blackcat1402

L2 Candle Pattern Scalper

Level: 2

Background

Japanese candlesticks provide more detailed and accurate information about price movements compared to bar charts. They provide a graphical representation of the supply and demand behind the price promotions for each period. Each candlestick contains a central part that indicates the distance between the opening and closing of the security being traded, the area called the body.

Scalping is a trading strategy that aims to take advantage of minor changes in the stock price. Traders using this strategy place anywhere from 10 to a few hundred trades in a single day with the belief that small moves in the stock price are easier to catch than large ones. Traders who implement this strategy are known as scalpers. Lots of small wins can easily lead to big wins if a strict exit strategy is used to prevent big losses.

Function

L2 Candle Pattern Scalper utilizes candle pattern to decide long and short entry signal. It use inherent candles' relationship nearby to judge the market trend is up or down and decide to long or short.

Signal

buysmall --> long entry
exitred --> short entry


Pros and Cons

Pros:

1. its response is fast because OHLC candle is the raw source of market
2. it is suitable for scalping because it studies nearby candles to judge very short term trend change


Cons:

1. Mid-long term change is missing from this indicator, although I use fast and slow lines to indicate the mid-term trend.
2. No stop loss or take profit scheme is introduced.


Remarks

This is promising but need efforts to refine it.

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
Versionshinweise: In order to obey the House Rule, remove the irrelevant MA Cross display.
Versionshinweise: Show colorufl candles to display candle relationship. This need to hide default TV candles in settings to display color candles.
Versionshinweise: Add backtest scheme for this indicator.
NOTE: the backtest setting is not deeply optimized yet.

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Courtesy of @nilux "NLX-L3 Backtest" easy backtest framework for dummies.
Step by step backtest guide with "NLX-L3 Backtest" framework:
STEP1: Add this indicator into your chart
STEP2: Add "NLX-L3 Backtest" into your chart
STEP3: Click "Settings" gear icon of "NLX-L3 Backtest" to select "Select L2 Indicator" in the 1st line as "L2 Candle Pattern Scalper: backtest"
STEP4: Configure your backtest other settings under "NLX-L3 Backtest" framework
STEP5: Click "OK" and view the results in "Strategy Tester" tab
Versionshinweise: based on some request just to display buy and sell labels again. no code change, just change commented lines back to uncommented state.
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"Win$ & Donate w/ This" Address:

BTC / USDT(OMNI): 3DsouvyXoT4T2u8qdWvs9TXVD4hUozAKTc

ETH / ERC20 Coin: 0xfE2240fb97F11d81A324C6d3881de43E09EadEF9

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EOS: blackcatjust

Kommentare

i have transfered your script into strategy but the result was not so good, do you have any suggestion?
+4 Antworten
blackcat1402 Antonio3333
@Antonio3333, could you share me your strategy setting for a check by DM?
Antworten
Guys @blackcat1402 changed the code and now its useless.
I have the original L2 scalp signals in my profile, check it out!
+2 Antworten
blackcat1402 gioelepaduano
@gioelepaduano, Quite frankly, I haven't changed any functional code, just added support for the NLX L3 Backtest framework. Please do not exaggerate the non-existent changes: D
+1 Antworten
Thank you for this script, it does look promising and I've just had a great run with it. However, I'm struggling to get the Sell Alert to trigger correctly. As soon as the label appeared on the graph, nothing happened with the alert, so if I was looking away from my screen, I'd have taken a loss.

I'm wondering what the best settings are to have to trigger the sell alert as soon as possible? Can anyone help?

Thanks!
+1 Antworten
hi sir, is it ideal for small time frame eg. tf5 min?
+1 Antworten
RetroSpock jarodpretender
@jarodpretender, Just tried it on a 5m and made 2% profit within an hour, so I'd say it's pretty sweet. Not done any extensive testing yet, though!
+1 Antworten
jarodpretender RetroSpock
@RetroSpock, ok sir, will try it insyaAllah
+1 Antworten
@RetroSpock, could you post the basic alert setup? as im about to test it out on 5m candles. and just want to make sure im doing it correctly.
+1 Antworten
this no longer works for me it just shows one big line shame i am a huge fan the back test line seems to be what is messing it up also the buy and sell signals are gone plz dont tell me ull make another version with the signals and charge for it in a few weeks like others.. i will never put down another persons hustle but to have them on it originally just to take them off just to add them back onto a locked version ugh.
+1 Antworten
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