A VARIABLE PEAKY (SIXTH INDICATOR WITH VARIABLE CANDLE SIZE)

[billv]

All of us would be familiar with the peaky Indicator, it forms the heart of many EA's used by many traders. I will not go into the theory of the Peaky but basically the indicator divides the chart in 6 sections and we then use these 6 sections to determine our trading direction.

Peaky does the chart splitting by looking back on the chart by the number of bars we have entered in the indicator settings.

This is Ok for most instances but sometimes a currency pair could be ranging for many months
so looking back 500 or 1000 bars could be giving us a small working range and this can be a problem (if we are not aware of it and we don't compensate by increasing the peaky bar number).

The indicator I'm sharing here solves this problem by comparing the number of pips of the 1000bar range against a pre-determined range based on ADR ( the average daily range of a pair). In the indicator inputs I use a multiplier of 33x ADR so for a currency pair which normally does an average of 100pips per day, we will have a range of 33x100=3300 pips.
(If a currency pair is normally doing 50pips per day then the range will be 1650 pips)


HERE IS HOW IT WORKS
The indicator will look at the high and the low of the previous 1000 daily bars and if the pip count is less than 3300 pips, the indicator will advance the daily bar count by 1 and then by 1 more and 1 more until it finds our working range of 3300 pips.
A range of 33 x ADR is a good range but if we want more trades we can reduce it to 22x ADR

The indicator can apply colors to the 6 zones on the chart and it also has the ability to change the chart background (Good for manual trading) so for example if we are in the highest up zone we can have the chart background as dark red (sell only trades). the chart background will change back to normal when price moves outside the extreme zones.

AS AN IDEA, IF WE WERE TO USE THIS INDICATOR IN OUR EA'S, WE COULD USE THE ZONES TO GUIDE THE EA AS TO HOW TO BEHAVE, FOR EXAMPLE, WE CAN INSTRUCT THE EA TO "SWITCH ON" FILL GAP ORDERS ONLY WHEN WE ARE INSIDE THE STRONG ZONES, OR TO STOP PLACING BUY TRADES WHEN WE ARE ENTERING THE STRONG SELL ZONE, OR TO ONLY PLACE GRID STOP ORDERS INSIDE THE STRONG ZONES, ETC ETC ETC

[hopfi2k]

billv,

thanks very much for this - in my opinion - clever variation of the Peaky indicator!

You might consider converting it to a TDESK compatible version (PeakyBuffers) that tomele created. TDESK is the defacto standard that most here are using these days, and a compatible version would attract more people

Cheers,
Andy

[billv]

Hi Andy
Sorry, I'm not involved in the Tdesk project.
I posted this indicator for people who do manual trading and as an idea for your Tdesk based EA's.

[r1ch4rd]

I think it would be a very useful tool in the TDesk Buffer box too (Especially for what I'm trying to achieve with "Sharky"). I tried for several hours to convert Sixths to a buffer and failed miserably, so posted on viewtopic.php?f=106&t=5654 to see whether any of the brainiacs could help us out.
Unfortunately nothing so far.
Thanks for the indi by the way.

[hopfi2k]

@billv,

Just for clarification: I'm not involved in the TDesk project, but using it with great pleasure because its such a fantastic toolset.

I was only suggesting that you might convert your indicator into a version that is compatible for use with TDesk (basically using buffers). Please check out the link in my previous post, they should point into the right direction.

Best,
Andy

[hopfi2k]

Folks,

meanwhile I have written a version of the Peaky Buffer indicator that is compatible with TDESK, incorporating @billv idea. As it is a dirty hack, I'd like to keep it running for one or two days (making sure it is working correctly), but will release it here thereafter. From all I can see, it does calculate the number of bars to look back as it should. Let's keep fingers crossed.

Beers,
Andy

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