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Harmonic Patterns

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.
Pine Script™ indicator
by TFlab
Ultimate Fibonacci Trading Tool [CHE]Ultimate Fibonacci Trading Tool – Your Key to More Precise Trading Decisions! Description: Discover the Ultimate Fibonacci Trading Tool , a powerful instrument designed to revolutionize your technical analysis. This tool is crafted to assist traders of all experience levels in better understanding market movements and making informed decisions. By utilizing a higher reference period from the past, it provides you with a clear advantage in identifying critical support and resistance levels. 🌟 Key Features in Detail: 1. Automatic Timeframe Selection: - Auto Timeframe: The tool automatically detects the optimal higher reference period based on your current chart, providing more precise analysis without additional effort. - Multiplier Mode: Define the higher timeframe using a multiplier. By default set to 5, this can be adjusted to suit your individual needs. - Manual Selection: For maximum control, you can manually select the desired timeframe. 2. Customizable Fibonacci Levels: - Enable/Disable Levels: Toggle specific Fibonacci levels (e.g., 0.236, 0.382, 0.5, 0.618, etc.) on or off to personalize your analysis. - User-Defined Values: Input custom numerical values for each level to support specialized Fibonacci calculations. - Color Customization: Choose individual colors for each level to keep your charts clear and visually appealing. 3. Automatic Trend Detection: - The tool automatically identifies whether the market is in a bullish or bearish trend and adjusts the Fibonacci calculations accordingly, ensuring you always have the most relevant information at hand. 4. Period Separators with Start and Stop Labels: - Customizable Separator Lines: Visualize the beginning of new time periods with lines that you can customize in style, color, and width. - Start/Stop Labels: Clear markers help you instantly recognize critical time points and potential trend changes. 5. Flexible Label Management: - Display Styles: Decide how Fibonacci levels are presented—percentage, price level, or both—so you get the information most important to you. - Size Adjustment: Modify the size of the labels to optimize readability on your chart. - Positioning: Place labels where they make the most sense for your analysis. 6. Informative Time Period Display: - Customizable Info Box: Keep track of the reference period used with a customizable information box displayed directly on your chart. - Layout Options: Determine the size, position, background, and text colors for seamless integration into your chart environment. 🔧 Detailed Settings Options: - Timeframe Selection: - Timeframe Type: Choose between "Auto Timeframe," "Multiplier," or "Manual" to control how the reference period is calculated. - Multiplier: Set the multiplier when using the "Multiplier" mode; this value determines how many units of the current timeframe are used as the reference. - Manual Resolution: If "Manual" is selected, you can input the exact timeframe (e.g., "60," "1D," "1W"). - Fibonacci Level Settings: - Enabling Individual Levels: Toggle each Fibonacci level on or off according to your preference. - Adjusting Level Values: Enter custom numerical values for each level to perform specialized calculations. - Color Selection: Choose a unique color for each level to ensure clear differentiation. - Period Separator Settings: - Separator Color: Define the color of the separator lines to make them distinctly visible. - Separator Style: Choose between "Solid," "Dashed," or "Dotted" to adjust the style of the separator lines. - Separator Width: Set the width of the separator lines to match your chart aesthetics. - Label Management: - Label Style: Select how labels are displayed: - Default: Shows both percentage and price. - None: No labels are displayed. - Percentage: Shows only the Fibonacci level percentage. - Price: Shows only the price at the Fibonacci level. - Label Size: Adjust the size of the labels (tiny, small, normal, large, huge) for optimal readability. - Time Period Display: - Show Time Period: Enable or disable the information box displaying the reference period. - Size: Choose the size of the information box (tiny, small, normal, large, huge, auto). - Positioning: Set the vertical (top, middle, bottom) and horizontal (left, center, right) position of the box. - Color Customization: Select the background and text color of the information box to integrate it into your chart design. 📈 Why Is the Higher Reference Period Important? The Ultimate Fibonacci Trading Tool leverages a higher reference period from the past to calculate Fibonacci levels. This approach offers several advantages: - Deeper Market Analysis: By considering longer timeframes, you can uncover major market movements and trends that might be hidden in shorter periods. - More Accurate Support and Resistance Levels: Higher timeframes provide more robust Fibonacci levels that are observed by many market participants. - Better Decision-Making Foundation: With a comprehensive view of the market, you can make more informed trading decisions and minimize potential risks. 🎯 How This Tool Enhances Your Trading Strategy: - Increased Efficiency: Automate complex calculations and save valuable time. - Personalized Analysis: Adapt the tool to your individual needs and strategies. - Enhanced Precision: Utilize precise Fibonacci levels to better determine entry and exit points. - Improved Market Insight: Gain deeper understanding of market trends and structures by using higher timeframes. 🚀 Get Started Now! Don't miss the opportunity to revolutionize your chart analysis. Integrate the Ultimate Fibonacci Trading Tool into your trading routine and benefit from more precise analyses and improved trading decisions. Disclaimer The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context. Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved. By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk. Best regards Chervolino
Pine Script™ indicator
by chervolino
Alternative Shark Harmonic Pattern [TradingFinder] ALT Shark🔵 Introduction The Alternative Shark harmonic pattern, similar to the original Shark harmonic pattern introduced by Scott Carney, is a powerful tool in technical analysis used to identify potential reversal zones (PRZ) in financial markets. These harmonic patterns help traders spot key turning points in market trends by relying on specific Fibonacci ratios. The Alternative Shark pattern is particularly unique due to its distinct Fibonacci retracements within the PRZ, which differentiate it from the standard Shark pattern and provide traders with more precise entry and exit signals. By focusing on harmonic patterns and utilizing tools like the Harmonic Pattern Indicator, traders can easily identify both the Shark and Alternative Shark patterns, making it easier to find PRZs and capture potential trend reversals. This enhanced detection of potential reversal zones allows for better trade optimization and improved risk management. Incorporating the Alternative Shark pattern into your technical analysis strategy enables you to enhance your trading performance by identifying market reversals with greater accuracy, improving the timing of your trades, and reducing risks associated with sudden market shifts. 🟣 Understanding the Types of Alternative Shark Pattern The Alternative Shark harmonic pattern, much like the original Shark pattern, forms at the end of price trends and is divided into two types: Bullish and Bearish Alternative Shark patterns. Bullish Alternative Shark Pattern : This pattern typically forms at the end of a downtrend, signaling a potential reversal into an uptrend. Traders can use this pattern to identify buy entry points. The image below illustrates the core components of the Bullish Alternative Shark Pattern. Bearish Alternative Shark Pattern : Conversely, the Bearish Alternative Shark Pattern appears at the end of an uptrend and signals a potential reversal to a downtrend. This variation allows traders to adjust their strategies for selling. The image below outlines the characteristics of the Bearish Alternative Shark Pattern. 🟣 Differences Between Shark and Alternative Shark Patterns Although both patterns share similar structures and serve as tools for identifying price reversals, there is one key difference between them : AB to XA Ratio : In the Shark pattern, the AB leg retraces between 1 and 2 of the XA leg, whereas in the Alternative Shark pattern, this retracement is reduced to 0.382 to 0.618 of the XA leg. This difference in the retracement ratio leads to slightly different trade signals and can affect the timing of entry and exit points. Other ratios and reversal signals remain consistent between the two patterns, but this difference in the AB to XA ratio provides traders with more nuanced opportunities to optimize their trades. 🔵 How to Use 🟣 Trading with the Bullish Alternative Shark Pattern The Bullish Alternative Shark Pattern functions similarly to the traditional Bullish Shark, acting as a reversal pattern that helps traders recognize the end of a downtrend and the beginning of an uptrend. The main distinction lies in the reduced AB retracement, which can offer more refined entry signals. Once the pattern completes, traders can look to enter buy trades and place a stop-loss below the lowest point of the pattern for effective risk management. 🟣 Trading with the Bearish Alternative Shark Pattern The Bearish Alternative Shark Pattern operates much like the Bearish Shark pattern but with the adjusted AB to XA ratio. This difference provides traders with unique entry points for sell trades. Once the pattern is fully identified, traders can enter short positions, placing a stop-loss above the highest point of the pattern to safeguard against market fluctuations. 🔵 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 Alternative Shark harmonic pattern, despite its structural similarity to the traditional Shark pattern, introduces a key difference in the AB to XA ratio, making it a valuable addition to the trader’s toolkit. This subtle variation enables traders to pinpoint reversal points with greater accuracy and fine-tune their trading strategies. As with any technical pattern, it is crucial to use the Alternative Shark pattern in combination with other technical indicators and strong risk management practices. Incorporating this pattern into a broader trading strategy can help traders enhance their ability to detect and capitalize on market reversals more effectively.
