This idea is based on the Donchain Channel centre line Price action. When price moves from the highest/lowest point, the price will move to the center line first. At this point, the center line acts as dynamic support/resistance and often price will bounce back up. However, if price successfully breaks the centre line (primary entry condition), then prices will tend to catch up to the bottom channel line, many times making further moves in that direction (secondary entry condition).
This script alert idea is designed to be used with Renko (10pip brick recommended) Renko or Heikin Ashi (1 hour recommended) charts. It combines the Donchian Channel centre line price action with a directional coloured EMA (default length 8) to provide entry and exit signals.
There are three options to exit trade:
MA Cross (default exit) = exit occur when price breaks EMA in opposite direction.
Centre Cross = exit occurs when price breaks back passed the centre line in opposite direction.
Brick Colour = exit when a brick/bar paints in the opposite colour to trade direction.
Each Entry and Exit signal creates an Alertcondition that can be picked up by the TradingView Alarm system.
TIPS:
This type of Trading technique only works well in a trending market. Do not try to trade this technique in a ranging/flat market, wait for market to return to trend or pick another pair.
To get 10pip Bricks set Renko to "Traditional" type bricks and 0.001 for non-JPY currency pairs and 0.1 for JPY currency pairs. Also set chart Time frame to 5min or 15mins.
You are great JustUncleL. Following your Scripts and it's working awesome.
meeta44
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Its Awesome......Where can I get this for MT4?
JustUncleL
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@meeta44, TradingView Pinescript is not compatible with MT4. Try looking in the many MT4 libraries available online for something similar.
WitcherG
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Very good, thank you! Would it be possible to add the selection of 'Timeframe' and 'Wait for timeframe closes' options?
JMTradingMaster
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Hello Mr. Just Uncle - I am using the exit alerts within my own scalping strategy. Could you update the indicator allowing to remove the exit titles, so that we are able to be left with the cross or other symbol only, coloured? I find the text clutters my graphs; it would be a nice improvement to have neater graphs since the exit signals are helpful for my strategy. @JustUncleL