CandelaCharts - Swing Failure Pattern (SFP) 📝 Overview
The Swing Failure Pattern (SFP) indicator is designed to identify and highlight Swing Failure Patterns on a user’s chart. This pattern typically emerges when significant market participants generate liquidity by driving price action to key levels. An SFP occurs when the price temporarily breaks above a resistance level or below a support level, only to quickly reverse and return within the previous range. These movements are often associated with stop-loss hunting or liquidity grabs, providing traders with potential opportunities to anticipate reversals or key market turning points.
A Bullish SFP occurs when the price dips below a key support level, triggering stop-loss orders, but then swiftly reverses upward, signaling a potential upward trend or reversal.
A Bearish SFP happens when the price spikes above a key resistance level, triggering stop-losses of short positions, but then quickly reverses downward, indicating a potential bearish trend or reversal.
The indicator is a powerful tool for traders, helping to identify liquidity grabs and potential reversal points in real-time. By marking bullish and bearish Swing Failure Patterns on the chart, it provides clear visual cues for spotting market traps set by major players, enabling more informed trading decisions and improved risk management.
📦 Features
Bullish/Bearish SFPs
Styling
⚙️ Settings
Length: Determines the detection length of each SFP
Bullish SFP: Displays the bullish SFPs
Bearish SFP: Displays the bearish SFPs
Label: Controls the labels size
⚡️ Showcase
Bullish
Bearish
Both
📒 Usage
The best approach is to combine a few complementary indicators to gain a clearer market perspective. This doesn’t mean relying on the Golden Cross, RSI divergences, SFPs, and funding rates simultaneously, but rather focusing on one or two that align well in a given scenario.
The example above demonstrates the confluence of a Bearish Swing Failure Pattern (SFP) with an RSI divergence. This combination strengthens the signal, as the Bearish SFP indicates a potential reversal after a liquidity grab, while the RSI divergence confirms weakening momentum at the key level. Together, these indicators provide a more robust setup for identifying potential market reversals with greater confidence.
🚨 Alerts
This script provides alert options for all signals.
Bearish Signal
A bearish signal is triggered when a Bearish SFP is formed.
Bullish Signal
A bullish signal is triggered when a Bullish SFP is formed.
⚠️ Disclaimer
Trading involves significant risk, and many participants may incur losses. The content on this site is not intended as financial advice and should not be interpreted as such. Decisions to buy, sell, hold, or trade securities, commodities, or other financial instruments carry inherent risks and are best made with guidance from qualified financial professionals. Past performance is not indicative of future results.
Patterns
Max/Min LevelsHighlights highs and lows that match the search criteria. A high is considered to be broken if the candlestick breaks through its shadow
A three-candlestick pattern will match the parameters:
Candle before - 1
Candle after - 1
A five-candlestick pattern will match the parameters:
Candle before - 2
Candle after - 2
Advanced Pattern Detector**Script Overview**
**Indicator Name:** Advanced Pattern Detector
**Pine Script Version:** v5
**Indicator Type:** Overlaid on the chart (overlay=true)
**Main Features:**
- Detection and visualization of various technical patterns.
- Generation of BUY and SELL signals based on detected patterns.
- Display of Fibonacci levels to identify potential support and resistance levels.
- Ability to enable or disable each pattern through the indicator settings.
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**Indicator Settings**
**Switches to Enable/Disable Patterns**
At the top of the indicator, there are parameters that allow the user to select which patterns will be displayed on the chart:
- Three Drives
- Rounding Top
- Rounding Bottom
- ZigZag Pattern
- Inverse Head and Shoulders
- Fibonacci Retracement
**Parameters for ZigZag**
Settings are also available for the ZigZag pattern, such as the depth of peak and trough detection, allowing the user to adjust the indicator's sensitivity to price changes.
---
**Pattern Detection**
Each pattern is implemented with its own logic, which checks specific conditions on the current bar (candle). Below are the main patterns:
1. **Three Drives**
- **Description:** This pattern consists of three consecutive price movements in one direction (up or down). It can signal the continuation of the current trend or its reversal.
- **How It Works:**
- **Upward Drive:** The indicator checks that the closing price of each subsequent candle is higher than the previous one for three bars.
- **Downward Drive:** The indicator checks that the closing price of each subsequent candle is lower than the previous one for three bars.
2. **Rounding Top**
- **Description:** A pattern representing a smooth decrease in maximum prices over several bars, which may indicate a potential downward trend reversal.
- **How It Works:**
- The indicator checks that the maximum prices of the last five bars are gradually decreasing, and the current bar shows a decrease in the maximum price.
3. **Rounding Bottom**
- **Description:** A pattern characterized by a smooth increase in minimum prices over several bars, signaling a possible upward trend reversal.
- **How It Works:**
- The indicator checks that the minimum prices of the last five bars are gradually increasing, and the current bar shows an increase in the minimum price.
4. **ZigZag Pattern**
- **Description:** Used to identify corrective movements on the chart. The pattern shows peak and trough points connected by lines, helping to visualize the main price movement.
- **How It Works:**
- The indicator uses a function to determine local maxima and minima based on the specified depth.
- Detected peaks and troughs are connected by lines to create a visual zigzag structure.
5. **Inverse Head and Shoulders**
- **Description:** An inverted head and shoulders formation signals a possible reversal of a downward trend to an upward one.
- **How It Works:**
- The indicator looks for three local minima: the left shoulder, the head (the lowest minimum), and the right shoulder.
- It checks that the left and right shoulders are approximately at the same level and below the head.
6. **Fibonacci Retracement Levels**
- **Description:** Automatically builds key Fibonacci levels based on the maximum and minimum prices over the last 50 bars. These levels are often used as potential support and resistance levels.
- **How It Works:**
- Daily, the minimum and maximum prices over the last 50 bars are calculated.
- Based on these values, Fibonacci levels are drawn: 100%, 23.6%, 38.2%, 50%, 61.8%, and 0%.
- Old levels are removed when a new day begins to keep the chart clean and up-to-date.
---
**Generation of Buy and Sell Signals**
The indicator combines the results of detected patterns to generate trading signals:
- **Buy Signals (BUY):**
- Rounding Bottom
- Three Drives Up
- Inverse Head and Shoulders
- ZigZag Low
- **Sell Signals (SELL):**
- Rounding Top
- Three Drives Down
- Inverse Head and Shoulders
- ZigZag High
**How It Works:**
- If one or more buy conditions are met, a "BUY" label is displayed below the corresponding bar on the chart.
- If one or more sell conditions are met, a "SELL" label is displayed above the corresponding bar on the chart.
---
**Visualization of Patterns on the Chart**
Each detected pattern is visualized using various graphical elements, allowing traders to easily identify them on the chart:
- **Three Drives Up:** Green upward triangle below the bar.
- **Three Drives Down:** Red downward triangle above the bar.
- **Rounding Top:** Orange "RT" label above the bar.
- **Rounding Bottom:** Blue "RB" label below the bar.
- **Inverse Head and Shoulders:** Turquoise "iH&S" label below the bar.
- **ZigZag High/Low:** Purple circles at the peaks and troughs of the zigzag.
---
**Displaying Fibonacci Levels**
Fibonacci levels are displayed as horizontal lines on the chart with corresponding labels. These levels help traders determine potential entry and exit points, as well as support and resistance levels.
---
**Drawing ZigZag Lines**
ZigZag lines connect the detected peaks and troughs, visualizing corrective movements. To avoid cluttering the chart, the number of lines is limited, and old lines are automatically removed as new ones are added.
ABCD Harmonic Pattern [TradingFinder] ABCD Pattern indicator🔵 Introduction
The ABCD harmonic pattern is a tool for identifying potential reversal zones (PRZ) by using Fibonacci ratios to pinpoint critical price reversal points on price charts.
This pattern consists of four key points, labeled A, B, C, and D. In this structure, the AB and CD waves move in the same direction, while the BC wave acts as a corrective wave in the opposite direction.
The ABCD pattern follows specific Fibonacci ratios that enhance its accuracy in identifying PRZ. Typically, point C lies within the 0.382 to 0.886 Fibonacci retracement of the AB wave, indicating the correction extent of the BC wave.
Subsequently, the CD wave, as the final wave in this pattern, reaches point D with a Fibonacci extension between 1.13 and 2.618 of the BC wave. Point D, which marks the PRZ, is where a potential price reversal is likely to occur.
The ABCD pattern appears in both bullish and bearish forms. In the bullish ABCD pattern, prices tend to increase at point D, which defines the PRZ; in the bearish ABCD pattern, prices typically decrease upon reaching the PRZ at point D.
These characteristics make the ABCD pattern a popular tool for identifying PRZ and price reversal points in financial markets, including forex, cryptocurrencies, and stocks.
Bullish Pattern :
Beaish Pattern :
🔵 How to Use
🟣 Bullish ABCD Pattern
The bullish ABCD pattern is another harmonic structure used to identify a potential reversal zone (PRZ) where the price is likely to rise after a downward movement. This pattern includes four main points A, B, C, and D. In the bullish ABCD, the AB and CD waves move downward, and the BC wave acts as a corrective, upward wave. This setup creates a PRZ at point D, where the price may reverse and move upward.
