DnB Chart Info + Breakout Alert tool

[TheForexGuy]

Hey guys,

As promised in this week's commentary, here is the indicator I programmed to alert me when a breakout is about to trigger after a breakout trap has occurred.

It also displays time left until candle close, the spread in points (not pips) and the tick value needed to calculated lot sizing properly.

The breakout indicator will alert you on MT4 when it detects a failed breakout of either the previous candle high or low and throws up the alert when the current open candle has retraced 90% back the other way. This gives you time to place an order if you want to.

This is for War Room members only, please keep it to yourselves.



For those who are not sure where the file goes, you just need to navigate to your mt4 installation folder and then place it in the /experts/indicators folder. Restart your mt4 terminal and when you open it back up you should see it in your custom indicators tab on the left.

 

[sergiel]

Thank you very much

 

[lingsbord]

Thanks for that !

 

[foxmajster]

thanks, gonna try it

 

[blackpele]

DnB I have a couple questions for this indicator,

1) The bottom line of the indicator says '$ you want to risked' if we have a trading account in Euros, what we should do?

2) In order to find the stop loss size in points, do we have to divide the stop loss in pips by 10, f.e. 100 pips is 1k points?

3) In indexes and oil, do we have to do any different calculations?

Thanks.

 

[TheForexGuy]

1) The bottom line of the indicator says '$ you want to risked' if we have a trading account in Euros, what we should do?

I am not sure about this, my accounts have always been in USD. Does 1 full lot on your account = 100, 000 euros? What point value does the indicator return for EURUSD?

In order to find the stop loss size in points, do we have to divide the stop loss in pips by 10, f.e. 100 pips is 1k points?

You're overcomplicating the process. 1 point is the smallest increment the market can move at a time, on 5 digit brokers it's 0.00001 on most pairs.So you work out the difference between your entry price and stop loss price, that's going to leave you with a decimal value. Times that value by smallest point increment on the chart to get the total point distance.

For example;
Entry price is $1.38000 and stop price is 1.39000. The difference is 0.01000. The smallest increment is 0.00001 so (1.39000-1.38000)*0.00001 = 1000 points.

You wanted the maths there it is, but all you need to do is get the cross hair tool on MT4, click and drag which will make it act like a ruler. The tool will show 3 values, the middle value is the amount of points measured. So I use this to quickly measure up point distances for stop loss sizes, very quick and easy.

In indexes and oil, do we have to do any different calculations?

You've got to be careful because I've found that the broker doesn't return the correct point value for stocks and some commodities. What you can do is open up a demo account and place an order in at 1 full lot. Go to the window down the bottom where your trades are, right click and select profit and change to points.

Take a screen shot so you've got static values, then what you do is divide the trade profit by the displayed points. This will give you the point value so you can be sure.

There is nothing wrong with the indicator, it's just for some reason the broker doesn't return the right value for some commodities and stocks, but it works fine for currencies, and spot gold n silver.

 

[blackpele]

Thanks for the detailed answer Dnb, the tick value that the indicator shows for EUR/USD is 0.7582, which I think is correct because the pair's current price is 1.31897, so 1/1.31897=0.7582
Also 1 lot is 100,000 euros.

The point value of Oil is $10 in Alpari, so the indicator shows the correct tick value, however in $, so I have to multiply it by 0.7582, same applies for the Dow($5).
What I found a bit difficult is the calculation of the Lot size in S&P 500, because Alpari has a 0.25 icrement
<a class="postlink" href="http://www.alpari.co.uk/products/cfds-contracts-for-difference/index-specifications" onclick="window.open(this.href);return false;">http://www.alpari.co.uk/products/cfds-c ... ifications</a>
so basically you have to take the number of ticks that your stop loss have( shown by the cursor), divide them first by 10, then multiply them by 4 and that is your true stop loss ticks that you have to use.
Of course I am maybe wrong.

By the way, is there a particular reason why you have your account currency in $ and not in AUD? I am living in Greece that's why I have my base currency in EUR, I don't want to have the extra risk of a possible devaulation of $ to my home currency.

 

[young financier]

So what about people who don't use MT4? I'm a ThinkorSwim user.

 

[TheForexGuy]

Well Mt4 is the industry standard and that's what I use. You will have to do your own research if you use other specialized platforms as I've got no idea about them.

 

[clydedda]

Re: DnB risk to reward tool

can anyone help me find the risk to reward tool the dnb uses thanks for your help

 

[craigger]

Under the general discussion section of the forum, select Q&A, then select the 3rd post labeled "risk reward". The 4th post by Erebus shows how to set up the MT4 fib tool to display what you are looking for. (I think!)

 

[TheForexGuy]

Re: The Forex Guy Chart Info + Breakout Alert tool

There is a guide in the price action protocol on how to set-up to the risk reward tool...

http://warroom.theforexguy.com/priceactionprotocol/index.php?chapter=risk-reward-ratios

 

[seacamera]

Graham,
First of all, just been through all your material! Awesome ... all I can say! Really exceeded my expectations. Looking forward to trading in the future.

Please assist .. trying to add your above Tool to MT4. Have added it to the experts folder but cannot find it in the MT4 platform. Opened & closed MT4 but still nothing the in customs indicator folder. Can you maybe assist? My folder structure seems to be slightly different to your instructions, not sure if that has something to do with it.

Thanks
Anthony

 

[TheForexGuy]

Hi Anthony,

Open your MT4, click file->open data folder

Then navigate to experts->indicators.

Drop the tool in here and see if it pops up. The newer versions of MT4 changed where they read indicators from.

Let me know how you go.

 

[erebus]

Go to Youtube and search for something like "indicators metatrader 600"

There are many tutorials available for viewing.

Also, never install MT4 in Programs, put it directly on the drive eg C:\MetatraderBrokerX



PS: this 1 is OK, watch close at 1 minute mark

 

[seacamera]

HI,

Erebus ... genius! Thanks a lot, that worked ...

Cheers
Anthony