Quote:
Originally Posted by fred
I know someone who subscribed to the James website that actually trade 4hour and Daily Pinbars, he does very well as they offer a decent risk/reward ratio. If someone could successfully create an alert when a 1/4 hour and daily/weekly pinbar appears on the chart, it would be a very useful tool, espeacially when you are scanning through lots of currency charts!
If anyone can do it, the guys on this site can, as they are the best on the web...
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Creating alerts is a work in progress job, but what's more important is how we come up with the statistic of backtest, for example I usually do a little backtest in higher Time Frame such as this one.
PBs (should we call this Pin Candle ? later you will know why I use candle type for this) are quite easy to spot, long nose, small open and close, small inside area etc, but to make the computer help us, we need to define those into numbers, that's why we have to look for the numbers, that's when the indicator is used.
And then, I put more weighting factor to determine different types of PB, well, it's not firmed yet, but there is a strong and weak PB, there is a reversal and trend continuation PB, if PB is in ranging or trending. So to determine that, I use short-term MA, it's 3 period of Simple Moving Average with Median price (H+L)/2. So when you see MA4, it means the difference between 4th bar (to the left) to current bar, and then I put an average of that MA4 with 50 period of Simple Moving Average, so I can calculate % of the move.
Those numbers won't be useful yet, but it gives us certain objectivity over hunch, let's say if % of MA1 is less than 50%, it is not scored high, because the move is not significant.