ABC PatternThe indicator, named "ABC Pattern," is designed to identify specific bullish and bearish patterns on a price chart. Here's a simple explanation of what it does:
What the Indicator Does:
1. Identifies Bullish Patterns:
- The indicator looks for a sequence of candles where certain conditions are met to form a bullish pattern.
- When it detects a bullish pattern, it colors the candle that occurred three periods ago in gold.
2. Identifies Bearish Patterns:
- Similarly, it looks for a sequence of candles where certain conditions are met to form a bearish pattern.
- When it detects a bearish pattern, it colors the candle that occurred three periods ago in pinkish.
3. Creates Alerts:
- Whenever a bullish or bearish pattern is identified, the indicator generates an alert.
- The alert message includes the type of pattern (bullish or bearish), the price level at the time of detection, and the date and time of the pattern formation.
Detailed Conditions:
- Bullish Pattern:
- The current candle closes higher than it opened.
- The previous candle also closes higher than it opened.
- Two candles ago, the candle closed lower than it opened.
- Three candles ago, the candle closed higher than it opened.
- The highest price of two candles ago is below the current close.
- The lowest price of three candles ago is above the close of two candles ago.
- The highest price of three candles ago is below the current close.
- Bearish Pattern:
- The current candle closes lower than it opened.
- The previous candle also closes lower than it opened.
- Two candles ago, the candle closed higher than it opened.
- Three candles ago, the candle closed lower than it opened.
- The lowest price of two candles ago is above the current close.
- The highest price of three candles ago is below the close of two candles ago.
- The lowest price of three candles ago is above the current close.
Visual Representation:
- Gold Color: Indicates a detected bullish pattern.
- Pinkish Color: Indicates a detected bearish pattern.
Alerts:
- Alert Message: "ABC Pattern has appeared!"
- Detailed Alerts: Include the type of pattern, price level, and timestamp for better analysis and decision-making.
This indicator helps traders visually and audibly detect potential bullish and bearish patterns on their charts, aiding in making more informed trading decisions.
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Wolfe Waves [BigBeluga]🔵 OVERVIEW
The Wolfe Waves pattern was first introduced by Bill Wolfe , a trader and analyst in the 1980s–1990s who specialized in market geometry and natural rhythm cycles. Wolfe observed that price often forms symmetrical wave structures that anticipate equilibrium points where supply and demand meet. These formations, called Wolfe Waves , gained popularity as a reliable pattern for forecasting both short- and long-term reversals.
The Wolfe Waves indicator automatically detects these patterns in real time. It tracks sequences of five pivots (points 1 through 5) and connects them with wave lines. Users can select either Bullish or Bearish Wolfe Waves depending on their trading bias. When the pattern fails, the lines automatically turn red to highlight invalidation.
🔵 CONCEPTS
Five-Point Structure – Wolfe Waves are defined by five pivots (1–5), which together form the basis of the wave pattern.
Bullish Pattern – Occurs when price compresses downward into point 5, signaling a potential upside reversal.
Bearish Pattern – Occurs when price extends upward into point 5, forecasting a downside reversal.
Validation & Failure – The pattern is considered valid once all five pivots form; if price fails to respect the expected breakout, the indicator marks the structure as broken with red lines.
🔵 FEATURES
Automatic detection of Bullish and Bearish Wolfe Waves.
Labels each pivot (1–5) on the chart for clarity.
Draws connecting lines between pivots to visualize the wave structure.
Projects target/dashed lines (EPA/ETA) based on Wolfe Wave geometry.
Lines automatically turn red when the pattern is broken, giving immediate feedback.
Customizable color scheme for bullish (lime) and bearish (orange) waves.
Adjustable sensitivity for pivot detection.
🔵 HOW TO USE
Choose between Bullish or Bearish mode depending on your analysis.
Watch for the formation of all five pivots; the indicator labels them clearly.
Look for potential entries near point 5, with the expectation that price will travel toward the projected EPA line.
Use invalidation (lines turning red) as a risk management warning to exit failed setups.
Combine with momentum, volume, or higher-timeframe analysis to increase reliability.
🔵 CONCLUSION
The Wolfe Waves brings the classic Wolfe Wave theory into an automated TradingView tool. Inspired by Bill Wolfe’s original concept of natural market cycles, this indicator detects, labels, and validates Wolfe Waves in real time. With automatic invalidation marking and customizable settings, it offers traders a structured way to harness one of the most well-known geometric reversal patterns.
Island Reversal [LuxAlgo]The Island Reversal tool allows traders to identify reversal patterns directly on the chart. These patterns signal a potential change in trend, either from bullish to bearish or vice versa.
The tool enables traders to filter these patterns by trend, volume, and range, making it easy to display pure or less constrained island reversals.
🔶 USAGE
An island reversal pattern may indicate a change in trend. It occurs when prices change direction from an uptrend to a downtrend, or vice versa.
This pattern is a great tool for timing the market. Traders should be aware of when these patterns develop and watch how prices behave after the pattern forms.
Now, let's take a closer look at one of these island reversal patterns to highlight its different components.
The different parts are depicted in the image above.
1. A trend prior to the pattern
2. A gap starts the pattern.
3. A range of prices
4. A final gap, opposite to the first one, closes the pattern.
5. In this case, the pattern leads to a bearish trend, which is opposite to the trend in the first step.
🔹 Trend, Volume and Range Filters
Enabling the trend filter causes the tool to only detect top island reversals during a bullish trend and bottom island reversals during a bearish trend.
Traders can adjust the size of the detected trend in the settings panel. The larger the trend size, the more relevant the reversal patterns can be.
The volume filter only detects reversal patterns if there is more volume within the range of the pattern than in the preceding trend.
The idea is that more people tend to participate at the top and bottom of a trend as it changes direction.
The tool has two range filters that discriminate the range within the island reversal pattern:
Horizontality Filter (R2): Based on the R-squared statistic from linear regression, it detects whether the price is moving sideways within the range.
Volatility Filter: Based on long-term volatility, it detects the size of the range within the pattern.
The smaller the value in the Horizontality Filter, the more horizontal the prices will be within the range. A larger value will detect more reversal patterns.
The larger the value in the Volatility Filter, the larger the ranges will be. A smaller value will detect fewer reversal patterns.
🔶 SETTINGS
🔹 Trend Filter
Trend Filter: Enable or disable the trend filter.
Trend Length: Select the size of the detected trend.
🔹 Volume Filter
Volume Filter: Enable or disable the volume filter.
🔹 Range Filter
Horizontality Filter (R2): Enable or disable the Horizontality filter and select a threshold value.
Volatility Filter: Enable or disable the Volatility filter and select the multiplier value.
🔹 Style
Bullish: Select a color for bullish sessions.
Bearish: Select a color for bearish sessions.
Transparency: Select a transparency level from 100 to 0.
N-Pattern Detector (Advanced Logic)Introduction
The N-Pattern Detector (Advanced Logic) is a powerful Pine Script-based tool designed to identify a specific price structure known as the "N-pattern", which often indicates trend continuation or potential breakout points in the market. This pattern combines zigzag pivot logic, retracement filters, volume confirmation, and trend alignment, offering high-probability trading signals.
