Acquisition strategy with DMI confirmation

The strategy contains bearish alerts And bullish engulfing with entry and closing notices. Entries to the system are reinforced by a combination of indicator levels directional movement index(DMI). The strategy can be applied on spot,futures and margin trading exchanges. It is suitable for both long and short positions and works accurately with currencies BTC, USDT, ETH and BNB. Best used with 1H time frame charts

Strategy elements can be configured as you wish with user interface settings, no programming skills required:
1. Select signal type: Long, Short or Both
2. Select a trend detection pattern rule:

• SMA50 – provides more positions
• SMA50 + SMA200 provides higher accuracy
  3. Change risk management settings to make the most accurate and efficient configuration. You can set up unique stop loss, take profit and trailing offset for different assets
  4. Setting up strategy periods
• DMI lengths and ADX
• ADX smoothing
• Key level
• EMA lengths and SMA
  5. Set up backtest dates
  6. Show or hide support and resistance bands RSI
  
  Acquisition strategy provides traders with information to enter the market in anticipation of a possible trend reversal.Absorbing candles usually signal a reversal of the current trend in the market. This particular pattern includes two candles, the last of which “consumes” the entire body of the candle in front of it.Absorbing candle maybe bullish or bearish depending on where it is formed in relation to the existing trend. The script calculates and compares price action candle values ​​to determine if whether absorption and what type is it:bullish or bearish
• If it happens bullish engulfing, the indicator fills the price action candle with yellow color
• If it happens bearish engulfing, the indicator fills the price action candle with purple color
  
  Advantages of the script:
  1. The script detects the presence of both types of absorption:bullish And bearish
  2. Weak absorption signals and market noise are filtered by bands RSI and DMI confirmations. This allows you to receive only strong and confirmed absorption signals
  3. This script has customizable risk management settings (order size, commission, take profit, stop loss and trailing). This gives you the ability to connect directly to the broker and allows you to backtest before applying the strategy on a live account. You can also set up alerts for strategy actions
  
  On the chart you can see the historical price movement of ADAUSDT on the Binance exchange from January 1, 2019 to the current date. The strategy is set up to receive only long signals because it is a spot market. Moments when the strategy worked to enter a position are displayed as an L label, while position entries are displayed as “Long” messages. The moments when a certain position must be closed are displayed as “Exitlong” messages
  
  The strategy demonstrates high backtest results:
• The mathematical expectation of the risk management settings is positive = 1.34%
• Profit percentage = 93.33%
• Profit factor = 3.253
• Number of applications = 75
• Net profit = 15.22%

How to use?
Long signals:
1. Apply the indicator to the trading pair you are interested in.
2. Click the “Settings” button and select the “Long Positions” type
3. Once conditions bullish engulfing and confirmations will be executed, the price action candle will be colored yellow, and the script strategy will enter the position.
4. Check Strategy Tester to set the optimal risk management settings: stop loss, trailing profit activation point, trailing profit offset
5. Set up a strategy alert to be notified when a position is due to be opened or closed

Signals for short positions:
1. Apply the indicator to the trading pair you are interested in.
2. Click the “Settings” button and select the “Short Positions” type
3. Once conditions bearish engulfing and confirmations will be executed, the price action candle will be colored purple and the script strategy will enter the position.
4. Check Strategy Tester to set the optimal risk management settings: stop loss, trailing profit activation point, trailing profit offset
5. Set up a strategy alert to be notified when a position is due to be opened or closed

Best wishes
SkyRock Signals Team

If you would like to access the script, you should contact us via private message or send email [email protected]