Trading libraries for MetaTrader 5
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MetaTrader 5
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Overview
Buy and sell signals based on the Continuous Point Setup for trend continuation, popularized in Brazil by Stormer and Palex.
How does it work?
The indicator activates the buy signal when we have prices above the ascending 21-period Simple Moving Average (SMA21) followed by a pullback and a touch on it.
For a sell signal we need the prices below the descending SMA21 followed by a pullback and a touch on it.
How to use it?
One way of using it, as suggested by Stormer, is to enter the trade with a buy stop order one tick above the high of the candle with the buy signal, placing the stop loss order one tick below the candle's low. When there's a sell signal instead, place a sell stop order one tick below the low of the candle with the sell signal, and a stop loss one tick above the candle's high.
If the entry stop order is not filled on the next candle but the 21 period SMA maintained its direction, the signal is still valid and the indicator will confirm it. One should then reposition the entry stop order one tick above the new high for buying and one tick below the new low for selling.
If the 21 period SMA turns, the entry signal is cancelled.
If filled, the signal arrow will change color and the suggested target is the entry bar's amplitude projected 2x up for the buying trade and projected 2x down for the selling trade.
Tips:
- Great for entering on pullbacks of the trend. You can avoid entering when a longer period moving average (e.g. 200) is in front of the movement or when it shows too much strength on the opposite direction.
- The signal is better when the bar that touches the SMA is a reversal one (hammer/shooting star) or immediatelly followed by a reversal pattern (engulfing pattern/dark cloud cover/piercing pattern).
Advantages:
- Repeats entry signals while they remain valid.
- Allows different colors for activated signals, so you can visually analyze the strategy on past prices.
- Lets you change the type of arrow so you don't confuse with other indicators already in use.
- Can ring an alarm to draw your attention when there's an entry signal.
- Can pop an alert on the platform to inform you when there's an entry signal.
- Can send a push notification on your smartphone when there's an entry signal.
Features you can edit to your preference:
- Periods of moving average (It does not have to be 21. It can be 9, 50, 200, or any you want.)
- Type of moving average (Simple, Exponential, etc)
- Type of price for moving average (Close, high, low, etc)
- Trend filter - How many bars not touching the moving average before the signal
- Distance between the arrow signals and the candle's high/low
- Type of the Buy and Sell signal arrows, based on the Wingdings font
- Color and size of the Buy and Sell signal arrows
- Color, thickness and style of the moving average
- Enable push notifications
- Enable pop-up alerts
- Enable sound alarms
- Sound of the alarm
Who is the creator?
Alexandre Wolwacz "Stormer" - Author of 15 books, trades since 1998.
Founder of L&S with Leandro Ruschel, already taught over 50 thousand people on the Stock Market. Currently has almost 200 thousand subscribers in his channels.
Keywords: Setup PC, Ponto Contínuo, Pullback, Touch the MA, Setup Stormer, Setup Palex, MOL, Lorenz, Ogro, RM, Oliver Vélez.
