The concept is simple: If the EA is on EURUSD it waits for the price meter to show EUR in the strong zone (using the Price_Meter_Strong_Minimum input), and USD in the weak zone (using the Price_Meter_Weak_Maximum input), before triggering a buy. (Or USD strong, and EUR weak before triggering a sell.) Example: Price_Meter_Strong_Minimum= 7.0 Price_Meter_Weak_Maximum = 3.0 If the strong minimum input is 7.0, and the weak maximum input is 3.0, and the EA is on EURUSD, the price meter needs to be showing a 7 or higher for EUR, and a 3 or weaker for USD, before buying EURUSD. How the Price Meter determines currency Strength and Weakness Price_Meter_Timeframe = 60 Price_Meter_Bars_Look_Back = 24 If the look back bars input is 24, and the timeframe input is 60 (H1), the EA calculates the last 24 H1 bars (seeing them as one large bar), and it detects the high and low, and comes up with an average strength and weakness between 0 – 10. Obviously the currency strengths and weaknesses showing on the meter will, for example, be different when the meter is looking back 24 bars on the H1 timeframe then when it is on the Daily timeframe looking back 24 bars…or on the M1 timeframe looking back only 5 bars etc. Other Inputs In addition to the price meter inputs in Ed’s Price Action EA there are also take profit, stop loss, money management inputs, as well as pending order inpts, Daily profit inputs, a reverse input, day and time inputs and also a set of optional GRUD martingale limit order inputs which can either increase the martingale lot size or decrease the martingale lot size.
Included with this Ed’s Candle Pattern EA is a custom stochastic divergence indicator which will be installed automatically into your custom indicators folder (this EA uses the stochastic divergence indicator if you turn the divergence inputs on true).
Ed’s Candle Pattern EA can also be used to either filter news releases so the EA doesn’t trade X minutes before or after news releases, or it can be used to specifically trade news releases (instead of Candle Patterns).
Piercing Line (bullish/buy signal) Bearish Engulfing (bearish/sell signal) (Customizable) Bullish Engulfing (bullish/buy signal) (Customizable)
The EA can trade any of the above candle patterns as they appear. Or, you can turn on various filters which will help filter out some of the candle patterns.
Each of the above confirmation inputs can be put on true or false, and can be used to help filter Candle Pattern signals.
For example, if you have Stochastics on true, and Simple Moving Average on true, the EA will trigger buy orders only at "BUY" Candle Pattern signals (Hammers, Piercing line, Bullish Engulfing, Morning Stars, Morning Doji’s) that are above the SMA , and in Stochastics oversold.
You can choose your own moving average, timeframe, and stochastics overbought and oversold numbers etc.
When using news trading mode in Ed’s Candle Pattern EA you will know exactly when the next trade will be by looking at the news comments on the upper left corner of your chart.
When using news trading mode or news filter mode Ed’s Candel Pattern EA uses news coming from the Forex Factory Calendar:
It will trade high, medium, and low impact news releases associated with any of the above currencies.
High impact news releases are the best news releases for the EA to trade. The default settigns are set up to trade high impact news associated with USD, GBP, CAD, AUD, NZD. (Most of the time high impact news for EUR, CHF and JPY is not worth trading so those inputs are left on false in the default settings). Ed’s Candle Pattern EA can enter a trade pre news, and create a straddle (hedge) that can potentially catch a news spike. Or it can enter a trade after the news spike is over.
Following are only a few random spike trades the EA traded (adjusting the EA to trade fewer, but more probable news spike trades is better then adjusting the EA to trade all day every day….more is not always better, less is more):
The trailing stop allows the EA to follow a spike if there is a strong enough news release with little whiplash. nn
Since Ed’s Candle Pattern EA is now included with Ed’s Price Action EA I set up Ed’s Candle Pattern EA (in March 2013) on the same account as Ed’s Price Action EA.
1. Sign up with a broker (who has MT4 trading platform) after you have a good understanding… Read more…