Day Trading 4.5

Metatrader (MT4/MT5) Indicator

  • Overview

    The Day Trading indicator detects price reversals in a zig-zag fashion, using only price action analysis. It has been specially designed for scalping intraday charts, without repainting or backpainting at all.

    • Amazingly easy to trade
    • Optional continuation patterns can be displayed
    • Chart statistics will help you to optimize your trading
    • It works on every single timeframe without fine tuning
    • The indicator is non-repainting and implements alerts
    • It includes a multi-symbol and multi-timeframe scanner
    • The scanner scans all the instruments in the Market Watch
    • It implements a multi-timeframe dashboard

    Based on breakouts and congestion zones of variable lengths, the indicator uses only price action to pick trades and reacts to the market extremely fast. Its winning ratio is around 90%.

    • The potential profit of past signals is displayed
    • The indicator analyzes its own quality and performance
    • Losing signals are not hidden, but highlighted and accounted
    • It implements email/sound/visual alerts

    Enhance your trading activity with the easiest and most effective indicator available, just like our customers have already done.

    Scalping in a nutshell

    The Day Trading is a relatively complex indicator that relies on variable length breakouts and congestion zones on donchian peaks or bottoms, but it keeps the nitty-gritty stuff for itself. All you need to know to trade it is the following.

    • A blue arrow is a bullish formation and you should buy
    • A red arrow is a bearish formation and you should sell

    Sometimes you will bump into losing trades, which are almost always caused by sudden spike bars with long wicks against the trade direction. Because volatility decreases as you go up in timeframes, trading H1 and H4 charts will yield the best results.

    How to interpret the stats

    The indicator studies the quality of its own signals and plots the relative information on the chart. Every trade is analyzed and the overall historic results displayed at the top-left corner of the chart.

    Maximum Favorable Excursion (MFE)
    The MFE is the best possible outcome for any given trade.
    The average MFE is displayed at the top-left corner of the chart.
    Maximum Adverse Excursion (MAE)
    The MAE is the worst possible outcome for any given trade.
    The average MAE is displayed at the top-left corner of the chart.
    Average Absolute Expectancy (AAE)
    The AAE is the absolute excursion you can expect for any given trade, obtained by subtracting the MAE from the MFE, which reflects the true quality of the entry strategy. In other words, the entry strategy is measured by the relationship between the average best possible outcome and the average worst possible outcome.

    The indicator displays the best possible outcome and the worst possible outcome for every trade using two dotted lines and two price labels, and account every single one of them into the statistics you can find at the top-left corner of the chart. You can use those statistics to optimize the indicator parameters by yourself, for any given instrument and timeframe.

    Finally, losing trades are not hidden but highlighted and accounted. Every losing trade is highlighted with a red cross. Looking at them regularly might help you to avoid losing patterns in the future.

    Timeframe selection is key

    Most brokers lure novice traders into scalping small timeframes, with the implicit argument that more trading frequency translates into more profits. But nothing can be further from the truth. Most traders don't lose their bankroll to the market, but to the broker, and end up asking themselves what went wrong.

    Keep always an eye at the relationship between the Average Absolute Excursion (AAE) and the Cost per trade, to avoid trading timeframes in which the mathematical expectation of your trading is negative.

    If you are a novice trader, you should seriously consider trading daily charts or H4 charts, in which the transaction costs are reduced to a minimum in relationship with the potential profits. With just a little patience, you can obtain exceptional returns.

  • Input parameters
    Input parameters

    When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.

    Indicator Settings
    The indicator is constantly looking for certain price patterns of a variable length, starting with a breakout period of Range, and filtering those patters using a Donchian Filter, or in other words, the highest/lowest of the defined number of bars. As you go deeper into smaller timeframes, you want to be increasing the Range parameter.
    Dashboard and Analysis
    Display or hide the analysis widget and/or the dashboard widget.
    Drawing Boxes
    The indicator draws boxes around the trigger patterns. Pick your own colors!
    Alerts
    Enable display/email/push/sound alerts for breakouts.
  • ? FAQ
    Does this indicator nail tops and bottoms of the market?
    No, it does not. There is no magic here. The indicator reacts to tops and bottoms which meet certain price patterns.
    Are you completely sure it does not repaint or cheat?
    Yes, the indicator does not repaint or cheat in any way. In the video there is a visual backtest, in which you can see that signals appear as soon as the last bar of the formation closes. Past signals are never hidden in any way. Losing trades are highlighted.
    Should I close my trades on opposite signals?
    By the time an opposite signal has taken place, it is already late to cash out the previous trade. Every trade must be managed and closed before the next one takes place. This is not an always-in-the-market indicator.
    I don't do intraday trading. Can this indicator be useful?
    Absolutely yes. It works very well on H4, daily or weekly charts.
    I get a lot of signals when I load the indicator into very small timeframes like M1 and M5, and the spread does not allow me to earn a decent profit from them. What can I do?
    You can switch to a bigger timeframe in which the spread does not kill the payoff, or you can increase the MinRange parameter in order to decrease the signals density. Trading more does not necessarily mean earning more money, you have to find the best balance between the expected profit from your trades and the spread paid for each trade.
    How can I avoid losing signals?
    Losing signals are simply part of the game, however they mostly take place when a trade has been triggered by a sudden spike bar which depletes the price movement or against double tops or bottoms. If you can avoid spike bars, you will do just fine.
    Which is the best confirmation?
    There is none by default. Confirmation of trades is up to you.
  • </> Developers

    In order to build your expert advisor, you can read data from the indicator using the iCustom() function as exemplified below. The indicator has one extra buffer which only purpose is to store trading signals as constants: this is the only buffer you need to read from. Copy and paste the code below into your EA, and replace the indicator name of the iCustom() call with your own.

    //---- Read values from the signal buffer
    int start()
    {
    // Read signal for this bar
    double value = iCustom(Symbol(), Period(), "PZ_DayTrading_LICENSE", 4, 1);
    // Do something
    if(value == OP_BUY) { /* Your code for bullish signal */ }
    if(value == OP_SELL){ /* Your code for bearish signal */ }
    if(value == EMPTY_VALUE) { /* Your code if no signal */}
    // Exit
    return(0);
    }

Screenshots

Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader
Day Trading Indicator for Metatrader

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