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Harmonic Patterns

Wolfe Scanner (Multi - zigzag) [HeWhoMustNotBeNamed]Before getting into the script, I would like to explain bit of history around this project. Wolfe was in the back of my mind for some time and I had several attempts so far. 🎯Initial Attempt When I first developed harmonic patterns, I got many requests from users to develop script to automatically detect Wolfe formation. I thought it would be easy and started boasting everywhere that I am going to attempt this next. However I miserably failed that time and started realising it is not as simple as I thought it would be. I started with Wolfe in mind. But, ran into issues with loops. Soon figured out that finding and drawing wedge is more trickier. I decided will explore trendline first so that it can help find wedge better. Soon, the project turned into something else and resulted in Auto-TrendLines-HeWhoMustNotBeNamed and Wolfe left forgotten. 🎯Using predefined ratios Wolfe also has predefined fib ratios which we can use to calculate the formation. But, upon initial development, it did not convince me that it matches visual inspection of Wolfe all the time. Hence, I decided to fall back on finding wedge first. 🎯 Further exploration in finding wedge This attempt was not too bad. I did not try to jump into Wolfe and nor I bragged anywhere about attempting anything of this sort. My target this time was to find how to derive wedge. I knew then that if I manage to calculate wedge in efficient way, it can help further in finding Wolfe. While doing that, ended up deriving Wedge-and-Flag-Finder-Multi-zigzag - which is not a bad outcome. I got few reminders on Wolfe after this both in comments and in PM. 🎯You never fail until you stop trying!! After 2 back to back hectic 50hr work weeks + other commitments, I thought I will spend some time on this. Took less than half weekend and here we are. I was surprised how much little time it took in this attempt. But, the plan was running in my subconscious for several weeks or even months. Last two days were just putting these plans into an action. Now, let's discuss about the script. 🎲 Wolfe Concept Wolfe concept is simple. Whenever a wedge is formed, draw a line joining pivot 1 and 4 as shown in the chart below: Converging trendline forms the stop loss whereas line joining pivots 1 and 4 form the profit taking points. 🎲 Settings Settings are pretty straightforward. Explained in the chart below.
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Harmonic Pattern Possibility Table█ OVERVIEW This indicator was intended as educational purpose only based on Harmonic Pattern Table (Source Code) and Ratio For Harmonic Points to show Harmonic Pattern Possibility. █ INSPIRATION This indicator was build upon realizing there are some overlap for B = XA among Alternate Bat, Bat, Crab and Gartley. Hence, the values split up to showcase the possibility of non overlap ratio. █ USAGE Possible pattern, priority pattern and selected pattern may differs based value input. Therefore C = AB, D = BC, D = XA and Stop Loss will change based value input and also selected pattern. █ CREDITS Credit to Scott M Carney, Harmonic Trading Volume 3: Reaction vs. Reversal.
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Wedge and Flag Finder (Multi - zigzag)Here is a small attempt to automatically identify wedges and flags. Tradingview standard wedge checks for only 4 pivots. In this version, I have considered 5 pivots instead - which can help reduce noise as 4 pivots forming wedge can be quite common. In future, will also try to add more pivots in pattern recognition to make the signal more accurate. If wedge comes with a tail, then it is marked as flag :) Settings are quite simple and they are as shown below
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Manual Harmonic Projections - With interactive inputsThis is another script involving interactive inputs. This is similar to Manual-Harmonic-Patterns-With-interactive-inputs . But, instead of taking XABCD and verifying if it confirms to any pattern, here we only take XABC and project all PRZs. Example, upon adding the script to chart, it will prompt to select 4 points on chart by clicking on it. if we select X, A, B, C as shown in the chart below, we can see the projection of multiple PRZs. Mid of nearest PRZ is considered as D and rest of the pattern is drawn based on this. However, the pattern can have multiple PRZs. All overlapping PRZs are combined together and shown as one along with merged pattern labels. But, if there is gap between PRZs, they are shown separately. If no projections found, then patterns and projections are not drawn. However, you can still see XABC lines on the chart.
