this is one of my favorite scripts as it represents a whole trading system that has given me very good results! I have only used it on Bitcoin so far but I am sure it will also work for other instruments.
The original code to this was created by LazyBear, so all props to him for this great script! I have linked his original post down below.
Here is a short summary of the rules: Go long when (all conditions have to be met):
The green line is above 50
The green line is above the red line
The green line is above the orange line
The close is above the upper Band of the Price Action Channel
The candles close is above its open
(The green line is below 68)
Go short when (all conditions have to be met):
The green line is below 50
The green line is below the red line
The green line is below the orange line
The close is below the lower band of the Price Action Channel
The candles close is below its open
(The green line is above 32)
Close when:
Any of these conditions aren't true anymore.
I have marked two of the rules in brackets as they seem to cut out a lot of the profits this system generates. You can choose to still use these rules by checking the box that says "Use Original Ruleset" in the options.
The system also contains rules regarding the Heiken Ashi bars. However these aren't as specific as the other rules. This is where your personal judgement comes in and this part is hard to explain. Take a look at the PDF I have linked to get a better understanding.
So far, this is just the TDI trading system and LBs script, now what have I changed? I have incorporated the Price Action Channel to the system and changed it so that it highlights the bars whenever the system is giving a signal. As long as the bars are green the system is giving a long signal, as long as they are red the system is giving a short signal. Keep in mind that this doesn't consider the bar size of the HA bars. I recommend coloring all bars grey via the chart settings in order to be able to see the bar highlighting properly. I have also published the Price Action Channel seperately in case some of you wish to view the Channel.
I am fairly new to creating scripts so use it with caution and let me know what you think!
Thanks for the thumbs up guys! Two additional remarks to this:
From my experience this works best on daily charts. Be careful when using intraday.
Bitcoin often tends to make extreme moves that snap back really fast. Sometimes the system takes a little bit long to give a close signal in such an occasion. I highly recommend always using take profit targets with this system. I got the best results by using fib extensions to determine targets. I learned how to do this by using this post from David Alcindor:
From my experience this works best on daily charts. Be careful when using intraday.
Bitcoin often tends to make extreme moves that snap back really fast. Sometimes the system takes a little bit long to give a close signal in such an occasion. I highly recommend always using take profit targets with this system. I got the best results by using fib extensions to determine targets. I learned how to do this by using this post from David Alcindor: