EA LCCM LV1 – CH3

Description

In this Chapter 3, we will use the C7CB candlestick pattern model in combination with the entry and exit conditions we created in Chapter 1. We will skip the order filling step for simplicity. Once we understand how to use C7CB as a condition, we can combine it with the order filling part from Chapter 2.

Entry (entry conditions):

• Buy Order: Enter a Buy order if the current candle breaks a resistance level and the previous candle does not exhibit a C7CB pattern indicating a Sell signal. If there is a C7CB Sell signal, do not enter the trade.
• Sell Order: Enter a Sell order if the current candle breaks a support level and the previous candle does not exhibit a C7CB pattern indicating a Buy signal. If there is a C7CB Buy signal, do not enter the trade.

Exit (exit conditions):

• Close Buy Order: Close the Buy order when a C7CB candlestick pattern indicating a Sell signal appears.
• Close Sell Order: Close the Sell order when a C7CB candlestick pattern indicating a Buy signal appears.

Setting up the Buy order:

If the current candle breaks a resistance level and the previous candle does not exhibit a C7CB Sell signal, enter the trade. If there is a C7CB Sell signal, do not enter the trade.

• Bar 1 – C7CB – Buffer 1 – No Signal (No C7CB Sell signal on candle 1)
• Bar 2 – C7CB – Buffer 1 – No Signal (No C7CB Sell signal on candle 2)

Setting up the Sell order:
If the current candle breaks a support level and the previous candle does not exhibit a C7CB Buy signal, enter the trade. If there is a C7CB Buy signal, do not enter the trade.

• Bar 1 – C7CB – Buffer 0 – No Signal (No C7CB Buy signal on candle 1)
• Bar 2 – C7CB – Buffer 0 – No Signal (No C7CB Buy signal on candle 2)

Setting up the Buy order closure with C7CB:

When there is a C7CB Sell reversal signal, the EA will close the Buy order to take profit or exit the trade early.

Bar 1 – C7CB – Buffer 1 – Has Signal (C7CB Sell signal on candle 1)

Setting up the Sell order closure with C7CB:
When there is a C7CB Buy reversal signal, the EA will close the Sell order to take profit or exit the trade early.

• Bar 1 – C7CB – Buffer 0 – Has Signal (C7CB Buy signal on candle 1)

The other configuration parameters will remain default as described in CH2.