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Manual Harmonic Patterns - With interactive inputsThis script is a drawing tool which allows users to draw XABCD on the chart and script will tell whether there is any harmonic patterns on the drawings made. The script is based on interactive inputs and requires users to chose XABCD points. Please note This is not a scanner and it will not scan historical bars for harmonic patterns. This needs to be used rather as drawing tool instead. Script will not check if selected pivots are correct. It assumes users to know how to select the right XABCD based on pivot high/lows. Bullish pattern will have X, B and D as pivot lows and A,C as pivot highs. Similarly bearish patterns will have X, B, D as pivot highs and A, C as pivot lows. Script will not check for overflow conditions. For example, if price crosses, XB or BD line, then pattern is considered to be invalid. But, this check cannot be made in this script and we require users to be aware of this condition and select input accordingly. Order of inputs should be in ascending order. X pivot should come before A and then, B, C, D and F. This again is users responsibility to select pivots in right order. What happens after selecting XABCD? If selected pattern is valid harmonic pattern, it will Draw XABCD lines and labels Fill harmonic triangles Show PRZ box which shoes the name of valid patterns. If it is not valid harmonic pattern, then users will see blank XABCD line without any PRZ or filled harmonic triangles. Example: 1. When it is valid pattern 2. When it is not valid pattern
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Harmonic Pattern Educational Volume 2 (Source Code)This indicator was intended as educational purpose only for Harmonic Patterns using XABCD Pattern Tool. This indicator was build upon Harmonic Trading : Volume Two, which was continuation from Harmonic Trading : Volume One and The Harmonic Trader, written by Scott M Carney. Explaination was similar to previous build, build 0 and build 1 . Volume 2 introduce Harmonic Ratio Progression, which result new patterns such as 5-0 and Alternate Bat. Indikator ini bertujuan sebagai pendidikan sahaja untuk Harmonic Pattern menggunakan XABCD Pattern Tool. Indikator ini dibina berdasarkan buku Harmonic Trading : Volume Two, juga sambungan daripada Harmonic Trading : Volume One and The Harmonic Trader, ditulis oleh Scott M Carney. Penerangan yang sama berdasarkan binaan lepas, build 0 and build 1 . Volume 2 memperkenalkan Harmonic Ratio Progression, membolehkan pattern baru seperti 5-0 dan Alternate Bat. Indicator features : 1. List XAB=CD patterns including ratio and reference page. 2. For desktop display only, not for mobile. Kemampuan indikator : 1. Senarai XAB=CD pattern termasuk ratio and rujukan muka surat. 2. Untuk paparan desktop sahaja, bukan untuk mobile. FAQ 1. Credits / Kredit Scott M Carney, Harmonic Trading : Volume One 2. Pattern and Chapter involved / Pattern dan Bab terlibat Bullish 5-0 - Page 79 Bearish 5-0 - Page 88 Bullish Alternate Bat - Page 103 Bearish Alternate Bat - Page 106 3. Code Usage / Penggunaan Kod Free to use for personal usage but credits are most welcomed especially for credits to Scott M Carney. Bebas untuk kegunaan peribadi tetapi kredit adalah amat dialu-alukan terutamanya kredit kepada Scott M Carney. 5-0 Alternate Bat
Pine Script™ indicator
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Multi Level ZigZag Harmonic PatternsLets make things bit complicated. Main difference between this script and the earlier Multi Zigzag Harmonic Pattern is the calculation logic of Zigzag 2, 3 and 4 In the earlier script, all zigzags were plain and were calculated on the basis of different lengths. (Such as 5, 10, 15, 20). These were derived on the basis of Multi Zigzag indicator In this script, Zigzag 2, 3 and 4 are calculated in slightly different way. They are calculated on the basis of previous zigzag. This means, Zigzag 1 will be the input for Zigzag2 calculation and Zigzag 2 will be the input for Zigzag3 and so on. This is demonstrated in the script - Multi Level Zigzag One important parameter which is specific to this script is: UseZigZagChain If checked: Zigzag2 is formed based on Zigzag1 Zigzag3 is formed based on Zigzag2 Zigzag4 is formed based on