Donchian Fibo Channels
- Thread starter calster
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If someone wants to code something similar to this indicator from tradingview to motivewave do you guys think it's possible?
// Created by PolarSolar 09 May 2016
// Updated: 09 May 2016
study(title="Donchian Fibo Channels v2", shorttitle="DFC2", overlay=true)
length = input(21, minval=8)
prz = input(0.618, title="PRZ level",minval=0.236, maxval=0.886, step=0.001)
dir = input(true, title="Uptrend?")
lo = lowest(round(dir?length*(1/prz):length))
hi = highest(round(dir?length:length*(1/prz)))
range = abs(hi-lo)
// calculate levels
r236 = dir>0?hi-(range*0.236):lo+(range*0.236)
r382 = dir>0?hi-(range*0.382):lo+(range*0.382)
r500 = avg(hi,lo)// basis
r618 = dir>0?hi-(range*0.618):lo+(range*0.618)
r707 = dir>0?hi-(range*0.707):lo+(range*0.707)
r786 = dir>0?hi-(range*0.786):lo+(range*0.786)
r886 = dir>0?hi-(range*0.886):lo+(range*0.886)
przl = dir>0?hi-(range*prz):lo+(range*prz)
plot(lo, color=gray, title="MIN", linewidth=2)
plot(hi, color=gray, title="MAX", linewidth=2)
plot(przl, color=#EEE8AA, title="PRZ", linewidth=2, trackprice=true) // special
plot(r236, color=#BA55D3, title=".236") // violet
plot(r382, color=#4169E1, title=".382") // blue
plot(r500, color=#00BFFF, title=".500") // light blue
plot(r618, color=#32CD32, title=".618") // green
plot(r707, color=#FFD700, title=".707") // yellow
plot(r786, color=#FF8C00, title=".786") // orange
plot(r886, color=red, title=".886") // red
// rebound
barcolor(dir==true and low[1]<przl[1] and close[1]>przl[1] and close[2]>przl[2] and close[3]>przl[3]?#7FFF00:na,offset=-1) // go up from PRZ
barcolor(dir==false and high[1]>przl[1] and close[1]<przl[1] and close[2]<przl[2] and close[3]<przl[3]?#FF1493:na,offset=-1) // go dn from PRZ
// break
barcolor(dir>0 and close[1]<przl[1]?#DC143C:na,offset=-1) // PRZ breaked down
barcolor(dir==0 and close[1]>przl[1]?#32CD32:na,offset=-1) // PRZ breaked up
// Created by PolarSolar 09 May 2016
// Updated: 09 May 2016
study(title="Donchian Fibo Channels v2", shorttitle="DFC2", overlay=true)
length = input(21, minval=8)
prz = input(0.618, title="PRZ level",minval=0.236, maxval=0.886, step=0.001)
dir = input(true, title="Uptrend?")
lo = lowest(round(dir?length*(1/prz):length))
hi = highest(round(dir?length:length*(1/prz)))
range = abs(hi-lo)
// calculate levels
r236 = dir>0?hi-(range*0.236):lo+(range*0.236)
r382 = dir>0?hi-(range*0.382):lo+(range*0.382)
r500 = avg(hi,lo)// basis
r618 = dir>0?hi-(range*0.618):lo+(range*0.618)
r707 = dir>0?hi-(range*0.707):lo+(range*0.707)
r786 = dir>0?hi-(range*0.786):lo+(range*0.786)
r886 = dir>0?hi-(range*0.886):lo+(range*0.886)
przl = dir>0?hi-(range*prz):lo+(range*prz)
plot(lo, color=gray, title="MIN", linewidth=2)
plot(hi, color=gray, title="MAX", linewidth=2)
plot(przl, color=#EEE8AA, title="PRZ", linewidth=2, trackprice=true) // special
plot(r236, color=#BA55D3, title=".236") // violet
plot(r382, color=#4169E1, title=".382") // blue
plot(r500, color=#00BFFF, title=".500") // light blue
plot(r618, color=#32CD32, title=".618") // green
plot(r707, color=#FFD700, title=".707") // yellow
plot(r786, color=#FF8C00, title=".786") // orange
plot(r886, color=red, title=".886") // red
// rebound
barcolor(dir==true and low[1]<przl[1] and close[1]>przl[1] and close[2]>przl[2] and close[3]>przl[3]?#7FFF00:na,offset=-1) // go up from PRZ
barcolor(dir==false and high[1]>przl[1] and close[1]<przl[1] and close[2]<przl[2] and close[3]<przl[3]?#FF1493:na,offset=-1) // go dn from PRZ
// break
barcolor(dir>0 and close[1]<przl[1]?#DC143C:na,offset=-1) // PRZ breaked down
barcolor(dir==0 and close[1]>przl[1]?#32CD32:na,offset=-1) // PRZ breaked up
Deal. You are going to love it. Well turtle traders have been trading the donchian channel for quite some time. It was the most successful documented trading system for years. Then the market changed and the edge disappeared so they say. If you get a 20 donchian channel you watch the prev donchian low and high and you can enter long at the prev donchian low to exit at the high. The original turtle described was not like that but I've been standardizing with ninzarenko and it works perfectly after the 3rd candle for the entry.
