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Simple Correlation Indicator System

  • #141
  • Edited 9:43pm Jun 16, 2016 9:11pm | Edited 9:43pm
Here is a great example of using the correl8 indi in conjunction with Synergy startegy.

Using the 15M as the longer-term TF signal, I wait for a simple cross, which happens after a touch at the S1 support Pivot Point. Now I wait for a signal on the 5M, which comes soon after.

Good separation with combined values of +61 so I enter long. Target is next PP, which is the Daily. It hits this in half an hour for a profit of around 60 pips.

I could have entered earlier from a previous signal on the 5M chart - there was good separation. I got in a little late.

If I didn't use the Synergy TDI method here, I may have gotten in earlier and still won, but there is not as much information available to me and it could have easily gone the other way. So really, I am just following the Synergy Strategy, using the correl8 indi as my entry signal.

EDIT: Added a second screenshot to show a different template example on my second screen. I have removed the TDI indicator and added the correl8 indi for the H1 instead, which clearly shows the cross on the higher TF happening around the same time as we are getting all these signals on the lower TF's. This is just more ammunition for us to confirm our long trade decision.

So basically I am looking for underlying trend strength from the longer-term time frame/s, and then use my short-term TF showing the TDI and the correl8 indis for my entry.

For this long entry example, I place my TP at the next Pivot above my entry, and place SL just beyond the PP or recent swing point below my entry.
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  • #142
  • Jun 16, 2016 9:13pm Jun 16, 2016 9:13pm
Quoting Darryl
I'm a very simple trader, don't use a stop loss. Don't want to get stopped out. Just patiently wait for the price to move down near my target. I hope the chart I've posted helps. I'm not very good at teaching except for someone sitting next to me infront of the monitor. {image}
Really glad to have you with us Darryl, thanks for posting your trade example and indis / template for others to try out.

I am a fan of the Synergy average price bars also, they tell you a lot of information; more than just basic candles can.
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  • #143
  • Jun 16, 2016 9:15pm Jun 16, 2016 9:15pm
Quoting kiralytommy
You can solve the suffix problems here in the code. My suffix was "-ECN". After change, press Compile button. {image} {image}
Thanks for your input here; I hope it is helpful to those experiencing this issue.
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  • #144
  • Edited 1:10am Jun 17, 2016 1:00am | Edited 1:10am
It seems there is a case to consider using the Synergy volatility indicator.

One thing I need to keep reminding myself as I continue striving to perfect this strategy, is that I don't need this system to catch EVERY move, but I am hoping it will catch every SUSTAINABLE move.

Currently on the EU 5M chart there looks to be the start of a nice downtrend. The TDI agrees, and the 15M chart correl8 signals a sell also...do I take it?

The H1 correl8 is still showing a buy signal, and on the 5M chart, the Synergy volatility indicator shows a lack of volume. Also, it is late in the day during the Asian session, so volume is going to be down.

So I will stand aside until all 3 time frames agree and I see the volatility indicator start to pump. EDIT: Settings for the volatility indicator for the EU are stock standard with one exception - i.e. Level is at 0.0005.
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  • #145
  • Jun 17, 2016 2:23am Jun 17, 2016 2:23am
Quoting kiralytommy
You can solve the suffix problems here in the code. My suffix was "-ECN". After change, press Compile button. {image} {image}
Hi. My suffix is also ECN. On the screenshot you have posted, are those the only places where you have to add the suffix or are there other places too? Thanks.
  • #146
  • Jun 17, 2016 3:39am Jun 17, 2016 3:39am
Quoting kiralytommy
You can solve the suffix problems here in the code. My suffix was "-ECN". After change, press Compile button. {image} {image}
Sorted out the problem using your solution. Thank you very much.
  • #147
  • Jun 17, 2016 5:45am Jun 17, 2016 5:45am
Quoting bhanugopal
{quote} Sorted out the problem using your solution. Thank you very much.
bhanugopal I am so happy you have resolved this issue; now you can get into this and see whether this works for you. I hope you find what you are looking for in here.
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  • #148
  • Jun 17, 2016 7:34am Jun 17, 2016 7:34am
Quoting bhanugopal
{quote} Hi. My suffix is also ECN. On the screenshot you have posted, are those the only places where you have to add the suffix or are there other places too? Thanks.
Just these two places.
  • #149
  • Edited 9:09am Jun 17, 2016 8:55am | Edited 9:09am
EURUSD live trade. Got in a little late - was getting a cup of tea and missed the signal.

H1 great separation, same on 15M, got in 1 candle late on the 5M. Targeting Monthly Pivot. If combined line values on the 5M drop < 52 at the close of any 5M candle I will close trade early.

A great example of confluence - TDI popped above the midline, volatility popped out of its' shell, and all 3 time frames showing great separation.