Zigzag3 This can lead to patterns covering huge number of candles as this chaining causes exponential effect in each levels. (Effective length grows exponentially in each level) If unchecked: Zigzag2 is formed based on Zigzag1 (Same as when checked) Zigzag3 is formed based on Zigzag1. But, length is set to zigzag2Length + zigzag3Length Zigzag4 is formed based on Zigzag1. But, length is set to zigzag2Length + zigzag3Length + zigzag4Length This reduces exponential increase of zigzag lengths over next levels. Logical ratios of patterns are coded as below: Notations: Lines XABCD forms the pattern in all cases. (OXABCD in case of Three drives ) abc = BC retacement of AB, xab = AB retracement of XA and so on ABCD Classic 0.618 <= abc <= 0.786 1.272 <= bcd <= 1.618 AB=CD Price difference between AB and CD are equal Time difference between AB and CD are equal ABCD Extension 0.618 <= abc <= 0.786 1.272 <= AD/ BC (price) <= 1.618 Gartley xab = 0.618 0.382 <= abc <= 0.886 1.272 <= bcd <= 1.618 OR xad = 0.786 Crab 0.382 <= xab <= 0.618 0.382 <= abc <= 0.886 2.24 <= bcd <= 3.618 OR xad = 1.618 Deep Crab xab = 0.886 0.382 <= abc <= 0.886 2.0 <= bcd <= 3.618 OR xad = 1.618 Bat 0.382 <= xab <= 0.50 0.382 <= abc <= 0.886 1.618 <= bcd <= 2.618 OR xad = 0.886 Butterfly xab = 0.786 0.382 <= abc <= 0.886 1.618 <= bcd <= 2.618 OR 1.272 <= xad <= 2.618 Shark xab = 0.786 1.13 <= abc <= 1.618 1.618 <= bcd <= 2.24 OR 0.886 <= xad <= 1.13 Cypher 0.382 <= xab <= 0.618 1.13 <= abc <= 1.414 1.272 <= bcd <= 2.0 OR xad = 0.786 Three Drives oxa = 0.618 1.27 <= xab <= 1.618 abc = 0.618 1.27 <= bcd <= 1.618 5-0 1.13 <= xab <= 1.618 1.618 <= abc <= 2.24 bcd = 0.5 Double Bottom Last two pivot High Lows make W shape Last Pivot Low is higher than previous Last Pivot Low. Last Pivot High is lower than previous last Pivot High. Price has not gone below Last Pivot Low Price breaks out of last Pivot High to complete W shape Double Top Last two pivot High Lows make M shape Last Pivot Low is higher than previous Last Pivot Low. Last Pivot High is lower than previous last Pivot High. Price has not gone above Last Pivot High Price breaks out of last Pivot Low to complete M shape
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Multi ZigZag Harmonic PatternsCombining Multizigzag with harmonic patterns - this script generates harmonic patterns based on multiple deapth zigzags. Input parameter allows to chose which Zigzag to be included in pattern identification and set different length, line color, width and style for each Zigzag combinations. Pattern rules are as below: Gartley xab = 0.618 0.382 <= abc <= 0.886 1.272 <= bcd <= 1.618 OR xad = 0.786 Crab 0.382 <= xab <= 0.618 0.382 <= abc <= 0.886 2.24 <= bcd <= 3.618 OR xad = 1.618 Deep Crab xab = 0.886 0.382 <= abc <= 0.886 2.0 <= bcd <= 3.618 OR xad = 1.618 Bat 0.382 <= xab <= 0.50 0.382 <= abc <= 0.886 1.618 <= bcd <= 2.618 OR xad = 0.886 Butterfly xab = 0.786 0.382 <= abc <= 0.886 1.618 <= bcd <= 2.618 OR 1.272 <= xad <= 2.618 Shark xab = 0.786 1.13 <= abc <= 1.618 1.618 <= bcd <= 2.24 OR 0.886 <= xad <= 1.13 Cypher 0.382 <= xab <= 0.618 1.13 <= abc <= 1.414 1.272 <= bcd <= 2.0 OR xad = 0.786 Three Drives oxa = 0.618 1.27 <= xab <= 1.618 abc = 0.618 1.27 <= bcd <= 1.618 5-0 1.13 <= xab <= 1.618 1.618 <= abc <= 2.24 bcd = 0.5 Related scripts are present here:
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Auto Harmonic Patterns - Open SourceI may not be able to spend much time on the harmonic patterns and realized that there are not much open source scripts on them either. Hence, decided to release open source version which can be used by other developers for reference and build things on top of it. Original script is protected and can be found here: Logical ratios of patterns are coded as below: Notations: Lines XABCD forms the pattern in all cases. (OXABCD in case of Three drives ) abc = BC retacement of AB, xab = AB retracement of XA and so on ABCD Classic 0.618 <= abc <= 0.786 1.272 <= bcd <= 1.618 AB=CD Price difference between AB and CD are equal Time difference between AB and CD are equal ABCD Extension 0.618 <= abc <= 0.786 1.272 <= AD/ BC (price) <= 1.618 Gartley xab = 0.618 0.382 <= abc <= 0.886 1.272 <= bcd <= 1.618 OR xad = 0.786 Crab 0.382 <= xab <= 0.618 0.382 <= abc <= 0.886 2.24 <= bcd <= 3.618 OR xad = 1.618 Deep