To identify a bullish ABCD pattern, begin with the downward AB wave. The BC wave retraces upward between 0.382 and 0.886 of the AB wave, indicating the extent of the correction.
After the BC retracement, the CD wave forms and extends from point C down to point D, with an extension of around 1.13 to 2.618 of the BC wave. Point D, as the PRZ, represents the area where the price may reverse upwards, making it a strategic level for potential buy positions.
When the price reaches point D in the bullish ABCD pattern, traders look for upward reversal signals. This can include bullish candlestick formations, such as hammer or morning star patterns, near the PRZ to confirm the trend reversal. Entering a long position after confirmation near point D provides a calculated entry point.
Additionally, placing a stop loss slightly below point D helps protect against potential loss if the reversal does not occur. The ABCD pattern, with its precise Fibonacci structure and PRZ identification, gives traders a disciplined approach to spotting bullish reversals in markets, particularly in forex, cryptocurrency, and stock trading.
Bullish Pattern in COINBASE:BTCUSD :
🟣 Bearish ABCD Pattern
The bearish ABCD pattern is a harmonic structure that indicates a potential reversal zone (PRZ) where price may shift downward after an initial upward movement. This pattern consists of four main points A, B, C, and D. In a bearish ABCD, the AB and CD waves move upward, while the BC wave acts as a corrective wave in the opposite, downward direction. This reversal zone (PRZ) can be identified with specific Fibonacci ratios.
To identify a bearish ABCD pattern, start by observing the AB wave, which forms as an upward price movement. The BC wave, which follows, typically retraces between 0.382 to 0.886 of the AB wave. This retracement indicates how far the correction goes and sets the foundation for the next wave.
Finally, the CD wave extends from point C to reach point D with a Fibonacci extension of approximately 1.13 to 2.618 of the BC wave. Point D represents the PRZ where the potential reversal may occur, making it a critical area for traders to consider short positions.
Once point D in the bearish ABCD pattern is reached, traders can anticipate a downward price movement. At this potential reversal zone (PRZ), traders often wait for additional bearish signals or candlestick patterns, such as engulfing or evening star formations, to confirm the price reversal.
This confirmation around the PRZ enhances the accuracy of the entry point for a bearish position. Setting a stop loss slightly above point D can help manage risk if the price doesn’t reverse as anticipated. The ABCD pattern, with its reliance on Fibonacci ratios and clearly defined points, offers a strategic approach for traders looking to capitalize on potential bearish reversals in financial markets, including forex, stocks, and cryptocurrencies.
Bearish Pattern in OANDA:XAUUSD :
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : 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 latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" 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.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🟣 Conclusion
The ABCD harmonic pattern offers a structured approach in technical analysis, helping traders accurately identify potential reversal zones (PRZ) where price movements may shift direction. By leveraging the relationships between points A, B, C, and D, alongside specific Fibonacci ratios, traders can better anticipate points of market reversal and make more informed decisions.
Both the bearish and bullish ABCD patterns enable traders to pinpoint ideal entry points that align with anticipated market shifts. In a bearish ABCD, point D within the PRZ often signals a downward trend reversal, while in a bullish ABCD, this same point typically suggests an upward reversal. The adaptability of the ABCD pattern across different markets, such as forex, stocks, and cryptocurrencies, further highlights its utility and reliability.
Integrating the ABCD pattern into a trading strategy provides a methodical and calculated approach to entry and exit decisions. With accurate application of Fibonacci ratios and confirmation of the PRZ, traders can enhance their trading precision, reduce risks, and boost overall performance. The ABCD harmonic pattern remains a valuable resource for traders aiming to leverage structured patterns for consistent results in their technical analysis.
5-0 Harmonic Pattern [TradingFinder] 0XABCD 50 Harmonic Detector🔵 Introduction
Harmonic patterns are a powerful tool in technical analysis, widely used to detect reversal points and trend changes. Among these, the 5-0 Harmonic Pattern stands out due to its reliance on specific Fibonacci ratios—1.13, 1.618, 2.24, and 0.45 to 0.55—anchored at points 0, X, A, B, C, and D. This pattern provides a structured approach for identifying critical buy and sell points, helping traders achieve optimal entry and exit levels in volatile markets.
This 5-0 Harmonic Pattern indicator automatically detects and marks bullish and bearish formations on the chart, offering precise trading signals based on established harmonic ratios. With its dynamic signals, the 5-0 pattern enables traders to anticipate market movements and capitalize on favorable price trends.
Especially in fast-moving markets, harmonic patterns, particularly the 5-0 Harmonic Pattern, equip traders with an essential framework for identifying reversal opportunities and refining their trading strategies.
Bullish 5-0 Pattern :
Bearish 5-0 Pattern :
🔵 How to Use
The 5-0 Harmonic Pattern indicator is designed to automatically mark the key levels of the harmonic structure: 0, X, A, B, C, and D. By doing so, it detects both bullish and bearish patterns and helps traders recognize optimal entry and exit points.
Formed through specific Fibonacci levels, this pattern signals potential shifts in trend direction, giving traders critical insights for managing entries and exits effectively. The tool proves valuable in high-volatility settings, enabling traders to leverage these signals for refined decision-making.
🟣 Bullish 5-0 Pattern
A bullish 5-0 pattern materializes when Fibonacci levels indicate a potential price reversal to the upside. With points 0, X, A, B, C, and D in alignment, the indicator highlights this upward momentum by displaying a green arrow as a buy signal on the chart. This marking provides a clear entry point, indicating that prices are likely to rise, making it a prime moment for traders to enter long positions.
Additionally, the bullish 5-0 pattern is equipped with tools for traders to set stop-loss and take-profit points based on harmonic lines within the pattern, which represent support and resistance levels. Using these dynamic points, traders can create a more effective risk-reward setup while following the bullish signals in a standalone harmonic strategy.
🟣 Bearish 5-0 Pattern
The bearish 5-0 pattern functions similarly but signals a likely downturn. This pattern emerges when Fibonacci ratios align at points 0, X, A, B, C, and D, predicting a reversal downward. The indicator generates a sell signal, marked by a red arrow, prompting traders to exit long positions or initiate short trades to capitalize on falling prices.
Traders can utilize this bearish pattern for defining exit strategies and setting key levels for stop-loss and take-profit orders. The bearish 5-0 pattern enhances traders’ abilities to gauge critical price levels and manage trade risk effectively, especially in volatile markets. For traders focused on profiting from downward trends, this indicator serves as a powerful tool for timely entries and exits.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : 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 latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" 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.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Conclusion
The 5-0 Harmonic Pattern indicator serves as a robust solution for technical analysts and traders looking to pinpoint market reversal points. By automatically recognizing 5-0 patterns and generating buy and sell signals based on Fibonacci ratios, this tool supports precise trend analysis and entry/exit timing. The indicator’s adjustable alerts, color themes, and pattern toggles allow for comprehensive customization, ensuring alignment with individual trading strategies.
Harmonic patterns, especially the 5-0 Harmonic Pattern, guide traders in identifying high-accuracy entry and exit points, thus aiding in more informed trading decisions. By combining Fibonacci ratio analysis with real-time signal updates, this indicator provides a well-rounded approach for risk management and capitalizing on trading opportunities. Professional traders can harness this tool to enhance technical analysis precision and capitalize on price trends effectively, maximizing profitability in both bullish and bearish markets.
Custom Time Range HighlighterCustom Time Range Highlighter
This versatile indicator allows traders to highlight specific time ranges on their charts, accommodating users worldwide by supporting customizable UTC offsets. Traders can define two distinct time ranges, setting start and end hours in their local time zone.
A toggle option enables the display of highlights for today only , ensuring focus on current trading conditions.
Ideal for day traders and those following specific market sessions, this tool enhances visibility of active trading periods and aids in effective trade management.
Shark Harmonic Pattern [TradingFinder] Shark Detector Indicator🔵 Introduction
The Shark harmonic pattern, first introduced by Scott Carney in 2011, is a recognized tool in technical analysis. Since its inception, it has been widely adopted by traders as an essential market analysis tool.
Due to its complexity, the Shark pattern can be challenging for novice traders. Therefore, we have developed the Harmonic Pattern Indicator to help analysts and traders easily identify these patterns.
🟣 Understanding the Types of Shark Pattern
In technical analysis, the Shark harmonic pattern forms at the end of trends and is categorized into two types: Bullish and Bearish Shark Patterns.
Bullish Shark Pattern : This pattern appears at the end of a downtrend, indicating a potential reversal to an uptrend. Traders can use this pattern to identify buy entry points. The image below illustrates the core components of the Bullish Shark Pattern.
Bearish Shark Pattern : Conversely, the Bearish Shark Pattern forms at the end of an uptrend, signaling a possible reversal to a downtrend. This pattern prompts traders to shift their positions from buying to selling. The image below showcases the characteristics of the Bearish Shark Pattern.
