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Reversal composite candle EA, the concept of the system is to determine the turnaround patterns utilizing the computation of the composite candle light. The turnaround patterns resembles the “Hammer” and “Hanging Man” patterns in Japanese candlestick analysis.
It utilizes the composite candle light rather the single candle light and does not require the little body of the composite candle light to verify the turnaround.
Reversal Composite Candles EA
Variety – optimum variety of bars, utilized in the computation of the composite candle light.
Minimum – very little size of the composite candle light (in traditional points).
Shadow Big and Shadow Small – shadows (in composite candle light systems).
Limitation, StopLoss and TakeProfit – open cost, SL and TP levels (composite candle light systems).
Expiration – order expiration time (in bars), utilized in trading with pending orders (Limit! =0.0).
The turnaround candlestick patterns are identified as follows.
It computes the composite candle light criteria beginning with the current finished bar (with index 1) to the variety of bars, specified by Range input specification.
If the composite candle light size is greater than worth, defined by Minimum input criterion, it inspects the turnaround conditions of the composite candle light by analysis of its shadows.
The bears power is identified by size of the upper shadow of the composite candle light, the bulls power is identified by size of the lower shadow.
To verify the turnaround of the bearish pattern (and start of the bullish) it is required the following: the size of the lower shadow (bulls power) need to be greater than worth, specified by Shadow Big input specification.
The size of the upper shadow (bears power) should be less than worth, specified by Shadow Small input criterion. To verify the turnaround of the bullish pattern (and start of the bearish) it is required the following:
the size of the upper shadow (bears power) need to be greater than worth, specified by Shadow Big input criterion. The size of the lower shadow (bulls power) should be less than worth, specified by Shadow Small input criterion.
In addition to the turnaround method, it’s possible to utilize the breakdown methods by defining the unfavorable worth of Limit input specification.
EUR/USD, GBP/USD and USD/JPY are the currency pairs which are used by the majority of traders in their trading activities. The main reason for this is that these pairs are highly liquid and therefore easy to trade.
In addition, these three currency pairs are the most popular ones among all the other currency pairs, which can be traded worldwide. This means that during a normal day, these three pairs generate more than 90% of all the trading volume on Forex market.
All traders know how important it is to have an automated Forex system that will help them to predict price movements so they can open trades at the right time. However, not all automated systems perform as expected and some traders even lose money because of them.
Reversal Composite Candles EA is an automated system that uses simple candle patterns to predict price reversals and thus helps you to open high probability trades with high returns!
Read more article: How to Make Profit on Forex Trading
Reversal Composite Candles EA is a simple, but effective reversal trading strategy that uses the reversal candles as entry signals. The candles should be red or green color and have a high volume. The trade is opened when the price breaks the level of previous candle’s high or low.
The stop loss is set at the distance of the candle’s body from its upper border (for long positions) or from its lower border (for short positions).
This is a reversal candles system (candles with two different colors) that generates a buy signal when the candle is green and a sell signal when it is red.
The exit signals are taken at the close of the candle after the reversal has been confirmed by price action.
The first chart shows how the reversal composite candles work in real-time. The second chart shows how they would behave over an extended period of time using a simple moving average crossover strategy.
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The Reversal Composite Candles EA is a trend following trading strategy that trades stocks and futures inside of the same asset class. As an automated strategy, it will keep you in cash when the market is down (and out of cash when it’s up) increasing your return and reducing drawdowns.
This article has presented a new approach of binary option trading based on the price reversal method. This approach outlined the price reversal strategy as applied to binary options as well as the building algorithm of more complex trading systems based on this strategy.
The Reversal Composite Candles EA is presented as an example of a more complicated system with a scaling factor.
The accuracy of this system when testing on the Random Walk indicator has been tested over 1 year and is proved to make profits within a certain period, depending on a certain percentage from the deposit in binary option.
By using RCO strategies, system developers can create strategies for binary options without any additional technical indicators.
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Hi my name is Joseph Benson, I have been trading forex for more than 13 years now and I am still trading actively. Learn how to trade easily by following my blog