Pine Script™ indicator
by TFlab
Fibonacci Retracement Levels (Horizontal)With this, you should be able to see the Fibonacc-i retracement levels plotted as horizontal lines on your chart. If needed, you can adjust the len parameter to increase or decrease the lookback period used to calculate the high and low points. Horizontal Lines: I've added horizontal lines for each Fibonacci retracement level (0%, 23.6%, 38.2%, 50%, 61.8%, 100%), starting from the current bar index to ensure they extend horizontally across the chart. Labels: Labels are now placed on the right side of the chart for each level so you can easily identify the Fibonacci levels.
Pine Script™ indicator
by mohitesachin217
Motive Wave Scanner [Trendoscope®]Motive Wave Scanner is a simple algorithm to find out motive waves as per the rules of Elliott Wave theory. It is an extension to our previous open source script Interactive Motive Wave Checklist which provides interactive capability to select six points of a five wave formation. Once users select them, the rules of motive waves are applied to manually selected points to highlight them as either diagonal wave, motive wave or none. This indicator does the same. But, instead of requesting the pivots manually from the user, the indicator automatically picks and scans them through zigzag. We have already published a similar script as protected source. But, due to some changes in the pine engine, there have been few issues in the runtime. In this publication, we not only address those runtime issues but also making it open source for the users to make use of the source code and enhance it further. 🎲 What are motive waves Motive waves are strong upward or downward movement with 5 subwaves. Motive Wave in the upward direction will start with Swing High, Ends with Swing High and consists of 3 Higher Highs and 2 Higher Lows representing strong upward trend. Motive Wave in the downward direction will start with Swing Low, Ends with Swing low and consists of 3 Lower Lows and 2 Lower Highs representing strong downward trend. 🎲 Types of Motive Waves Motive Waves are broadly classified by two types: Impulse Waves Diagonal Waves Diagonal Waves are further classified into Contracting and Expanding Diagonals. These can fall into the category of either leading diagonal and ending diagonal. 🎲 Rules of Motive Waves 🎯 Generic Rule of any motive waves are as follows Should consist of 5 alternating waves. (Swing High followed by Swing low and vice versa) This can start from Swing High and end in Swing High or start from Swing Low and end in Swing Low of a zigzag. Wave-2 should not move beyond Wave-1. This means, the Wave-2 is always shorter than Wave-1 with respect to distance between the price of start and end. Wave-3 always moves beyond Wave-1. This means, the Wave-3 is always longer than Wave-2 in terms of price Among Wave-1, Wave-3, and Wave-5, Wave-3 is never the shortest one. This means, either Wave-1 or Wave-5 can be longer than Wave-3 but not both. Wave-3 can also be longest among the three. Here is the pictorial representation of the rules of the Motive Waves For a wave to be considered as motive wave, it also needs to follow the rules of either impulse or diagonal waves. 🎯 Rules for a 5 wave pattern to be considered as Impulse Wave are: Wave-4 never overlaps with Wave-1 price range Wave-1, Wave-3 and Wave-5 should not be either expanding or contracting. Meaning, we cannot have Wave-1 > Wave-3 > Wave-5 , and we cannot have Wave-1 < Wave-3 < Wave-5 Pictorial representation of the impulse wave rules are as below: 🎯 Rules for the Diagonal Waves are as follows Contrary to the first rule of impulse wave, in case of diagonal wave, Wave-4 always overlaps with Wave-1 price range. But, it will not go beyond Wave-3 Waves are progressively expanding or contracting - Wave1 > Wave3 > Wave5 and Wave2 > Wave4 to be contracting diagonal. Wave1 < Wave3 < Wave5 and Wave2 < Wave4 to be expanding diagonal wave. Pictorial representation of the Contracting Diagonal Wave is as below. Here, the Wave-1, Wave-3 and Wave-5 are in contracting formation. Pictorial representation of the Expanding Diagonal Wave is as below. Here, the Wave-1, Wave-3 and Wave-5 are in expanding formation. 🎲 Indicator Settings Indicator settings are defined as below: Repaint Warning : If Repaint is selected, the indicator will throw a runtime error after certain bars or when alerts are set. This is due to some pine internal issue. At present, we do not have any solution for this until the internal issue is resolved by Tradingview Pine Team.
