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Thread: Directional Filter

  1. #1

    Default Directional Filter

    Would anybody know how to code an indicator that analyzes the first 60 mins of trading in the US session?

    The method involves taking the HIGH and LOW of the first 60 mins of trading in the US session and using the MEAN of that range to produce a Average Price. The price action over the 60 min period is then analyzed with respect to the Average Price. If a greater percentage of the price action is ABOVE the Average Price the indicator displays TREND UP (the price action is expected to trend higher for the remainder of the day). If a greater percentage of the price action is BELOW the Average Price, the indicator displays TREND DOWN (the price action is expected to trend lower for the remainder of the day). If the price action is equally (45-55%) HIGHER and LOWER than the Average Price, the indicator displays RANGE (the price action is expected to be choppy for most of the day)

    This indicator is meant to be used as a filter. If the indicator displays TREND UP, only LONG positions will be taking for the session, and visa versa for TREND DOWN. If the indicator displays RANGE, a choppy action is expected and strategies modified accordingly.

    Regards,
    M.

  2. #2
    Administrator funyoo's Avatar
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    Can you use screenshots to explain this. I don't see exactly what you mean.

  3. #3

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    In the attached picture, you can see the two vertical lines representing the first hour of trading. The two horizontal lines represent the range of that first hour. The white dotted line is the mean of that range.

    The price action in the first hour is equally above and below the first hour's mean (white dotted line) and therefore you can expect choppy price action for the remainder of the day. This filter would allow, with an above average success rate, the trader to determine the suitability of his/her selected strategy for the expected price action for the remainder of the session.

    Regards,
    M.
    Attached Images Attached Images Directional Filter-directional-filter-gif 

  4. #4
    Administrator funyoo's Avatar
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    It is a really interesting filter. I have tried some things. Unfortunately it doesn't seem to work. Maybe a more experienced programmer will be able to do it.

  5. #5

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    Thanks for trying!!!

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average, high, how to, indicator, low, price action, programmer, strategies, strategy, trader, trading, trend

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