Topic: Indicator conversion request: BBsqueeze indicator

I found a useful indicator and I hope that someone will port this into FST/FSB

Please read more information about the indicator:
http://www.tradethemarkets.com/products/item5.cfm
http://codebase.mql4.com/ru/1206
http://codebase.mql4.com/3389

http://s2.postimage.org/wsxmf6hw/sshot_3.jpg

Post's attachments

bbsqueeze.mq4 4.93 kb, 32 downloads since 2011-04-15 

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Re: Indicator conversion request: BBsqueeze indicator

Hi Zenoni,
try this one attached, it should match the MT 4. It does not have dots, but it has a blue line in front of the histogram. If it's over 0, it is a green dot; if it under 0, it is a red dot. The last number parameter you can change the height to make it clearly visible.

I don't know what the dots are called, I am using "Fire" because I saw that in the ForexFactory thread.

There should be enough logic cases to cover most permutations, eg:
                "The BB Squeeze is higher than the level line and Fire is on",
                "The BB Squeeze is higher than the level line and Fire is off",
        "The BB Squeeze is lower than the level line and Fire is on",
                "The BB Squeeze is lower than the level line and Fire is off",
        "The BB Squeeze is higher than the level line",
        "The BB Squeeze is lower than the level line",
        "The BB Squeeze rises and Fire is on",
        "The BB Squeeze rises and Fire is off",
        "The BB Squeeze falls and Fire is on",
        "The BB Squeeze falls and Fire is off",
        "The BB Squeeze rises",
        "The BB Squeeze falls",
        "Fire is on",
        "Fire is off",
        "Draw only, no Entry or Exit signals"

so you can choose if you want to use the BBSqueeze with the Fire, the BB Squeeze alone, or the Fire alone (then it is a NonDirectional Oscillator, like ADX).

The values should match what you get in MetaTrader; I did a quick test with EURUSD, they seemed to match for me.

I have not tested with FST.

Please advise if you find bugs, like the values don't match, the logic does not enter or exit correctly, get errors with the Optimizer, Generator, etc, I'll try to fix it. Let me know how it goes.

Post's attachments

BBSqueeze.cs 26.2 kb, 79 downloads since 2011-04-30 

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3 (edited by SpiderMan 2011-08-03 23:17:52)

Re: Indicator conversion request: BBsqueeze indicator

How do I put this into strategy builder to trade both long and short? If I am going long then I would use "The BB Squeeze rises and Fire is on". Since FSB does the inverse for going short does it automatically use   "The BB Squeeze falls and Fire is on" logic?

Re: Indicator conversion request: BBsqueeze indicator

I think that's right, I'm fairly sure it will be rises/falls + on, or rises/falls + off, not rises+on/falls+off. Let me expand on the logic conditions, I'm pretty sure it's:

"The BB Squeeze rises and Fire is on",
Long = squeeze rises, fire is on
Short = squeeze falls, fire is on

"The BB Squeeze rises and Fire is off",
Long = squeeze rises, fire is off
Short = squeeze falls, fire is off

"The BB Squeeze falls and Fire is on",
Long = squeeze falls, fire is on
Short = squeeze rises, fire is on

"The BB Squeeze falls and Fire is off",
Long = squeeze falls, fire is off
Short = squeeze rises, fire is off

Sorry for the confusion, it's really 2 indicators in one. The BB Squeeze is directional, it will go up and down with price, like a moving average or MACD. The Fire is nondirectional, so if there's enough movement it goes up, not enough it goes down, like the ADX.

I didn't really understand it, I tried to keep it close to the original. It was something about Bollinger Bands squeezing in on a Keltner Channel, and it had to squeeze to some minimum proportion to turn on the Fire.