Pine Script™ indicator
by Trendoscope
5
Asian H&L v2 [notRolee]🔥 Asian H&L Indicator: This indicator is designed to mark the highs and lows of the Asian trading session directly on your chart, helping traders identify key price levels from this important session. The indicator automatically detects the high and low points during the Asian market hours and visually highlights these levels, making it easy to reference them throughout the trading day. 💎 How It Works: - Asian Session Highs and Lows: The indicator captures the price action within the Asian session (from to in UTC+2) and plots horizontal lines at the highest and lowest price points recorded during that period, but you can change the time zone anytime. - Dynamic Adjustments: As price action unfolds during the Asian session, the indicator updates the high and low points in real-time, ensuring you are always viewing the most accurate data. - Visual Customization: The highs and lows are highlighted using distinct colors and line styles to easily distinguish them on your chart, with past session levels optionally being displayed for reference. This makes it simple to identify key zones of support and resistance derived from the Asian session’s price action. ✅ How to Use It: - Support and Resistance: The Asian session highs and lows often serve as important support and resistance levels throughout the rest of the trading day. Traders can look for price to respect or break these levels, which can signal potential trade opportunities. - Breakout Strategies: When the price breaks above the Asian high or falls below the Asian low, it may indicate a breakout, suggesting a continuation of the move. Traders can use these breakouts as entry points into trending markets. - Range-Bound Trading: If the price remains between the Asian high and low, this can indicate a range-bound market. Traders might look for opportunities to trade reversals near these levels, using them as boundaries for taking profits or placing stop-losses. - Confluence with Other Indicators: The Asian session levels can also be used alongside other indicators to provide confirmation of trade setups. For instance, you could combine this indicator with trend indicators or oscillators to improve your entry and exit points. 🔑 Conclusion: This indicator offers a structured approach to trading around one of the most critical sessions of the global market. By marking the Asian highs and lows, it helps traders make informed decisions by leveraging key support and resistance zones that influence price action as other sessions (such as London and New York) begin. If you have any questions about this indicator, let me know in the comment section. -notRolee
Pine Script™ indicator
by notRolee
Cypher Harmonic Pattern [TradingFinder] Cypher Pattern Detector🔵 Introduction The Cypher Pattern is one of the most accurate and advanced harmonic patterns, introduced by Darren Oglesbee. The Cypher pattern, utilizing Fibonacci ratios and geometric price analysis, helps traders identify price reversal points with high precision. This pattern consists of five key points (X, A, B, C, and D), each playing an important role in determining entry and exit points in the financial markets. The reversal point typically occurs in the XD region, with the Fibonacci ratio ranging between 0.768 and 0.886. This zone is referred to as the Potential Reversal Zone (PRZ), where traders anticipate price changes to occur. The Cypher harmonic pattern is popular among professional traders due to its high accuracy in identifying market trends and reversal points. The pattern appears in two forms: bullish Cypher pattern and bearish Cypher pattern. In the bullish Cypher pattern, after a price correction, the price moves upward, while in the bearish Cypher pattern, the price moves downward after a temporary increase. These patterns help traders use technical analysis to identify strong reversal points in the PRZ and execute more optimal trades. Bullish Cypher Pattern : Bearish Cypher Pattern : 🔵 How to Use The Cypher pattern is one of the most complex and precise harmonic patterns, leveraging Fibonacci ratios to help traders identify price reversals. This pattern is comprised of five key points, each playing a critical role in determining entry and exit points. The Cypher pattern appears in two main types : Bullish Cypher pattern : This pattern appears as an M shape on the chart and indicates a trend reversal to the upside after a price correction. Traders can prepare for buying after identifying this pattern in technical analysis. Bearish Cypher pattern : This pattern appears as a W shape and signals the start of a downtrend after a temporary price increase. Traders can use this pattern to enter short positions. 🟣 How to Identify the Cypher Pattern on a Chart Identifying the Cypher pattern requires precision and the use of advanced technical analysis tools. The pattern consists of four main legs, each identified using Fibonacci ratios and geometric analysis. To spot the Cypher pattern on a chart, first, identify the five key points : X, A, B, C, and D. XA leg : The initial move from point X to A. AB leg : The first correction after the XA move, where the price moves to point B. BC leg : After the correction, the price moves upwards to point C. CD leg : The final price move that reaches point D, where a price reversal is expected. In a bullish Cypher pattern, point D indicates the start of a new uptrend, while in a bearish Cypher pattern, point D signals the beginning of a downtrend. Correctly identifying these points helps traders determine the best time to enter a trade. 🟣 How to Trade Using the Cypher Pattern Once the Cypher pattern is identified on the chart, traders can use it to set entry and exit points. Point D is the key point for trade entry. In the bullish Cypher pattern, the trader can enter a long position after point D forms, while in the bearish Cypher pattern, point D serves as the ideal point for entering a short position. 🟣 Entering a Buy Trade with the Bullish Cypher Pattern In a bullish Cypher pattern, traders wait for the price to reach point D, after which they can enter a buy position. At this point, the price is expected to start rising. 🟣 Entering a Sell Trade with the Bearish Cypher Pattern In a bearish Cypher pattern, the trader enters a sell position at point D, expecting the price to move downward after reaching this point. For additional confirmation, traders can use technical indicators such as RSI or MACD. 🟣 Risk Management in Cypher Pattern Trades Risk management is one of the most critical aspects of any trade, and this holds true for trading the Cypher pattern. Traders should always use stop-loss orders to prevent larger losses in case the pattern fails. In the bullish Cypher pattern, the stop-loss is usually placed slightly below point D to exit the trade if the price continues to drop. In the bearish Cypher pattern, the stop-loss is placed above point D to limit losses if the price rises unexpectedly. 🟣 Combining the Cypher Pattern with Other Technical Tools The Cypher pattern is a powerful tool in technical analysis, but combining it with other methods such as price action and technical indicators can improve trading accuracy. 🟣 Combining with Price Action Traders can use price action to confirm the Cypher pattern. Candlestick patterns like reversal candlesticks can provide additional confirmation for price reversals at point D. 🟣 Using Technical Indicators Incorporating technical indicators such as RSI and MACD can also help traders receive stronger signals for entering trades based on the Cypher pattern. These indicators help identify overbought or oversold conditions, allowing traders to make more informed decisions. 🟣 Advantages and Disadvantages of the Cypher Pattern in Technical Analysis Advantages : High accuracy : The Cypher pattern, using Fibonacci ratios and geometric analysis, provides high precision in identifying reversal points. Applicable in various markets : This pattern can be used in a wide range of financial markets, including forex, stocks, and cryptocurrencies. Disadvantages : Rarit y: The Cypher pattern appears less frequently on charts compared to other harmonic patterns. Complexity : Accurately identifying this pattern requires significant experience, which may be challenging for novice traders. 🔵 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 Cypher harmonic pattern is one of the most powerful and accurate patterns used in technical analysis. Its high precision in identifying price reversal points, particularly within the Potential Reversal Zone (PRZ), has made it a popular tool among professional traders. The PRZ, located between the Fibonacci ratios of 0.768 and 0.886 in the XD region, offers traders a clear indication of where price reversals are likely to occur. However, to use this pattern successfully, traders must employ proper risk management and combine it with supplementary tools like technical indicators and price action. By understanding how to utilize the PRZ, traders can enhance the accuracy of their trade entries and exits. Ultimately, the Cypher pattern, when used in conjunction with the PRZ, helps traders make more precise decisions in the financial markets, leading to more successful and well-informed trades.