It is ideal for traders who want to automate pattern detection while applying smart filters to reduce false signals in various markets — including stocks, forex, crypto, and indices.
What is the N-Pattern?
The N-pattern is a 3-leg price formation consisting of points A-B-C-D. It typically follows this structure:
Bullish N-Pattern:
A → Low Pivot
B → Higher High (Impulse)
C → Higher Low (Retracement)
D → Breakout above B (Confirmation)
Bearish N-Pattern:
A → High Pivot
B → Lower Low (Impulse)
C → Lower High (Retracement)
D → Breakdown below B (Confirmation)
The pattern essentially reflects a trend–pullback–breakout structure, making it suitable for continuation trades.
Key Features
1. Intelligent ZigZag Pivot Detection
Uses pivot highs/lows to define key swing points (A, B, C).
Adjustable ZigZag depth to control pattern sensitivity.
Filters noise and avoids false signals in volatile markets.
2. Retracement Validation
Validates the B→C leg as a proper pullback using Fibonacci-based thresholds.
User-defined min and max retracement settings (e.g., 38.2% to 78.6% of A→B leg).
3. Trend Filter via EMA
Filters patterns based on trend direction using a customizable EMA (e.g., 200 EMA).
Only detects bullish patterns above EMA and bearish patterns below EMA (optional).
4. Volume Confirmation
Ensures that impulse legs (A→B, C→D) are supported by stronger volume than the correction leg (B→C).
Adds another layer of confirmation and reliability to detected patterns.
5. Target Projections
Automatically draws 100% A→B projected target from point C.
Optional Fibonacci extensions at 1.272 and 1.618 levels for take-profit planning.
Visually plotted on the chart with colored dashed/dotted lines.
6. Clear Visuals & Labels
Connects all pattern points with colored lines.
Clearly labels points A, B, C, D on the chart.
Uses customizable colors for bullish and bearish patterns.
Includes real-time alerts when a valid pattern is detected.
How to Use It
Add to Chart
Apply the indicator to any chart and time frame. It works across all asset classes.
Adjust Inputs (Optional)
Set ZigZag Depth to control pivot detection sensitivity.
Define Min/Max Retracement levels to match your trading style.
Enable or disable Trend and Volume filters for cleaner signals.
Customize EMA length (default: 200) for trend validation.
Wait for Pattern Confirmation
The indicator constantly scans for valid N-patterns.
A pattern is confirmed only after point D forms (breakout or breakdown).
You’ll see the full pattern drawn with target levels.
Set Alerts
Alerts trigger automatically on confirmation of a bullish or bearish pattern.
You can customize these in TradingView’s alerts panel.
[SGM Ordinal Patterns]An ordinal pattern is a concept used in mathematics and time series analysis. It is a way of describing the relative order of values in a sequence. Rather than focusing on the exact values, we are interested in how they compare to each other.
An ordinal pattern will tell you how these values are positioned relative to each other.
We do not look at the exact values, but only their order.
Concrete Example
• 4 (position 1 in the original sequence) is in position 2 in the ordered sequence.
• 7 (position 2 in the original sequence) is in position 3 in the ordered sequence.
• 2 (position 3 in the original sequence) is in position 1 in the ordered sequence.
The ordinal pattern for this sequence is then (2,3,1)(2, 3, 1)(2,3,1).
Script Explanation
This script analyzes ordinal patterns based on the closing prices of the last three bars and calculates the future gains associated with each ordinal pattern.
The main elements of the script are:
1. ordinal_pattern Function:
o Determines the ordinal pattern based on three past closing values.
o Returns an index (from 0 to 5) corresponding to one of the six possible ordinal patterns.
2. Calculations and Storage:
o For each new bar, the last three closes are used to identify the ordinal pattern.
o Future gains are calculated and associated with the previous ordinal pattern.
o Return statistics (mean, standard deviation and Sharpe ratio) are calculated for each pattern.
3. Visualization:
o Draws lines connecting the last three closes.
o Tables displaying the number of occurrences, distributions, and return statistics for each ordinal pattern.
What the Script Shows:
• Table motifs_table : Number of occurrences and distribution of each ordinal pattern. An uneven distribution between patterns (different by one sixth for each pattern) can indicate market inefficiency.
• Table pattern_analysis : Analysis of returns (mean, standard deviation, Sharpe ratio) for each ordinal pattern.
• Table current_motif_table : Ordinal pattern of the last bar.
This script helps to understand and visualize how ordinal patterns influence future returns of financial asset prices. An uneven distribution of patterns can indicate market inefficiencies.
Impactful pattern and candles pattern AlertThe Alertion indicator!
impactful pattern:
pattern that happen near the zone or in the zone at lower timeframe and give us entry and stop limit price.
It is helpful for price action traders and those who want to decrease their risk.
There are 3 IP patterns:
Quasimodo
Head and shoulder
whipsaw engulfing
These patterns may occur near the zone or may not occur but by them, you can decrease your trading risk for example you can
trade with half lot before IP pattern and enter with other half after pattern.
how to use?
for example:
you find zone at 1h timeframe for short position
when price enter to your zone
you run this indicator and choose your lower timeframe, for example 15m and click on short position.
Then make the alert by right-click on your chart and choose the add alert and at condition box choose the impactful pattern and then click on create
now wait for message :)
Candles pattern:
like reversal bar, key reversal bar, exhaustion bar, pin bar, two-bar reversal, tree-bar reversal, inside bar, outside bar
these occur when the trend turn, so it is usable when the price enter to your zone or near your zone.
This pattern can decrease your risk.
Inside bar and outside bar:
if this pattern engulf up, it is bullish pattern and if engulf down, it is bearish pattern.
what does this indicator do?
this indicator is for making alert
it helps you to decrease your risk and failure.
You optimize it to alert you when IP pattern happen or candle pattern happen or inside bar or outside bar engulfing or all of them.
For IP pattern, it will message you entry and stop limit price.
It works at 2 different timeframes, so you can make alert for example in 1h TF for candles pattern and 15m TF for IP pattern.
Indicator will alert you for candles pattern at your chart timeframe and for IP pattern at timeframe you've chosen when you run the indicator, and it is changeable
in setting.
setting options
TIMEFRAME
IP: select the timeframe for IP patterns it means when IP pattern happen at that timeframe the indicator will alert you
example = your TF is 1h, you found the supply zone and want to trade, note that IP pattern happen in lower TF, so you select 15m TF or TF lower than 1h.
Short position: select it if you want to make short position.
BUFFERING
indicator send you entry and stop limit price
you can change it by amount of percent
it is your strategy to change your entry and stop loss or not
example= in head and shoulder pattern at short position, the stop limit is high price of head in pattern
so the indicator will message you the exact price but if you want to put
your stop limit 5 percent upper than exact price you can enter 5 in front of stop loss
or you want to enter 5 percent lower than exact high price of shoulder, you can optimize it.
ALERTION
you choose what alert you want
IP alert or candle alert or inside and outside bar alert
type your text for alert
you can write additional text for your message
ADVANCE
IP alert frequency option:
1. Once per bar : indicator will alert you for IP pattern once at your chat timeframe bar, and you should wait til next bar for next alert.
2. Once per bar close : alert you when your chart timeframe bar closed and next alert will happen when next bar is closed.
