Strategy Based On Chart Pattern
Posted: Thu May 18, 2006 4:07 pm
Hi Michal and everyone else.
I am starting the Trading Strategy Thread with request for help coding a strategy based on a chart pattern.
So far I have not been able to figure out how to come up with a math formula for the pattern.
I saw Michal's horizontal line on a bar chart to show the current price on the new message board.
It extends a horzontal trendline to the right which I will need for this pattern.
Avery has coded an indicator and a Radarscreen for the DarvosBox for me which draws a box around a congestion area using horizontal trendlines.
Avery was able to do a strategy using the DarvasBox indicator also.
That is what I need for this pattern, a box around a congestion area and extend trendlines to the right to trade a return to the area in the future.
I have included a screen shot of this pattern I trade that I call the upstair and downstair.
An upstair is a up candle followed by a congestion area where the bodies of the candles are fairly equal.
The candles are so equal that I can place horizontal lines across the top and bottom of the bodies of the candles in the congestion area like putting carpet on a staircase. The last candle is another up candle out of the pattern.
The first time back to a congestion area in the upstair pattern is a high odds, low risk long entry if the market you are trading is in an uptrend.
Once the market switches to making the downstair pattern, which is a down candle, a similar congestion area, and a down candle, the sellers are in control and I will short the first time back to the congestion area of a downstair pattern.
I have discovered that the market moves between the upstair pattern and the downstair pattern on every timeframe.
In fact, the market will build a upstair case when it is in an uptrend and a downstair case when it is in a downtrend.
What I need is a trendline that extends to the right from the top of the upstair and the bottom of the downstair so that I can buy or short the first pullback to that stair when the price revisits that area with a Tradestation automated strategy.
If any of you have the latest version of Tradestation, I could send you live workspaces so you could see the pattern trade live.
Thanks to all in advance, especially Avery for his amazing work with Tradestation.
Thanks for the new message board,
fatdog1
I am starting the Trading Strategy Thread with request for help coding a strategy based on a chart pattern.
So far I have not been able to figure out how to come up with a math formula for the pattern.
I saw Michal's horizontal line on a bar chart to show the current price on the new message board.
It extends a horzontal trendline to the right which I will need for this pattern.
Avery has coded an indicator and a Radarscreen for the DarvosBox for me which draws a box around a congestion area using horizontal trendlines.
Avery was able to do a strategy using the DarvasBox indicator also.
That is what I need for this pattern, a box around a congestion area and extend trendlines to the right to trade a return to the area in the future.
I have included a screen shot of this pattern I trade that I call the upstair and downstair.
An upstair is a up candle followed by a congestion area where the bodies of the candles are fairly equal.
The candles are so equal that I can place horizontal lines across the top and bottom of the bodies of the candles in the congestion area like putting carpet on a staircase. The last candle is another up candle out of the pattern.
The first time back to a congestion area in the upstair pattern is a high odds, low risk long entry if the market you are trading is in an uptrend.
Once the market switches to making the downstair pattern, which is a down candle, a similar congestion area, and a down candle, the sellers are in control and I will short the first time back to the congestion area of a downstair pattern.
I have discovered that the market moves between the upstair pattern and the downstair pattern on every timeframe.
In fact, the market will build a upstair case when it is in an uptrend and a downstair case when it is in a downtrend.
What I need is a trendline that extends to the right from the top of the upstair and the bottom of the downstair so that I can buy or short the first pullback to that stair when the price revisits that area with a Tradestation automated strategy.
If any of you have the latest version of Tradestation, I could send you live workspaces so you could see the pattern trade live.
Thanks to all in advance, especially Avery for his amazing work with Tradestation.
Thanks for the new message board,
fatdog1