Day Trading 6.0

Metatrader Indicator (MT4/MT5)

  • Overview

    This indicator detects price reversals in a zig-zag fashion, using only price action analysis and a donchian channel. It has been specially designed for short-term trading, without repainting or backpainting at all. It is a fantastic tool for shrewd traders aiming to increase the timing of their operations.

    • Amazingly easy to trade
    • It provides value on every timeframe
    • Chart statistics will help you to optimize your trading
    • It implements a multi-timeframe dashboard
    • It includes a multi-symbol and multi-timeframe scanner
    • It implements email/sound/visual alerts

    Based on breakouts and congestion zones of variable lengths, the indicator uses only price action to pick trades and reacts to what the market is doing very fast.

    • The potential profit of past signals is displayed
    • The indicator analyzes its own quality and performance
    • Losing breakouts are highlighted and accounted for
    • The indicator is non-backpainting and non-repainting

    This indicator will help intraday traders not to miss a single price reversal. However, not all price reversals are created equal nor have the same actionable quality. Deciding which breakouts to trade and which to ignore depends on the good judgement of the trader .

    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.

  • Input parameters
    Input parameters

    When loading the indicator or EA 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.

    Range
    The range is the minimum amount of bars broken to consider a breakout valid and draw a signal. As you go down in timeframes, you need to increase this parameter. For example, to trade monthly charts a range of five is good, but to trade H1 charts you would need a range of at least 20-25 bars.
    Filter
    The function of the filter is to separate alternative signals from each other, using a donchian channel and a multiplier of the price range it creates. A higher filter will decrease the amount of signals in the chart but, in average, increase the maximum favorable excursion.
    Max History Bars
    The amount of past bars to evaluate when the indicator loads. Decrease this value to speed up loading of the indicator.
    Dashboard:
    Enable or disable the multi-timeframe dashboard widget.
    Statistics
    Enable or disable the statistics widget. Use the stats to find the best parameters for each symbol and timeframe. Incrementally change the input parameters of the indicator until you find the higher accuracy and expectancy possible.
    Display boxes
    Display or hide the colored boxes around the breakout price range.
    Fill boxes
    Choose wether the inside of the breakout box is filled with color.
    Trade Analysis
    Enable or disable the individual trade analysis in the chart.
    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);
    }
  • Comments

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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

Videos

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