🔵 How to Use
🟣 Trading with the Bullish Shark Pattern
The Bullish Shark Pattern acts as a reversal pattern, helping traders identify the end of a downtrend and the beginning of an uptrend. It consists of five key points that indicate alternating bullish and bearish movements.
Upon the complete formation of this pattern, traders can look for opportunities to enter buy trades. To manage risk effectively, it is advisable to set a stop-loss below the lowest price point within the pattern.
🟣 Trading with the Bearish Shark Pattern
Similarly, the Bearish Shark Pattern functions as a reversal pattern but in the opposite direction. It helps traders identify the end of an uptrend and the onset of a downtrend.
After the pattern fully forms, traders can seek sell entry opportunities. As with the bullish pattern, placing a stop-loss above the highest price point within the pattern is recommended for risk management.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : 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 latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" 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.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Shark harmonic pattern is a potent analytical tool in technical analysis that aids traders in identifying critical reversal points in financial markets. Whether in a bullish or bearish context, this pattern provides clear trend change signals, allowing traders to enter trades with greater precision and optimize their strategies.
However, as with all analytical methods, it is essential to supplement the Shark pattern with additional analyses and strict risk management to avoid potential losses. Incorporating this pattern into a comprehensive trading strategy can lead to better trade outcomes and more opportunities for success
Reversal Candlestick Structure [LuxAlgo]The Reversal Candlestick Structure indicator detects multiple candlestick patterns occurring when trends are most likely to experience a reversal in real-time. The reversal detection method includes various settings allowing users to adjust the reversal detection algorithm more precisely.
A dashboard showing the percentage of patterns detected as reversals is also included.
🔶 USAGE
Candlestick patterns are ubiquitous to technical analysts, allowing them to detect trend continuations, reversals, and indecision.
The proposed tool effectively detects reversals by using the confluence between candlestick patterns and a reversal detection method based on the stochastic oscillator, acting as a filter for the patterns. If a candlestick pattern occurs while conditions suggest a potential reversal then the pattern is highlighted.
The displayed candle coloring allows users to observe the reversal detection method, with colored candles indicating potential reversals.
Users wanting to detect longer-term reversals can use a higher "Trend Length" setting, this can however lead to an increased amount of displayed candlestick patterns.
To prevent false positives users also have control over a "Threshold" setting in a range between (0, 100), with values closer to 100 preventing candlesticks from being detected at the start of trends.
The "Warmup Length" serves a similar purpose, and aims to prevent sudden moves to be classified as reversals. Higher values of this setting will require trends to be established for a longer period of time for reversal conditions to be detected.
🔹 Dashboard
To evaluate the role of individual candlestick patterns as potential reversal signals relative to the proposed reversal detection method, a dashboard displaying the percentage of candlestick patterns displayed (that occur when a potential reversal is detected) over the total amount detected.
Hovering on the dashboard cells of the "Reversal %" column allows displaying the total amount of patterns detected.
🔶 CANDLESTICKS PATTERNS
This tool detects 16 popular candlestick patterns, each listed in the sub-sections below.
🔹 Bullish Patterns
Hammer - A bullish reversal pattern that forms after a decline, characterized by a small body at the upper end of the trading range and a long lower shadow.
Inverted Hammer - A bullish reversal pattern that forms after a downtrend, featuring a small body at the lower end of the trading range and a long upper shadow.
Bullish Engulfing - A bullish reversal pattern where a small bearish candlestick is followed by a larger bullish candlestick that completely engulfs the previous candle.
Rising 3 - A bullish continuation pattern that consists of a long bullish candlestick followed by three smaller bearish candlesticks and then another long bullish candlestick.
3 White Soldiers - A bullish reversal pattern consisting of three consecutive long bullish candlesticks, each opening within the previous candle's body and closing higher.
Morning Star - A bullish reversal pattern made up of three candlesticks: a long bearish candlestick, followed by a short candlestick, and then a long bullish candlestick.
Bullish Harami - A bullish reversal pattern where a small bullish candlestick is completely within a previous larger bearish candlestick.
Tweezer Bottom - A bullish reversal pattern identified by an initial bullish candle, followed by a bearish candle, both having equal lows.
🔹 Bearish Patterns
Hanging Man - A bearish reversal pattern that forms after an uptrend, characterized by a small body at the upper end of the trading range and a long lower shadow.
Shooting Star - A bearish reversal pattern that forms after an uptrend, featuring a small body at the lower end of the trading range and a long upper shadow.
Bearish Engulfing - A bearish reversal pattern where a small bullish candlestick is followed by a larger bearish candlestick that completely engulfs the previous candle.
Falling 3 - A bearish continuation pattern that consists of a long bearish candlestick followed by three smaller bullish candlesticks and then another long bearish candlestick.
3 Black Crows - A bearish reversal pattern consisting of three consecutive long bearish candlesticks, each opening within the previous candle's body and closing lower.
Evening Star - A bearish reversal pattern made up of three candlesticks: a long bullish candlestick, followed by a short candlestick, and then a long bearish candlestick.
Bearish Harami - A bearish reversal pattern where a small bearish candlestick is completely within a previous larger bullish candlestick.
Tweezer Top - A bearish reversal pattern is identified by an initial bullish candle, followed by a bearish candle, both having equal highs."
🔶 SETTINGS
🔹 Patterns
Group including toggles for each of the supported candlestick patterns. Enabled toggles will allow detection of the associated candlestick pattern.
🔹 Reversal Detection
Trend Length: Determines the sensitivity of the reversal detection method to shorter-term variation, with higher values returning a detection method more sensitive to longer-term trends.
Threshold: Determines how easy it is for the reversal detection method to consider a trend at an extreme point.
Warmup Length: Warmup period in the reversal detection method, longer values will require a longer-term trend to detect potential reversals.
🔹 Style
Color Candles: Enable candle coloring on the user chart based on the reversal detection method.
Use Gradient: Use a gradient as candle coloring.
Label Size: Size of the labels displaying the detected candlesticks patterns.
🔹 Dashboard
Show Dashboard: Display the dashboard on the user chart when enabled.
Location: Dashboard location on the user chart.
Size: Size of the displayed dashboard.
Flags With Measured Move [QuantVue]Flags with Measured Moves is a technical analysis tool that identifies bull flags and provides a measured move target.
A bull flag is a continuation pattern that occurs within the context of a general uptrend. It represents a pause or small consolidation before the price resumes its upward movement.
A bull flag consists of two sections: the flagpole and the flag.
The flagpole is the initial upward movement that occurs before the flag forms.
The flag forms as the price consolidates after the initial uptrend. During this phase, the price tends to drift downward or sideways, ideally with declining volume.
Once the flag has put in a low, the initial range of thrust is added to the flag low to form the measured move target.
Every element of the flag is customizable by the trader, including the size and length of the prior uptrend and the minimum and maximum flag depth and length.
The indicator also includes alerts for when new flags are formed, when a breakout from the flag occurs, and when the measured move target is reached.
By default, the indicator settings are set for use on a daily timeframe. If using the indicator on an intraday timeframe, you will need to adjust the settings.
Give this indicator a BOOST and COMMENT your thoughts!
We hope you enjoy.
Cheers!
Seasonality Widget [LuxAlgo]The Seasonality Widget tool allows users to easily visualize seasonal trends from various data sources.
Users can select different levels of granularity as well as different statistics to express seasonal trends.
🔶 USAGE
Seasonality allows us to observe general trends occurring at regular intervals. These intervals can be user-selected from the granularity setting and determine how the data is grouped, these include:
Hour
Day Of Week
Day Of Month
Month
Day Of Year
The above seasonal chart shows the BTCUSD seasonal price change for every hour of the day, that is the average price change taken for every specific hour. This allows us to obtain an estimate of the expected price move at specific hours of the day.
Users can select when data should start being collected using the "From Date" setting, any data before the selected date will not be included in the calculation of the Seasonality Widget.
🔹 Data To Analyze
The Seasonality Widget can return the seasonality for the following data:
Price Change
Closing price minus the previous closing price.
Price Change (%)
Closing price minus the previous closing price, divided by the
previous closing price, then multiplied by 100.
Price Change (Sign)
Sign of the price change (-1 for negative change, 1 for positive change), normalized in a range (0, 100). Values above 50 suggest more positive changes on average.
Range
High price minus low price.
Price - SMA
Price minus its simple moving average. Users can select the SMA period.
Volume
Amount of contracts traded. Allow users to see which periods are generally the most /least liquid.
Volume - SMA
Volume minus its simple moving average. Users can select the SMA period.
🔹 Filter
In addition to the "From Date" threshold users can exclude data from specific periods of time, potentially removing outliers in the final results.
The period type can be specified in the "Filter Granularity" setting. The exact time to exclude can then be specified in the "Numerical Filter Input" setting, multiple values are supported and should be comma separated.
For example, if we want to exclude the entire 2008 period we can simply select "Year" as filter granularity, then input 2008 in the "Numerical Filter Input" setting.
