ALF revisited - simple, effective daytra (ALF revisited - simple, effective daytra)
Why new thread?
1. The original article (over 1000 posts) is too long - discouraging new participants.
2. The ALF method is improved and simplified here. It will be more effective on different time frames without modifying the indicator settings.
Currency pairs and time frames:
Any pairing, any time frame.
What is ALF?
Adaptive Laguerre Filter - indicator created by John Ehlers. It is an excellent overbought/oversold tool. Ehlers has a free technical paper on his website, titled "Time Warp Without Space Travel," that you can download if you really want to get into the gory details.
Some thread requests:
Let's not talk about redrawing - nothing I post here will redraw any candle other than the current one. period.
Some of you who follow the original thread will want to try comparing the TVI candles in that thread to the fractal candles presented here. Go ahead, but please don't post comparison screenshots in this thread.
Entrances, exits and stops:
Entry Guide:
It is best to trade with the current trend (if there is one). Look at ALF - if it is now significantly higher than the level on the left side of the chart, the trend is up and vice versa. If they are roughly the same, the market is range-bound.
Do not trade when ALF is flat and PA is cycling back and forth within a tight range of ALF (20-30 points or less).
Enter on the open above/below ALF. PA should appear to be moving away from (or peeling away from) ALF, with the candle range increasing from the previous candle line. The only exception is a large move on a candle in ALF - it is better to ambush this rather than wait for the candle to close.
Stopping Guide:
A few pips opposite ALF is usually a good place to place a stop loss.
Exit Guide:
There are 3 possibilities.
1. PA and ALF reconnect. This is a great way to exit a trade where the ALF is bending in the direction of the trade.
2. Another color candle. Optional short trade exit when ALF does not start following PA.
3. You have gained 10-15 points and want to keep it because you have a "feel" for the trade or the market is volatile.
What is Fractal_Candles_SR_v3? What does it measure?
Go here http://ta.mql4.com/indicators/bills/fractal or read Chapter 8 of Trading Chaos by Bill Williams - Fractal_Candles are measuring support and resistance levels as depicted by Williams Fractals. No moving averages involved - just price action.
Bars are colored according to the indicator's expected direction. When bars are not colored, they may be considered "wait and see" bar charts. However, use common sense in dealing with these issues and don't turn victory into defeat.
The indicators and templates are as follows:
Download and copy ALF.ex4 and Fractal_Candles_SR_v3.ex4 to yourmt4/experts/indicators folder, and copy ALF_SR.tpl to yourmt4/templates folder.
If you found this topic interesting and helpful, don't forget to upvote - not to feed my ego, but to attract more participants.
Add alert indicator:
I've added ALF_Alert.ex4 to the attachment. These include email options and the ability to change the text of alert messages. An (optional) arrow also appears when an alert is sent. Arrow colors are also user-definable.
1. The original article (over 1000 posts) is too long - discouraging new participants.
2. The ALF method is improved and simplified here. It will be more effective on different time frames without modifying the indicator settings.
Currency pairs and time frames:
Any pairing, any time frame.
What is ALF?
Adaptive Laguerre Filter - indicator created by John Ehlers. It is an excellent overbought/oversold tool. Ehlers has a free technical paper on his website, titled "Time Warp Without Space Travel," that you can download if you really want to get into the gory details.
Some thread requests:
Let's not talk about redrawing - nothing I post here will redraw any candle other than the current one. period.
Some of you who follow the original thread will want to try comparing the TVI candles in that thread to the fractal candles presented here. Go ahead, but please don't post comparison screenshots in this thread.
Entrances, exits and stops:
Entry Guide:
It is best to trade with the current trend (if there is one). Look at ALF - if it is now significantly higher than the level on the left side of the chart, the trend is up and vice versa. If they are roughly the same, the market is range-bound.
Do not trade when ALF is flat and PA is cycling back and forth within a tight range of ALF (20-30 points or less).
Enter on the open above/below ALF. PA should appear to be moving away from (or peeling away from) ALF, with the candle range increasing from the previous candle line. The only exception is a large move on a candle in ALF - it is better to ambush this rather than wait for the candle to close.
Stopping Guide:
A few pips opposite ALF is usually a good place to place a stop loss.
Exit Guide:
There are 3 possibilities.
1. PA and ALF reconnect. This is a great way to exit a trade where the ALF is bending in the direction of the trade.
2. Another color candle. Optional short trade exit when ALF does not start following PA.
3. You have gained 10-15 points and want to keep it because you have a "feel" for the trade or the market is volatile.
What is Fractal_Candles_SR_v3? What does it measure?
Go here http://ta.mql4.com/indicators/bills/fractal or read Chapter 8 of Trading Chaos by Bill Williams - Fractal_Candles are measuring support and resistance levels as depicted by Williams Fractals. No moving averages involved - just price action.
Bars are colored according to the indicator's expected direction. When bars are not colored, they may be considered "wait and see" bar charts. However, use common sense in dealing with these issues and don't turn victory into defeat.
The indicators and templates are as follows:
Download and copy ALF.ex4 and Fractal_Candles_SR_v3.ex4 to yourmt4/experts/indicators folder, and copy ALF_SR.tpl to yourmt4/templates folder.
If you found this topic interesting and helpful, don't forget to upvote - not to feed my ego, but to attract more participants.
Add alert indicator:
I've added ALF_Alert.ex4 to the attachment. These include email options and the ability to change the text of alert messages. An (optional) arrow also appears when an alert is sent. Arrow colors are also user-definable.
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