Pine Script™ indicator
by TFlab
Custom Pattern DetectionOverview Chart Patterns is a major tool for many traders. Pattern formation at specific location on the chart is used for investment/trading decisions. This indicator is designed in a way to allow investors/traders to define patterns of their choice based on certain input parameters and then detect defined pattern on the chart. Investors/traders can use their own creativity to create and detect patterns. This indicator works in 2 modes Create Pattern: One can define a pattern and verify sample pattern formation visually Detect Pattern: Detect and mark patterns on the chart Settings Create Custom Pattern: Show Custom Pattern – This will mark the pattern lines on the chart so that one can verify how pattern appears based on the input’s parameters provided for lines XA, AB, BC, CD, DE, EF Offset – Used while pattern creation. Offset is horizonal distance between 2 lines. XA Points – Used to draw XA line when sample pattern is drawn. XA points can be a negative or position number. XA line is drawn based on Offset and XA Points. E.g. Offset = 5 and XA Points = -20. In this line would be drawn from last candle high to high – 20 (these are y1 and y2 points of a line). While drawing line distance of 5 candles would be placed between 2 line points (these are x1 and x2 points of a line). In XA line X forms start point and A forms end point of the line. Line AB – Line AB is drawn from point X. To derive the end point of AB, average Fib% is derived based on From Fib% and To Fib% parameters. Finally end point is derived by applying Fib Retracement on Line XA based on average Fib%. Line AB to Line EF – These points are derived as explained in Line AB. The indicator can be used to define/create patterns up to 6 legs/lines. The line would be named as XA -> AB -> BC -> CD -> DE -> EF. If one wish to create pattern consisting 3 legs then it can be achieved by unchecking/deselecting Line CD, DE and EF or by checking only Line AB and BC. Based on the parameters above indicator draws a sample pattern after last candle/bar on the chart. Sample pattern helps to visually see how pattern will appear on the chart. Pattern Identification Indicator derive the swing high/low points based on the Pivot lookback and use as reference points while detecting patterns. Use of From Fib% and To Fib% - While detecting pattern, retracement price points are derived for From Fib% and To Fib%. Price points between from Fib% and To Fib% are treated as valid retracement points. How to configure and use indicator for detecting patterns Sample Pattern 1 Sample Pattern 2 Sample Pattern 3 Sample Pattern 4
Editors' picks
Pine Script™ indicator
by Sharad_Gaikwad
29
Auto Harmonic TerhalAuto Harmonic Terhal is an advanced harmonic pattern recognition indicator designed to identify a wide range of harmonic patterns and their corresponding Fibonacci retracement levels. This tool is equipped with all major harmonic patterns, including the Gartley, Bat, Crab, DeepCrab, Butterfly, and Shark patterns, along with their precise Fibonacci ratios derived from Scott Carney's Harmonic Trading framework. Key Features: Harmonic Patterns: The indicator supports all the essential harmonic patterns, each accompanied by their unique Fibonacci retracement levels, such as 0.382, 0.500, 0.618, 0.786, 0.886, 1.13, 1.618, and 1.902. These ratios are based on Scott Carney's studies. Predictive and Conventional Usage : The Auto Harmonic Terhal can be used in two ways: -Predictive: Traders can anticipate harmonic patterns before they are fully formed, allowing them to set up trades in advance. Conventional: The indicator confirms patterns once they appear, making it a useful tool for pattern validation. -Accurate Targets: Once a pattern is identified, the indicator displays target levels based on correct Fibonacci ratios, helping traders to locate potential price reversal points and profit targets. Multi-Zigzag Functionality: The indicator scans for patterns across multiple zigzag configurations, enhancing the detection of different harmonic structures without limiting itself to a single timeframe or zigzag structure. Fibonacci Ratios for Patterns: Gartley: XA retracement 61.8%, AB between 0.618 and 0.786, CD 1.272 extension. Bat: XA retracement 50%, AB 38.2% to 50%, CD 88.6%. Crab: XA retracement 38.2%, CD extension 161.8%. Deep Crab: XA retracement 88.6%, CD extension 161.8%. Butterfly: XA retracement 78.6%, CD extension 127% to 161.8%. Shark: AB 113% to 161.8%, CD 88.6%. This indicator serves as a crucial aid for harmonic pattern analysis and supports an essential form of technical analysis. However, it does not recommend buying or selling or making any trade decisions directly. It is meant to assist in harmonic analysis for traders, providing a framework for understanding market reversals and structure. Note : The tool is intended as a technical analysis assistant and does not provide direct buy or sell signals.
Pine Script™ indicator
by Bit_Terhal
12
Deep Crab Harmonic Pattern [TradingFinder] Reversal Zones🔵 Introduction The Deep Crab pattern is a 5-point extension harmonic structure (X-A-B-C-D) used in technical analysis to identify potential reversal points in financial markets. Like the original Crab pattern, it heavily relies on a 1.618 XA projection to form the Potential Reversal Zone (PRZ). However, the key difference lies in the B point, which must be an 0.886 retracement of the XA leg. The D point in this pattern typically extends beyond the X point, signaling a strong potential reversal in price movement. Bullish Deep Crab : The Bullish Deep Crab is a pattern used in technical analysis to spot potential trend reversals. It signals a shift from a downtrend to an uptrend. Traders enter a buy position at the D point and set a stop-loss below point X, anticipating a price increase. Bearish Deep Crab : The Bearish Deep Crab is a reversal pattern that indicates the potential end of an uptrend. Traders enter a sell position at point D and set a stop-loss above point X, expecting the price to fall afterward. 🟣 Crab Vs Deep Crab The Crab and Deep Crab patterns are both used to identify reversal points in technical analysis, but they differ in terms of correction depth : Crab : The B point retraces between 38.2% to 61.8% of the XA leg, and point D extends beyond X, indicating a price reversal after a smaller correction. Deep Crab : The B point retraces more deeply, around 88.6% of the XA leg, and point D has a stronger extension, signaling a reversal after a deeper correction. The Deep Crab is more suited for identifying stronger price movements. 🔵 How to Use To effectively use the Deep Crab pattern, it’s essential to correctly identify its five key points (X, A, B, C, and D) based on Fibonacci retracements and extensions. Traders look for a deep retracement at point B, followed by an extended move to point D, which typically signals a strong price reversal. Once these points are established, traders can strategically enter positions at point D with appropriate stop-loss and take-profit levels, capitalizing on the anticipated market reversal. Proper use of Fibonacci tools is crucial for accurate pattern identification. 🟣 Bullish Deep Crab To use the Bullish Deep Crab pattern, a trader identifies point D as the key price reversal point in a downtrend. Using Fibonacci tools, points X, A, B, and C are identified, with point B showing an 88.6% retracement of XA, and CD extending 1.618% of XA. The trader enters a buy position at point D and sets a stop-loss below X, expecting a reversal from a downtrend to an uptrend. 🟣 Bearish Deep Crab In the Bearish Deep Crab pattern, point D acts as the reversal point in an uptrend. After identifying points X, A, B, and C, D extends 1.618% of XA. Point B retraces 88.6% of XA. Traders enter a sell position at point D and place a stop-loss above X, anticipating a drop in price. 🔵 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 Deep Crab pattern is a valuable reversal tool in technical analysis, known for its deep retracement and extended price movements. Unlike other harmonic patterns, it emphasizes identifying critical points where price action is likely to reverse sharply. This pattern works well in both bullish and bearish market scenarios, offering clear signals for entry and exit points. However, successful application requires a deep understanding of market behavior and precise use of technical tools like Fibonacci retracement. Overall, mastering this pattern can enhance trading strategies and risk management.