Do note that "Sunday" uses the value 1 as a day of the week.
🔶 DETAILS
🔹 Supported Statistics
Users can apply different statistics to the grouped data to process. These include:
Mean
Median
Max
Min
Max-Min Average
Using the median allows for obtaining a measure more robust to outliers and potentially more representative of the actual central tendency of the data.
Max and Min do not express a general tendency but allow obtaining information on the highest/lowest value of the analyzed data for specific periods.
🔶 SETTINGS
Granularity: Periods used to group data.
From Data: Starting point where data starts being collected
🔹 Data
Analyze: Specific data to be processed by the seasonality widget.
SMA Length: Period of the simple moving average used for "Price - SMA" and "Volume - SMA" options in "Analyze".
Statistic: Statistic applied to the grouped data.
🔹 Filter
Filter Granularity: Period type to exclude in the processed data.
Numerical Filter Input: Determines which of the selected hour/day of week/day of month/month/year to exclude depending on the selected Filter Granularity. Only numerical inputs can be provided. Multiple values are supported and must be comma-separated.
TimeSeriesGrammianAngularFieldLibrary "TimeSeriesGrammianAngularField"
provides Grammian angular field and associated utility functions.
___
Reference:
*Time Series Classification: A review of Algorithms and Implementations*.
www.researchgate.net
method normalize(data, a, b)
Normalize the series to a optional range, usualy within `(-1, 1)` or `(0, 1)`.
Namespace types: array
Parameters:
data (array) : Sample data to normalize.
a (float) : Minimum target range value, `default=-1.0`.
b (float) : Minimum target range value, `default= 1.0`.
Returns: Normalized array within new range.
___
Reference:
*Time Series Classification: A review of Algorithms and Implementations*.
normalize_series(source, length, a, b)
Normalize the series to a optional range, usualy within `(-1, 1)` or `(0, 1)`.\
*Note that this may provide a different result than the array version due to rolling range*.
Parameters:
source (float) : Series to normalize.
length (int) : Number of bars to sample the range.
a (float) : Minimum target range value, `default=-1.0`.
b (float) : Minimum target range value, `default= 1.0`.
Returns: Normalized series within new range.
method polar(data)
Turns a normalized sample array into polar coordinates.
Namespace types: array
Parameters:
data (array) : Sampled data values.
Returns: Converted array into polar coordinates.
polar_series(source)
Turns a normalized series into polar coordinates.
Parameters:
source (float) : Source series.
Returns: Converted series into polar coordinates.
method gasf(data)
Gramian Angular Summation Field *`GASF`*.
Namespace types: array
Parameters:
data (array) : Sampled data values.
Returns: Matrix with *`GASF`* values.
method gasf_id(data)
Trig. identity of Gramian Angular Summation Field *`GASF`*.
Namespace types: array
Parameters:
data (array) : Sampled data values.
Returns: Matrix with *`GASF`* values.
Reference:
*Time Series Classification: A review of Algorithms and Implementations*.
method gadf(data)
Gramian Angular Difference Field *`GADF`*.
Namespace types: array
Parameters:
data (array) : Sampled data values.
Returns: Matrix with *`GADF`* values.
method gadf_id(data)
Trig. identity of Gramian Angular Difference Field *`GADF`*.
Namespace types: array
Parameters:
data (array) : Sampled data values.
Returns: Matrix with *`GADF`* values.
Reference:
*Time Series Classification: A review of Algorithms and Implementations*.
Fibonacci Timing Pattern IIThe Fibonacci Timing Pattern II is a price-based counter that seeks to determine medium-term reversals in price action. It is based on the following set of conditions:
* For a bullish Fibonacci timing signal II: The current close must be lower than the close prices from one and two periods ago. Simultaneously, the close price from two periods ago must be lower than the close price from three periods ago, and the close price from three periods ago must be lower than the close price from five periods ago. The Fibonacci sequence continues until the close price from thirty four periods ago which must be above the close price from fifty five periods ago.
* For a bearish Fibonacci timing signal II: The current close must be higher than the close prices from one and two periods ago. Simultaneously, the close price from two periods ago must be higher than the close price from three periods ago, and the close price from three periods ago must be higher than the close price from five periods ago. The Fibonacci sequence continues until the close price from thirty four periods ago which must be lower the close price from fifty five periods ago.
The signals of the pattern are ideally used in a sideways market or used in tandem with the trend (bullish signals are taken in a bullish market and bearish signals are taken in a bearish market).
Dip & Rip Patterns - The Quant Science🇺🇸
GENERAL OVERVIEW
This indicator detects Dip and Rip patterns by quickly highlighting them on the chart.
These patterns have become popular during the pandemic period mainly in the stock, ETF and cryptocurrency markets on which traders use two interesting strategies:
Buy The Dip
Sell The Rip
Before going into the merits of this technical indicator, let's understand what these two patterns mean and what they identify precisely.
Rip (Rise In Price) : wants to identify a market condition in which the price rises rapidly, for example from $100 to $110 in a few minutes or hours.
Dip (Drop In Price) : wants to identify a market condition in which the price drops rapidly, for example from $100 to $90 in a few minutes or hours.
HOW TO USE
For a better user experience, we recommend choosing a neutral colour for the candles while analysing with this indicator. You can quickly change the colour in Chart Settings > Symbol > Candles .
Depending on the configuration set by the user, the indicator will show Dip (Dip In Price) patterns in red and Rip (Rise In Price) patterns in green.
When the pattern forms, a circle will be displayed and a vertical line will be coloured on the chart along with the body of the candle. The user will then be able to quickly and easily track the configured market conditions.
In this example, we decided to use a 4H timeframe on the BTC/USDT pair (Binance).
Set in the user interface:
Period: 20
Dip (%): -25
Rip (%): 20
Price falls by 25% or more in 80 hours (Dip Pattern).
Price rise by 25% or more in 80 hours (Rip Pattern).
The user can easily configure the parameters via the user interface in the Inputs section (A) and change the indicator design in the Properties section (B).
🇮🇹
PANORAMICA GENERALE
Questo indicatore rileva i Dip e Rip patterns evidenziandoli velocemente sul grafico.
Questi patterns sono diventati famosi durante il periodo pandemico principalmente nel mercato delle azioni, ETF e Criptovalute su cui i trader utilizzano due interessanti strategie:
Buy The Dip
Sell The Rip
Prima di entrare nel merito di questo indicatore tecnico, comprendiamo il significato di questi due pattern e cosa identificano precisamente.
Rip (Rise In Price) : vuole identificare una condizione di mercato in cui il prezzo sale rapidamente, per esempio passando da 100$ a 110$ in pochi minuti o poche ore.
Dip (Drop In Price) : vuole identificare una condizione di mercato in cui il prezzo cala rapidamente, per esempio passando da 100$ a 90$ in pochi minuti o poche ore.
UTILIZZO
Per una migliore esperienza utente consigliamo di scegliere un colore neutro per le candele mentre si analizza con questo indicatore. Puoi cambiare velocemente il colore in Chart Settings > Symbol > Candles .
In base alla configurazione impostata dall'utente l'indicatore mostrerà in rosso i pattern Dip (Dip In Price) e in verde i pattern Rip (Rise In Price).
Quando il pattern si forma verrà visualizzato un cerchio e una linea verticale sul grafico che sarà colorata insieme al corpo della candela. L'utente quindi potrà tracciare facilmente e velocemente le condizioni di mercato configurate.
In questo esempio abbiamo deciso di utilizzare un timeframe 4H con l'obbiettivo di ricercare i patterns sul pair BTC/USDT (Binance).
Impostiamo nell'interfaccia utente:
Period: 20
Dip (%): -25
Rip (%): 20
Il prezzo diminuisce del 25% o più in 80 ore (Dip Pattern).
Il prezzo aumenta del 25% o più in 80 ore (Rip Pattern).
L' utente può configurare facilmente i parametri attraverso l'interfaccia utente nella sezione Inputs (A) e modificare il design dell'indicatore nella sezione Properties (B).
YinYang RSI Volume Trend StrategyThere are many strategies that use RSI or Volume but very few that take advantage of how useful and important the two of them combined are. This strategy uses the Highs and Lows with Volume and RSI weighted calculations on top of them. You may be wondering how much of an impact Volume and RSI can have on the prices; the answer is a lot and we will discuss those with plenty of examples below, but first…
How does this strategy work?
It’s simple really, when the purchase source crosses above the inner low band (red) it creates a Buy or Long. This long has a Trailing Stop Loss band (the outer low band that's also red) that can be adjusted in the Settings. The Stop Loss is based on a % of the inner low band’s price and by default it is 0.1% lower than the inner band’s price. This Stop Loss is not only a stop loss but it can also act as a Purchase Available location.
You can get back into a trade after a stop loss / take profit has been hit when your Reset Purchase Availability After condition has been met. This can either be at Stop Loss, Entry or None.
It is advised to allow it to reset in case the stop loss was a fake out but the call was right. Sometimes it may trigger stop loss multiple times in a row, but you don’t lose much on stop loss and you gain lots when the call is right.
