trade signals based on dark cloud cover/piercing line + mfi indicator

Related: T5Copier - MT 5 client to client Local trade copier - another powerful expert for MetaTrader 5 traders.

this is a description of a trading system based on dark cloud cover and piercing line reversal candlestick patterns confirmed by the mfi indicator.

Also recommended: V1N1 LONNY MT5: Asian Range Breakout Day Trader - similar expert with strong performance on MetaTrader 5.

title text

the system allows creating ready-made expert advisors based on the classes delivered together with the client terminal. it allows checking trade ideas quickly, all you need is to create your own trading signals class. the structure of this class and example can be found in the article.
the generic idea is the following: the class of trading signals is derived from the base class, the next, it's necessary to override the virtual methods with your own methods.

there is a book that considers many trading strategies, we will focus on reversal candlestick patterns, confirmed by indicators and oscillators.
the best way is to create a separate class, derived from the base class for checking of formation of candlestick patterns. for confirmation of trade signals, generated by candlestick patterns, it's sufficient to write the class, derived from the base class and add the necessary features there.

here we will consider the signals, based on dark cloud cover/piercing line reversal candlestick pattern, confirmed by the mfi indicator. the module of trade signals is based on the class, it's a simple example of its use for creation of trade signals with candlestick patterns.
- dark cloud cover and piercing line reversal candlestick patterns
- trade signals, confirmed by mfi indicator

the dark cloud cover pattern is a bearish candlestick reversal that occurs at the end of an uptrend. a long white candlestick is formed on the first day and a gap up is created on the second day. however, the second day closes below the midpoint of the first day.
the recognition of the dark cloud cover pattern is implemented in the checkpatterndarkcloudcover method of the class.

the piercing line pattern is a bullish candlestick reversal that occurs at the end of a downtrend. the gap down on the second day perpetuates the downtrend. however, the second day's close is above the midpoint of the first day's body.
the recognition of the piercing line pattern is implemented in the checkpatternpiercingline method of the class.

the trading signals to open long or short position must be confirmed by the mfi indicator. the value of the mfi indicator must be lower than 40 for long positions or greater than 60 for short positions.
the closing of opened position depends on the values of the mfi indicator.

to create an expert advisor, launch the mql5 wizard and specify the name of the expert advisor. after that, select the modules of trade signals used. in our case, we use only one module of trade signals.

adding the signals based on dark cloud cover/piercing line confirmed by mfi module of trading signals. you can select any trailing properties, but we will use trailing stop not used. concerning the money management properties, we will use trading with fixed trade volume.

by pressing the finish button, we will get the code of the generated expert advisor. the default input parameters of the generated expert advisor must be replaced.

the signal_thresholdopen/signal_thresholdclose input parameters allow to specify threshold levels for open and close of positions.

the expert advisor, generated by mql5 wizard, open and close position using the votes from the modules of trade signals. the vote of the main module is also used, but its longcondition and shortcondition methods always return 0.

the values of signal_stoplevel and signal_takelevel input parameters are set to 0, it means that closing of the positions will be done only when closing conditions will be true.

let's consider backtesting of the expert advisor on historical data. the best set of input parameters can be found using the strategy tester of the metatrader 5 client terminal.

You may also like: ks q command center: remote trade management for metatrader 5 - excellent alternative for expert users on MetaTrader 5.

#property copyright "robotfx"
#property link "https://robotfx.org"
#property version   "1.00"
#include <expert\expert.mqh>
#include <expert\signal\mysignals\acdc_pl_mfi.mqh>
#include <expert\trailing\trailingnone.mqh>
#include <expert\money\moneyfixedlot.mqh>
input string expert_title         ="expert_adc_pl_mfi"; // document name
ulong        expert_magicnumber   =32035;               // 
bool         expert_everytick     =false;               // 

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• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.