@niX1990: Nothing has been missed The evening star was absolutely valid, just as valid as the morning star The doji at 20:00 can be traded if its long wick is 50% of the total length of the candle or more and the body is less than 35%
Although i must say i have found two more very high probability trade entries that i might personally start trading, that doji being one of them, it is almost like a mix between an inside bar and a star, a trend in place, a stop in momentum and slight indecision, and then breakout in the direction of the first candle, it works 90% of the time
One thing i will DEFINITELY be adding to the system is the ATR stops and take profits, this is absolutely necessary for the future use of the system, as well as giving more accurate and candle specific price points it increases potential profit by OVER 30% my back and forward tests have spoken on it, but i dont wanna post it till the weekend to keep confusion away
@juicypips: Not that i know of sorry :\ I myself have spent hour upon hour backtesting so i have it down to an art to tediously record all entry prices and tp’s and sl’s and etc. for a week it takes me about 10 minutes and then of course going over months of data it takes significantly longer, but yeah unfortunately there is no way that i am aware of unless you are backtesting a strategy with an EA
The first grey circled bar is an Indecision bar. Because the wicks are smaller as 50%. So we dont trade it.
The same goes for this 5th jun bar 20:00 hours.
In my opinion the evening star is correct. I am a fully mechanical trader (and programming has to be 100% mechanical)
and the rule is first normal bar up, 1 or more indecision or pin bars, and last normal bar down, closing more as 50% of the body of the first normal bar up. So the system tells me, this is an 4 bars eveningstar formation.
So I sold there, however the next bar is a pinbar which gave a buy signal, so I had to close that position with 8 pips + spread loss.
ALL I can say is i’m raking in the pips…looking foward to your ATR rollout this weekend, SJ, please include what ATR is, what it looks like, how to read and use it, because I don’t have a clue, all I see is a wave with two numbers on the side that are one value apart from each other…thanks in advance!
If AUDUSD doesn’t come down in next five minutes, I may not open any new trades, but the ones opened at 16:00 close 4 hour candle are closing in on first TP!
ATR stands for Average True Range.
Howver you have to give the indicator as it is an indicator, a value for the number of candles to look for and make is calculation on. What does it do?
Well, It counts all highs and lows of the candles, calculates the difference between them, and does that calculation for x candles (x being the value you give up) It than adds all the calculations together and divides it by x.
That gives you back the average of price moving up and down over a period of x candles.
That value is the ATR, and thats what you see in on your right of the indicators chart.
If a pair gets very volatile for a certain period the value goes up, and if it narrows down, the value gets smaller.
The idea behind this is, that when volatile periods happen, to target for bigger profits, and bigger stoploss. On the other hand, in less volatile periods you aim for lesser targets with lesser stoploss. So you adjust the system to the volatility.
@pipcompounder: aha nicely done, I will provide an extremely in depth explanation of ATR with how to use it and etc. It really only takes a second to use I am trying to keep my eyes off the charts as i dont have time to be actively trading today, but again… you make me want to throw all my money in the markets right now
And for the ATR what jonkie said is spot on!It is the perfect indicator to use for stop losses and take profits especially in this system, its all based on volatility and since the theory behind this system works with breakouts and continuations its perfect
@jonkie76: I dont think i was clear aha, It is a three candle formation i’ve been looking at not just trading the doji, it would be
trend in place
doji or indecision candle
continuation of trend
and we’d place our order on the third candle of the formation but nice try! :P!!
Basicly it is exactly like a star but the last candle confirms that the trend will continue rather then a trend reversal
Just now the SEPIS Indicator showed a signal to Buy on EUR/JPY with description at the left side as Morning star. I am not seeing any morning star formation here and there fore attaching the chart. Please have a look and advice me about this confusion. Is the mistake is with Indicator or with my observation ?
