@Jawa, Just one final question for the Inside Bar and then I have al the info I need to make it mathmetical and write it correctly in the indicator. With the last four bars, do you mean including the InsideBar, or the four bars before it…??
Updated the indicator with the detection if an InsideBar is an BUY or SELL formation according to the last four candles on the 4 hour chart.
We take the highest High, and the Lowest Low of those 4 candles. Add them together and devide by 2.
You then get the average price of those 4 candles.
If the close of the InsideBar is below the Average we place SELL order, if above we place BUY order.
This information will show up on screen 
So take the new indicator and give it a spin
next step : detecting the STAR formations…so for now that part is something you have to detect yourself until I have the right mathmethical rules voor defining an Star.
Goodluck with it.
@Jawa, I very admire your hard work. When i see your chart, man it is soooo easy:D , I have two Q first is about stars formations, do you care where they begin and end? The body of the pin has not to be inside left candle? And mz second Q is I think more and more than broker times count in this type of trading, London and NY opening times are strong so the close of 4H candle could have some information in it. My english is not well so sorry for it… Take care and again THX many times for this idea of the trading system!!!
Now I am a little bit confused because of all questions from a lot of people here :S
It doesn’t matter if a bullish/bearish/reversal/hammer pinbar on 4H is showing short or long on movement at 1H chart. Right?
Saferino, dont get confused by al the questions you see. If Jawa thinks someting is not clear he will post / edit it in the #1 post. Thats is always the rules to follow.
For the pinbar en insidebar detection, you could use the indicator I build… So that takes out some of the emotinale descision taking. It tells you what to do.
The only thing you have to check yourself is the Star Formations, and that one you dont have to check the 1 hour chart for.So dont get confused by the formations you see on the 1 hour timeframe. The indicator will calculate it for YOU!! Easy as that as soon as the 4 hour candle closes and gives a signal.
Just entered (possibly) my last two trades of the week, what time does everyone stop trading on the Friday?
At London close or before? Or maybe the NY close?
@ slipp3ryWhippit, Jawa stops trading at friday 16:00 hours, and closes al his open positions too at that time. So no open positions during the weekend.
@jonkie76: hmmmm im not sure which would be more accurate but i would assume the last 4 candles from the inside bar should be used, including the mother bar, so the candle you’d use the four previous candles from the completely engulfed one :3
@renda1234: For star formations all you need is for the first and last candle to not be indecision bars, and either one indecision bar in between them or a couple of candles together that show indecision, so really you could define at as:
- Candle of the trend in place
- A candle that close near its open and has a long wick (pin bar, doji etc.) or a group of candles in which the final candle closes near the open of the group of candles
- Confirmation of a reversal
You’re right that different trading times produce different kinds of signals of different strengths, the best signals happen during the london session 
normally candles during this time set the pace for the day, meaning they are normally either the reversing or continuation point of price for the markets, but as far as quantifying how the information in the candles could be more accurately used based on its sessions would be very difficult if not impossible to quantify :\
@aserafino: im not sure what the question is :\ i would just go look over at the first post, i edit all the changes and things in there, what doesnt matter on the 4 hour chart is whether the body is bullish or bearish, or which side of the candle the wick is on, the only information we gather from the 4 hour chart is whether or not it is an indecision candle (a candle which has a long wick that takes up atleast 50% of the total length of the candle and a body that takes up no more than 30%), then we go to the 1 hour and use our close to close method to determine direction, its that simple and when there are two signals in a row there is a new criteria for determining direction if the second signal disagrees with the first, go check out the first post
Ok, thats how I programmed the indicator right now 
I took 4 candles… first one is the InsideBar, 2nd is the Motherbar and 3rd and 4th bar …
this should do the trick nicely.
And about the Morning and evening star…that is programmable just fine…
I went through the GBP/JPY and I checked all the STAR formations from last of 8 may till now…
Only 1 or 2 of at least 8 - 10 formations were not profitable, and all those formations had exactly the mathmetical informations I needed.
- First bar is a normal bar, which has more than 30% body…
- Second bar, and if there are more bars, even the third or fourth bar are alle bars of indescision.
This is a classical Pinbar with 30% less body and 50% wick, or bars with only 30% less body. - The last bar is in the opposing direction of the first bar and is also a normal bar, and its close is further as 50% of the body of the first candle.
Those rules I can programm just fine, and then it would recognize 9 out of 10 formations of your charts.