The Take Profit location is the basis line (white). Take Profit occurs when the Exit Source (close, open, high, low or other) crosses the basis line and then on a different bar the Exit Source crosses back over the basis line. For example, if it was a Long and the bar’s Exit Source closed above the basis line, and then 2 bars later its Exit Source closed below the basis line, Take Profit would occur. You can disable Take Profit in Settings, but it is very useful as many times the price will cross the Basis and then correct back rather than making it all the way to the opposing zone.
Longs:
If for instance your Long doesn’t need to Take Profit and instead reaches the top zone, it will close the position when it crosses above the inner top line (green).
Please note you can change the Exit Source too which is what source (close, open, high, low) it uses to end the trades.
The Shorts work the same way as the Long but just opposite, they start when the purchase source crosses under the inner upper band (green).
Shorts:
Shorts take profit when it crosses under the basis line and then crosses back.
Shorts will Stop loss when their outer upper band (green) is crossed with the Exit Source.
Short trades are completed and closed when its Exit Source crosses under the inner low red band.
So, now that you understand how the strategy works, let’s discuss why this strategy works and how it is profitable.
First we will discuss Volume as we deem it plays a much bigger role overall and in our strategy:
As I’m sure many of you know, Volume plays a huge factor in how much something moves, but it also plays a role in the strength of the movement. For instance, let’s look at two scenarios:
Bitcoin’s price goes up $1000 in 1 Day but the Volume was only 10 million
Bitcoin’s price goes up $200 in 1 Day but the Volume was 40 million
If you were to only look at the price, you’d say #1 was more important because the price moved x5 the amount as #2, but once you factor in the volume, you know this is not true. The reason why Volume plays such a huge role in Price movement is because it shows there is a large Limit Order battle going on. It means that both Bears and Bulls believe that price is a good time to Buy and Sell. This creates a strong Support and Resistance price point in this location. If we look at scenario #2, when there is high volume, especially if it is drastically larger than the average volume Bitcoin was displaying recently, what can we decipher from this? Well, the biggest take away is that the Bull’s won the battle, and that likely when that happens we will see bullish movement continuing to happen as most of the Bears Limit Orders have been fulfilled. Whereas with #2, when large price movement happens and Bitcoin goes up $1000 with low volume what can we deduce? The main takeaway is that Bull’s pressured the price up with Market Orders where they purchased the best available price, also what this means is there were very few people who were wanting to sell. This generally dictates that Whale Limit orders for Sells/Shorts are much higher up and theres room for movement, but it also means there is likely a whale that is ready to dump and crash it back down.
You may be wondering, what did this example have to do with YinYang RSI Volume Trend Strategy? Well the reason we’ve discussed this is because we use Volume multiple times to apply multiplications in our calculations to add large weight to the price when there is lots of volume (this is applied both positively and negatively). For instance, if the price drops a little and there is high volume, our strategy will move its bounds MUCH lower than the price actually dropped, and if there was low volume but the price dropped A LOT, our strategy will only move its bounds a little. We believe this reflects higher levels of price accuracy than just price alone based on the examples described above.
Don’t believe us?
Here is with Volume NOT factored in (VWMA = SMA and we remove our Volume Filter calculation):
Which produced -$2880 Profit
Here is with our Volume factored in:
Which produced $553,000 (55.3%)
As you can see, we wen’t from $-2800 profit with volume not factored to $553,000 with volume factored. That's quite a big difference! (Please note previous success does not predict future success we are simply displaying the $ amounts as example).
Now how about RSI and why does it matter in this strategy?
As I’m sure most of you are aware, RSI is one of the leading indicators used in trading. For this reason we figured it would only make sense to incorporate it into our calculations. We fiddled with RSI for quite awhile and sometimes what logically seems to be the right way to use it isn’t. Now, because of this, our RSI calculation is a little odd, but basically what we’re doing is we calculate the RSI, then turn it into a percentage (between 0-1) that can easily be multiplied to the price point we need. The price point we use is the difference between our high purchase zone and our low purchase zone. This allows us to see how much price movement there is between zones. We multiply our zone size with our RSI multiplication and we get the amount we will add +/- to our basis line (white line). This officially creates the NEW high and low purchase zones that we are actually using and displaying in our trades.
If you found that confusing, here are some examples to why it is an important calculation for this strategy:
Before RSI factored in:
Which produced 27.8% Profit
After RSI factored in:
Which produced 553% Profit
As you can see, the RSI makes not only the purchase zones more accurate, but it also greatly increases the profit the strategy is able to make. It also helps ensure an relatively linear profit slope so you know it is reliable with its trades.
This strategy can work on pretty much anything, but you should tweak the values a bit for each pair you are trading it with for best results.
We hope you can find some use out of this simple but effective strategy, if you have any questions, comments or concerns please let us know.
HAPPY TRADING!
The Next Pivot [Kioseff Trading]Hello!
This script "The Next Pivot" uses various similarity measures to compare historical price sequences to the current price sequence!
Features
Find the most similar price sequence up to 100 bars from the current bar
Forecast price path up to 250 bars
Forecast ZigZag up to 250 bars
Spearmen
Pearson
Absolute Difference
Cosine Similarity
Mean Squared Error
Kendall
Forecasted linear regression channel
The image above shows/explains some of the indicator's capabilities!
The image above highlights the projected zig zag (pivots) pattern!
Colors are customizable (:
Additionally, you can plot a forecasted LinReg channel.
Should load times permit it, the script can search all bar history for a correlating sequence. This won't always be possible, contingent on the forecast length, correlation length, and the number of bars on the chart.
Reasonable Assessment
The script uses various similarity measures to find the "most similar" price sequence to what's currently happening. Once found, the subsequent price move (to the most similar sequence) is recorded and projected forward.
So,
1: Script finds most similar price sequence
2: Script takes what happened after and projects forward
While this may be useful, the projection is simply the reaction to a possible one-off "similarity" to what's currently happening. Random fluctuations are likely and, if occurring, similarities between the current price sequence and the "most similar" sequence are plausibly coincidental.
That said, if you have any ideas on cool features to add please let me know!
Thank you (:
Autocorrelation - The Quant ScienceAutocorrelation - The Quant Science it is an indicator developed to quickly calculate the autocorrelation of a historical series. The objective of this indicator is to plot the autocorrelation values and highlight market moments where the value is positive and exceeds the attention threshold.
This indicator can be used for manual analysis when a trader needs to search for new price patterns within the historical series or to create complex formulas in estimating future prices.
What is autocorrelation?
Autocorrelation in trading is a statistical measure used to determine the presence of a relationship or pattern of dependence between values in a financial time series over time. It represents the correlation of past values in a series with its future values. In other words, autocorrelation in trading aims to identify if there are systematic relationships between the past prices or returns of a security or market and its future prices or returns. This analysis can be helpful in identifying patterns or trends that can be leveraged for informed trading decisions. The presence of autocorrelation may suggest that market prices or returns follow a certain pattern or trend over time.
Limitations of the model
It is important to note that autocorrelation does not necessarily imply a causal relationship between past and future values. Other variables or market factors may influence the dynamics of prices or returns, and therefore autocorrelation could be merely a random coincidence. Therefore, it is essential to carefully evaluate the results of autocorrelation analysis along with other information and trading strategies to make informed decisions.
How to use
The usage is very simple, you just need to add it to the current chart to activate the indicator.
From the user interface, you can manage two important features:
1. Lenght: the delay period applied to the historical series during the autocorrelation calculation can be managed from the user interface. By default, it is set to 20, which means that the autocorrelation ratio within the historical series is calculated with a delay of 20 bars.
2. Threshold: the threshold value that the autocorrelation level must meet can be managed from the user interface. By default, it is set to 0.50, which means that the autocorrelation value must be higher than this threshold to be considered valid and displayed on the chart.
3. Bar color: the color used to display the autocorrelation data and highlight the bars when autocorrelation is valid can be managed from the user interface.
To set up the chart
We recommend disabling the 'wick' and 'border' of the candlesticks from the chart settings for a high-quality user experience.
Bjorgum Double Tap█ OVERVIEW
Double Tap is a pattern recognition script aimed at detecting Double Tops and Double Bottoms. Double Tap can be applied to the broker emulator to observe historical results, run as a trading bot for live trade alerts in real time with entry signals, take profit, and stop orders, or to simply detect patterns.
█ CONCEPTS
How Is A Pattern Defined?
Doubles are technical formations that are both reversal patterns and breakout patterns. These formations typically have a distinctive “M” or a “W” shape with price action breaking beyond the neckline formed by the center of the pattern. They can be recognized when a pivot fails to break when tested for a second time and the retracement that follows breaks beyond the key level opposite. This can trap entrants that were playing in the direction of the prior trend. Entries are made on the breakout with a target projected beyond the neckline equal to the height of the pattern.
