The pinbar chart indicator is an indicator/strategy composed of 2 distinct indicators: the first displays the patterns on the chart and returns input levels, stop and possible target levels and is fully parameterized; the second is inserted under the chart and can be used to create alarms when a pinbar is formed, and is parameterized differently.
The indicator can be applied to any instrument and over any period of time. It is necessary to parameterize it according to your needs and according to those parameters that are discretionally considered satisfactory.
The first of these indicators is installed directly on the chart and report, in addition to the Long or Short indication, also the levels of possible entry and stop calculated on the range of the candle and on the current volatility reported by the ATR.
The user on the basis of his own information, possibly also of other indicators, will be able to identify the profit levels appropriate to his operations or close to supports and resistances.
The settable parameters are the following:
DIV – divider of the range of candles. It is set by default to 2, open and close of the candle must be in the upper or lower 50% of the range, if we want for example that the close and open are in the 25% of the range this parameter must be set to 4.
OFFSET = to visually adjust the signals based on the time frame and the instrument on which you are working.
PERIODSHIGH and PERIODSLOW – minimum and maximum periods to receive the signal.
PERIODSATR – ATR periods.
DISTANCENUMBER – if the tp levels are set on the chart, this parameter allows you to adjust the distance between the numbers and the horizontal lines of the volatility levels.
MAXSTOPPOINTS – depending on your operations, you can enter a maximum stop within which the signal must be returned. If for your money management, for ex. a stop of 25 points is the maximum you can support, this parameter set to 25 will prevent thet the indicator returning signals when a stop is greater than 25 points.
MINATR and MAXATR – minimum and maximum of the candle range of signal compared to atr. By default the indicator is set to minimum 1 and maximum 5. If the range of the candle is between 1 and 5 times the atr the signal will be displayed, otherwise not. So, raising the maximum threshold will show candles with more flow.
DISTANCEHIGHLOW – minimum amount that must be between a maximum and a minimum of periods set.
LEVELS: displays the possible target levels based on ATR. We recommend that you use it only if you trade.
TWOLEVELS – returns or not 2 levels of in and 2 levels of stop calculated on volatility.
ROUND POINTS – rounds the digit in points to 2 decimal places. On forex, for example, this parameter must remain unchecked.
The indicator is calculated on 10,000 bars.
Watch the demonstration video on http://trading.enzovezzosi.it/video/dimostrazione_pinbar.mp4