Topic: Price action

From time to time I see inquiries about price action as it seems to be the 'buzz word' in trading, especially for the newer and inexerienced people.

Authors and gurus earn a lot of money by teaching 'price action' and some traders do ok following those teachings.

Personally I have not the patience to wait for price action patterns to show up as I am into trading because I need an income.

To solve the dilemma and to make some money, I use FSBPro to search for patterns, and you know, it does an amazing job of finding patterns for me.

I have quite a few patterns - 2, 3, 4, 5 and 6 bar patterns.

I do not have fancy names for them, they each have a number, but they work just as well as the best named candlestick pattern and I can depend on them to always work the same way because they are computed precisely by FSBPro instead of being a subjective creation by some trading guru.

Using the controls on the Acceptance page in Control panel, a person can set the accuracy he requires for the patterns.

FSBPro will generate an infinite number of patterns for whatever time frames required and those can be labelled however a user wishes.

Keep in mind that all indicators and price bars have an arithmetic component and FSBPro is an excellent student of arithmetic, it can calculate all sorts of measurements precisely and produce some great combinations.

Indicators, Indicator names, are just representations of arithmetic applied to one or more price bars.

The program has a gazillion indicators with all sorts of permutations available - allow it to find solutions for you!

What I have said is, 'allow FSBPro to find solutions, use your creative abilities' and your fondest 'price action' dream will be realized.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Price action

here is a 'template' for starting a search for a pattern - note that I have used the lock and chain tool so that FSBPro operates the way I want it to.

I have the Williams in this example, there are many others that can be used or just leave that empty and let FSBPro do all the work.

Jusr experiment and you will find all sorts of patterns and you can set the standards for each using the acceptance criteria in control panel.

And I am so sure....... that this will beat the heck out of any so called 'price patterns' and produce good money for the person that can use this approach to develop  strategies.

I must ask Popov if this is what he intended FSBPro to be used for...  lol


http://s7.postimg.org/si7n5wlon/Dave_M_0158.jpg

Good trading!!

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Price action

One thing further.

You may find, that once you learn to search for patterns properly, that you will not need 12 billion bars of data and 900 indicators, you will need to have only strict standards for your patterns.

Using patterns properly developed in FSBPro will reduce the amount of time you have to spend looking to optimize and it will also make your strategy robust.

Adding ten million bars and 45 indicators to your optimization of a 5 minute chart does not get rid of overfitting, all that accomplishes is wasting your time.

Learn to use FSBPro and it's tools as it was developed and you will have good success.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Price action

HINT

Most of the indicators in the 'Opening Logic' condition section have several options available, such as 'above the line' or 'over the line' or 'crossing the line'.

You can use these to make more sophisticated strategies by applying the logical operator and locking it.

As an example I have taken the Heiken Ashi indicator which has 4 variables and inserted an 'Opening Logic' for each and then locked them.

You are limited from creating patterns only by your imagination.

There is no need to further ponder 'price action' junk as we have far better using the simple tools in this program.


http://s21.postimg.org/8frnwmfbn/Dave_M_0159.jpg

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Price action

Next Hint

Some people will want to use only the  default values of the various indicators so that they get more standard patterns from their generations.

To do that, click on Settings on the Generator screen and check the box that says 'Use Default Numeric Values'.


http://s2.postimg.org/gi0upt6ed/Dave_M_0160.jpg

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

Re: Price action

I suggest that you use one of the many indicators in FSBPro using the chain...... and generate with that for a while and if nothing interesting appears...... use the next one.

FSBPro has so many indicators that you are bound to be able to craete a sufficient number of patterns for whatever time frame and instrument you wish to trade.

This exercise just needs a bit of imagination and patience...... and it will reward you with some great strategies.

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....

7 (edited by hannahis 2015-06-15 11:53:45)

Re: Price action

Thanks Dave for your tutorial smile

What's the difference between lock and chain?

Does the optimiser change the smoothing method (eg. Simple, Weighted, Expo, smooth) and
Base price method (eg. open, high, close, etc).

I want my strategies to remain the same as my original but need optimizer to change the smoothing and base price methods.  Because most of the time the optimizer change the parameters of my original strategies which in my opinion "went against" my trading theory.

Hannah

Re: Price action

Please add your experience or frustrations to the thread so that others might benefit. I do not have any sort of exclusive on ideas... bad or good. lol

My 'secret' goal is to push EA Studio until I can net 3000 pips per day....