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With the recent release of my new indicator, I have gotten a lot of questions regarding my personal settings that I use on the FTR indicator. With all of those questions, I have decided to make this quick little blog post discussing all of my settings from top to bottom and why I have those selected! If you haven’t purchased the indicator and would like to, check it out here!
Going from top to bottom these are my settings and why I have chosen them. Firstly, I do have the time filter on. My time filter settings are 3 am est (London open) to 12 pm est (London close), these settings will allow me to identify only FTRs/FTBs that occur during major sessions and weed our the majority of the consolidation periods that occur during the post-Us market hours and Asain session. Make sure that you are inputting your time filter based off of your brokers MT4 time, not your local time.
Next, I always keep the indicator set to body mode meaning that it will draw all of my FTRs with just the bodies. This gives me a more optimal ability to identify FTRs and it is much cleaner on the chart, do note that no matter which setting you have it, the FTB will be used on full range mode.
Next, are my number of candles. I always have it set to 3 candles before my FTR candle and 1 candle for a confirmation after. 3 candles are a perfect medium that is not too short causing fake-outs and not too long to be exposed to overextended moves. I will always be using 1 confirmation candle as again, waiting for too many candles in a set up can lead to overextended moves (getting in too late).
The min candles after FTRs i always leave at 4, meaning that price must move away at least 4 candles before it will search for an FTB to occur and I will always keep the signal length to 30 candles, which is how long after an FTR the system will continue looking for an FTB. Lastly, in this section I will always keep the alerts set to 30 seconds before close as it will allow me to quickly watch to see how the FTR/FTB candle closes, not missing any moves.
I’ve been extensively testing the FTR indicator and also aiding in getting rid of the consolidation fake out alerts is adding the moving averages. I personally use the 14 ema to help me identify this. What the moving average does in the system is only alert me if a bearish FTR/FTB closes below the 14 ema or a bullish FTR/FTB closes above the 14 ema, allowing for only momentum moves to be notified to me. I suggest you mess around with multiple variations to get a feel for what works best for you.
Lastly is the code numbers/sizes, don’t mess with those.
The rest of my settings I leave pretty much the default.
I leave all of my zones to default lime green, my codes/distances/sizes all the default (the distances are simply how far from the close of the candle the arrow will print on the screen and the sizes are how large they will print on the screen). I also keep my arrow colors default red/blue.
I do however turn on alerts (which are default off), but I only turn on alerts (in software alerts) and notifications (alerts to the mobile device) because I feel those are the most you would need. If I’m trading at my desktop I will get an alert or if I leave the room/house I’ll also be able to get the notifications (on mobile) as long as I didn’t shut off my PC.
All in all, I leave the settings relatively the same as they are in the default settings but I do make a few alterations in order to help better the indicators filtering out of poor consolidation filled moves. Again, I suggest everyone test out their own settings to see which ones work best for them and remember that we are not liable for any losses/gains made on the indicator, therefore you should risk only what you are able to afford.