3. All: alert you all the times IP pattern happen
pivot left and right bars: lower will find smaller pattern
at the END:
this indicator is not strategy
it is part of your strategy that help you to increase your winning rate.
It is helpful for scalping and candle patterns finding.
After you make an alert, you can delete the indicator or change your timeframe or make another alert, your previous alert won’t change.
Thank you all.
Pivot Candle PatternsPivot Candle Patterns Indicator
Overview
The PivotCandlePatterns indicator is a sophisticated trading tool that identifies high-probability candlestick patterns at market pivot points. By combining Williams fractals pivot detection with advanced candlestick pattern recognition, this indicator targets the specific patterns that statistically show the highest likelihood of signaling reversals at market tops and bottoms.
Scientific Foundation
The indicator is built on extensive statistical analysis of historical price data using a 42-period Williams fractal lookback period. Our research analyzed which candlestick patterns most frequently appear at genuine market reversal points, quantifying their occurrence rates and subsequent success in predicting reversals.
Key Research Findings:
At Market Tops (Pivot Highs):
- Three White Soldiers: 28.3% occurrence rate
- Spinning Tops: 13.9% occurrence rate
- Inverted Hammers: 11.7% occurrence rate
At Market Bottoms (Pivot Lows):
- Three Black Crows: 28.4% occurrence rate
- Hammers: 13.3% occurrence rate
- Spinning Tops: 13.1% occurrence rate
How It Works
1. Pivot Point Detection
The indicator uses a non-repainting implementation of Williams fractals to identify potential market turning points:
- A pivot high is confirmed when the middle candle's high is higher than surrounding candles within the lookback period
- A pivot low is confirmed when the middle candle's low is lower than surrounding candles within the lookback period
- The default lookback period is 2 candles (user adjustable from 1-10)
2. Candlestick Pattern Recognition
At identified pivot points, the indicator analyzes candle properties using these parameters:
- Body percentage threshold for Spinning Tops: 40% (adjustable from 10-60%)
- Shadow percentage threshold for Hammer patterns: 60% (adjustable from 40-80%)
- Maximum upper shadow for Hammer: 10% (adjustable from 5-20%)
- Maximum lower shadow for Inverted Hammer: 10% (adjustable from 5-20%)
3. Pattern Definitions
The indicator recognizes these specific patterns:
Single-Candle Patterns:
- Spinning Top : Small body (< 40% of total range) with significant upper and lower shadows (> 25% each)
- Hammer : Small body (< 40%), very long lower shadow (> 60%), minimal upper shadow (< 10%), closing price above opening price
- Inverted Hammer : Small body (< 40%), very long upper shadow (> 60%), minimal lower shadow (< 10%)
Multi-Candle Patterns:
- Three White Soldiers : Three consecutive bullish candles, each closing higher than the previous, with each open within the previous candle's body
- Three Black Crows : Three consecutive bearish candles, each closing lower than the previous, with each open within the previous candle's body
4. Visual Representation
The indicator provides multiple visualization options:
- Highlighted candle backgrounds for pattern identification
- Text or dot labels showing pattern names and success rates
- Customizable colors for different pattern types
- Real-time alert functionality on pattern detection
- Information dashboard displaying pattern statistics
Why It Works
1. Statistical Edge
Unlike traditional candlestick pattern indicators that simply identify patterns regardless of context, PivotCandlePatterns focuses exclusively on patterns occurring at statistical pivot points, dramatically increasing signal quality.
2. Non-Repainting Design
The pivot detection algorithm only uses confirmed data, ensuring the indicator doesn't repaint or provide false signals that disappear on subsequent candles.
3. Complementary Pattern Selection
The selected patterns have both:
- Statistical significance (high frequency at pivots)
- Logical market psychology (reflecting institutional supply/demand changes)
For example, Three White Soldiers at a pivot high suggests excessive bullish sentiment reaching exhaustion, while Hammers at pivot lows indicate rejection of lower prices and potential buying pressure.
Practical Applications
1. Reversal Trading
The primary use is identifying potential market reversals with statistical probability metrics. Higher percentage patterns (like Three White Soldiers at 28.3%) warrant more attention than lower probability patterns.
2. Confirmation Tool
The indicator works well when combined with other technical analysis methods:
- Support/resistance levels
- Trend line breaks
- Divergences on oscillators
- Volume analysis
3. Risk Management
The built-in success rate metrics help traders properly size positions based on historical pattern reliability. The displayed percentages reflect the probability of the pattern successfully predicting a reversal.
Optimized Settings
Based on extensive testing, the default parameters (Body: 40%, Shadow: 60%, Shadow Maximums: 10%, Lookback: 2) provide the optimal balance between:
- Signal frequency
- False positive reduction
- Early entry opportunities
- Pattern clarity
Users can adjust these parameters based on their timeframe and trading style, but the defaults represent the statistically optimal configuration.
Complementary Research: Reclaim Analysis
Additional research on "reclaim" scenarios (where price briefly breaks a level before returning) showed:
- Fast reclaims (1-2 candles) have 70-90% success rates
- Reclaims with increasing volume have 53.1% success rate vs. decreasing volume at 22.6%
This complementary research reinforces the importance of candle patterns and timing at critical market levels.
Advanced Candlestick Pattern DetectorWhat Does This Indicator Do?
This indicator looks at the way price moves in the market using candlesticks (those red and green bars you see on charts). It tries to find special patterns like Bullish Engulfing, Hammer, Doji, and others. When one of these patterns shows up, the indicator checks a bunch of filters to decide if the pattern is strong enough to be a signal to buy or sell.
The Main Parts of the Indicator
1. Candlestick Pattern Detection
Bullish Engulfing:
Imagine you see a small down candle (red) and then a big up candle (green) that completely “covers” the red one. That’s a bullish engulfing pattern. It can signal that buyers are taking over.
Bearish Engulfing:
The opposite of bullish engulfing. A small up candle (green) is followed by a big down candle (red) that covers the previous candle. This suggests sellers might be in control.
Hammer & Shooting Star:
Hammer: A candle with a very short body and a long shadow at the bottom. It shows that buyers stepped in after a drop.
Shooting Star:
Similar to the hammer but with a long shadow on top. It can indicate that sellers are starting to push the price down.
Doji:
A candle with almost no body. This means the opening and closing prices are very close. It shows indecision in the market.
Harami Patterns (Bullish & Bearish):
These are two-candle patterns where the second candle is completely inside the body of the first candle. They signal that the previous trend might be about to change.
Morning Star & Evening Star:
These are three-candle patterns.
Morning Star:
Often seen at the bottom of a downtrend, it can signal a reversal to an uptrend.
Evening Star:
Seen at the top of an uptrend, it can signal that the price may soon go down.
2. Filters: Making the Signals Smarter
The indicator doesn’t just rely on patterns. It uses several “filters” to decide if a pattern is strong enough to trade on. Here’s what each filter does:
a. Adaptive Thresholds (ATR-Based)
What It Is:
The indicator uses something called ATR (Average True Range) to see how much the price is moving (volatility).
How It Works:
Instead of using fixed numbers to decide if a candle is a Hammer or a Doji, it adjusts these numbers based on current market activity.
User Settings:
Use Adaptive Thresholds: Turn this on to let the indicator adjust automatically.
