I have an expert advisor which I use to trade forex.
Though it's coded well for cci, it doesnot work right in the price action channels part.
The modification needed is as follows:
EA should take BUY trades when price crosses the lower band of the channel,then if it recrosses back on the same lowerband close and reopen in the opposite direction.
If price crosses both the channels that's a trend and the buy trade should continue untill it crosses back the upperband of the price action channel.
Again if price roams between two channels ;
for example if price enters( buy )lower band then crosses the upperband but returns back trade should be closed and a sell trade should be opened and if trade cuts short between the lower band and does not cross the trade should be closed .
TO BE CLEAR ON THE CONCEPT;
WHENEVER PRICE CROSSES LOWERBAND FROM BOTTOM IT'S A BUY.
WHENEVER PRICE CROSSES UPPERBAND FROM TOP IT'S A SELL.
IF AFTER ENTRY PRICE FLOATS BETWEEN THE LOWERBAND AND UPPERBAND ON PRIVE REVERSAL TRADES SHOULD BE CLOSED ACCORDINGLY.
when price crosses both the bands from bottom lowerband then crossing upperband it's a trend and buy should be maintained.(only on price reversal the trade should be closed and reopened in opposite or trend direction).
prices above both the bands are buy and prices below both the bands are sell-this is the general logic of price action channels.
The EA has already been coded but the opening and closing are not perfect as meant.
MAIN INCLUDE THESE FEATURES;
AN INDICATOR CALLED DAILY OPEN LINE.
TRADES SHOULD BE OPENED ON THIS PARAMETER ;
IF PRICE ACTION CHANNELS OR CCI ARROW ARE ABOVE THIS LINE TAKE BUY TRADE.
IF PRICE ACTION CHANNELS OR CCI ARROW ARE BELOW THIS LINE TAKE SELL TRADE.
general condition:Take trades when prices are above 18 sma and 34 sma . provide this in the ea so that we can enter any parameter in the EA field.
TO SUM UP;
price action chnannels needs to be rectified already it takes trades but does not intend to work as described.
trade entry based on daily open line;This is a entry and exit [url removed, login to view] this line can have many crossings in a [url removed, login to view] there will be varied [url removed, login to view] this helps to analyze whether the trades are taken in asserted [url removed, login to view] indicator needs a field and as described trades should be taken or reversed on this indicator solely using any indicator combinations., like sma input fields like
If prices are above sma 18 take a buy trade and the daily open line is below both prices and 18 sma or 34 sma (-here make the input field whatever parameter we fix.)
IF PRICES ARE BELOW SMA18 OR 34 AND THE DAILY OPEN LINE IS ABOVE BOTH THE SMA that trade can be treated as a sell trade.
The daily open line indicator can be used as a true or false option.
But prices below or above 18 and 34 sma can be traded independently set this function in the ea field to TRUE OR FALSE [url removed, login to view] if price is above 18 or 34 sma trade should be buy -if this rule is violated trade should be cut and reopened as going below both sma is a sell ,.whenever a sell or buy rule is violated please close and reopen. PRICE above sma is buy and below sma is [url removed, login to view] IS THE BASIC RULE.
using the above two moving averages and daily open line indicator as options in the EA field is [url removed, login to view] can input any fields as determined.
ma functions ,daily open line functions can be used in co-ordination so the fields should be [url removed, login to view] true or false to be choosen to use eigther of indicators.
That's all with the project.