Pattern Recognition
Patterns are recognized through the use of zig-zag; a method of filtering price action by connecting swing highs and lows in an alternating fashion to establish trend, support and resistance, or derive shapes from price action. The script looks for the highest or lowest point in a given number of bars and updates a list with the values as they form. If the levels are exceeded, the values are updated. If the direction changes and a new significant point is made, a new point is added to the list and the process starts again. Meanwhile, we scan the list of values looking for the distinctive shape to form as previously described.
█ STRATEGY RESULTS
Back Testing
Historical back testing is the most common method to test a strategy due in part to the general ease of gathering quick results. The underlying theory is that any strategy that worked well in the past is likely to work well in the future, and conversely, any strategy that performed poorly in the past is likely to perform poorly in the future. It is easy to poke holes in this theory, however, as for one to accept it as gospel, one would have to assume that future results will match what has come to pass. The randomness of markets may see to it otherwise, so it is important to scrutinize results. Some commonly used methods are to compare to other markets or benchmarks, perform statistical analysis on the results over many iterations and on differing datasets, walk-forward testing, out-of-sample analysis, or a variety of other techniques. There are many ways to interpret the results, so it is important to do research and gain knowledge in the field prior to taking meaningful conclusions from them.
👉 In short, it would be naive to place trust in one good backtest and expect positive results to continue. For this reason, results have been omitted from this publication.
Repainting
Repainting is simply the difference in behaviour of a strategy in real time vs the results calculated on the historical dataset. The strategy, by default, will wait for confirmed signals and is thus designed to not repaint. Waiting for bar close for entires aligns results in the real time data feed to those calculated on historical bars, which contain far less data. By doing this we align the behaviour of the strategy on the 2 data types, which brings significance to the calculated results. To override this behaviour and introduce repainting one can select "Recalculate on every tick" from the properties tab. It is important to note that by doing this alerts may not align with results seen in the strategy tester when the chart is reloaded, and thus to do so is to forgo backtesting and restricts a strategy to forward testing only.
👉 It is possible to use this script as an indicator as opposed to a full strategy by disabling "Use Strategy" in the "Inputs" tab. Basic alerts for detection will be sent when patterns are detected as opposed to complex order syntax. For alerts mid-bar enable "Recalculate on every tick" , and for confirmed signals ensure it is disabled.
█ EXIT ORDERS
Limit and Stop Orders
By default, the strategy will place a stop loss at the invalidation point of the pattern. This point is beyond the pattern high in the case of Double Tops, or beneath the pattern low in the case of Double Bottoms. The target or take profit point is an equal-legs measurement, or 100% of the pattern height in the direction of the pattern bias. Both the stop and the limit level can be adjusted from the user menu as a percentage of the pattern height.
Trailing Stops
Optional from the menu is the implementation of an ATR based trailing stop. The trailing stop is designed to begin when the target projection is reached. From there, the script looks back a user-defined number of bars for the highest or lowest point +/- the ATR value. For tighter stops the user can look back a lesser number of bars, or decrease the ATR multiple. When using either Alertatron or Trading Connector, each change in the trail value will trigger an alert to update the stop order on the exchange to reflect the new trail price. This reduces latency and slippage that can occur when relying on alerts only as real exchange orders fill faster and remain in place in the event of a disruption in communication between your strategy and the exchange, which ensures a higher level of safety.
👉 It is important to note that in the case the trailing stop is enabled, limit orders are excluded from the exit criteria. Rather, the point in time that the limit value is exceeded is the point that the trail begins. As such, this method will exit by stop loss only.
█ ALERTS
Five Built-in 3rd Party Destinations
The following are five options for delivering alerts from Double Tap to live trade execution via third party API solutions or chat bots to share your trades on social media. These destinations can be selected from the input menu and alert syntax will automatically configure in alerts appropriately to manage trades.
Custom JSON
JSON, or JavaScript Object Notation, is a readable format for structuring data. It is used primarily to transmit data between a server and a web application. In regards to this script, this may be a custom intermediary web application designed to catch alerts and interface with an exchange API. The JSON message is a trade map for an application to read equipped with where its been, where its going, targets, stops, quantity; a full diagnostic of the current state and its previous state. A web application could be configured to follow the messages sent in this format and conduct trades in sync with alerts running on the TV server.
Below is an example of a rendered JSON alert:
{
"passphrase": "1234",
"time": "2022-05-01T17:50:05Z",
"ticker": "ETHUSDTPERP",
"plot": {
"stop_price": 2600.15,
"limit_price": 3100.45
},
"strategy": {
"position_size": 0.1,
"order_action": "buy",
"market_position": "long",
"market_position_size": 0,
"prev_market_position": "flat",
"prev_market_position_size": 0
}
}
Trading Connector
Trading Connector is a third party fully autonomous Chrome extension designed to catch alert webhooks from TradingView and interface with MT4/MT5 to execute live trades from your machine. Alerts to Trading Connector are simple; just select the destination from the input drop down menu, set your ticker in the "TC Ticker" box in the "Alert Strings" section and enter your URL in the alert window when configuring your alert.
Alertatron
Alertatron is an automated algo platform for cryptocurrency trading that is designed to automate your trading strategies. Although the platform is currently restricted to crypto, it offers a versatile interface with high flexibility syntax for complex market orders and conditions. To direct alerts to Alertatron, select the platform from the 3rd party drop down, configure your API key in the ”Alertatron Key” box and add your URL in the alert message box when making alerts.
3 Commas
3 Commas is an easy and quick to use click-and-go third party crypto API solution. Alerts are simple without overly complex syntax. Messages are simply pasted into alerts and executed as alerts are triggered. There are 4 boxes at the bottom of the "Inputs" tab where the appropriate messages to be placed. These messages can be copied from 3 Commas after the bots are set up and pasted directly into the settings menu. Remember to select 3 Commas as a destination from the third party drop down and place the appropriate URL in the alert message window.
Discord
Some may wish to share their trades with their friends in a Discord chat via webhook chat bot. Messages are configured to notify of the pattern type with targets and stop values. A bot can be configured through the integration menu in a Discord chat to which you have appropriate access. Select Discord from the 3rd party drop down menu and place your chat bot URL in the alert message window when configuring alerts.
👉 For further information regarding alert setup, refer to the platform specific instructions given by the chosen third party provider.
█ IMPORTANT NOTES
Setting Alerts
For alert messages to be properly delivered on order fills it is necessary to place the following placeholder in the alert message box when creating an alert.
{{strategy.order.alert_message}}
This placeholder will auto-populate the alert message with the appropriate syntax that is designated for the 3rd party selected in the user menu.
Order Sizing and Commissions
The values that are sent in alert messages are populated from live metrics calculated by the strategy. This means that the actual values in the "Properties" tab are used and must be set by the user. The initial capital, order size, commission, etc. are all used in the calculations, so it is important to set these prior to executing live trades. Be sure to set the commission to the values used by the exchange as well.
👉 It is important to understand that the calculations on the account size take place from the beginning of the price history of the strategy. This means that if historical results have inflated or depleted the account size from the beginning of trade history until now, the values sent in alerts will reflect the calculated size based on the inputs in the "Properties" tab. To start fresh, the user must set the date in the "Inputs" tab to the current date as to remove trades from the trade history. Failure to follow this instruction can result in an unexpected order size being sent in the alert.
█ FOR PINECODERS
• With the recent introduction of matrices in Pine, the script utilizes a matrix to track pivot points with the bars they occurred on, while tracking if that pivot has been traded against to prevent duplicate detections after a trade is exited.
• Alert messages are populated with placeholders ; capability that previously was only possible in alertcondition() , but has recently been extended to `strategy.*()` functions for use in the `alert_message` argument. This allows delivery of live trade values to populate in strategy alert messages.
• New arguments have been added to strategy.exit() , which allow differentiated messages to be sent based on whether the exit occurred at the stop or the limit. The new arguments used in this script are `alert_profit` and `alert_loss` to send messages to Discord
Fibonacci Timing PatternThe Fibonacci Timing Pattern is a price-based counter that seeks to determine short-term and medium-term reversals in price action. It is based on the following set of conditions:
* For a bullish Fibonacci timing signal: The market must shape 8 consecutive close prices where each close price is lower than the close prices from 3 and 5 periods ago.
* For a bearish Fibonacci timing signal: The market must shape 8 consecutive close prices where each close price is higher than the close prices from 3 and 5 periods ago.
The signals of the pattern are ideally used in a sideways market or used in tandem with the trend (bullish signals are taken in a bullish market and bearish signals are taken in a bearish market).
Naked Bar Upward ReversalAMEX:SPY
The Naked Bar Upward Reversal is a three bar candlestick pattern with an inside candle as a entry point. This pattern is bullish since it has a candle closing red from the previous candle; the most bearish pattern possible. The following inside candle is a reversal of its previous candle with an open above the previous candle's close. Look to buy the next open above the inside candle's close.
This is a bullish reversal pattern and should be used in this context. Successful entries are found in corrections along an upward trend, or buying into a dip. Performance drops when the pattern appears at tops. To improve profitability, use a cluster of evidence to enhance the performance of this pattern. The intended time frame is within the daily and weekly.