Body Factor, Shadow Factor, Doji Factor: These numbers are multipliers that decide how small or big the body and shadows of the candle should be. You can change them if you want the indicator to be more or less sensitive.
b. Volume Filter
What It Is:
Volume shows how many trades are happening.
How It Works:
The filter checks if the current volume is higher than the average volume (multiplied by a set factor). This helps ensure that the signal isn’t coming from a very quiet market.
User Settings:
Use Volume Filter: Turn this on if you want to ignore signals when there’s not much trading.
Volume MA Period & Volume Multiplier: These settings determine what “normal” volume is and how much higher the current volume must be to count.
c. Multi-Timeframe Trend Filter
What It Is:
This filter looks at a bigger picture by using a moving average (MA) from a higher timeframe (for example, daily charts).
How It Works:
For a bullish (buy) signal, the indicator checks if the price is above this MA.
For a bearish (sell) signal, the price must be below the MA.
User Settings:
Use Multi-Timeframe Trend Filter: Enable or disable this filter.
Higher Timeframe for Trend: Choose which timeframe (like Daily) to use.
Trend MA Type (SMA or EMA) & Trend MA Period: Choose the type of moving average and how many candles to average.
d. Additional Trend Filters (ADX & RSI)
ADX Filter:
What It Is:
ADX stands for Average Directional Index. It measures how strong a trend is.
How It Works:
If the ADX is above a certain threshold, it means the trend is strong.
User Setting:
ADX Threshold: Set the minimum strength the trend should have.
RSI Filter:
What It Is:
RSI (Relative Strength Index) tells you if the price is overbought (too high) or oversold (too low).
How It Works:
For a buy signal, RSI should be low (under a set threshold).
For a sell signal, RSI should be high (above a set threshold).
User Settings:
RSI Buy Threshold & RSI Sell Threshold: These set the levels for buying or selling.
3. How the Final Signal Is Determined
For a signal (buy or sell) to be generated, the indicator first checks if one of the candlestick patterns is present. Then it goes through all these filters (trend, volume, ADX, RSI). Only if everything is in line will it show:
A BUY signal when all bullish conditions are met.
A SELL signal when all bearish conditions are met.
4. Visual Elements on the Chart
Trend MA Line:
A blue line is drawn on your chart showing the moving average from the higher timeframe (if you enable the trend filter). This helps you see the overall direction of the market.
Labels on the Chart:
When a signal is detected, you’ll see:
A BUY label below the candle (green).
A SELL label above the candle (red).
Background Colors:
The chart background might change slightly (green for bullish and red for bearish) to give you a quick visual cue.
Histogram:
At the bottom, there is a histogram that shows +1 for bullish signals, -1 for bearish signals, and 0 when there’s no clear signal.
5. Alerts
Alerts are built into the indicator so you can get a notification when a signal appears. The alert messages are fixed strings, meaning they always say something like “BUY signal on at price .” You can set up these alerts in TradingView to be notified via sound, email, or pop-up.
How to Use and Adjust the Filters
Deciding on Patterns:
You can choose which candlestick patterns you want to detect by toggling the options (e.g., Bullish Engulfing, Hammer, etc.).
Adjusting Adaptive Thresholds:
If you feel that the indicator is too sensitive (or not sensitive enough) during volatile times, adjust the Body Factor, Shadow Factor, and Doji Factor. These change how the indicator recognizes different candle shapes based on market movement.
Volume Filter Settings:
Use Volume Filter:
Turn this on if you want to ignore signals when there’s not enough trading activity.
Adjust the Volume MA Period and Volume Multiplier to change what “normal” volume is for your chart.
Multi-Timeframe Trend Filter Settings:
Choose a higher timeframe (like Daily) to see the bigger picture trend. Select the type of moving average (SMA or EMA) and its period. This filter ensures you only trade in the direction of the overall trend.
ADX & RSI Filters:
ADX:
Adjust the ADX Threshold if you want to change the minimum strength of the trend needed for a signal.
RSI:
Set the RSI Buy Threshold (for oversold conditions) and RSI Sell Threshold (for overbought conditions) to refine when a signal is valid.
Summary
This indicator is like having a smart assistant that not only looks for specific price patterns (candlesticks) but also checks if the overall market conditions are right using several filters. By combining:
Pattern Detection
Adaptive thresholds (based on ATR)
Volume Checks
Multi-Timeframe Trend Analysis
Additional Trend Strength and Overbought/Oversold Indicators (ADX & RSI)
...it helps you decide if it might be a good time to buy or sell. You can customize each part to fit your trading style, and with the built-in alerts, you can be notified when everything lines up.
Feel free to adjust the settings to see how each filter changes the signals on your chart. Experimenting with these will help you learn how the market behaves and how you can best use the indicator for your own strategy!
Harmonic Patterns Library [TradingFinder]🔵 Introduction
Harmonic patterns blend geometric shapes with Fibonacci numbers, making these numbers fundamental to understanding the patterns.
One person who has done a lot of research on harmonic patterns is Scott Carney.Scott Carney's research on harmonic patterns in technical analysis focuses on precise price structures based on Fibonacci ratios to identify market reversals.
Key patterns include the Gartley, Bat, Butterfly, and Crab, each with specific alignment criteria. These patterns help traders anticipate potential market turning points and make informed trading decisions, enhancing the predictability of technical analysis.
🟣 Understanding 5-Point Harmonic Patterns
In the current library version, you can easily draw and customize most XABCD patterns. These patterns often form M or W shapes, or a combination of both. By calculating the Fibonacci ratios between key points, you can estimate potential price movements.
All five-point patterns share a similar structure, differing only in line lengths and Fibonacci ratios. Learning one pattern simplifies understanding others.
🟣 Exploring the Gartley Pattern
The Gartley pattern appears in both bullish (M shape) and bearish (W shape) forms. In the bullish Gartley, point X is below point D, and point A surpasses point C. Point D marks the start of a strong upward trend, making it an optimal point to place a buy order.
The bearish Gartley mirrors the bullish pattern with inverted Fibonacci ratios. In this scenario, point D indicates the start of a significant price drop. Traders can place sell orders at this point and buy at lower prices for profit in two-way markets.
🟣 Analyzing the Butterfly Pattern
The Butterfly pattern also manifests in bullish (M shape) and bearish (W shape) forms. It resembles the Gartley pattern but with point D lower than point X in the bullish version.
The Butterfly pattern involves deeper price corrections than the Gartley, leading to more significant price fluctuations. Point D in the bullish Butterfly indicates the beginning of a sharp price rise, making it an entry point for buy orders.
The bearish Butterfly has inverted Fibonacci ratios, with point D marking the start of a sharp price decline, ideal for sell orders followed by buying at lower prices in two-way markets.
🟣 Insights into the Bat Pattern
The Bat pattern, appearing in bullish (M shape) and bearish (W shape) forms, is one of the most precise harmonic patterns. It closely resembles the Butterfly and Gartley patterns, differing mainly in Fibonacci levels.
The bearish Bat pattern shares the Fibonacci ratios with the bullish Bat, with an inverted structure. Point D in the bearish Bat marks the start of a significant price drop, suitable for sell orders followed by buying at lower prices for profit.
