Big Shadow by Walter Peters v1.1
Version 1.1 is here!
This is an indicator for the Big Shadow (engulfing candle) that Walter Peters teaches in his course (fxjake.com) and book "Naked Forex". I have really been diving into this one and back testing it like crazy. The results have been great and I will be publishing them on the nakedforexnow.com forum soon since it probably isn't appropriate to do it here.
If you like it, please reach out to me @fredferrell on the forum. I would love to discuss back testing results with other traders.
This is an indicator for the Big Shadow (engulfing candle) that Walter Peters teaches in his course (fxjake.com) and book "Naked Forex". I have really been diving into this one and back testing it like crazy. The results have been great and I will be publishing them on the nakedforexnow.com forum soon since it probably isn't appropriate to do it here.
If you like it, please reach out to me @fredferrell on the forum. I would love to discuss back testing results with other traders.
//Based on Big Shadow Strategy by Walter Peters (fxjake.com and nakedforexnow.com) //Coded by Fred Ferrell //Updates for 1.1: Adding alerting, fixed two errors (1. candle pattern recognition 2. wrong direction calulation for roomToTheLeftPeriod) study(title = "Big Shadow by Walter Peters v1.1", overlay = true) PercentageFromClose = input(15, minval=0, maxval=99, title="Percentage of candle measured from high to close on bullish setups and low to close on bearish setups") PercentageFromCloseFormula = PercentageFromClose * .01 roomToTheLeftPeriod = input(7, minval=0, maxval=100, title="Room to the left interval check") range = high - low higherHigh = high > high[1] lowerLow = low < low[1] //Largest candle range within last 10 days. Need to find cleaner code. largestCandle = high-low > high[1]-low[1] and high-low > high[2]-low[2] and high-low > high[3]-low[3] and high-low > high[4]-low[4] and high-low > high[5]-low[5] and high-low > high[6]-low[6] and high-low > high[7]-low[7] and high-low > high[8]-low[8] and high-low > high[9]-low[9] and high-low > high[10]-low[10] //Bullish Big Shadow bullishEngulfing = open[1] > close[1] and close > open and close > open[1] and close - open > open[1] - close[1] percentageFromCloseUp = close >= (high - (range * PercentageFromCloseFormula)) roomToLeftUpHigh = falling(low,roomToTheLeftPeriod) bullishNote = largestCandle and higherHigh and lowerLow and bullishEngulfing and percentageFromCloseUp and roomToLeftUpHigh barcolor(bullishNote? green : na) plotshape(bullishNote, title="Bullish Engulfing Candle", location=location.belowbar, color=lime, style=shape.arrowup, text="Bullish\nBig\nShadow") alertcondition(bullishNote, title="Bullish Big Shadow Alert", message="Bullish Big Shadow") //Bearish Big Shadow bearishEngulfing = close[1] > open[1] and open > close and close < open[1] and open - close > close[1] - open[1] percentageFromCloseDown = close <= (low + (range * PercentageFromCloseFormula)) roomToLeftDownLow = rising(high,roomToTheLeftPeriod) bearishNote = largestCandle and higherHigh and lowerLow and bearishEngulfing and percentageFromCloseDown and roomToLeftDownLow barcolor(bearishNote? red : na) plotshape(bearishNote, title="Bearish Engulfing Candle", location=location.abovebar, color=red, style=shape.arrowdown, text="Bearish\nBig\nShadow") alertcondition(bearishNote, title="Bearish Big Shadow Alert", message="Bearish Big Shadow")