[QUOTE=SithJawa;358430]@pipcompounder: aha nicely done I will provide an extremely in depth explanation of ATR with how to use it and etc. It really only takes a second to use I am trying to keep my eyes off the charts as i dont have time to be actively trading today, but again… you make me want to throw all my money in the markets right now :PQUOTE]
it’s ok, I didn’t enter any new trades on the new candle that just opened…but got EJ and GJ half TP hit…the news said the AUDUSD was biggest rally in 6 months, ECB is holding up interest rates where they’re at, not sure about pound and aussie, but they continue to rise…hopefully to full TP, see ya in 2 four hour candles, I won’t be able to take next candle opportunity in just less than 3 hours
Well, this is really funny, I was checking my charts as well, and we looked at the same problem.
So I saw that the third bar was a normal bar on the screen, however it was a indecision bar… therefor he tought there was this formation which said, normal bar down, pinbar, normal bar up… and that triggerd a MorningStar.
So I looked into my code and found a minor bug in it. Download the newest version from post #70 and reload it on your chart. Now it will say that the 3d bar is an indecision candle and therefor there is no signal there. Good spot though.
This last check on this kind of formation howver realized me something…
As you see your mistaken signal there… what if the 3d bar was slightly opened a little bit higher… than it would have been a normal bar. Hoever because of the bar next to it which is very volatile and created an pinbar, we would have seen a morningstar according to the rules, and that would not have been a very nice morningstar…
The problem is that the last candle of that formation already started far above the 50% of the first candles body, which even it ran 1 pip, it would trigger an morning star. So I think we have to refine the starformation a little bit further.
I think the 4th rule of the star should be that the openingprice of the last candle in the formation can not be above 50% of the body of the first candle. It has to fill op some of the body of that first candle as well. I’ll talk about it with SithJawa, what the best mechanical rule for that could be.
Would the 8:00 Doji on AUD/JPY be a valid signal? The 4:00 candle is bullish and the 12:00 candle is bullish too, even though it has a pretty big lower shadow. Does it count as continuation of trend? Anyway, buying after 12:00 close wouldve already hit half tp.
@niX1990: yes it would be a text book setup, as it shows a trend, a period of indecision, and then a breakout continuation, but I am not saying anyone should trade those signals, I have a lot of testing still to do and specifics to hammer out if I’m ever going to include those signals
If by any chance you miss the 4 hour candle closure by 20-30 mins and the trade indicated it was buy and it was showing a slight loss would you still enter the trade even though you was late taking it and its in your favour by a few pips?
@PREDITER: the few times that has happened to me I always enter, the signals are strong and you can be confident in them, most of the time i absolutely expect the market to move against me at first as a retracement, obviously you always want to enter at the candle close itself but if thats not possible you can still be confident in entering as long as it hasnt moved more then 5 or so pips, If it has moved in the direction you want to trade thus reducing your potential gains while adding to your risks then you still want to keep your stop loss and take profits from the candles close, not the entry point :3 normally i would suggest not taking a trade you miss by even 10 minutes but this signal does rely to some degree on multiple signals and even missing one entry can be harmful to your account
Sorry to disturb you. The SEPIS indicator programmed by you is excellent and showing fantastic performance. Even then the indicator is bound with some errors. (I feel so). Early morning there was a buy signal on GBPJPY defining as inside Bar. But the bar formed was not an inside bar as it’s higher wick was exceeding the high of mother candle. Please see the chart. Can u fix it, if it, an error…
The trading continues…was up 810 pips, midnight candle showed buy signal on two pairs, but this next candle had pin bars that said sell, with lower close than all other 1 hour candles, so there was a floating loss that I had to close, back down to 550 pips…waiting for next candle with new sell trades.
Well, thats indeed odd, as BAR 1 is always the same as the Barformation for this kind of setup.
I see that it writes “normal bar” behind Bar 1: and it says Indecision on the Barformation. Apperently there is an mistake which information to write on that particular moment to the screen. I’ll look into it.
The evening star was absolutely valid, just as valid as the morning star 