Pine Script™ indicator
by TFlab
123 Reversal Trading StrategyThe 123 Reversal Trading Strategy is a technical analysis approach that seeks to identify potential reversal points in the market by analyzing price patterns. This Pine Script™ code implements a version of this strategy, and here’s a detailed description: Strategy Overview Objective: The strategy aims to identify bullish reversal patterns using the 123 pattern and manage trades with a specified holding period and a 20-day moving average as an additional exit condition. Key Components: Holding Period: The number of days to hold a trade is adjustable, with the default set to 7 days. Moving Average: A 200-day simple moving average (SMA) is used to determine an exitcondition based on the price crossing this average. Pattern Recognition: Condition 1: The low of the current day must be lower than the low of the previous day. Condition 2: The low of the previous day must be lower than the low from three days ago. Condition 3: The low two days ago must be lower than the low from four days ago. Condition 4: The high two days ago must be lower than the high three days ago. Entry Condition: All four conditions must be met for a buy signal. Exit Condition: The position is closed either after the specified holding period or when the price reaches or exceeds the 200-day moving average. Relevant Literature Graham, B., & Dodd, D. L. (1934). Security Analysis. This classic work introduces fundamental analysis and technical analysis principles which are foundational to understanding patterns like the 123 reversal. Murphy, J. J. (1999). Technical Analysis of the Financial Markets. Murphy provides an extensive overview of technical indicators and chart patterns, including reversal patterns similar to the 123 pattern. Elder, A. (1993). Trading for a Living. Elder discusses various trading strategies and technical analysis techniques that complement the understanding of reversal patterns and their application in trading. Risks and Considerations Pattern Reliability: The 123 reversal pattern, like many technical patterns, is not foolproof. It can generate false signals, especially in volatile or trending markets. This may lead to losses if the pattern does not play out as expected. Market Conditions: The strategy may perform differently under various market conditions. In strongly trending markets, reversal patterns might not be as reliable. Lagging Indicators: The use of the 200-day moving average as an exit condition can be considered a lagging indicator. This means it reacts to price movements with a delay, which might result in late exits and missed profit opportunities. Holding Period: The fixed holding period of 7 days may not be optimal for all market conditions or stocks. It is essential to adjust the holding period based on market dynamics and individual stock behavior. Overfitting: The parameters used (like the number of days and moving average length) are set based on historical data. Overfitting can occur if these parameters are tailored too specifically to past data, leading to reduced performance in future scenarios. Conclusion The 123 Reversal Trading Strategy is designed to identify potential market reversals using specific conditions related to price lows and highs. While it offers a structured approach to trading, it is essential to be aware of its limitations and potential risks. As with any trading strategy, it should be tested thoroughly in various market conditions and adjusted according to the individual trading style and risk tolerance.
Pine Script™ strategy
by EdgeTools
Bat Harmonic Pattern [TradingFinder] Bat Chart Indicator🔵 Introduction The Bat Harmonic Pattern, created by Scott Carney in the 1990s, is a sophisticated tool in technical analysis, used to identify potential reversal points in price movements by leveraging Fibonacci ratios. This pattern is classified into two primary types: the Bullish Bat Pattern, which signals the end of a downtrend and the beginning of an uptrend, and the Bearish Bat Pattern, which indicates the conclusion of an uptrend and the onset of a downtrend. 🟣 Bullish Bat Pattern The Bullish Bat Pattern is designed to identify when a downtrend is likely to end and a new uptrend is about to begin. The key feature of this pattern is Point D, which typically aligns near the 88.6% Fibonacci retracement of the XA leg. This point is considered a strong buy zone. When the price reaches Point D after a significant downtrend, it often indicates a potential reversal, presenting a buying opportunity for traders anticipating the start of an upward movement. 🟣 Bearish Bat Pattern In contrast, the Bearish Bat Pattern forms when an uptrend is nearing its conclusion. Point D, which also typically aligns near the 88.6% Fibonacci retracement of the XA leg, serves as a critical point for traders. This point is regarded as a strong sell zone, signaling that the uptrend may be ending, and a downtrend could be imminent. Traders often open short positions when they identify this pattern, aiming to capitalize on the anticipated downward movement. 🔵 How to Use The Bat Pattern consists of five key points: X, A, B, C, and D, and four waves: XA, AB, BC, and CD. Fibonacci ratios play a crucial role in this pattern, helping traders pinpoint precise entry and exit points. In both the Bullish and Bearish Bat Patterns, the 88.6% retracement of the XA leg is a critical level for identifying potential reversal points. 🟣 Bullish Bat Pattern Traders typically enter buy positions after Point D forms, expecting the downtrend to end and a new uptrend to start. This point, located near the 88.6% retracement of the XA leg, serves as a reliable buy signal. 🟣 Bearish Bat Pattern Traders usually open short positions after identifying Point D, expecting the uptrend to end and a downtrend to begin. This point, also near the 88.6% retracement of the XA leg, acts as a valid sell signal. 🟣 Trading Tips for the Bat Pattern Accurate Fibonacci Point Identification : Accurately identify Points X, A, B, C, and D, and calculate the Fibonacci ratios between these points. Point D should ideally be near the 88.6% retracement of the XA leg. Signal Confirmation with Other Tools : To enhance the pattern's accuracy, avoid trading solely based on the Bat Pattern. Risk Management : Always use stop-loss orders. In a Bullish Bat Pattern, place the stop-loss below Point X, and in a Bearish Bat Pattern, above Point X. This helps limit potential losses if the pattern fails. Wait for Price Movement Confirmation : After identifying Point D, wait for the price to move in the anticipated direction to confirm the pattern's validity before entering a trade. Set Realistic Profit Targets : Use Fibonacci retracement levels to set realistic profit targets, such as 38.2%, 50%, and 61.8% retracement levels of the CD leg. This strategy helps maximize profits and prevents premature 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 Bat Harmonic Pattern is a powerful tool in technical analysis, offering traders the ability to identify critical reversal points using Fibonacci ratios. By recognizing the Bullish and Bearish Bat Patterns, traders can anticipate potential trend reversals and make informed trading decisions. However, it is essential to combine the Bat Pattern with other technical analysis tools and confirm signals for better trading outcomes. With proper use, this pattern can help traders minimize risk and optimize their entry and exit points in the market.