BjCandlePatternsLibrary "BjCandlePatterns"
Patterns is a Japanese candlestick pattern recognition Library for developers. Functions here within detect viable setups in a variety of popular patterns. Please note some patterns are without filters such as comparisons to average candle sizing, or trend detection to allow the author more freedom.
doji(dojiSize, dojiWickSize) Detects "Doji" candle patterns
Parameters:
dojiSize : (float) The relationship of body to candle size (ie. body is 5% of total candle size). Default is 5.0 (5%)
dojiWickSize : (float) Maximum wick size comparative to the opposite wick. (eg. 2 = bottom wick must be less than or equal to 2x the top wick). Default is 2
Returns: (series bool) True when pattern detected
dLab(showLabel, labelColor, textColor) Produces "Doji" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
bullEngulf(maxRejectWick, mustEngulfWick) Detects "Bullish Engulfing" candle patterns
Parameters:
maxRejectWick : (float) Maximum rejection wick size.
The maximum wick size as a percentge of body size allowable for a top wick on the resolution candle of the pattern. 0.0 disables the filter.
eg. 50 allows a top wick half the size of the body. Default is 0% (Disables wick detection).
mustEngulfWick : (bool) input to only detect setups that close above the high prior effectively engulfing the candle in its entirety. Default is false
Returns: (series bool) True when pattern detected
bewLab(showLabel, labelColor, textColor) Produces "Bullish Engulfing" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
bearEngulf(maxRejectWick, mustEngulfWick) Detects "Bearish Engulfing" candle patterns
Parameters:
maxRejectWick : (float) Maximum rejection wick size.
The maximum wick size as a percentge of body size allowable for a bottom wick on the resolution candle of the pattern. 0.0 disables the filter.
eg. 50 allows a botom wick half the size of the body. Default is 0% (Disables wick detection).
mustEngulfWick : (bool) Input to only detect setups that close below the low prior effectively engulfing the candle in its entirety. Default is false
Returns: (series bool) True when pattern detected
bebLab(showLabel, labelColor, textColor) Produces "Bearish Engulfing" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
hammer(ratio, shadowPercent) Detects "Hammer" candle patterns
Parameters:
ratio : (float) The relationship of body to candle size (ie. body is 33% of total candle size). Default is 33%.
shadowPercent : (float) The maximum allowable top wick size as a percentage of body size. Default is 5%.
Returns: (series bool) True when pattern detected
hLab(showLabel, labelColor, textColor) Produces "Hammer" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
star(ratio, shadowPercent) Detects "Star" candle patterns
Parameters:
ratio : (float) The relationship of body to candle size (ie. body is 33% of total candle size). Default is 33%.
shadowPercent : (float) The maximum allowable bottom wick size as a percentage of body size. Default is 5%.
Returns: (series bool) True when pattern detected
ssLab(showLabel, labelColor, textColor) Produces "Star" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
dragonflyDoji() Detects "Dragonfly Doji" candle patterns
Returns: (series bool) True when pattern detected
ddLab(showLabel, labelColor) Produces "Dragonfly Doji" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
Returns: (series label) A label visible at the chart level intended for the title pattern
gravestoneDoji() Detects "Gravestone Doji" candle patterns
Returns: (series bool) True when pattern detected
gdLab(showLabel, labelColor, textColor) Produces "Gravestone Doji" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
tweezerBottom(closeUpperHalf) Detects "Tweezer Bottom" candle patterns
Parameters:
closeUpperHalf : (bool) input to only detect setups that close above the mid-point of the candle prior increasing its bullish tendancy. Default is false
Returns: (series bool) True when pattern detected
tbLab(showLabel, labelColor, textColor) Produces "Tweezer Bottom" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
tweezerTop(closeLowerHalf) Detects "TweezerTop" candle patterns
Parameters:
closeLowerHalf : (bool) input to only detect setups that close below the mid-point of the candle prior increasing its bearish tendancy. Default is false
Returns: (series bool) True when pattern detected
ttLab(showLabel, labelColor, textColor) Produces "TweezerTop" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
spinningTopBull(wickSize) Detects "Bullish Spinning Top" candle patterns
Parameters:
wickSize : (float) input to adjust detection of the size of the top wick/ bottom wick as a percent of total candle size. Default is 34%, which ensures the wicks are both larger than the body.
Returns: (series bool) True when pattern detected
stwLab(showLabel, labelColor, textColor) Produces "Bullish Spinning Top" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
spinningTopBear(wickSize) Detects "Bearish Spinning Top" candle patterns
Parameters:
wickSize : (float) input to adjust detection of the size of the top wick/ bottom wick as a percent of total candle size. Default is 34%, which ensures the wicks are both larger than the body.
Returns: (series bool) True when pattern detected
stbLab(showLabel, labelColor, textColor) Produces "Bearish Spinning Top" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
spinningTop(wickSize) Detects "Spinning Top" candle patterns
Parameters:
wickSize : (float) input to adjust detection of the size of the top wick/ bottom wick as a percent of total candle size. Default is 34%, which ensures the wicks are both larger than the body.
Returns: (series bool) True when pattern detected
stLab(showLabel, labelColor, textColor) Produces "Spinning Top" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
morningStar() Detects "Bullish Morning Star" candle patterns
Returns: (series bool) True when pattern detected
msLab(showLabel, labelColor, textColor) Produces "Bullish Morning Star" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
eveningStar() Detects "Bearish Evening Star" candle patterns
Returns: (series bool) True when pattern detected
esLab(showLabel, labelColor, textColor) Produces "Bearish Evening Star" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
haramiBull() Detects "Bullish Harami" candle patterns
Returns: (series bool) True when pattern detected
hwLab(showLabel, labelColor, textColor) Produces "Bullish Harami" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
haramiBear() Detects "Bearish Harami" candle patterns
Returns: (series bool) True when pattern detected
hbLab(showLabel, labelColor, textColor) Produces "Bearish Harami" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
haramiBullCross() Detects "Bullish Harami Cross" candle patterns
Returns: (series bool) True when pattern detected
hcwLab(showLabel, labelColor, textColor) Produces "Bullish Harami Cross" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
haramiBearCross() Detects "Bearish Harami Cross" candle patterns
Returns: (series bool) True when pattern detected
hcbLab(showLabel, labelColor) Produces "Bearish Harami Cross" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
Returns: (series label) A label visible at the chart level intended for the title pattern
marubullzu() Detects "Bullish Marubozu" candle patterns
Returns: (series bool) True when pattern detected
mwLab(showLabel, labelColor, textColor) Produces "Bullish Marubozu" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
marubearzu() Detects "Bearish Marubozu" candle patterns
Returns: (series bool) True when pattern detected
mbLab(showLabel, labelColor, textColor) Produces "Bearish Marubozu" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
abandonedBull() Detects "Bullish Abandoned Baby" candle patterns
Returns: (series bool) True when pattern detected
abwLab(showLabel, labelColor, textColor) Produces "Bullish Abandoned Baby" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
abandonedBear() Detects "Bearish Abandoned Baby" candle patterns
Returns: (series bool) True when pattern detected
abbLab(showLabel, labelColor, textColor) Produces "Bearish Abandoned Baby" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
piercing() Detects "Piercing" candle patterns
Returns: (series bool) True when pattern detected
pLab(showLabel, labelColor, textColor) Produces "Piercing" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
darkCloudCover() Detects "Dark Cloud Cover" candle patterns
Returns: (series bool) True when pattern detected
dccLab(showLabel, labelColor, textColor) Produces "Dark Cloud Cover" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
tasukiBull() Detects "Upside Tasuki Gap" candle patterns
Returns: (series bool) True when pattern detected
utgLab(showLabel, labelColor, textColor) Produces "Upside Tasuki Gap" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
tasukiBear() Detects "Downside Tasuki Gap" candle patterns
Returns: (series bool) True when pattern detected
dtgLab(showLabel, labelColor, textColor) Produces "Downside Tasuki Gap" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
risingThree() Detects "Rising Three Methods" candle patterns
Returns: (series bool) True when pattern detected
rtmLab(showLabel, labelColor, textColor) Produces "Rising Three Methods" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
fallingThree() Detects "Falling Three Methods" candle patterns
Returns: (series bool) True when pattern detected
ftmLab(showLabel, labelColor, textColor) Produces "Falling Three Methods" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
risingWindow() Detects "Rising Window" candle patterns
Returns: (series bool) True when pattern detected
rwLab(showLabel, labelColor, textColor) Produces "Rising Window" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
fallingWindow() Detects "Falling Window" candle patterns
Returns: (series bool) True when pattern detected
fwLab(showLabel, labelColor, textColor) Produces "Falling Window" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
kickingBull() Detects "Bullish Kicking" candle patterns
Returns: (series bool) True when pattern detected
kwLab(showLabel, labelColor, textColor) Produces "Bullish Kicking" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
kickingBear() Detects "Bearish Kicking" candle patterns
Returns: (series bool) True when pattern detected
kbLab(showLabel, labelColor, textColor) Produces "Bearish Kicking" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
lls(ratio) Detects "Long Lower Shadow" candle patterns
Parameters:
ratio : (float) A relationship of the lower wick to the overall candle size expressed as a percent. Default is 75%
Returns: (series bool) True when pattern detected
llsLab(showLabel, labelColor, textColor) Produces "Long Lower Shadow" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
lus(ratio) Detects "Long Upper Shadow" candle patterns
Parameters:
ratio : (float) A relationship of the upper wick to the overall candle size expressed as a percent. Default is 75%
Returns: (series bool) True when pattern detected
lusLab(showLabel, labelColor, textColor) Produces "Long Upper Shadow" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
bullNeck() Detects "Bullish On Neck" candle patterns
Returns: (series bool) True when pattern detected
nwLab(showLabel, labelColor, textColor) Produces "Bullish On Neck" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
bearNeck() Detects "Bearish On Neck" candle patterns
Returns: (series bool) True when pattern detected
nbLab(showLabel, labelColor, textColor) Produces "Bearish On Neck" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
soldiers(wickSize) Detects "Three White Soldiers" candle patterns
Parameters:
wickSize : (float) Maximum allowable top wick size throughout pattern expressed as a percent of total candle height. Default is 5%
Returns: (series bool) True when pattern detected
wsLab(showLabel, labelColor, textColor) Produces "Three White Soldiers" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
crows(wickSize) Detects "Three Black Crows" candle patterns
Parameters:
wickSize : (float) Maximum allowable bottom wick size throughout pattern expressed as a percent of total candle height. Default is 5%
Returns: (series bool) True when pattern detected
bcLab(showLabel, labelColor, textColor) Produces "Three Black Crows" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
triStarBull() Detects "Bullish Tri-Star" candle patterns
Returns: (series bool) True when pattern detected
tswLab(showLabel, labelColor, textColor) Produces "Bullish Tri-Star" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
triStarBear() Detects "Bearish Tri-Star" candle patterns
Returns: (series bool) True when pattern detected
tsbLab(showLabel, labelColor, textColor) Produces "Bearish Tri-Star" identifier label
Parameters:
showLabel : (bool) Shows label when input is true. Default is false
labelColor : (series color) Color of the label border and arrow
textColor : (series color) Text color
Returns: (series label) A label visible at the chart level intended for the title pattern
wrap(cond, barsBack, borderColor, bgcolor) Produces a box wrapping the highs and lows over the look back.