🟣 The Crab Pattern Explained
The Crab pattern, found in both bullish (M shape) and bearish (W shape) forms, is highly favored by analysts. Discovered in 2000, the Crab pattern features a larger final wave correction compared to other harmonic patterns.
The bearish Crab shares Fibonacci ratios with the bullish version but in an inverted form. Point D in the bearish Crab signifies the start of a sharp price decline, making it an ideal point for sell orders followed by buying at lower prices for profitable trades.
🟣 Understanding the Shark Pattern
The Shark pattern appears in bullish (M shape) and bearish (W shape) forms. It differs from previous patterns as point C in the bullish Shark surpasses point A, with unique level measurements.
The bearish Shark pattern mirrors the Fibonacci ratios of the bullish Shark but is inverted. Point D in the bearish Shark indicates the start of a sharp price drop, ideal for placing sell orders and buying at lower prices to capitalize on the pattern.
🟣 The Cypher Pattern Overview
The Cypher pattern is another that appears in both bullish (M shape) and bearish (W shape) forms. It resembles the Shark pattern, with point C in the bullish Cypher extending beyond point A, and point D forming within the XA line.
The bearish Cypher shares the Fibonacci ratios with the bullish Cypher but in an inverted structure. Point D in the bearish Cypher marks the start of a significant price drop, perfect for sell orders followed by buying at lower prices.
🟣 Introducing the Nen-Star Pattern
The Nen-Star pattern appears in both bullish (M shape) and bearish (W shape) forms. In the bullish Nen-Star, point C extends beyond point A, and point D, the final point, forms outside the XA line, making CD the longest wave.
The bearish Nen-Star has inverted Fibonacci ratios, with point D indicating the start of a significant price drop. Traders can place sell orders at point D and buy at lower prices to profit from this pattern in two-way markets.
The 5-point harmonic patterns, commonly referred to as XABCD patterns, are specific geometric price structures identified in financial markets. These patterns are used by traders to predict potential price movements based on historical price data and Fibonacci retracement levels.
Here are the main 5-point harmonic patterns :
Gartley Pattern
Anti-Gartley Pattern
Bat Pattern
Anti-Bat Pattern
Alternate Bat Pattern
Butterfly Pattern
Anti-Butterfly Pattern
Crab Pattern
Anti-Crab Pattern
Deep Crab Pattern
Shark Pattern
Anti- Shark Pattern
Anti Alternate Shark Pattern
Cypher Pattern
Anti-Cypher Pattern
🔵 How to Use
To add "Order Block Refiner Library", you must first add the following code to your script.
import TFlab/Harmonic_Chart_Pattern_Library_TradingFinder/1 as HP
🟣 Parameters
XABCD(Name, Type, Show, Color, LineWidth, LabelSize, ShVF, FLPC, FLPCPeriod, Pivot, ABXAmin, ABXAmax, BCABmin, BCABmax, CDBCmin, CDBCmax, CDXAmin, CDXAmax) =>
Parameters:
Name (string)
Type (string)
Show (bool)
Color (color)
LineWidth (int)
LabelSize (string)
ShVF (bool)
FLPC (bool)
FLPCPeriod (int)
Pivot (int)
ABXAmin (float)
ABXAmax (float)
BCABmin (float)
BCABmax (float)
CDBCmin (float)
CDBCmax (float)
CDXAmin (float)
CDXAmax (float)
🟣 Genaral Parameters
Name : The name of the pattern.
Type: Enter "Bullish" to draw a Bullish pattern and "Bearish" to draw an Bearish pattern.
Show : Enter "true" to display the template and "false" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Logical Parameters
ShVF : If this parameter is on "true" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "false" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
FLPC : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the lateest pattern seeing and a sharp reduction in reward to risk.
FLPCPeriod : Using this parameter you can determine that the last pivot is based on Pivot period.
Pivot : You need to determine the period of the zigzag indicator. This factor is the most important parameter in pattern recognition.
ABXAmin : Minimum retracement of "AB" line compared to "XA" line.
ABXAmax : Maximum retracement of "AB" line compared to "XA" line.
BCABmin : Minimum retracement of "BC" line compared to "AB" line.
BCABmax : Maximum retracement of "BC" line compared to "AB" line.
CDBCmin : Minimum retracement of "CD" line compared to "BC" line.
CDBCmax : Maximum retracement of "CD" line compared to "BC" line.
CDXAmin : Minimum retracement of "CD" line compared to "XA" line.
CDXAmax : Maximum retracement of "CD" line compared to "XA" line.
🟣 Function Outputs
This library has two outputs. The first output is related to the alert of the formation of a new pattern. And the second output is related to the formation of the candlestick pattern and you can draw it using the "plotshape" tool.
Candle Confirmation Logic :
Example :
import TFlab/Harmonic_Chart_Pattern_Library_TradingFinder/1 as HP
PP = input.int(3, 'ZigZag Pivot Period')
ShowBull = input.bool(true, 'Show Bullish Pattern')
ShowBear = input.bool(true, 'Show Bearish Pattern')
ColorBull = input.color(#0609bb, 'Color Bullish Pattern')
ColorBear = input.color(#0609bb, 'Color Bearish Pattern')
LineWidth = input.int(1 , 'Width Line')
LabelSize = input.string(size.small , 'Label size' , options = )
ShVF = input.bool(false , 'Show Valid Format')
FLPC = input.bool(false , 'Show Formation Last Pivot Confirm')
FLPCPeriod =input.int(2, 'Period of Formation Last Pivot')
//Call function
= HP.XABCD('Bullish Bat', 'Bullish', ShowBull, ColorBull , LineWidth, LabelSize ,ShVF, FLPC, FLPCPeriod, PP, 0.382, 0.50, 0.382, 0.886, 1.618, 2.618, 0.85, 0.9)
= HP.XABCD('Bearish Bat', 'Bearish', ShowBear, ColorBear , LineWidth, LabelSize ,ShVF, FLPC, FLPCPeriod, PP, 0.382, 0.50, 0.382, 0.886, 1.618, 2.618, 0.85, 0.9)
//Alert
if BearAlert
alert('Bearish Harmonic')
if BullAlert
alert('Bulish Harmonic')
//CandleStick Confirm
plotshape(BearCandleConfirm, style = shape.arrowdown, color = color.red)
plotshape(BullCandleConfirm, style = shape.arrowup, color = color.green, location = location.belowbar )
W and M Pattern with Trend AlertThis script detects W and M patterns in price action and alerts the trader when these patterns occur, providing potential trading opportunities.
W Pattern: A W pattern forms when the price creates two bottoms, separated by a higher low in the middle. It often indicates a reversal from a downtrend to an uptrend. The script plots a green line at the neckline of the W pattern.
M Pattern: An M pattern forms when the price creates two tops, separated by a lower high in the middle. It often indicates a reversal from an uptrend to a downtrend. The script plots a red line at the neckline of the M pattern.
Key Features:
Alerts: The script generates alerts when W or M patterns are detected, allowing traders to stay informed of potential trading opportunities.
Recent Breakout: W and M pattern lines are drawn only after the recent breakout of support or resistance levels, helping traders focus on current market conditions.
Visual Representation: The script visually represents W and M patterns with vertical lines at the neckline, making it easier for traders to identify potential reversal points.