Pine Script™ indicator
by TFlab
VS (Vegas Fractal System)VS is a trading system based on the identification of fractal reaction zones within a larger, carefully identified movement. It is internally made up of 4 sub-systems. The indicator is composed of the following parameters: Max and Min, are the largest area identified and will act as the STOPLOSS point. L1, is the price reaction level. Entry, is where to place a pending market entry order. TP, is the place to place a 100% sell order. A valid area must be identified through the Fibonacci levels that join Highs and Lows or vice versa depending on the bullish or bearish movement. To be usable, this movement must not have a sub-movement that has already hit the 0.618 level. Always manage Risk and Money Management in an adequate, technical and sustainable manner in relation to your capital. A fair exposure per transaction is between 1% and 2% of the capital.
Pine Script™ indicator
by PaulVegas
Magic Linear Regression Channel [MW]Introduction The Magic Linear Regression Channel indicator provides users with a way to quickly include a linear regression channel ANYWHERE on their chart, in order to find channel breakouts and bounces within any time period. It uses a novel method that allows users to adjust the start and end period of the regression channel in order to quickly make adjustments faster, with fewer steps, and with more precision than with any other linear regression channel tool. It includes Fibonacci bands AND a horizontal mode in order for users to quickly define significant price levels based on the high, low, open, and close prices defined by the start period. Settings Start Time: This is initially MANUALLY SELECTED ON THE CHART when the indicator is first loaded. End time: This is also initially MANUALLY SELECTED ON THE CHART when the indicator is first loaded. Horizontal Line: This forces the baseline to be horizontal. The band distance is defined by the maximum price distance from the band. Horizontal Line Type: This snaps the horizontal line to the close, high, low, or open price. Or, it can also use a regression calculation for the selected time period to define the y-position of the line. Extend Line N Bars: How many bars to the left in which to extend the baseline and bands. Show Baseline ONLY!!: Removes all lines except the baseline and it’s extension. Add Half Band: Includes a band that is half the distance between the baseline and the top and bottom bands Add Outer Fibonacci Band: Includes a band that is 1.618 (phi) times the default band distance Add Inner Fibonacci Band - Upper: Includes a band that is 0.618 (1/phi) times the default band distance Add Inner Fibonacci Band - Lower: Includes a band that is 0.382 (1 - 1/phi) times the default band distance Calculations This indicator uses the least squares approach for generating a straight regression line, which can be reviewed at Wikipedia’s “Simple Linear Regression” page. It sums all of the x-values, and y-values, as well as the sum of the product of corresponding x and y values, and the sum of the squares of the x-values. These values are used to calculate the slope and intercept using the following equations: slope = (n * sum_xy - sum_x * sum_y) / (n * sum_xx - sum_x * sum_x) And intercept = (sum_y - slope * sum_x) / n The slope and intercept are then used to generate the baseline and the corresponding bands using the user-selected offsets. How to Use When the Magic Linear Regression Channel indicator is first added to the chart, there will be a blue prompt behind the “Indicators, Metrics & Strategies” window. Close the window, then select a START POINT by clicking at a desired location on the chart. Next, you will be prompted to select an END POINT. The end point MUST be placed after the START POINT. At this time a channel will be generated. Once you’ve selected the START POINT and END POINT, you can adjust them by dragging them anywhere on the chart. Each adjustment will generate a new channel making it easier for you to quickly visualize and recognize any channel exits and bounces. The Magic Linear Regression Channel indicator works great at identifying wave patterns. Place the start line at a top or bottom pivot point. Place the end line at the next respective top or bottom pivot. This will give you a complete wave form to work with. When price reaches a band and rejects, it can be a strong indication that price may move back to one of the bands in the channel. If price exits the channel with volume that supports the exit, it may be an indication of a breakout. You can also use the horizontal mode to identify key levels, then add Fibonacci bands based on regression calculations for the given time period to provide more meaningful areas of support and resistance. Other Usage Notes and Limitations Occasionally, off-by-1 errors appear which makes the extended lines protrude at a slightly incorrect angle. This is a known bug and will be addressed in the next release. It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
Pine Script™ indicator
by mwrightinc
ABCD Projection [Trendoscope®]Over the years, we have extensively explored and published numerous scripts centered around various chart patterns, including Harmonic Patterns, Reversal Patterns, Elliott Waves, and more. Our expertise in these areas has led to frequent requests for an indicator based on the ABCD pattern. Although we didn't include it as part of our Harmonic Patterns collection, the development of a dedicated ABCD Projection Indicator has always been a priority for us. 🎲 Overview of the ABCD Projection Indicator The ABCD Projection Indicator is designed to identify and project ABCD patterns using a Zigzag-based approach. This pattern, characterized by alternating pivot highs and lows labeled as A, B, C, and D, is particularly significant in trending markets where it signifies trend continuation following deep pullbacks. The indicator works by confirming the ABC pivots and projecting the D pivot based on the established price swings. Since ABCD patterns are most effective in trending environments, the indicator focuses on filtering patterns where the retracement from the C pivot has not compromised the trade's potential. Specifically, it ensures that the starting point (S)—where the pattern is detected—has not retraced beyond a defined threshold, preserving the opportunity to execute a trade with the goal of reaching the projected D pivot. Additionally, the ABCD Projection Indicator considers the retracement ratio from the C pivot, which plays a crucial role in risk management. A higher retracement ratio reduces the stop distance (from pivot A to the entry point S) while increasing the distance to the target (pivot D), thereby enhancing the reward/risk ratio for trades. 🎲 Components of the ABCD Projection Indicator The ABCD Projection Indicator comprises several key components: A, B, C Pivots and Zigzag Wave : These elements form the foundational structure of the ABCD pattern. S Point : This is the location where the pattern is identified, positioned a few bars away from the confirmed C pivot. Estimated D Pivot : The D pivot is projected based on the A, B, and C price levels. The time or distance to the D pivot is influenced by the starting point S. Mini Stats Table : Located in the top right corner, this table displays win/loss ratios and risk/reward data for both bullish and bearish scenarios. Fibonacci Levels : Calculated from the C to D pivots, these levels are provided as a reference for additional analysis. 🎲 Indicator Settings The settings for the ABCD Projection Indicator are minimal and intuitive, with tooltips provided to guide users through the configuration process.