This works folks.

EDIT: Additional screenshot showing TP hit within 8 candles. A nice setup and a great result.
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  • #150
  • Edited 9:41am Jun 17, 2016 9:17am | Edited 9:41am
XAUUSD Live Trade.

USD showing weakness across the board, so taking a long on Gold. Ambitious target at next resistance line around 1303.65 but let's see how this goes.

Entered trade just after the break above the Daily Pivot. H1, 15M and 5M all showing great separation, TDI indicating long signal and volatility strong.

EDIT: Closed trade due to strength separation dipping down to around 28 at close of 5M candle...a nice win though...now waiting for next buy signal to see whether this move will continue.

Question: Why am I closing out the trade when everything points to a continuation to the long side?

Answer: There is no guarantee the trade will continue long. Lock in profit while it is there. IF there is another signal, jump on board. But greed never served anybody well, so take profit while it is available, and wait patiently for the next signal.
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  • #151
  • Jun 17, 2016 10:28am Jun 17, 2016 10:28am
Quoting kirkleaforex
EURUSD live trade. Got in a little late - was getting a cup of tea and missed the signal. H1 great separation, same on 15M, got in 1 candle late on the 5M. Targeting Monthly Pivot. If combined line values on the 5M drop < 52 at the close of any 5M candle I will close trade early. A great example of confluence - TDI popped above the midline, volatility popped out of its' shell, and all 3 time frames showing great separation. This works folks. EDIT: Additional screenshot showing TP hit within 8 candles. A nice setup and a great result. {image} {image}...
Hi kirkleaforex, This is my EURUSD 15m chart , but my correl indicator looks different from yours. Is there something wrong with my settings?
Thanks in advance
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  • #152
  • Jun 17, 2016 10:28am Jun 17, 2016 10:28am
Really nice down move on XAUUSD after my initial long trade, but as I am not interested in countering the longer term time frame I am not taking advantage of this.

I do have an idea for countering however, which I will share here, for the benefit of those who are into doing this.

The logic is as follows:

- Long-term time frame combined values start to narrow, and if, AT ANYTIME during the candle formation, the lines converge so that the combined value falls below a variable i.e. "10", then start to examine the medium and short term time frames for the signals to enter a counter.

LInes that display convergence suggest that there is a shift in strength, so why wait until a cross is confirmed? By waiting until the longer term TF is closed, you may have missed out on the trade opportunity that already presented on the 15M and 5M.

This functionality is being built into the EA, and the variable "10" will be a user input field so different values can be tested.

Like I said it's an idea...it may or may not be viable, but on face value it seems worth testing at least. I will try to post a screenshot example to illustrate.
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  • #153
  • Jun 17, 2016 10:31am Jun 17, 2016 10:31am
Quoting kasrafx
{quote} Hi kirkleaforex, This is my EURUSD 15m chart , but my correl indicator looks different from yours. Is there something wrong with my settings? Thanks in advance {image}
Hi there...if you mean the many "level lines" that dot their way across the indicator window, then yes, you can delete some or all of these in the settings area, in particular, the "Levels" tab.

See screenshot. I have deleted all but the "0" level.

Has this answered your question? Or do you mean the individual line values painted just to the right hand side of the lines? If you are after the line values, then download the "correl8_TRO_MODIFIED" indicator version and try that one.
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  • #154
  • Jun 17, 2016 11:06am Jun 17, 2016 11:06am
Screenshot example of trading when longer term TF strength is close to "0" (equal), before an actual cross. I interpret this as a sign that there is indecision in the market, which may or may not mean a change in direction, so I am okay with taking a trade on the next available signal/s that occur on the 15M and 5M charts, regardless of direction.

See screenshot example showing the EU, the H1 as the longer term TF, the 15M as the medium term and the 5M as the short term entry signal TF.

If we were to wait until the end of the hour for the longer term TF to cross and give a signal, we would have missed the signals 10 minutes earlier that could have given us a quick 20 pips over two 5 minute candles.

In addition to the 15M and 5M signals, we see the TDI offer up a sell signal, and the volatility spikes up, so let's take advantage of the signal rather than wait for a cross that may or may not even happen at the end of the hour.

The example is only a quick scalp, so not the best example to give, but it illustrates the point that if there are pips on the table, it's worth examining ways of collecting them. Take advantage of indecision and take the next train to pipsville!
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  • #155
  • Jun 17, 2016 12:18pm Jun 17, 2016 12:18pm
You got it, kirkleaforex. This is basically the combination I have to trade pairs.

You have several systems in one:
- See the picture in different timeframes (the famous triple Screen of Alexander Elder). Entry in the short timeframe ONLY in the direction of the long timeframe.
- A good and simple entry system ( I think TDI has very good signals)
- A method to define the strengh for every currency (in this case I have seen that iCorrel seems to be a good indi). You can filter entries and do not enter in false due to a pullback.