Usage:
Watch for alerts indicating the detection of W or M patterns.
Verify the pattern visually on the chart, paying attention to recent support or resistance levels.
Consider entering a trade based on the direction suggested by the pattern (e.g., long on W pattern, short on M pattern), using additional technical analysis to confirm the trade setup.
Auto Chart Patterns [Trendoscope®]🎲 Introducing our most comprehensive automatic chart pattern recognition indicator.
Last week, we published an idea on how to algorithmically identify and classify chart patterns.
This indicator is nothing but the initial implementation of the idea. Whatever we explained in that publication that users can do manually to identify and classify the pattern, this indicator will do it for them.
🎲 Process of identifying the patterns.
The bulk of the logic is implemented as part of the library - chartpatterns . The indicator is a shell that captures the user inputs and makes use of the library to deliver the outcome.
🎯 Here is the list of steps executed to identify the patterns on the chart.
Derive multi level recursive zigzag for multiple base zigzag length and depth combinations.
For each zigzag and level, check the last 5 pivots or 6 pivots (based on the input setting) for possibility of valid trend line pairs.
If there is a valid trend line pair, then there is pattern.
🎯 Rules for identifying the valid trend line pairs
There should be at least two trend lines that does not intersect between the starting and ending pivots.
The upper trend line should touch all the pivot highs of the last 5 or 6 pivots considered for scanning the patterns
The lower trend line should touch all the pivot lows of the last 5 or 6 pivots considered for scanning the patterns.
None of the candles from starting pivot to ending pivot should fall outside the trend lines (above upper trend line and below lower trend line)
The existence of a valid trend line pair signifies the existence of pattern. What type of pattern it is, to identify that we need to go through the classification rules.
🎲 Process of classification of the patterns.
We need to gather the following information before we classify the pattern.
Direction of upper trend line - rising, falling or flat
Direction of lower trend line - rising, falling or flat
Characteristics of trend line pair - converging, expanding, parallel
🎯 Broader Classifications
Broader classification would include the following types.
🚩 Classification Based on Geometrical Shapes
This includes
Wedges - both trend lines are moving in the same direction. But, the trend lines are either converging or diverging and not parallel to each other.
Triangles - trend lines are moving in different directions. Naturally, they are either converging or diverging.
Channels - Both trend lines are moving in the same direction, and they are parallel to each other within the limits of error.
🚩 Classification Based on Pattern Direction
This includes
Ascending/Rising Patterns - No trend line is moving in the downward direction and at least one trend line is moving upwards
Descending/Falling Patterns - No trend line is moving in the upward direction, and at least one trend line is moving downwards.
Flat - Both Trend Lines are Flat
Bi-Directional - Both trend lines are moving in opposite direction and none of them is flat.
🚩 Classification Based on Formation Dynamics
This includes
Converging Patterns - Trend Lines are converging towards each other
Diverging Patterns - Trend Lines are diverging from each other
Parallel Patterns - Trend Lines are parallel to each others
🎯 Individual Pattern Types
Now we have broader classifications. Let's go through in detail to find out fine-grained classification of each individual patterns.
🚩 Ascending/Uptrend Channel
This pattern belongs to the broader classifications - Ascending Patterns, Parallel Patterns and Channels. The rules for the Ascending/Uptrend Channel pattern are as below
Both trend lines are rising
Trend lines are parallel to each other
🚩 Descending/Downtrend Channel
This pattern belongs to the broader classifications - Descending Patterns, Parallel Patterns and Channels. The rules for the Descending/Downtrend Channel pattern are as below
Both trend lines are falling
Trend lines are parallel to each other
🚩 Ranging Channel
This pattern belongs to the broader classifications - Flat Patterns, Parallel Patterns and Channels. The rules for the Ranging Channel pattern are as below
Both trend lines are flat
Trend lines are parallel to each other
🚩 Rising Wedge - Expanding
This pattern belongs to the broader classifications - Rising Patterns, Diverging Patterns and Wedges. The rules for the Expanding Rising Wedge pattern are as below
Both trend lines are rising
Trend Lines are diverging.
🚩 Rising Wedge - Contracting
This pattern belongs to the broader classifications - Rising Patterns, Converging Patterns and Wedges. The rules for the Contracting Rising Wedge pattern are as below
Both trend lines are rising
Trend Lines are converging.
🚩 Falling Wedge - Expanding
This pattern belongs to the broader classifications - Falling Patterns, Diverging Patterns and Wedges. The rules for the Expanding Falling Wedge pattern are as below
Both trend lines are falling
Trend Lines are diverging.
🚩 Falling Wedge - Contracting
This pattern belongs to the broader classifications - Falling Patterns, Converging Patterns and Wedges. The rules for the Converging Falling Wedge are as below
Both trend lines are falling
Trend Lines are converging.
🚩 Rising/Ascending Triangle - Expanding
This pattern belongs to the broader classifications - Rising Patterns, Diverging Patterns and Triangles. The rules for the Expanding Ascending Triangle pattern are as below
The upper trend line is rising
The lower trend line is flat
Naturally, the trend lines are diverging from each other
🚩 Rising/Ascending Triangle - Contracting
This pattern belongs to the broader classifications - Rising Patterns, Converging Patterns and Triangles. The rules for the Contracting Ascending Triangle pattern are as below
The upper trend line is flat
The lower trend line is rising
Naturally, the trend lines are converging.
🚩 Falling/Descending Triangle - Expanding
This pattern belongs to the broader classifications - Falling Patterns, Diverging Patterns and Triangles. The rules for the Expanding Descending Triangle pattern are as below
The upper trend line is flat
The lower trend line is falling
Naturally, the trend lines are diverging from each other
🚩 Falling/Descending Triangle - Contracting
This pattern belongs to the broader classifications - Falling Patterns, Converging Patterns and Triangles. The rules for the Contracting Descending Triangle pattern are as below
The upper trend line is falling
The lower trend line is flat
Naturally, the trend lines are converging.
🚩 Converging Triangle
This pattern belongs to the broader classifications - Bi-Directional Patterns, Converging Patterns and Triangles. The rules for the Converging Triangle pattern are as below
The upper trend line is falling
The lower trend line is rising
Naturally, the trend lines are converging.
🚩 Diverging Triangle
This pattern belongs to the broader classifications - Bi-Directional Patterns, Diverging Patterns and Triangles. The rules for the Diverging Triangle pattern are as below
The upper trend line is rising
The lower trend line is falling
Naturally, the trend lines are diverging from each other.
🎲 Indicator Settings - Auto Chart Patterns
🎯 Zigzag Settings
Zigzag settings allow users to select the number of zigzag combinations to be used for pattern scanning, and also allows users to set zigzag length and depth combinations.
🎯 Scanning Settings
Number of Pivots - This can be either 5 or 6. Represents the number of pivots used for identification of patterns.
Error Threshold - Error threshold used for initial trend line validation.
Flat Threshold - Flat angle threshold is used to identify the slope and direction of trend lines.
Last Pivot Direction - Filters patterns based on the last pivot direction. The values can be up, down, both, or custom. When custom is selected, then the individual pattern specific last pivot direction setting is used instead of the generic one.
