VISUAL LEVELs INDICATOR with Donchian channel

• 12/15/2020 at 11:37 PM #153891
  Soyouzzz1

  Hello,
  I think that a level indicator based on Donchian channels helps to find more easily the levels of slowdowns/reversals.
  Can anyone code an indicator that draws lines that extend the high/low of the Donchian channels please ?
  In my example I have used the Donchian channels over 500 periods and you can see that it adds a very useful visual aid.

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  Soyouzzz1

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  01/06/2021 at 6:14 PM #156651
  Oliviertrader2020

  This indicator is a great idea @Soyouzzz1 !

  

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  01/07/2021 at 2:23 PM #156751
  Nicolas

  The below code plots the last “maxlines” of the Donchian Channel 500 periods, the same way as described by @Soyouzzz1

  defparam drawonlastbaronly=true maxlines = 20 //how many lines to plot? hh= DonchianChannelUp[500] ll= DonchianChannelDown[500] if hh<>hh[1] then $hh[hhi]=hh hhi=hhi+1 endif if ll<>ll[1] then $ll[lli]=ll lli=lli+1 endif if islastbarupdate then count=0 for i = max(hhi,lli) downto 0 do if isset($hh[i]) then drawhline($hh[i]) coloured(0,200,0) endif if isset($ll[i]) then drawhline($ll[i]) coloured(200,0,0) endif count=count+1 if count>=maxlines then break endif next endif return

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  defparam drawonlastbaronly=true   maxlines = 20 //how many lines to plot?   hh= DonchianChannelUp[500] ll= DonchianChannelDown[500]   if hh<>hh[1] then $hh[hhi]=hh hhi=hhi+1 endif if ll<>ll[1] then $ll[lli]=ll lli=lli+1 endif   if islastbarupdate then count=0 for i = max(hhi,lli) downto 0 do if isset($hh[i]) then drawhline($hh[i]) coloured(0,200,0) endif if isset($ll[i]) then drawhline($ll[i]) coloured(200,0,0) endif count=count+1 if count>=maxlines then break endif next endif   return

   

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  Nicolas

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  01/07/2021 at 10:02 PM #156810
  Oliviertrader2020

  Hello @Nicolas, can you send us the indicator in itf, because there is a calculation error when copying and pasting?

  

  Oliviertrader2020

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  01/08/2021 at 8:53 AM #156853
  Nicolas

  I don't think it's related to your copy paste, which instrument and UT I'm going to attempt to reproduce, there are well over 500 units on your chart?

  

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  01/08/2021 at 10:30 AM #156872
  Vonasi

  I think it must be some error in the Donchian calculation as I just coded this totally different version and it also has a ‘calculation error’

  defparam drawonlastbaronly=true defparam calculateonlastbars = 2000 p = 100 if barindex > p then if islastbarupdate then maxlines = 20 hh= DonchianChannelUp[p] ll= DonchianChannelDown[p] a = 1 for b = 0 to barindex if hh[b]<>hh[b+1] then drawhline(hh[b]) coloured(0,128,0) a = a + 1 if a > maxlines then break endif endif next a = 1 for b = 0 to barindex if ll[b]<>ll[b+1] then drawhline(ll[b]) coloured(128,0,0) a = a + 1 if a > maxlines then break endif endif next endif endif return

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  defparam drawonlastbaronly=true defparam calculateonlastbars = 2000   p = 100   if barindex > p then if islastbarupdate then maxlines = 20   hh= DonchianChannelUp[p] ll= DonchianChannelDown[p]   a = 1 for b = 0 to barindex if hh[b]<>hh[b+1] then drawhline(hh[b]) coloured(0,128,0) a = a + 1 if a > maxlines then break endif endif next   a = 1 for b = 0 to barindex if ll[b]<>ll[b+1] then drawhline(ll[b]) coloured(128,0,0) a = a + 1 if a > maxlines then break endif endif next endif endif   return

   

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  Vonasi

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  01/08/2021 at 7:50 PM #156987
  Soyouzzz1

  Thank you for your help @Nicolas and @Vonasi.
  I also had the same problem: the indicator returns an error message.

  According to Vonasi, the problem comes from the Donchian channel calculation performed by PRT.
  So I incorporated the calculation in your 2 indicators, replacing the lines :

  hh= DonchianChannelUp [500] ll= DonchianChannelDown [500]

  1 2	hh= DonchianChannelUp [500] ll= DonchianChannelDown [500]

  by

  hh= HIGHEST [DH](HIGH) ll=HIGHEST [DL](HIGH)

  1 2	hh= HIGHEST [DH](HIGH) ll=HIGHEST [DL](HIGH)

   

  DH(Donchian High) and DL(Donchian Low) are variables with default values of 500.

  In Nicholas’ indicator it effectively traces the lines, but in Vonasi’s indicator it did not allow to display them.

   

  To create an indicator with a high probability of reversal, can these 3 points be improved?

  1. Removal of levels when the price has crossed them

  In the picture posted in my first message, I make the lines continue until the prices go through them. Once crossed the levels are no longer relevant and pollute the image by sending lines whose probas of reversing the price are lower than lines that have not been crossed.
  Example in image 1.DL

  To avoid erasing levels that have been briefly crossed, if you can add two filters (modifiable by a variable) to choose to keep :
  -lines that have been crossed by less than 5/10/x points
  and
  -lines whose price remained less than 1/2/x candles beyond .
  Example in image 2.DL

  2. Display of the most relevant levels

  The current indicator takes into account all levels of Donchian.
  But in a trend we can see that a Donchian level is often only a pause level of the trend and this level is quickly broken.