Pine Script™ indicator
by Trendoscope
10
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
Pine Script™ indicator
by TFlab
Percentage Change IndicatorPercentage Change Indicator This indicator calculates and displays the percentage change between the current close price and the previous close price. It provides a clear visual representation of price movements, helping traders quickly identify significant changes in the market. ## Formula The percentage change is calculated using the following formula: ``` Percentage Change = (Current Close - Previous Close) * 100 / Current Close ``` ## Features - Displays percentage change as a bar chart - Green bars indicate positive changes - Red bars indicate negative changes - A horizontal line at 0% helps distinguish between positive and negative movements ## How to Use 1. Add the indicator to your chart 2. Observe the bar chart below your main price chart 3. Green bars above the 0% line indicate upward price movements 4. Red bars below the 0% line indicate downward price movements 5. The height of each bar represents the magnitude of the percentage change This indicator can be particularly useful for: - Identifying sudden price spikes or drops - Analyzing the volatility of an asset - Comparing price movements across different timeframes - Spotting potential entry or exit points based on percentage changes Customize the indicator's appearance in the settings to suit your charting preferences. Note: This indicator works on all timeframes, adapting its calculations to the selected chart period.
Pine Script™ indicator
by bariskurt007
Harmonic, wave and Fibonacci [Hunter Algo]This Pine Script indicator is designed to identify various harmonic patterns, wave formations, and Fibonacci retracements directly on your TradingView charts. The script offers a comprehensive toolset for traders who use technical analysis to spot potential market reversals and continuation patterns. Key Features: Harmonic Pattern Detection: Automatically identifies and labels popular harmonic patterns like Bat, Gartley, Butterfly, Crab, Shark, and many more. Fibonacci Levels: Displays key Fibonacci retracement levels, including 0.236, 0.382, 0.500, 0.618, 0.764, and 1.000, providing critical levels for entry, exit, and stop-loss placement. Heiken Ashi Option: Option to use Heiken Ashi candles for pattern detection, providing smoother price action analysis. Alternate Timeframe Support: Analyze patterns on different timeframes by enabling the alternate timeframe feature. Customizable Display: Choose which patterns and Fibonacci levels to display, allowing you to focus on the most relevant data for your trading strategy. This script is highly versatile, making it suitable for both novice and experienced traders looking to enhance their chart analysis with automated pattern recognition.
Pine Script™ indicator
by Hunter_Algo
4
Marcos Ruiz :Price Change Speed Descripción: Este indicador en Pine Script está diseñado para analizar y visualizar dinámicamente la velocidad de los cambios de precio en un gráfico de TradingView. El indicador permite a los usuarios seleccionar diferentes tipos de medias móviles y fuentes de precios para calcular y mostrar el cambio porcentual en el precio durante un período especificado Características: Selección de Fuente de Precio: Elige entre cierre, apertura, alto, o bajo para los cálculos de precios Tipos de Media Móvil: Selecciona entre SMA, WMA, EMA, HMA, o VWMA para determinar la media móvil utilizada en el cálculo de la velocidad promedio Coloreado Dinámico: El color de la línea de la media móvil cambia según la velocidad de cambio de precio Aumento de Velocidad: Cuando la velocidad del cambio de precio está aumentando, la media móvil se colorea según upColor definido por el usuario Disminución de Velocidad: Cuando la velocidad está disminuyendo, la media móvil se colorea según downColor definido por el usuario Posición Neutral: Coloreado adicional para escenarios donde el precio está por encima o por debajo de la media móvil, pero no cumple con las condiciones de aumento/disminución Factor de Refuerzo: Ajusta la sensibilidad del cálculo del cambio de velocidad Uso: Parámetros de Entrada: Define el Período para establecer la ventana de retroceso para calcular la velocidad Elige la Fuente de Precio para determinar qué datos de precios usar Selecciona el Tipo de Media Móvil y ajusta la Longitud de EMA para la comparación Interpretación: El indicador traza la media móvil seleccionada con colores dinámicos basados en la velocidad calculada del cambio de precio Los cambios positivos y negativos en la velocidad se indican con diferentes colores, proporcionando una representación visual del momento y la fuerza de la tendencia del precio Nota: Este script es el resultado de un desarrollo y pruebas extensivas. Se agradecen mucho sus comentarios y contribuciones Description: This Pine Script indicator is designed to dynamically analyze and visualize the speed of price changes on a TradingView chart. The indicator allows users to select different moving average types and price sources to compute and display the percentage change in price over a specified period Features: Price Source Selection: Choose from close, open, high, or low for price calculations Moving Average Types: Select from SMA, WMA, EMA, HMA, or VWMA to determine the moving average used for computing average speed Dynamic Coloring: The moving average line's color changes based on the speed of price change Increasing Speed: When the price change speed is increasing, the moving average is colored according to the user-defined upColor Decreasing Speed: When the speed is decreasing, the moving average is colored according to the user-defined downColor Neutral Position: Additional coloring for scenarios where the price is above or below the moving average but not meeting the increase/decrease conditions Reinforcement Factor: Adjusts the sensitivity of the speed change calculation Usage: Input Parameters: Set the Period to define the lookback window for calculating speed Choose the Price Source to determine which price data to use Select the Moving Average Type and adjust the EMA Length for comparison Interpretation: The indicator plots the selected moving average with dynamic colors based on the calculated speed of price change Positive and negative changes in speed are indicated by different colors, providing a visual representation of price momentum and trend strength Note: This script is the result of extensive development and testing. Your feedback and contributions are highly appreciated
Pine Script™ indicator
by MarcosPna
Three Drive Pattern Detector [LuxAlgo]The Three Drives Pattern Detector indicator focuses on detecting and displaying completed Three Drives patterns on the user chart. This harmonic pattern is characterized by successive higher highs / lower lows following specific ratios. The script uses a multi-length swing detection approach, as well as adjusting ratios to ensure flexibility and a maximum number of visible Three Drives patterns. 🔶 USAGE The bullish/bearish Three Drives pattern is commonly interpreted as a reversal pattern and is characterized by three extensions (drives) and two intermediary retracements creating consecutive higher lows (for a bullish case) or lower highs (for a bearish case). The multi-length swing detection approach taken by the indicator allows for detecting shorter-term alongside medium/longer-term patterns simultaneously, allowing to increase in the amount of detected patterns. Users can set a Minimum Swing length (for example 2) and a Maximum Swing length (for example 100) which defines the range of the swing point detection length, higher values for these settings will detect longer-term Three-Drives patterns, while a larger range will allow for the detection of a larger number of patterns. Sometimes multiple dashed lines as the last segment can be observed. This means multiple Three Drives patterns sharing multiple swing points have formed, with only the last segment being different. 