I can do it like this… I check the last bar, and I let the indicator define its formation. If the programm defines it as a normal bar, the bar before it on the chart is checked. If that bar is a normal bar…well the programm stops… however, if the bar before that is an indescision bar or a pinbar, the programm checks the bar before that one, than he does the same check, if that one is an indescision also, well, he goes further to the next one on the chart, as soon as he see’s an normal bar again he checks if that bar is of opposing direction.
If not, well the programm stops… if it is of opposing direction, than the programm remembers the close an open of that bar and divides it by 2. That is the price of 50%. Than we go back to our first normal bar, and if the close is above or below that it will tell the programm what to do. Nothing or place position.
And you see, the last bar can not be a pinbar, because then the pinbar setup will get in place.
Ohw yeah, this is gonna be just fine!!
I just have to make the programm a bit more sophisticated as it is programmed right now.
At this moment I only look at the last bar and compare it with bar before that if insidebar…
But now I have to define each bar on the chart and therefor takes a different approach of writing the indicator. So give me some time to figure that one out.
But it can be done!
@jonkie76: that sounds great! how did you get in to programming mql4? Whenever i go in to my meta editor it looks almost like programming C++, and then i remember that i cant program C++ at all 
Well I taught it myself… I found a document on internet with some basics in it… but that was just theory.
So what I did, was actually recording my programming learning and placed them on youtube (Dutch language …)
This way I had my own learning curve and taught my self the basics. After that it’s just a search for good programm’s an figure out how they work. This is one of the first lessons… Les 02 - Hello World - YouTube
As I said, it’s Dutch so I dont think you understand a word of it ;-)…
And this way I made about 30 lessons…
But as I said before, I’m just a beginner… I can write code… and it all works. But the code is not, how you say it, programmed the way it should be. So I’m still learning.
@jonkie76: ahh well that’s how I taught myself the forex! Thank god for the Internet 
what taught me the most was picking apart other people’s strategies and figuring out why they work, I’ll look into programming ea’s for sure
And I definitely don’t speak Dutch but I have been to the Netherlands before by far the best ice cream I’ve ever had was at Ijssalon de Hoop in Blaricum (I think that’s right), Dutch ice cream is #1 
Thanks for posting this Jawa. This is very interesting, because now I know I’m definitely doing something wrong. I’m trading in the opposite direction on most of your signals. Let’s go through each 4H signal that was circled on your AUDUSD chart and break them down into 1H on mine (not including your sell stop at 12:00 on May 22nd, could you explain that one? That qualifies as an inside bar?):
First signal (Buy on your chart):
Second signal (No trade on your chart):
Third signal (Buy on your chart):
Fourth signal (Buy on your chart):
Sorry, apparently I have to break this up into two posts due to pic limitations…
Fifth signal (Buy on your chart):
Sixth signal (Sell on your chart):
Seventh signal (No trade on your chart):
Your 4H chart looks the exact same as mine. What am I doing wrong when it comes to reading signals on the 1H?
@stb2000: ahhhhh i’m not sure how to say this, but you aren’t looking at the correct one hour candles 
When you are zooming in to the 1 hour charts you are looking at the previous 4 hours candles
The numbers are hours of the day, when you are looking back on a chart i place a vertical line over the signal i want to zoom into, then zoom in to the 1 hour and look at the candle with the vertical line over it and the next three
I’m an idiot.
I was thinking 1-4HR = 4:00 candle, 4-8 = 8:00 etc.
The vertical line helped clear things up for me. I went back and marked up a few charts and I was still positive despite the whipsaws when counting the right way. Ugh, stupidity at its finest.
Sorry for wasting your time.
@stb2000: Aha I don’t mind helping someone out it took me a few hours to figure out how to look at the correct one hour candles, it’s really confusing at first :\
And you can always use the indicator which I posted in the in post #70. That indicator will break down the 1 hour candles for you and calculate if they are buy or sell.
However, the last tweak of Jawa, where you can get multiple signals directly after each other is not programmed in there yet, but the main signals are there…
If you dont draw vertical lines there is another trick : When you go over the candle it has a start time.
for example it says Time:2012-05-25 16:00, when you go to the 1 hour chart, you look up the 1 hour candle that has the same time stamp. That candle is the first candle in the formation. The second is 17:00, third is 18:00 en fourth is 19:00.
Its 26th today. Please everyone post your results of application of Jawa’s strategy.
@ Jawa
Kindly post your weekly results. So that we may have a benchmark 
hello sithwaja,
so srry to disturb you, was looking at your wonderful explanation and i was wondering if you can pls explain what you meant by “The first candle closed in zone 2, the last candle closed in zone 3,”.I am not clear with the ZONE and you define the zones.
thanks in advance