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Stoc and Comms Dec 2HL+Pattern
3 replies, 766 viewings
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OmniTrader Professional Forum
OmniLanguage Discussion
Stoc and Comms Dec 2HL+Pattern
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Last Activity 10/5/2024 12:51 AM 3 replies, 766 viewings |
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Frank Birch Veteran   Posts: 171 Joined: 3/25/2006 Location: UK  User Profile |
I found some free time so thought why not because i can and code the 2HL+pattern in the December issue of Stocks and Comms. I read the article then re read it to make sure of the understanding and yes in my eyes its viable on all time frames. I spent an hour with it on the US big 9 futures on a 60 minute time frame and turned up very profitable. so ive done a detailed report who doesn't get the Magazine and to download. save to the omni language systems folder then open omni language to then compile please. Here's a detailed explanation of the code: #System ' Main system logic If C[1] > C[2] And C[2] > C[3] And O > C[1] Then ' If the conditions for a long signal are met, generate a long signal Signal = LongSignal ElseIf C[1] < C[2] And C[2] < C[3] And O < C[1] Then ' If the conditions for a short signal are met, generate a short signal Signal = ShortSignal End If C[1], C[2], and C[3] refer to the closing prices of a stock for three consecutive time periods, with C[1] being the most recent and C[3] being the oldest. O refers to the opening price of the stock for the most recent period. The code can be broken down into two main conditional checks: Long Signal Condition: This part checks whether there is an upward trend in the closing prices over the last three periods (C[1] > C[2] And C[2] > C[3]). Additionally, it checks if the most recent opening price (O) is greater than the most recent closing price (C[1]). This could indicate a gap up or strong opening, which might be interpreted as a bullish signal. If both these conditions are met, it sets Signal to LongSignal, indicating that it might be a good opportunity to buy or go long on the stock. Short Signal Condition: This part is the opposite of the long signal condition. It checks for a downward trend in the closing prices (C[1] < C[2] And C[2] < C[3]). It also checks if the most recent opening price (O) is less than the most recent closing price (C[1]). This could be indicative of a gap down or weak opening, which might be interpreted as a bearish signal. If these conditions are satisfied, it sets Signal to ShortSignal, suggesting that it might be a good opportunity to sell or go short on the stock. Regards Frank Birch  Attached file : The2HLplusPattern.txt (0KB - 105 downloads) | ||
| Frank Birch Veteran Posts: 171 Joined: 3/25/2006 Location: UK User Profile |
i had some spare time and looked into this deeper and yes its a valid system to use but it did fire a lot of trades! you could use moving averages and so forth and i didn't want to stand on these guys that come up with this idea but i added Volume into the code and you will see its a vast improvement on quality of signals. here is a chart of the 6A 30 minute time frame with the 2HL system. Here is the chart of the 6A 30 minute time frame with the same system logic with Volume added to the signal bar! [Edited by Frank Birch on 11/29/2023 1:42 PM] Attached file : 2HL+pattern.png (116KB - 228 downloads) Attached file : 2HL+pattern with Volume.png (110KB - 228 downloads) Attached file : The2HLpatternVol.txt (0KB - 111 downloads) | ||
| Frank Birch Veteran Posts: 171 Joined: 3/25/2006 Location: UK User Profile |
Here is an over view of the system logic. Price Action Criteria: Long Signal: The system looks for an ascending price pattern where each closing price is higher than the previous (C[1] > C[2] and C[2] > C[3]). This suggests a bullish trend. Additionally, the opening price being higher than the most recent closing price (O > C[1]) could indicate a strong bullish sentiment. Short Signal: For a bearish trend, the opposite is true. The system identifies a descending price pattern (C[1] < C[2] and C[2] < C[3]) and an opening price lower than the most recent closing price (O < C[1]), suggesting bearish momentum. Volume Criterion: The system uses volume as a confirmation tool. A signal is only generated if the current volume (V) is greater than the 24-period average volume (AVG(V, 24)). High volume on a trend day reinforces the strength of the current price movement. Application Scenarios Trend Following: This system is ideal in markets that exhibit strong trends. It can be used in stock, forex, or futures markets where price movements tend to follow a trend over time. Swing Trading: The strategy suits swing traders who capitalize on price swings and aim to hold positions for several days to several weeks. Market Phases: Best used in non-choppy, trending markets. It might be less effective during sideways or highly volatile market conditions. Regards Frank Birch | ||
| Frank Birch Veteran Posts: 171 Joined: 3/25/2006 Location: UK User Profile |
It bugged me today! this is a very good system needs love but still very good! so i added Volume to the code (worked in our favour) push it to its limits now we got our teeth into it and add the EMA into the equation! Now you are on the right side of the trade period!! so now you have the original system with Volume added and the EMA to confirm the signal all in one inside the system block. we have also added Parameters to both the Volume and the EMA. sometimes as traders you just need to see the quality of the signals before you even test them to know guys. this system has a new lease of life enjoy. Regards Frank Birch [Edited by Frank Birch on 11/30/2023 2:05 PM] Attached file : The2HLplusPatternVolEma system.png (113KB - 211 downloads) Attached file : 2HL settings.png (78KB - 203 downloads) Attached file : The2HLplusPatternVolEma.txt (1KB - 106 downloads) |
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