The Big Three Indicator

1 Introduction The indicator is based on trading strategy described in

https://report.tradingstrategyguides.com/hubfs/TSG%20ALL%20REPORTS%20/Report%20Big%20Three%20Strategy.pdf

The Big Three indicator looks for trend reversal and tries to follow the trend as long as it possible. Common view of the indicator is shown below:

Figure 1 - Common view of The Big Three indicator

2 Parameters

2.1 Moving averages parameters You can tune parameters of each out of 3 MAs involved into calculation:

Period

Method (simple, exponential, smoothed, linear weighted)

Applied price (close,open, high, low,median, typical, weighted)

Show/not show a moving average on the chart

2.2 Signal parameters

Signal calculation mode. It specifies the way of generating trend changing signal. There are 2 options to choose:

“Immediately when price crosses MA”. In this mode indicator will generate trend change as soon as price crosses the last MA

“Only at bar close”. In this mode indicator generates trend change only after bar close and its close price crosses the last MA. This mode is later for one bar

comparing to immediate signal, but it filters many false breakouts

The difference between these 2 modes is depicted below:

Figure 2 – The difference between immediate signal and on bar close signal

Exit trend mode. There are several modes to choose:

“At nearest MA”. When this mode is chosen, current trend will be marked as broken at the first crossing of the price with the nearest MA

“At farthest MA”. In this mode the indicator will prolong current trend until the last, farthest, MA will be crossed

There is an example below which shows both modes in action

Figure 3 - Comprison of exit trend modes

Show entry arrows. When enabled it draws the arrow on each trend reversal signal

Draw buy/sell zones style. Specifies the style of drawing buy (up-trend) and sell (down-trend) zones. See 5 for details

3 Stop loss/take profit settings Draw stop loss and take profit levels. When enabled, stop loss and take profit levels will be shown:

Figure 4 - Stop loss/take profit levels

Stop level calculation mode. There are 3 options to choose:

Using MA. This mode sets the constant stop loss at the farthest MA.

Using MA and then trailing by MA. This mode sets the stop loss at the farthest MA and then moves it as MA changes

By constant points. This mode sets the constant stop loss in points

Stop loss margin from MA, points. This setting links to “Using MA” and “Using MA and then trailing by MA” calculation modes. By default, stop loss is placed

right on the MA level, but you can adjust stop loss, moving the SL farther or nearer with this parameter

Constant stop loss value, points. This parameter is used along with “By constant points” mode and specifies the size of the stop loss in points

Risk:Reward (1:X): Take profit is calculated automatically by stop loss distance and by this ratio. Let’s say, if your Risk:Reward ratio is 1:3 and your stop loss is

100 points, your take profit will be 100*3=300 points. Changing this parameter you can vary how many profit you’re going to have from each trade

Stop loss and take profit zone solid background. When enabled, stop loss and take profit zones are depicted as filled shapes:

Figure 5 - Filled stop loss/take profit zones

Take profit zone color, Stop loss zone color. Specifies the color of stop loss/take profit zones (see above)

4 Dashboard drawing parameters Additionally indicator can show dashboard with brief information about current trend for each standard period (M1, M5, M15 and so on):

Figure 6 – Dashboard’s view

You can specify position, size, colors and many other parameters of the dashboard

5 Choosing the drawing method You can choose method to draw the trend zone using the parameter:

Figure 7 – Drawing modes

Also you can choose the color you want to draw, using the properties on “Colors” tab:

5.1 Style “Fill space between MA and price”

5.2 Style “Solid line from enter to exit”

5.3 Style “Solid horizontal line”

5.4 Style “Solid line at nearest MA”

5.5 Style “Candle from low to high”

5.6 Style “Candle from open to close”

5.7 Style “Dots above/below the candle”

5.8 Style “Dashes above/below the candle”

5.9 Style “Dots at nearest MA”

5.10 Style “Dashes at nearest MA”