Penunjuk
Price Action StrategyThe **Price Action Strategy** is a tool designed to capture potential market reversals by utilizing classic reversal candlestick patterns such as Hammer, Shooting Star, Doji, and Pin Bar near dinamic support and resistance levels.
***Note to moderators
- The moving average was removed from the strategy because it was not suitable for the strategy and not participating in the entry or exit criteria.
- The moving average length has been replaced/renamed by the support/resistance lenght.
- The bullish engulfing and bearish engulfing patterns were also removed because in practice they were not working as entry criteria, since the candle price invariably closes far from the support/resistance level even considering the sensitivity range. There was no change in the backtest results after removing these patterns.
### Key Elements of the Strategy
1. Support and Resistance Levels
- Support and resistance are pivotal price levels where the asset has previously struggled to move lower (support) or higher (resistance). These levels act as psychological barriers where buying interest (at support) or selling interest (at resistance) often increases, potentially causing price reversals.
- In this strategy, support is calculated as the lowest low and resistance as the highest high over a 16-period length. When the price nears these levels, it indicates possible zones for a reversal, and the strategy looks for specific candlestick patterns to confirm an entry.
2. Candlestick Patterns
- This strategy uses classic reversal patterns, including:
- **Hammer**: Indicates a buy signal, suggesting rejection of lower prices.
- **Shooting Star**: Suggests a sell signal, showing rejection of higher prices.
- **Doji**: Reflects indecision and potential reversal.
- **Pin Bar**: Represents price rejection with a long shadow, often signaling a reversal.
By combining these reversal patterns with the proximity to dinamic support or resistance levels, the strategy aims to capture potential reversal movements.
3. Sensitivity Level
- The sensitivity parameter adjusts the acceptable range (Default 0.018 = 1.8%) around support and resistance levels within which reversal patterns can trigger trades (i.e. the closing price of the candle must occur within the specified range defined by the sensitivity parameter). A higher sensitivity value expands this range, potentially leading to less accurate signals, as it may allow for more false positives.
4. Entry Criteria
- **Buy (Long)**: A Hammer, Doji, or Pin Bar pattern near support.
- **Sell (Short)**: A Shooting Star, Doji, or Pin Bar near resistance.
5. Exit criteria
- Take profit = 9.5%
- Stop loss = 16%
6. No Repainting
- The Price Action Strategy is not subject to repainting.
7. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 16% from the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
8. Backtest results
- This strategy was subjected to deep backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
9. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Only the candlestick pattern that generated the entry signal to triger the trade is identified and labeled on the chart. During the operation, the occurrence of new Doji, Pin Bar, Hammer and Shooting Star patterns will not be demonstrated on the chart, since the exit criteria are based on percentage take profit and stop loss.
Doji:
Pin Bar and Doji
Shooting Star and Doji
Hammer
10. Default settings
Chart timeframe: 20 min
Moving average lenght: 16
Sensitivity: 0.018
Stop loss (%): 16
Take Profit (%): 9.5
BYBIT:1000000MOGUSDT.P Strategi
Penunjuk
Penunjuk
Strategi
FOREX MASTER PATTERN Companion ToolWhat This Indicator Does
The Forex Master Pattern uses candlesticks, which provide more information than line, OHLC or area charts. For this reason, candlestick patterns are a useful tool for gauging price movements on all time frames. While there are many candlestick patterns, there is one which is particularly useful...
The Engulfing Pattern
An engulfing pattern provides an excellent trading opportunity because it can be easily spotted and the price action indicates a strong and immediate change in direction. In a downtrend, an up candle real body will completely engulf the prior down candle real body (bullish engulfing). In an uptrend a down candle real body will completely engulf the prior up candle real body (bearish engulfing).
Used in conjunction with the FOREX Master Pattern value line, the Engulfing Pattern can assist the trader with reversal timing or trend confirmation during the expansion and trend phases.
As shown in the screenshot below. Engulfing Candles usually precede a sharp move in price in the direction of the engulfing candle.
As shown in the screenshot below, when the Show Lines option is ON while using the indicator, both red and green lines are drawn on the chart automatically when engulfing candles form. These lines are projected forward 100 bars and tend to be reliable support and resistance areas. These areas are typically hidden from view.
In addition to the Show Lines option, the indicator (by default) creates boxes around trading zones that are created when an engulfing candle is formed. (There is an option to hide these from view if desired).
As seen in the screenshot below, these areas / zones are wider than a line and encompass a resistance / support zone rather than a specific price. Liquidity is usually high in these areas and a lot of selling / buying occurs here. These zones are drawn in advance out into the future giving the trader an idea of where price will revert to eventually.
A combination of LINES and AREAS can be used giving the user a better idea of where within the zone price will go.
As seen on the screenshot below, this combination provides a pretty accurate indication of the reversal point well in advance.
As seen in the screenshot below, when a ZONE / AREA has been fully breached (crossed) by price, the area is deactivated an no longer continues forward on the chart. Until price breaches an area, it remains valid and continues on the chart until and only if it is breached by price.
The Indicator is fully customizable.
The use can change the color of the engulfing candles, the color of the zones, transparency etc. You can turn OFF or ON any of the features such as lines, zones, bar coloring, and plotted arrows.
I really hope you get value from this indicator and... HAPPY TRADING!!
Penunjuk
Penunjuk
Penunjuk
Penunjuk
Penunjuk
Penunjuk
Penunjuk
Strategi
Strategi
Penunjuk
Penunjuk
Penunjuk
