Saki's Forex Reversal Journal

Interesting. I'll give it a run on my MT4. Mt4 looks so much better than MT3. I may have to convert and learn mq4. VT is easy, but so limited.
 
After looking at the code, this is something I've been playing around with for a while in Excel. My version uses a projected HIGH/LOW based on a Tom Demark method. At the end of the day, it's spot on a lot of the time... but during the day as the numbers update based on new highs/lows, it's a bit diffierent and I've found myself looking for confluence with other s/r numbers.

As far as using the channels as a trading zone, it looks pretty good and pretty similar to what I"m doing with my regression channels.

Are you going to implement it into your trading system?
 
I am not going to implement it into my current trading system but I was curious how frequent these levels adjusted. Perhaps a shorter timeframe scalping method with mean reversion to the pivot as a constant target.

So you are saying the levels will constantly adjust? If the level adjusted for each bar but left the previous level in the past unchanged, it would be a very effective method.

I assume the levels for each 4 hour bar will be left unchanged as each 4 hour bar closes. For example, the 4 hours that open the day has a new high and low and then the next 4 hours has an even higher high and lower low, the pivot will increase its slope outwards but the point from the first 4 hour bar but will remain in place. Is this what the indicator does?

I already use the fibonacci levels on my 55 LWMA as reversal levels but the dynamic pivots looked to be calculated in a more precise manner.

JR: BTW, thanks for the VT indicators. They were very interesting to take a look at, but as you say, VT is quite limited in functionality. I am a MT4 convert and will very likely never return to VT for my charting needs.
 
Quote from sakimonohito:

I assume the levels for each 4 hour bar will be left unchanged as each 4 hour bar closes. For example, the 4 hours that open the day has a new high and low and then the next 4 hours has an even higher high and lower low, the pivot will increase its slope outwards but the point from the first 4 hour bar but will remain in place. Is this what the indicator does?
More...

The levels adjust for the daily High/Low/Close. Basically, at the start of a Daily candle, the indicator calculates the pivots from the previous day High/Low/Close. If the current day's High/Low surpass those of the previous day's, then pivots adjust themselves based on the new central pivot. So whether you use a 4h chart, 1h chart, or 1m chart, it won't matter because the indicator looks at the current day High/Low and not individual candle high/low. Therefore the indicator won't change relative to the timeframe because the values "belong" to the daily values. But does change relative the daily High/Low. If that makes sense.

The indicator you posted only looks at 2 levels of S and R. I've found that the Mid Levels or the 1/2 levels between S and R are where the actual High/Low will fall about 75% about the time. It's pretty clear in your screenshot where price reached S1 or R1 only 2 days out of 4. If I get time, I might tweak the code a bit to show those levels and perhaps highlight the projected high/low.

Pivots are a major component of my system and strategy because they are a pretty solid level of S/R. The trick is figuring out which ones will hold and which ones are just temporary rest areas.
 
Open Trades:

10k Short EUR/USD 1.2540 Stop 1.2539
20k Short GBP/USD 1.8400 Stop 1.8506


Closed Trades:
10k Short AUD/USD .7735 Limit .7675 +60
10k Short EUR/USD 1.2435 Exit 1.2370+65
10k Long USD/CHF 1.2500 Exit 1.2540+40
10k Short AUD/USD .7735 Exit .7685 +45
20k Long USD/JPY Limit 110 +90
10k Short AUD/USD .7735 Exit .7565+170
10k Long USD/CHF 1.2505 Exit 1.2710 +205
10k Short EUR/USD 1.2435 Exit 1.2170 +265
10k Long EUR/USD 1.2193 Limit 1.2270+77
10k AUD/USD .7533 Exit .7570+37
10k Long AUD/USD .7533 Exit .7580+47
10k Long USD/CAD 1.1893 Exit 1.1975+82
10k Long EUR/USD 1.2193 Exit 1.2291+98
10k Long USD/CAD 1.1893 Exit 1.1899+6
10k Long USD/CHF 1.2578 Stop 1.2509 -69
10k Short EUR/USD 1.2293 Exit 1.2350 +43
10k Short EUR/USD 1.2577 Exit 1.2518+59
10k Short GBP/USD 1.8468 Exit 1.8420+48
10k Short EUR/USD 1.2540 Exit 1.2478+62
Model Account Balance: 3370
 
These dynamic pivots are quite interesting but probably because I keep looking at them after the fact. Did anyone observe the overnight asian session? How much did the upper pivots move? Perhaps you can create a screen capture of earlier in the day to compare with? I wasn't home when EUR was making highs.

BTW, what's up with the buoyancy of GBP?
 

Attachments

Open Trades:

10k Short EUR/USD 1.2540 Stop 1.2539*

Closed Trades:
10k Short AUD/USD .7735 Limit .7675 +60
10k Short EUR/USD 1.2435 Exit 1.2370+65
10k Long USD/CHF 1.2500 Exit 1.2540+40
10k Short AUD/USD .7735 Exit .7685 +45
20k Long USD/JPY Limit 110 +90
10k Short AUD/USD .7735 Exit .7565+170
10k Long USD/CHF 1.2505 Exit 1.2710 +205
10k Short EUR/USD 1.2435 Exit 1.2170 +265
10k Long EUR/USD 1.2193 Limit 1.2270+77
10k AUD/USD .7533 Exit .7570+37
10k Long AUD/USD .7533 Exit .7580+47
10k Long USD/CAD 1.1893 Exit 1.1975+82
10k Long EUR/USD 1.2193 Exit 1.2291+98
10k Long USD/CAD 1.1893 Exit 1.1899+6
10k Long USD/CHF 1.2578 Stop 1.2509 -69
10k Short EUR/USD 1.2293 Exit 1.2350 +43
10k Short EUR/USD 1.2577 Exit 1.2518+59
10k Short GBP/USD 1.8468 Exit 1.8420+48
10k Short EUR/USD 1.2540 Exit 1.2478+62
20k Short GBP/USD 1.8400 Exit 1.8390 +20
Model Account Balance: 3390

*All I can say is, thanks for tight spreads, almost lost that EUR short earlier today, will hold until I have a reversal sig, or the mkt takes me out. GBP is worthless for me as my intial entry was 100 pips too early. Call that one a 20+ pip wash =)
 
Nice volatility today. The market is playing off of pivot levels and murrey math levels like a fine tuned violin. It got me thinking about how to exploit these moves while we aren't blasting away in one direction or the other(the function of my main system).

I'm sure this idea has been put to use before but I wanted to mention it for those who haven't seen this striking correlation.

In MT4 plot a 30 minute chart and bring up murrey math levels and a pivot indicator for two levels outside the pivot, not the middle pivots but the full supports and resistances. When the lines are in harmony, you use those as reversal levels. Stops two octaves beyond entry and 4/8ths level or the pivot as intial target. There were three trades today like this already for more than 100 pips today.

Enjoy.
 

Attachments

You must log in or register to reply here.
Back
Top