Parameters:
cond : (series bool) Condition under which to draw the box.
barsBack : (series int) the number of bars back to begin drawing the box.
borderColor : (series color) Color of the four borders. Optional. The default is color.gray.
bgcolor : (series color) Background color of the box. Optional. The default is color.gray.
Returns: (series box) A box who's top and bottom are above and below the highest and lowest points over the lookback
topWick() returns the top wick size of the current candle
Returns: (series float) A value equivelent to the distance from the top of the candle body to its high
bottomWick() returns the bottom wick size of the current candle
Returns: (series float) A value equivelent to the distance from the bottom of the candle body to its low
body() returns the body size of the current candle
Returns: (series float) A value equivelent to the distance between the top and the bottom of the candle body
highestBody() returns the highest body of the current candle
Returns: (series float) A value equivelent to the highest body, whether it is the open or the close
lowestBody() returns the lowest body of the current candle
Returns: (series float) A value equivelent to the highest body, whether it is the open or the close
barRange() returns the height of the current candle
Returns: (series float) A value equivelent to the distance between the high and the low of the candle
bodyPct() returns the body size as a percent
Returns: (series float) A value equivelent to the percentage of body size to the overall candle size
midBody() returns the price of the mid-point of the candle body
Returns: (series float) A value equivelent to the center point of the distance bewteen the body low and the body high
bodyupGap() returns true if there is a gap up between the real body of the current candle in relation to the candle prior
Returns: (series bool) true if there is a gap up and no overlap in the real bodies of the current candle and the preceding candle
bodydwnGap() returns true if there is a gap down between the real body of the current candle in relation to the candle prior
Returns: (series bool) true if there is a gap down and no overlap in the real bodies of the current candle and the preceding candle
gapUp() returns true if there is a gap down between the real body of the current candle in relation to the candle prior
Returns: (series bool) true if there is a gap down and no overlap in the real bodies of the current candle and the preceding candle
gapDwn() returns true if there is a gap down between the real body of the current candle in relation to the candle prior
Returns: (series bool) true if there is a gap down and no overlap in the real bodies of the current candle and the preceding candle
dojiBody() returns true if the candle body is a doji
Returns: (series bool) true if the candle body is a doji. Defined by a body that is 5% of total candle size
Harmonic Pattern Detection [LuxAlgo]Harmonic patterns make up a major part of the many patterns traders use to make investment decisions. The following tool aims to automatically categorize which XABCD harmonic pattern is highlighted by the user and to alert when the price reaches the PRZ or D point.
The tool can categorize Bat, Gartley, Butterfly, and Crab patterns.
Settings
XA Precision: The Gartley and Butterfly patterns require precise ratios for the XA segment, this setting allows giving some headroom for the detection of these patterns. For example, the Gartley pattern requires a ratio for the XA segment of 0.618, using an XA precision of 0.01 will allow the segment to be considered correct if above 0.608 and under 0.628.
Bullish: Color of a bullish pattern
Bearish: Color of a bearish pattern
The X, A, B, C, D settings determine the location of the harmonic pattern vertices. The user does not need to change them from the settings, instead only requiring adjusting their location on the chart like with a regular drawing tool. Setting these vertices is required when adding the indicator to your chart.
Usage
Upon setting the harmonic pattern vertices, the segments, as well as each ratio and PRZ, will be displayed. A dashboard in the top right displays which harmonic pattern has been detected.
Detected bearish crab pattern on BTCUSD15.
Bullish butterfly pattern on MATICUSD15. It is important not to use an XA precision value that would return overlapping ranges between the Gartley/Harmonic and other patterns. Using the default value is recommended.
The upper limit of the PRZ is determined as vertex D plus 38.2% of segment DX, while the lower limit is the vertex D minus 38.2% of segment DX. Various methods exist for the determination of the PRZ, this one is general but the user can use one proper to the detected harmonic pattern.
Finally hovering on the label highlighting the segment ratios return the proper ratio used by each harmonic pattern for that precise segment.
HarmonicPatternLibrary "HarmonicPattern"
Functions to detect/check harmonic patterns from provided values.
line_price_rate(point_c, point_b, point_a) Compute the price rate of the line AB divided by the the line BC
Parameters:
point_c : float, the price at point C.
point_b : float, the price at point B.
point_a : float, the price at point A.
Returns: float
line_time_rate(_c, _b, _a) Compute the time rate of the line AB divided by the the line BC
Parameters:
_c : float, the time or bar_index at point C.
_b : float, the time or bar_index at point B.
_a : float, the time or bar_index at point A.
Returns: float
is_inrange(value, min, max) Check if value is within min/max range of tolerance.
Parameters:
value : float, value to check tolerance.
min : float, minimum value in range of tolerance.
max : float, maximum value in range of tolerance.
Returns: bool
isHarmonicTriangle(rate_cba, margin_of_error) Check if the rate(s) correspond to pattern ("Harmonic Triangle").
Parameters:
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
is2Tap(rate_cba, margin_of_error) Check if the rate(s) correspond to pattern ("2Tap", 'Double Top / Bottom').
Parameters:
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
is3Tap(rate_edc, rate_cba, margin_of_error) Check if the rate(s) correspond to pattern ("3Tap", "Triple Top / Bottom").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
is4Tap(rate_gfe, rate_edc, rate_cba, margin_of_error) Check if the rate(s) correspond to pattern ("4Tap", "Quadruple Top / Bottom").
Parameters:
rate_gfe : float, percent rate of the triangle GFE. expects a negative rate.
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isABCD(rate_cba, rate_dcb, margin_of_error) Check if the rate(s) correspond to pattern ("AB=CD").
Parameters:
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isBat(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Bat").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isButterfly(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Butterfly").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isGartley(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Gartley").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isCrab(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Crab").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isShark(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Shark").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
is5o(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("5o").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isWolfe(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Wolfe").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
is3Driver(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("3 Driver").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isConTria(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Contracting Triangle").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isExpTria(rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Expanding Triangle").
Parameters:
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
isHnS(rate_fed, rate_feb, rate_edc, rate_dcb, rate_cba, rate_eda, margin_of_error) Check if the rate(s) correspond to pattern ("Head and Shoulders").
Parameters:
rate_fed : float, percent rate of the triangle FED. expects a negative rate.
rate_feb : float, percent rate of the triangle FEB. expects a negative rate.
rate_edc : float, percent rate of the triangle EDC. expects a negative rate.
rate_dcb : float, percent rate of the triangle DCB. expects a negative rate.
rate_cba : float, percent rate of the triangle CBA. expects a negative rate.
rate_eda : float, percent rate of the triangle EDA. expects a negative rate.
margin_of_error : float, percent rate of expected error margin, default 0.05(5%).
Returns: bool
