[firewight]

Heya guys, I have been playing with an idea on capturing market sentiment by counting candles, yes I know it sounds weird, but apparently it works. The idea is used by a trader who used to do a lot of casino gambling, and he put a spin from that into forex trading...

The idea being, for every bullish candle, you add +1 to the count, and for every bearish candle you add -1 to the count. On very extended moves, the count becomes quite high, with a count of +/- 10 or more indicating a larger correction will occur soon.

In this example the count was started at the most recent swing high. As you can see even though the count got to -4 it naturally keeps fairly low by the ebb and flow of the market.

counting.JPG

It would be great to have an indi that can automate this. I am testing it on the H1 as this is what the originator is using, however it would be good to use on any TF.

He also says he sometimes resets the count every 24 hours, so having a start period setting would also be nice.

Any ideas?

Cheers!

[Geko]

Hi, I hope you are well,

It shouldn't be too difficult to code, the question now are:

- what is an extended move with this concept ?
- when to reset the count (session's open are probably not the best timing, maybe an hour before session's open for intraday count ?).

Best,
G

[firewight]

Hey buddy, I hope you're doing well!

The originator of this idea told me the count naturally resets itself over time. (See snip below from Tweeter)

Capture.JPG

However we need a start period, which would probably be the daily open. And perhaps have an option to reset the count to the new daily open for each day when the chart/platform is reloaded, OR, continue the count from the previous day (it would then need to fill in the gaps from the last counted candle to the current candle)...

It is a little subjective and I dont really have a definitive answer as you can see from his reply above...

Open to any ideas on this.

Cheers!

[firewight]

- what is an extended move with this concept ?

Sorry I missed this question!

Its basically using a counting method to determine if the market is overbought or oversold, and due for a pullback that you could profit from. Apparently when the count gets high like +/- 9 or 10, it is statistically higher that you can profit from a reversal. No I dont have the statistics I am just quoting what the guy was saying, however he makes a ton of profit so there must be something to it lol!

I believe it is based on the old saying "the odds are in your favour" rather than any form of technical analysis...

[firewight]

Heres an updated look at the count

Starting from 0, add +1 for green bars and -1 for red bars, these often cancel each other out leaving mostly a trending run to accrue into higher figures.

The numbers above the candles is the running tally, NOT what I am adding or subtracting.

Capture.JPG

[Geko]

Sorry I missed this question!

Its basically using a counting method to determine if the market is overbought or oversold, and due for a pullback that you could profit from. Apparently when the count gets high like +/- 9 or 10, it is statistically higher that you can profit from a reversal. No I dont have the statistics I am just quoting what the guy was saying, however he makes a ton of profit so there must be something to it lol!

I believe it is based on the old saying "the odds are in your favour" rather than any form of technical analysis...

Ok clear,

I was misunderstanding, I tought that on big candles (extended moves) instead of +/- 1 he was giving a +/- 10.

It is like counting cards at blck jack

[Geko]

Heres an updated look at the count

Starting from 0, add +1 for green bars and -1 for red bars, these often cancel each other out leaving mostly a trending run to accrue into higher figures.

The numbers above the candles is the running tally, NOT what I am adding or subtracting.

Capture.JPG

Sounds quite interesting I will definitely have a look at it, I really like when it is so "simple".

I will be out a part of the day tomorrow, I will try to start something when I will be back.

What about coding it directly into Blast ?

[firewight]

Ok clear,

I was misunderstanding, I tought that on big candles (extended moves) instead of +/- 1 he was giving a +/- 10.

It is like counting cards at blck jack

Its very much like counting cards, and from what understand this is where the idea originated ;)

[Geko]

I have just started coded it in Blast:

2017-11-09_1301.png

Just a few things to adjust and then I upload it it shouldn't be long.

[firewight]

Ahh so its not stand alone?