EA LCCM LV1 – CH4

Description

Using the C7TT Candlestick Pattern Model

In this chapter (CH4), we will utilize the C7TT candlestick pattern model in combination with the entry and exit conditions discussed in CH1. We will skip the order filling step for easier understanding. Once we have a clear understanding of how to use C7TT as a condition, we can combine it with the order filling part from CH2 and C7CB from CH3.

Entry Condition: Do not enter a trade when the C7TT pattern and the opposite candle appear.

• Buy Order: Enter a Buy order when the resistance level is broken without the appearance of the C7TT pattern signaling a Sell. However, if there is a C7TT Sell signal and an opposite candle, do not enter the trade.
• Sell Order: Enter a Sell order when the support level is broken without the appearance of the C7TT pattern signaling a Buy. However, if there is a C7TT Buy signal and an opposite candle, do not enter the trade.

Exit Condition:

• Close Buy Order: Close the Buy order when the C7TT pattern signals a Sell and an opposite candle appears.
• Close Sell Order: Close the Sell order when the C7TT pattern signals a Buy and an opposite candle appears.

Setting the Buy Order Condition:

When the resistance level is broken and there is no C7TT Sell signal in the previous candle, or if there is a C7TT Sell signal but it is in favor of the opposite candle, enter the trade. However, if there is a C7TT Sell signal and an opposite candle, do not enter the trade.

• Bar 1 – C7TT – Buffer 1 – No Signal (Meaning no C7TT Sell signal, and three consecutive candles with increasing body size)

Or

• Bar 1 – C7TT – Buffer 1 – Has Signal (Meaning there is a C7TT Sell signal, and we need to consider the strength of the opposite candle)
• Bar 4 – Candle Strength – Buffer 1 < 50 (This indicates that the selling pressure is weaker than the buying pressure, which supports the C7TT pattern)

Setting the Sell Order Condition:

When the support level is broken and there is no C7TT Buy signal in the previous candle, or if there is a C7TT Buy signal but it is in favor of the opposite candle, enter the trade. However, if there is a C7TT Buy signal and an opposite candle, do not enter the trade.

• Bar 1 – C7TT – Buffer 0 – No Signal (Meaning no C7TT Buy signal, and three consecutive candles with decreasing body size)

Or

• Bar 1 – C7TT – Buffer 0 – Has Signal (Meaning there is a C7TT Buy signal, and we need to consider the strength of the opposite candle)
• Bar 4 – Candle Strength – Buffer 0 < 50 (This indicates that the buying pressure is weaker than the selling pressure, which supports the C7TT pattern)

Setting the Close Buy Order Condition with C7TT:

When there is a reversal signal in the form of a C7TT Sell pattern (three consecutive candles with increasing body size) and an opposite candle appears, the EA will close the Buy order to take profit or exit the trade early.

• Bar 1 – C7TT – Buffer 1 – Has Signal (Meaning there is a C7TT Sell signal, and three consecutive candles with increasing body size)
• Bar 4 – Candle Strength – Buffer 1 >= 60 (This indicates that the selling pressure is stronger than the buying pressure, supporting the reversal signaled by C7TT Sell)
• Bar 1 – Candle – Body >= 300 (This means the last rising candle has a body size of 300 points or more, filtering out noise)

Setting the Close Sell Order Condition with C7TT:

When there is a reversal signal in the form of a C7TT Buy pattern (three consecutive candles with decreasing body size) and an opposite candle appears, the EA will close the Sell order to take profit or exit the trade early.

• Bar 1 – C7TT – Buffer 0 – Has Signal (Meaning there is a C7TT Buy signal, and three consecutive candles with decreasing body size)
• Bar 4 – Candle Strength – Buffer 0 >= 60 (This indicates that the buying pressure is stronger than the selling pressure, supporting the reversal signaled by C7TT Buy)
• Bar 1 – Candle – Body >= 300 (This means the last falling candle has a body size of 300 points or more, filtering out noise)

We will keep other configuration parameters as default, as discussed in CH3.