Verify Bar Ratio - Provides option to ignore extreme patterns where the ratios of zigzag lines are not proportionate to each other.
Avoid Overlap - When selected, the patterns that overlap with existing patterns will be ignored while scanning. Meaning, if the new pattern starting point falls between the start and end of an existing pattern, it will be ignored.
🎯 Group Classification Filters
Allows users to enable disable patterns based on group classifications.
🚩 Geometric Shapes Based Classifications
Wedges - Rising Wedge Expanding, Falling Wedge Expanding, Rising Wedge Contracting, Falling Wedge Contracting.
Channels - Ascending Channel, Descending Channel, Ranging Channel
Triangles - Converging Triangle, Diverging Triangle, Ascending Triangle Expanding, Descending Triangle Expanding, Ascending Triangle Contrcting and Descending Triangle Contracting
🚩 Direction Based Classifications
Rising - Rising Wedge Contracting, Rising Wedge Expanding, Ascending Triangle Contracting, Ascending Triangle Expanding and Ascending Channel
Falling - Falling Wedge Contracting, Falling Wedge Expanding, Descending Triangle Contracting, Descending Triangle Expanding and Descending Channel
Flat/Bi-directional - Ranging Channel, Converging Triangle, Diverging Triangle
🚩 Formation Dynamics Based Classifications
Expanding - Rising Wedge Expanding, Falling Wedge Expanding, Ascending Triangle Expanding, Descending Triangle Expanding, Diverging Triangle
Contracting - Rising Wedge Contracting, Falling Wedge Contracting, Ascending Triangle Contracting, Descending Triangle Contracting, Converging Triangle
Parallel - Ascending Channel, Descending Channgel and Ranging Channel
🎯 Individual Pattern Filters
These settings allow users to enable/disable individual patterns and also set last pivot direction filter individually for each pattern. Individual Last Pivot direction filters are only considered if the main "Last Pivot Direction" filter is set to "custom"
🎯 Display Settings
These are the settings that determine the indicator display. The details are provided in the tooltips and are self explanatory.
🎯 Alerts
A basic alert message is enabled upon detection of new pattern on the chart.
Custom Pattern DetectionOverview
Chart Patterns is a major tool for many traders. Pattern formation at specific location on the chart is used for investment/trading decisions.
This indicator is designed in a way to allow investors/traders to define patterns of their choice based on certain input parameters and then detect defined pattern on the chart.
Investors/traders can use their own creativity to create and detect patterns.
This indicator works in 2 modes
Create Pattern: One can define a pattern and verify sample pattern formation visually
Detect Pattern: Detect and mark patterns on the chart
Settings
Create Custom Pattern:
Show Custom Pattern – This will mark the pattern lines on the chart so that one can verify how pattern appears based on the input’s parameters provided for lines XA, AB, BC, CD, DE, EF
Offset – Used while pattern creation. Offset is horizonal distance between 2 lines.
XA Points – Used to draw XA line when sample pattern is drawn. XA points can be a negative or position number.
XA line is drawn based on Offset and XA Points. E.g. Offset = 5 and XA Points = -20. In this line would be drawn from last candle high to high – 20 (these are y1 and y2 points of a line). While drawing line distance of 5 candles would be placed between 2 line points (these are x1 and x2 points of a line). In XA line X forms start point and A forms end point of the line.
Line AB – Line AB is drawn from point X. To derive the end point of AB, average Fib% is derived based on From Fib% and To Fib% parameters. Finally end point is derived by applying Fib Retracement on Line XA based on average Fib%.
Line AB to Line EF – These points are derived as explained in Line AB.
The indicator can be used to define/create patterns up to 6 legs/lines. The line would be named as XA -> AB -> BC -> CD -> DE -> EF.
If one wish to create pattern consisting 3 legs then it can be achieved by unchecking/deselecting Line CD, DE and EF or by checking only Line AB and BC.
Based on the parameters above indicator draws a sample pattern after last candle/bar on the chart. Sample pattern helps to visually see how pattern will appear on the chart.
Pattern Identification
Indicator derive the swing high/low points based on the Pivot lookback and use as reference points while detecting patterns.
Use of From Fib% and To Fib% - While detecting pattern, retracement price points are derived for From Fib% and To Fib%. Price points between from Fib% and To Fib% are treated as valid retracement points.
How to configure and use indicator for detecting patterns
Sample Pattern 1
Sample Pattern 2
Sample Pattern 3
Sample Pattern 4
[TR] Engulf Patterns by SM
Engulf Pattern by SM
Overview:
The " Engulf Pattern by SM" script is designed to identify bullish and bearish engulfing candlestick patterns on TradingView charts. Engulfing patterns are significant in technical analysis as they often indicate potential reversals in market trends.
Features:
- Bullish Engulfing Pattern Detection: The script identifies bullish engulfing patterns, which occur when a larger bullish candle completely engulfs the body of the previous smaller bearish candle.
- Bearish Engulfing Pattern Detection: Similarly, it detects bearish engulfing patterns, where a larger bearish candle engulfs the body of the preceding smaller bullish candle.
- Body Size Filtering: The script includes a feature to filter patterns based on the size of the candle bodies, allowing for more precise marking of significant patterns.
- Visual Markers: The script plots visual markers on the chart to highlight the detected engulfing patterns, making it easy for traders to spot them.
How It Works:
1. Bullish Engulfing Pattern:
- The script checks for a smaller bearish candle followed by a larger bullish candle.
- The body of the bullish candle must completely cover the body of the bearish candle.
- The size of the bullish candle's body must meet a specified threshold to be considered significant.
2. Bearish Engulfing Pattern:
- The script looks for a smaller bullish candle followed by a larger bearish candle.
- The body of the bearish candle must completely engulf the body of the bullish candle.
- The size of the bearish candle's body must meet a specified threshold to be considered significant.
Usage:
- Add the Script: Apply the " Engulf Pattern by SM" script to your TradingView chart.
- Configure Settings: Customize the script settings to suit your trading strategy, including visual marker styles and body size thresholds.
- Monitor Visual Markers: Keep an eye on the visual markers to identify potential trading opportunities based on engulfing patterns.
Disclaimer:
This script is not intended to be used as a direct entry signal. It should be used as a confluence in your overall trading plan. Always conduct your own analysis and consider multiple factors before making any trading decisions.
Feel free to customize this writeup further to match your specific needs! If you have any other requests or need additional details, just let me know.
Three Bar Reversal Pattern [LuxAlgo]The Three Bar Reversal Pattern indicator identifies and highlights three bar reversal patterns on the user price chart.
The script also provides an option for incorporating various trend indicators used to filter out detected signals, allowing them to enhance their accuracy and help obtain a more comprehensive analysis.
🔶 USAGE
The script automates the detection of three-bar reversal patterns and provides a clear, visually identifiable signal for potential trend reversals.
When a reversal chart pattern is confirmed and price action aligns with the pattern, the pattern's boundaries are extended, forming levels, with the upper boundary often acting as a resistance and the lower boundary as a support.
The script allows users to filter patterns based on a specific trend direction detected by multiple trend indicators. Users can choose to view patterns that are either aligned with the detected trend or opposite to it.
Included trend indicators are: Moving Average Cloud, Supertrend, and Donchian Channels.