Since motivewave doesnt have unirenko or ninzarenko it's quite difficult yet bc this really needs to be done with unirenko or ninzarenko for better results. This is why I posted before that what we have now is not enough like renko hybrid renko etc. The original turtles would buy at the breakout of the donchian high with the sl adjusted to the volatility with the stop loss at the donchian low. There was also system b where the turtles would buy at the 55 donchian high with the sl at the donchian low. The fibs they help a lot to decide where you are and automatize the strategy for entries if you are using pullbacks.
PRZ level is where you want the fib levels to be around and you need also to set if it's an uptrend or downtrend. Bc during an uptrend the fibs go from 100 to 0(100 is below) and the opposite for a downtrend. this is the indicator on tradingview (which sucks too bc their charts are not tick based so i can't have unirenko or ninzarenko there too lol).
This is a 8 donchian with a prz 0.886 (bc it's where the prev day close is) since i'm watching oil during the pre market. Now when Ny opens I'm switching to a 20 donchian. This is important bc when the fibs are static you can scalp a lot we are not trending. Now when the fibs are diagonal we have a trend and you can't just buy at support and sell at res bc during an uptrend resistances are broken. This is quite important once you understand there is a violence bc you should wait and then you get to buy on fib 23% and 38 which are the best. It's also key for reversal points. Once a violence moves more than 60% it's over it's a reversal.
Since motivewave doesnt have unirenko or ninzarenko it's quite difficult yet bc this really needs to be done with unirenko or ninzarenko for better results. This is why I posted before that what we have now is not enough like renko hybrid renko etc. The original turtles would buy at the breakout of the donchian high with the sl adjusted to the volatility with the stop loss at the donchian low. There was also system b where the turtles would buy at the 55 donchian high with the sl at the donchian low. The fibs they help a lot to decide where you are and automatize the strategy for entries if you are using pullbacks.
PRZ level is where you want the fib levels to be around and you need also to set if it's an uptrend or downtrend. Bc during an uptrend the fibs go from 100 to 0(100 is below) and the opposite for a downtrend. this is the indicator on tradingview (which sucks too bc their charts are not tick based so i can't have unirenko or ninzarenko there too lol).
This is a 8 donchian with a prz 0.886 (bc it's where the prev day close is) since i'm watching oil during the pre market. Now when Ny opens I'm switching to a 20 donchian. This is important bc when the fibs are static you can scalp a lot we are not trending. Now when the fibs are diagonal we have a trend and you can't just buy at support and sell at res bc during an uptrend resistances are broken. This is quite important once you understand there is a violence bc you should wait and then you get to buy on fib 23% and 38 which are the best. It's also key for reversal points. Once a violence moves more than 60% it's over it's a reversal.
So if NY would open now I would be setting this thing for a 20 donchian and prz to 0.618 (it's where the prev day close is) so it would look like this attached below. Basically the move is healthy if there is a pullback until fib 50%. More than that the trend dies.
And I would trade it the moment price goes back to one of the fibs especially fib 50% I would long there and the exit would be at the prev donchian high. This is way clearer with unirenko or ninzarenko. Besides this is perfect for 88% gann reversals too. If you notice on the pic below friday is there too and price went down way more than fib 60%. This means the trend died. So you wait for price to go back and when it reaches donchian high you go short with the target at the prev donchian low.
The moral of the story is you never sell on support or buy the resist. You see the trend being broken and you wait for when price has a discount or it's on premium. That's it.
And I would trade it the moment price goes back to one of the fibs especially fib 50% I would long there and the exit would be at the prev donchian high. This is way clearer with unirenko or ninzarenko. Besides this is perfect for 88% gann reversals too. If you notice on the pic below friday is there too and price went down way more than fib 60%. This means the trend died. So you wait for price to go back and when it reaches donchian high you go short with the target at the prev donchian low.
The moral of the story is you never sell on support or buy the resist. You see the trend being broken and you wait for when price has a discount or it's on premium. That's it.
Plus as long as fibs are static then you can buy on supp and sell res all day long but avoid doing that during a trend bc:
a) if there is an uptrend you need to buy supp and buy the breakout at the prev donchian high
b) if there is a downtrend you need to sell the resist and sell the break down at the prev donchian low
c) when the market is sideways and fibs are static then you buy supp and sell res.
This is why defining if there is a trend is so important. You can catch up big trends with the donchian channel.
a) if there is an uptrend you need to buy supp and buy the breakout at the prev donchian high
b) if there is a downtrend you need to sell the resist and sell the break down at the prev donchian low
c) when the market is sideways and fibs are static then you buy supp and sell res.
This is why defining if there is a trend is so important. You can catch up big trends with the donchian channel.
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Take a look what happened. In theory oil might have a short here at the donchian high.
Plus oil was also a long at the 88% gann fibo. Pretty cool isn't it?
This was only possible bc the fibs were static. So you you can look at the fibs and say ok we don't have a trend yet. This is why buying on support and selling at the res works. As long as we dont have a trend bc then you would leave money on the table.
Plus oil was also a long at the 88% gann fibo. Pretty cool isn't it?
This was only possible bc the fibs were static. So you you can look at the fibs and say ok we don't have a trend yet. This is why buying on support and selling at the res works. As long as we dont have a trend bc then you would leave money on the table.
