Hi,
The indicator maybe useful for those that find it hard to avoid ranging markets since those are the times were normally people lost money or at least I did.
I try to find ways to define ranging markets indicators and so on without success. I believe that markets move in trends then stop range and then move again.
The simplest and most accurate way to find those ranging periods is Joe Ross definition of Cluster congestion.
Basically you have 5 candles minimum on the pattern.
The first candle is the "important one" or the reference one.
Then the next 4 (minimum number of candles after the 1st one) candles will close or open <= than the high of the first candle and the 4 candles will close or open >= than the low of the first candle. (The high or low of the 4 candles are not important).
The congestion zone will end when after the 4 candles (or more) a candle will open and close (or close and open) > the first candle high or a candle open and closes (or closes and opens) < the first candle low.
I have created an indicator trough eabuider but is a little crab. It shows and arrow when the formation has taken place but is not very clear.
The perfect situation would be to have an indicator that after the 5 bar pattern draws a line on the high and low of the first candle, the line will continue until the congestion ends
Can someone with programming skills help make an improved version?
Thanks
Kind regards
The indicator maybe useful for those that find it hard to avoid ranging markets since those are the times were normally people lost money or at least I did.
I try to find ways to define ranging markets indicators and so on without success. I believe that markets move in trends then stop range and then move again.
The simplest and most accurate way to find those ranging periods is Joe Ross definition of Cluster congestion.
Basically you have 5 candles minimum on the pattern.
The first candle is the "important one" or the reference one.
Then the next 4 (minimum number of candles after the 1st one) candles will close or open <= than the high of the first candle and the 4 candles will close or open >= than the low of the first candle. (The high or low of the 4 candles are not important).
The congestion zone will end when after the 4 candles (or more) a candle will open and close (or close and open) > the first candle high or a candle open and closes (or closes and opens) < the first candle low.
I have created an indicator trough eabuider but is a little crab. It shows and arrow when the formation has taken place but is not very clear.
The perfect situation would be to have an indicator that after the 5 bar pattern draws a line on the high and low of the first candle, the line will continue until the congestion ends
Can someone with programming skills help make an improved version?
Thanks
Kind regards
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consolidation.mq4
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