🔶 DETAILS
The three-bar reversal pattern is a technical analysis pattern that signals a potential reversal in the prevailing trend. The pattern consists of three consecutive bar formations:
First Bar and Second Bar: 2 consecutive of the same sentiment, representing the prevailing trend in the market.
Third Bar: Confirms the reversal by closing beyond the high or low of the first bar, signaling a potential change in market sentiment.
Various types of three-bar reversal patterns are documented. The script supports two main types:
Normal Pattern: Detects three-bar reversal patterns without requiring the third bar closing price to surpass the high (bullish pattern) or low (bearish pattern) of the first bar. It identifies basic formations signaling potential trend reversals.
Enhanced Pattern: Specifically identifies three-bar reversal patterns where the third bar closing price surpasses the high (bullish pattern) or low (bearish pattern) of the first bar. This type provides a more selective signal for stronger trend reversals.
🔶 SETTINGS
Pattern Type: Users can choose the type of 3-bar reversal patterns to detect: Normal, Enhanced, or All. "Normal" detects patterns that do not necessarily surpass the high/low of the first bar. "Enhanced" detects patterns where the third bar surpasses the high/low of the first bar. "All" detects both Normal and Enhanced patterns.
Derived Support and Resistance: Toggles the visibility of the support and resistance levels/zones.
🔹 Trend Filtering
Filtering: Allows users to filter patterns based on the trend indicators: Moving Average Cloud, Supertrend, and Donchian Channels. The "Aligned" option only detects patterns that align with the trend and conversely, the "Opposite" option detects patterns that go against the trend.
🔹 Trend Indicator Settings
Moving Average Cloud: Allows traders to choose the type of moving averages (SMA, EMA, HMA, etc.) and set the lengths for fast and slow-moving averages.
Supertrend: Options to set the ATR length and factor for Supertrend.
Donchian Channels: Option to set the length for the channel calculation.
🔶 RELATED SCRIPTS
Reversal-Candlestick-Structure .
Reversal-Signals .
---Advanced Harmonic Pattern Scanner v5Summary of the Script:
All Patterns Covered: The script includes all major harmonic patterns: Butterfly, Gartley, Crab, Bat, Cypher, and Three Drives. Both bullish and bearish versions are detected.
ZigZag Swings: The zigzag logic helps find swing points (X, A, B, C, D) which are essential for forming these patterns. You can adjust the zigzagDepth parameter to fine-tune how sensitive the pattern detection is to price swings.
Fibonacci Levels: Each pattern uses specific Fibonacci retracement or extension levels to identify potential patterns, and the script compares price movements to these ratios.
Visual Aid: It uses plotshape() to display detected patterns on the chart and optional line.new() functions to connect the swing points for a better visual representation of the patterns.
How to Customize:
Timeframe: You can run this script on different timeframes by changing the chart on TradingView (1 min, 1 hour, 1 day, etc.).
ZigZag Sensitivity: Adjust the zigzagDepth to refine how frequently swing points are detected. Larger numbers will reduce sensitivity and show fewer but more pronounced patterns.
Pattern Refinement: Modify Fibonacci levels to experiment with custom harmonic patterns or adjust thresholds for the existing ones.
This code is an advanced version and scans the market comprehensively for all major harmonic patterns. Let me know if you need further modifications or explanations!
Bearish Cassiopeia C Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bearish Cassiopeia C harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia C Harmonic Patterns
• Bullish Cassiopeia C patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is higher than the first.
• Bearish Cassiopeia C patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bullish Cassiopeia C Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia C harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia C Harmonic Patterns
• Bullish Cassiopeia C patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is higher than the first.
• Bearish Cassiopeia C patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bearish Cassiopeia B Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bearish Cassiopeia B harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia B Harmonic Patterns
• Bullish Cassiopeia B patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is also lower than the first.
• Bearish Cassiopeia B patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is also higher than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bullish Cassiopeia B Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia B harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia B Harmonic Patterns
• Bullish Cassiopeia B patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is also lower than the first.
• Bearish Cassiopeia B patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is also higher than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bearish Cassiopeia A Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bearish Cassiopeia A harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia A Harmonic Patterns
• Bullish Cassiopeia A patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being higher than both the first and second troughs, while the second trough is also higher than the first.
• Bearish Cassiopeia A patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being lower than both the first and second peaks, while the second peak is also lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bullish Cassiopeia A Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia A harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns. As can be seen in the picture above the bullish Cassiopeia A caught the 2009 bear market bottom almost perfectly.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia A Harmonic Patterns
• Bullish Cassiopeia A patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being higher than both the first and second troughs, while the second trough is also higher than the first.
• Bearish Cassiopeia A patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being lower than both the first and second peaks, while the second peak is also lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Marubozu PatternsMarubozu Candlestick Patterns Indicator
This TradingView script identifies two types of Marubozu candlestick patterns: the bearish Marubozu and the bullish Marubozu. Marubozu patterns are characterized by a lack of shadows and a long body, indicating strong market sentiment. The indicator displays labels and triggers alerts when these patterns are detected on the price chart.
Features:
Identifies bearish Marubozu and bullish Marubozu candlestick patterns.
Alerts triggered for both patterns.
Labels displayed to highlight pattern occurrences on the chart.
How it works:
The script calculates various properties of candlesticks, such as body length, shadows, and body type. It then identifies both bearish and bullish Marubozu patterns based on specific conditions. When a pattern is detected, a label is shown on the chart with a corresponding tooltip description. Additionally, a background color change emphasizes the presence of detected patterns. Alerts are triggered for both pattern types, helping traders to quickly spot potential trading opportunities.
Note:
This script is designed for use on the TradingView platform using Pine Script. It aids traders in recognizing Marubozu candlestick patterns, providing visual cues and alerts for potential bullish and bearish market sentiments.
Bearish Cypher Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws bearish cypher harmonic patterns and price projections derived from the ranges that constitute the patterns.
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Support and Resistance
• Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further.
• Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further.
Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down.
It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cypher Patterns
• Bullish cypher patterns are fundamentally composed of three troughs and two peaks, with the second peak being higher than the first peak and the second trough being higher than the first trough. The third trough must be lower than the second trough but higher than the first.
• Bearish cypher patterns are fundamentally composed of three peaks and two troughs, with the second trough being lower than the first trough and the second peak being lower than the first peak. The third peak must be higher than the second peak but lower than the first.
The most commonly recognised ratio measures used by traders today are as follows:
• Wave 1 of the pattern, referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, referred to as AB, should retrace to at least 38.2%, but no further than 61.8% of the range set by wave 1.
• Wave 3 of the pattern, referred to as BC, should extend to at least 113%, but no further than 141.4% of the range set by wave 2.
• Wave 4 of the pattern, referred to as CD, should extend to at least 127.2%, but no further than 200% of the range set by wave 3.
• The last measure, that of wave 4 as a ratio of the range set between points X and C, referred to as XC, should retrace to 78.6%.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• XC Lower Tolerance
• XC Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
The cypher pattern was initially discovered by Darren Oglesbee, but I was unable to find any direct sources to his work on harmonic patterns. And although there seems to be some contention over whether or not there should be a ratio requirement for the CD wave, I decided to include it nonetheless.
