with the iBandsOnArray function), rather than dropping the Bollinger Bands on the CCI indicator every time.

So here is a comparison of the old Advanced CCI and the new filter one (the larger arrows are the new, and the smaller arrows are the old Advanced CCI; also, the chart is smaller than the previous post because I'm using a different computer):

The combo does cut back the amount of false signals compared to the old Advanced CCI indicator, but sadly even this nice, new filtered indicator still produces false signals. Stilling working on perfecting it just a little bit more, but so far not bad :).

Advanced CCI (Commodity Channel Index)

Here is another indicator I've made from the standard, and widely used, Commodity Channel Index (CCI) indicator found on all MetaTrader software. This one does the same thing as the Money Flow Index indicator I've made the other day, where it crosses a certain level (in the picture above the levels were set at 100 and -100) the appropriate arrow will display. This CCI indicator makes it a lot easier to see when CCI passes one of these levels, and as you can see it can predict tops and bottoms pretty well. Not perfectly, but pretty close.

Advanced MFI (Money Flow Index)

Made this new indicator based of the Money Flow Index (MFI) indicator that comes with every MetaTrader 4 software. It is nothing too special, as it just displays the appropriate arrow when MFI crosses back over the 80 or 20 level. I've never gave this indicator much thought in the past, but judging by the accurate placement of the arrows I might have to give it a little more thought.

ZigZag EA

Developed this ZigZag Expert Advisor with profitable trades. But like almost all EA's out there this one does have some drawbacks: you are bound to lose a couple of times with large loses. From all the trades you make you will profit 95% of the time, but the other 5% are rather large drawdowns.

You can find the file here:
Mirror 1

Enjoy!

TTM Breakout Strategy

• When TTM displays a Orange or Green Bar, we make a Pending Order at the Two Bar High (if Green) or at the Two Bar Low (if Orange)
• if the TTM does not display a Orange or Green Bar when the Fractal Point is penetrated then we enter the trade in the direction of the breakout (fractal should be confirmed by CCI Zero Cross)
• Stoploss is the 2nd Bar Low/High;
• TakeProfit (70% of order) is set a the next support level, or just 10-30 points from entry;
• Remainder of the order (30%) will be trailing the 2nd Bar Low/High stoploss for any further profit points.

Current Fractal System

Indicators:

1. Daily Pivots
   - I keep the Daily Pivots indicator as a possible Support/Resistance point (I do not put too much
      emphasis on this indicator; more of a basic gauge of the market).
2. Fractal Dimension Channels (0.5, 1.0, and 2.0 Dimensions)  - the green dashed line is the 2nd Dimension Fractal Channel, and is used as a possible stoploss point
       if I think that the 1st Dimension Fractal Channel is too close to the price; also used as a Major
       Fractal Breakout.
    - the purple dashed line is the 1st Dimension Fractal Channel, and I use this for stoploss points
    - the solid purple line is a very tight Fractal Dimension Channel I made using the same programming
       structure of the 1.0 and 2.0 Fractal Dimension Channel indicators (since it was tighter than the 1.0
       Fractal Dimension Channel I simply called it 0.5); I use this as my entry points.
3. Fractal Histogram - in order to see the entry points more clearer I made this histogram to reflect the price breaking out
      of the 0.5 Fractal Dimension Channel; the blue lines represent the price breaking out above the 0.5
      Fractal Channel, and the red lines represent the price breaking out below the 0.5 Fractal Channel.
4. CCI Histogram
    - this is used as a confirmation for my entry points; the colour of this indicator has to match the colour
       of the Fractal Histogram; if it does not do not enter a trade.

Possible Idea: Daily Range & Momentum Oscillators

I was visiting a Forex Factory tread that mentioned a system based on CCI. The guy who made this thread goes by the name Forexcube, and he put in there a lot of information on CCI and damn near every system based off of this indicator. His system is called the TASAYC (Trade As Simple As You Can) System, and it's really just CCI (14), EMA (200), two Bollenger Bands (both 20, with deviations 2 and 3) and Daily Pivots.

From his record of trades he keeps on the first post, he seems to have made a very profitable system using these basic indicators. I try it out for a day, and found very little that I didn't already know. But he did do something with CCI that I thought was kind of bold. Usually I would trade using CCI's Zero Level, but for Forexcube he would trade using the 100, -100, 200, and -200 levels as entry and exit points. I wasn't quite sure how he could pull that off (I've tried those levels with little or no success in the past), but I now I think I have an idea as to how to trade from those levels.

The Daily Pivot indicator used in his system has a range calculator with it (the range is the difference between the high of the day and the low of the day) that displays today's range, yesterdays range, and an average range spanning 30 days. I found that if today's range is relatively the same as yesterdays and/or the 30 day average, and the CCI is coming up/down from either a 100 or 200 level, then it would likely continue. Even better if the price is at a support/resistance level when this pattern occurs.


Example:

Here's the TASAYC thread I got this idea from:  http://www.forexfactory.com/showthread.php?t=325369

Elliott Wave Principle: The Basics

The Elliott Wave Principle according to Frost & Prechter:

• One complete cycle is made up of 8 waves
• 5 motive waves (1,2,3,4,5), and 3 corrective waves (A,B,C)
• Waves 1, 3, and 5 effect the prominent directional price movement (Trend)
• Waves 2 and 4 are counter waves to the prominent directional price movement
• Wave 2 never goes beyond the start of wave 1
• Wave 3 is never the shortest wave
• Wave 4 never enters the price territory of wave 1

Fractal Breakouts: A Continuation!

On my previous post I told you about a fractal system setup. Well, I've been playing around with it again, and I found a couple of indicators that work well with this system:
Extreme Indicator
ZeroLagZigZag

Using either one, or both, I can determine the prevailing direction of the market (personally I prefer the Extreme Indicator). With that I can filter out quite a few false signals.
I've done a couple demo account trades, and I've made a pretty good profit. In fact this has got to be the best profit making system I've stumbled across.
I wish I could explain some more, but I am still testing this trading system out.