  To avoid displaying levels that are not solid, if you can add two filters (modifiable by a variable) to choose to keep only:
  – levels that have reversed prices for more than 20/50/x candles
  and
  – levels that have reversed prices by more than 20/50/x points (an SMA5 can be used to choose the timing of the beginning and end of the reversals)
  Example in images 3.DL and 4.DL

  3. Display levels in smaller time units

  To trade reversals, traders look for levels/areas on large time units and use setups on small time units to take positions with good timing.

  For this it is important to be able to display the indicator levels on several time units, for example :
  – display the levels detected by the indicator in H4 on 5min.
  – display the levels detected by the indicator in H1 over 1min.
  …

  Not only will this allow discretionary traders to display all important information on the same screen, but it will also allow them to program trading algorithms where everyone can use their own setups to enter and exit positions.

  If we can create this indicator, I will share in the library a reversal algorithm created from it.

  Thank you for your help. 😀

   

  

  Soyouzzz1

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  01/13/2021 at 1:14 AM #157609
  Soyouzzz1

  Hello   @Nicolas and   @Vonasi ,someone can help me ?

  

  Soyouzzz1

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  01/13/2021 at 11:02 AM #157624
  Nicolas

  What you are requesting involves a lot of work. I will dig into it but not sure when it will be done.

  

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  01/13/2021 at 4:26 PM #157672
  Nicolas

  Here is a first draft that use the highest levels only.

  These are not tested and over complicate the calculation:

  To avoid erasing levels that have been briefly crossed, if you can add two filters (modifiable by a variable) to choose to keep :
  -lines that have been crossed by less than 5/10/x points
  and
  -lines whose price remained less than 1/2/x candles beyond .

  defparam drawonlastbaronly=true p = 20 maxbars = 800 //how many bars in history? reversedCandles = 10 //levels have been the same during X bars reversedPoints = 2 //current level - previous level > Y points if barindex > p then hh= highest[p](high) ll= lowest[p](low) if hh<>hh[1] and hh[1]>0 and hh[1]=hh[1+reversedCandles] and abs(hh-hh[1])>=reversedPoints*pointsize then $hhprice[hhi]=hh $hhbar[hhi]=barindex[1+reversedCandles] hhi=hhi+1 endif endif if islastbarupdate and hhi>0 then //plot the hh lines for i = 0 to hhi-1 do //loop through levels elapsed = barindex-$hhbar[i] if elapsed>1 and elapsed<=maxbars then offset = max(0,barindex-$hhbar[i]) for j = 0 to offset do //testing price break of the current level price = close[j] priceprev = close[j+1] level = $hhprice[i] broken = 0 if (price>level and priceprev<level) or (price<level and priceprev>level) then broken=1 //drawarrow($hhbar[i],price) break endif next if broken=0 then drawsegment($hhbar[i],$hhprice[i],barindex,$hhprice[i]) test=$hhprice[i] drawtext("#test#",barindex,$hhprice[i],serif,bold,20) //drawtext("#offset#",barindex,$hhprice[i],serif,bold,20) endif endif next endif return

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  defparam drawonlastbaronly=true   p = 20 maxbars = 800 //how many bars in history? reversedCandles = 10 //levels have been the same during X bars reversedPoints = 2 //current level - previous level > Y points   if barindex > p then   hh= highest[p](high) ll= lowest[p](low)   if hh<>hh[1] and hh[1]>0 and hh[1]=hh[1+reversedCandles] and abs(hh-hh[1])>=reversedPoints*pointsize then $hhprice[hhi]=hh $hhbar[hhi]=barindex[1+reversedCandles] hhi=hhi+1 endif   endif   if islastbarupdate and hhi>0 then //plot the hh lines for i = 0 to hhi-1 do //loop through levels elapsed = barindex-$hhbar[i] if elapsed>1 and elapsed<=maxbars then   offset = max(0,barindex-$hhbar[i]) for j = 0 to offset do //testing price break of the current level price = close[j] priceprev = close[j+1] level = $hhprice[i] broken = 0 if (price>level and priceprev<level) or (price<level and priceprev>level) then broken=1 //drawarrow($hhbar[i],price) break endif next   if broken=0 then drawsegment($hhbar[i],$hhprice[i],barindex,$hhprice[i]) test=$hhprice[i] drawtext("#test#",barindex,$hhprice[i],serif,bold,20) //drawtext("#offset#",barindex,$hhprice[i],serif,bold,20) endif   endif next endif   return

   

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  Nicolas

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  01/15/2021 at 11:41 PM #158002
  Soyouzzz1

  Hello @Nicolas, thanks for your help, this is a very good start !

  I tried to change the color of the segment because it almost doesn’t show, but it seems that this is not possible on Prorealtime?

  If the color of the segment is not changeable can we create zones that would start from the top and bottom of the candle wicks that were used to create the Donchian levels?

   

  

  Soyouzzz1

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  01/15/2021 at 11:42 PM #158006
  Soyouzzz1

  As you can see in my screenshots, these zones often allow you to take trades with a high probability of winning on the first rebounds :

  

  Soyouzzz1

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  01/16/2021 at 10:13 AM #158025
  Vonasi

  Just add COLOURED(0,0,0) at the end of lines 40 and 42.

  Change the zero values to any combination found here to draw the lines and text in whatever colour you want.

  http://cloford.com/resources/colours/500col.htm

  

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  01/16/2021 at 10:34 AM #158032
  Soyouzzz1

  Hello, it doesn’t work with or without the comma.

  

  Soyouzzz1

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  01/16/2021 at 10:50 AM #158037
  Vonasi

  Because you didn’t spell COLOURED correctly.

  No comma is needed.

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  Vonasi

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