With all that if you apply a good money management and know to manage bad entries, you have a Good System.

NOTE: A Good System is not a Holly Grail (Holly Grail doesn't exist). Is it possible to win in the long run also doing bad entries (by management) but we need to accept to lose in same trades. There's no system with no losses. Losses are part of the game. We only need to win more than we lose or that wins are bigger than the losses. Simple
  • #156
  • Edited 1:20pm Jun 17, 2016 12:49pm | Edited 1:20pm
Quoting kirkleaforex
{quote} Hi there...if you mean the many "level lines" that dot their way across the indicator window, then yes, you can delete some or all of these in the settings area, in particular, the "Levels" tab. See screenshot. I have deleted all but the "0" level. Has this answered your question? Or do you mean the individual line values painted just to the right hand side of the lines? If you are after the line values, then download the "correl8_TRO_MODIFIED" indicator version and try that one. {image}
Thanks kirkleaforex for your reply,I mean my indicator shows something different from your indicator. compare it with your EURUSD 15m chart. I changed the broker and the problem fixed , although the charts were the same. I don't know how the broker can affect the indicator to show something differrent !
  • #157
  • Jun 17, 2016 5:00pm Jun 17, 2016 5:00pm
Quoting kasrafx
{quote} Thanks kirkleaforex for your reply,I mean my indicator shows something different from your indicator. compare it with your EURUSD 15m chart. I changed the broker and the problem fixed , although the charts were the same. I don't know how the broker can affect the indicator to show something differrent !
I know, how peculiar! And you have checked the settings to ensure they are identical in both instances? We can't expect people to go around changing brokers every time an indicator doesn't work as expected...I am confused...I will look into it a bit more.
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  • #158
  • Jun 18, 2016 3:09am Jun 18, 2016 3:09am
Quoting kirkleaforex
{quote} I know, how peculiar! And you have checked the settings to ensure they are identical in both instances? We can't expect people to go around changing brokers every time an indicator doesn't work as expected...I am confused...I will look into it a bit more.
Is there anyone reading this thread than can highlight possible reasons why some people have a different indicator readout when using a different broker?

I have tested this on 3 brokers that I have demo accounts with, and although I can see minor differences in the price action, the indicator display is not that different from each other.

I am aware that different brokers have different data feeds based on their own arrangements with different liquidity providers and so on, and also brokers GMT server times will be different which does throw off certain time frame displays, i.e. H4 and D1 charts' candle formations may appear different between brokers, but the example provided here by kasrafx is just staggering! How is anyone supposed to trust what's happening on the screen when they are getting entirely different information thrown at them?

Any help offered to clarify and / or rectify this issue will be greatly appreciated!

kasrafx - if you are able to at least continue testing this out on the broker platform that does show the same signals that I am showing, then please continue along with us. FYI I am using Pepperstone as my preferred broker, and highly recommend their services to anyone interested in a true ECN broker that has high liquidity, lightning fast execution, low slippage, great spreads and awesome customer service.
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  • #159
  • Jun 18, 2016 3:58am Jun 18, 2016 3:58am
Maybe I'm wrong but I've too noticed differences between brokers, although it was with another indicator. I narrowed the problem to the quantity of ticks received. This is I guess different from broker to broker and can affect the indicator's "decision". The solution was to base the indicator on the OnTimer event, while OnCalculate just provides its parameters. Not sure it works the same for you. My indicator is a kind of iBulls() & iBears(). But as the correlation indicator calculates from prices of several currencies, they may be not received at the same time (I mean at the same tick) for all brokers. So the OnTimer would be more appropriate.
Or at least checking for NewBar and calculating only on new bar. I looked at the code from the first post, is the actual version still not checking NewBar()?
  • #160
  • Edited 4:41am Jun 18, 2016 4:15am | Edited 4:41am
Hello kirkleaforex,
I just discovered your thread a few days ago via Darryl, to whom I'm indebted for his contributions to this thread and the High Flying Trading thread. Thanks for your work here. I'm hoping the correl8 indicator will help me refine my current strategy on the Daily and 30m charts, where currently I'm not interested unless I see a candle that closes beyond the PAC and is the 3rd tap on a 3-tap trendline, or there is distinctive reversal PA. After years of not "getting" the TDI in the way others have with crosses, I now only use it to see if price has moved beyond the 50 line, where the majority of a trend occurs (a 34ema on the main chart approximates to this), for divergence and hidden divergence, and using likica's (to whom I'm also indebted and her "TMS for m30 charts" thread) rule of NOT taking buys if the green is below the 32 and NOT taking sells if the green is above the 68.
Regards,
Kanderpro
Thanks for your help, warmth and straight talking Heather.
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