5 (edited by SpiderMan 2011-08-04 06:09:14)

Re: Indicator conversion request: BBsqueeze indicator

That looks correct, although you only really need one condition to look for which is when a red dot is followed by a green dot (fire changes to green). This means that the volatility is expanding. You then take the trade in the direction of the momentum which is the slope of the histogram. The BBsqueeze is really the dot and the histogram is momentum so to be correct I think your logic should be:-


"The momentum rises and Fire changes to off",
Long = momentum rises, fire is on and changes to off
Short = momentum falls, fire is on and changes to off

fire on being red and fire off being green

I have looked at this indicator before and spent lots of time trying to make it work. The BB squeeze is a great indication of a pent up breakout. The hard part is trying to determine which way it will break out. So often it moves one way and then bounces right back in the opposite direction.  You can actually see that on the image that zenoni posted with the second red dot. The price moves higher after the 'fire' is on and changes to green but the momentum is down. After a few bars the price continues it's trend. This might work well in a scalping type of trade.

Re: Indicator conversion request: BBsqueeze indicator

Any chance of adding the logic "fire changes from on to off" ?

Then I could add other indicator to try and get the direction. The important part is the fact that it has changed not what colour it is.

Thanks

Re: Indicator conversion request: BBsqueeze indicator

SpiderMan wrote:

Any chance of adding the logic "fire changes from on to off" ?

Then I could add other indicator to try and get the direction. The important part is the fact that it has changed not what colour it is.

Thanks

Ok, I see what you mean, yes, I think I could add that. I'll see about adding "fire changes from on to off" and "fire changes from off to on".

Re: Indicator conversion request: BBsqueeze indicator

How about this version -- here's a screenshot -- it is for the bar when fire changes from on to off. It allows long or short entries.
"Fire changes from on to off":
- only in the bar of change; subsequent off bars are no change thus disallowed

"Fire is off":
- in the bar of change, and subsequent bars (eg, fire is off)

In the screenshot, it shows the expected behavior for "Fire changes from off to on", meaning allow only on the bar of change.

Let me know if this was what you were hoping for, or if not try to describe what it should be. Sorry if this takes a few attempts, and thanks for your patience -- it takes a few iterations and examples to get the request as intended.

http://s3.postimage.org/i1xoimv8/Fire_On_To_Off.jpg

Post's attachments

BBSqueeze1.cs 27.48 kb, 69 downloads since 2011-08-04 

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Re: Indicator conversion request: BBsqueeze indicator

Thanks, I'll run some tests and report back.  smile

Re: Indicator conversion request: BBsqueeze indicator

Krog, what does the "fire line" value do?

Re: Indicator conversion request: BBsqueeze indicator

SpiderMan wrote:

Krog, what does the "fire line" value do?

The "fire line" the blue line corresponds to the red and blue dots in the BB Squeeze MQ4 indicator. FSB does not have dots for the separated chart, so this was a workaround -- if the line is in the up position (over 0), it's on; if it's in the low position (under 0) it's off.

The "fire line" parameter adjusts the height of the blue fire line on the chart, on top of the histogram. It does not affect the indicator values or signals, it's only there to help make it more visible. Some people may want it short, so it does not distract from the histogram; some people may want it tall so it's very clear when it changes between on and off. Or sometimes the lower chart may scale differently for different charts, making it hard to see. This way, with a parameter, the user can set it himself to the  height he finds most helpful.

If you run the Optimizer, best to uncheck this parameter so it doesn't waste time cycling through it. I don't think there's a way to uncheck it for the Generator though.

Re: Indicator conversion request: BBsqueeze indicator

FSB does not have dots for the separated chart...

It's not difficult to add more chart types. We need a screen shot and a proper indicator.

Re: Indicator conversion request: BBsqueeze indicator

SpiderMan wrote:

Thanks, I'll run some tests and report back.  smile

The fire on fire off indicator works fine, the only problem is I can't find a strategy that works well. This is one of the best but it is too optimised to be of much value. Maybe someone else can improve on it.

http://img155.imageshack.us/img155/8038/snap20110816223323004.png

http://img155.imageshack.us/img155/8038/snap20110816223323004.png