🔹 Retracement/Extension Ratios The Three Drives pattern often associates the retracement/extension to Fibonacci ratios of respectively 0.618/1.272. Some sources specify a maximum retracement/extension level of 0.786/1.618, which means the retracement should be within the 0.618-0.786 range and the extension between 1.272-1.618. Since finding a pattern where the retracement/extension is precisely at the 0.618/1.272 levels, or even between 0.618-0.786/1.272-1.618 is rare, the script allows users to adjust those ratios, which ensures more flexibility. Depending on the widening/tightening of the ratios, allowing users to find more patterns (but potentially less valid) or more valid (but fewer patterns). In the example above, " Show Ratios " is set to " Ratios With Margin ", showing the ideal retracement/extension level together with the margin, while in the example below, " Show Ratios " is set to " Ratios ", which shows only a line where the price should ideally reverse. While setting the ratios wider will result in more frequent but less valid patterns, it can also create good trading opportunities. 🔹 Best Practices The indicator doesn't include Stop Loss (SL) or Take Profit (TP) levels, however, the 1.618 Fibonacci Extension level of the last leg can commonly be used as stop loss. Typical Take Profit areas include: Starting point of the pattern Each retracement level (2x) The 0.618 retracement level of the complete pattern In the above bullish examples, the price was lower than the lowest point of the pattern. The price reversed and attained all TP levels without hitting the SL level. In the above bearish example, the price went above the highest point of the pattern but did not hit the SL level, after which two TP levels were hit. Then, the price quickly went up, just missing the SL level before it came back down again, hitting the last 2 TP levels. This example shows that other Fibonacci levels an also be effective when combined with the Three Drives pattern, even in the longer term. 🔶 DETAILS 🔹 Multi Length The core of this publication is the multi-length swing detection. To ensure the maximum amount of Three Drives patterns are found, up to 99 different swing length periods can be used to detect swing points which are then tested for valid patterns. Using a wider variety of swing points also ensures that patterns visible only with specific Swing settings can be found on the same chart without the user needing to constantly adjust the Swing settings to find other patterns. The user only needs to set the desired minimum and maximum Swing Length. In this case, swing detection using swing Lengths from 3 to 100 (97 different) are computed and evaluated for patterns. Three different patterns were found on the same chart, with swing lengths 3, 4, and 6. Note: The Maximum Swing length should be equal to or higher than the Minimum Swing Length . If the maximum value is lower than the minimum, the script will automatically take the minimum value as the maximum to prevent errors. 🔹 Width Margin % Users can filter out patterns based on the duration of each extension/retracement segment. When the users want segments of the detected patterns to be of a similar duration, the width percentage should be set lower. When the focus is on detecting more patterns the width percentage can be set higher. 🔹 Retracement/Extension Settings Show Ratios , set to Ratios , show the ideal Fibonacci retracement/extension level, while Ratios With Margin (example below) show the additional margins for retracement/extension. The upper and lower limits can be visualized while hovering over the calculated ratio label. The dashed line shows an older pattern, where the last leg has been updated. 🔹 Last Known Pattern The included dashboard highlights the date of the most recently detected pattern; the text will show " None " if no pattern is found. 🔹 Calculated Bars The "Calculated Bars" setting makes use of the recently introduced calc_bars_count parameter, making it possible to effectively reduce the number of historical bars during the computation of the script, which significantly improves the loading speed of the script. Users wishing to see the most recent patterns can set this setting to 1000 for example, where only the most recent 1000 bars are used to find patterns. If every bar must be used for pattern detection, set " Calculated bars " at 0. 🔶 SETTINGS Minimum Swing Length: Minimum length used for the swing detection. Maximum Swing Length: Maximum length used for the swing detection. Retracement: Range of required ratios used for testing retracements. Extension: Range of required ratios used for testing extensions. Width Margin: Influences the symmetry of the pattern; with a higher number allowing for less symmetry. 🔹 Style Text Size: Text size of the ratio labels. Show Ratios: Show the ideal ratio, upper/lower limit of ratios, or none. 🔹 Dashboard Show Dashboard: Toggle dashboard which shows the date of the last found pattern. Location: Location of the dashboard on the chart. Size: Text size. 🔹 Calculation Calculated Bars: Allows the usage of fewer bars for performance/speed improvement.
Pine Script™ indicator
by LuxAlgo
11
Butterfly Harmonic Pattern [TradingFinder] Harmonic Detector🔵 Introduction The Butterfly Harmonic Pattern is a sophisticated and highly regarded tool in technical analysis, utilized by traders to identify potential reversal points in the financial markets. This pattern is distinguished by its reliance on Fibonacci ratios and geometric configurations, which aid in predicting price movements with remarkable precision. The origin of the Butterfly Harmonic Pattern can be traced back to the pioneering work of Bryce Gilmore, who is credited with discovering this pattern. Gilmore's extensive research and expertise in Fibonacci ratios laid the groundwork for the identification and application of this pattern in technical analysis. The Butterfly pattern, like other harmonic patterns, is based on the principle that market movements are not random but follow specific structures and ratios. The pattern is characterized by a distinct "M" shape in bullish scenarios and a "W" shape in bearish scenarios, each indicating a potential reversal point. These formations are identified by specific Fibonacci retracement and extension levels, making the Butterfly pattern a powerful tool for traders seeking to capitalize on market turning points. The precise nature of the Butterfly pattern allows for the accurate prediction of target prices and the establishment of strategic entry and exit points, making it an indispensable component of a trader's analytical arsenal. Bullish : Bearish : 🔵 How to Use Like other harmonic patterns, the Butterfly pattern is categorized based on how it forms at the end of an uptrend or downtrend. Unlike the Gartley and Bat patterns, the Butterfly pattern, similar to the Crab pattern, forms outside the wave 3 range at the end of a rally. 🟣 Types of Butterfly Harmonic Patterns 🟣 Bullish Butterfly Pattern This pattern forms at the end of a downtrend and leads to a trend reversal from a downtrend to an uptrend. 🟣 Bearish Butterfly Pattern In contrast to the Bullish Butterfly pattern, this pattern forms at the end of an uptrend and warns analysts of a trend reversal to a downtrend. In this case, traders are encouraged to shift their trading stance from buy trades to sell trades. Advantages and Limitations of the Butterfly Pattern in Technical Analysis : The Butterfly pattern is considered one of the precise and stable tools in financial market analysis. However, it is always important to pay special attention to the advantages and limitations of each pattern. Here, we review the advantages and disadvantages of using the Butterfly harmonic pattern : The main advantage of the Butterfly pattern is providing very accurate signals. Using Fibonacci golden ratios and geometric rules, the Butterfly pattern identifies patterns accurately and systematically. (This high accuracy significantly helps investors in making trading decisions.) Identifying this pattern requires expertise and experience in technical analysis. Recognizing the Butterfly pattern might be complex for beginner traders. (Correct identification of the pattern necessitates mastery over geometric principles and Fibonacci ratios.) The Butterfly harmonic pattern might issue false trading signals. (Traders usually combine the Butterfly pattern with other technical tools to confirm buy and sell signals.) 🔵 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.
Pine Script™ indicator
by TFlab