The Reversal Signal Bars indicator (for NT 8) now identifies over 15 different signal bars and patterns for possible reversals. We’ve added these three signals:
Inside Inside failed Breakout – II fBO
An Inside Inside Pattern are two consecutive Inside Bars. The pattern is often a trading range or triangle on a smaller time frame and an area of equilibrium. A breakout often fails and tries to reverse back into the II pattern.
The stop entry for a bull II fBO Signal Bar is one tick above the high of the bar and the stop loss is one tick below it.
Opening Ranges are important to a lot of traders because they often provide an indication of sentiment for the day’s price action. A number of trading systems rely on breakouts or failed breakouts of the extremes of the opening range.
The Price Action Opening Range indicator (indicator name: PAOpeningRange) is able to calculate the Opening Range High and Low for the first 5, 15, 30 or 60 minutes of the trading session.
It also shows the candle sticks for all of the higher time frames selected to point to a possible change of sentiment during the forming of the opening range. Closes from the higher time frame bars can be plotted on the trading chart to spot aggressive trading at these important prices.
Benefits of automated trading are obvious. Traders are limited in the number of charts they can monitor at any given moment. Computers can scan several instruments and time frames with a speed incomprehensible to humans, can find setups and execute trades in under a second.