Crab xab = 0.886 0.382 <= abc <= 0.886 2.0 <= bcd <= 3.618 OR xad = 1.618 Bat 0.382 <= xab <= 0.50 0.382 <= abc <= 0.886 1.618 <= bcd <= 2.618 OR xad = 0.886 Butterfly xab = 0.786 0.382 <= abc <= 0.886 1.618 <= bcd <= 2.618 OR 1.272 <= xad <= 2.618 Shark xab = 0.786 1.13 <= abc <= 1.618 1.618 <= bcd <= 2.24 OR 0.886 <= xad <= 1.13 Cypher 0.382 <= xab <= 0.618 1.13 <= abc <= 1.414 1.272 <= bcd <= 2.0 OR xad = 0.786 Three Drives oxa = 0.618 1.27 <= xab <= 1.618 abc = 0.618 1.27 <= bcd <= 1.618 5-0 1.13 <= xab <= 1.618 1.618 <= abc <= 2.24 bcd = 0.5 This script contains everything which original script has apart from stats. Use the original script if you are not developer looking for code reference and prefer having stats table. I have also developed a strategy based on harmonic patterns which can be found here:
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Harmonic MADsNo, it's not a new saturation plugin for your fruity loops. ... These are Mean Average Deviations calculated from Harmonic Mean. ... In my previous research I tried to develop "Harmonic Average Deviations", since applying stdevs on Harmonic Mean calculated from reciprocals ain't make sense. Din't work out, prolly cuz by definition stdevs doesn't like negatives. So in the end I ended up using Mean Average Deviations, and turned out it works great. Generally market data doesn't distribute normally, so t's a great tool, now weird kurtosis won't be a problem.
Pine Script™ indicator
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[R&D] Harmonic deviationsI'm publishing it for research purposes & welcome any ideas and/or explanations whether it's actually possible or nah to do what I'm doing right now. ... Idea is simple - if we can do Harmonic Mean, can we do Harmonic Standard Deviations? It should be the same logic, the only difference is instead of actual datapoints we gotta use reciprocals. In reality I've found smth really curios, it's possible to get these Harmonic Standard Deviations, however, somewhy, depends on your timeframe, u gotta do final sqrt different amount of times. And looks like... the market reacts to these levels. That's why in the script settings there is a menu where you can choose how many times to perform sqrt operation. Pls check it out, play with it, see maybe you'll see smth interesting.
Pine Script™ indicator
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Simple Harmonic Oscillator (SHO)The indicator is based on Akram El Sherbini's article "Time Cycle Oscillators" published in IFTA journal 2018 (pages 78-80) (www.ftaa.org.hk) The SHO is a bounded oscillator for the simple harmonic index that calculates the period of the market’s cycle. The oscillator is used for short and intermediate terms and moves within a range of -100 to 100 percent. The SHO has overbought and oversold levels at +40 and -40, respectively. At extreme periods, the oscillator may reach the levels of +60 and -60. The zero level demonstrates an equilibrium between the periods of bulls and bears. The SHO oscillates between +40 and -40. The crossover at those levels creates buy and sell signals. In an uptrend, the SHO fluctuates between 0 and +40 where the bulls are controlling the market. On the contrary, the SHO fluctuates between 0 and -40 during downtrends where the bears control the market. Reaching the extreme level -60 in an uptrend is a sign of weakness. Mostly, the oscillator will retrace from its centerline rather than the upper boundary +40. On the other hand, reaching +60 in a downtrend is a sign of strength and the oscillator will not be able to reach its lower boundary -40. Centerline Crossover Tactic This tactic is tested during uptrends. The buy signals are generated when the WPO/SHI cross their centerlines to the upside. The sell signals are generated when the WPO/SHI cross down their centerlines. To define the uptrend in the system, stocks closing above their 50-day EMA are considered while the ADX is above 18. Uptrend Tactic During uptrends, the bulls control the markets, and the oscillators will move above their centerline with an increase in the period of cycles. The lower boundaries and equilibrium line crossovers generate buy signals, while crossing the upper boundaries will generate sell signals. The “Re-entry” and “Exit at weakness” tactics are combined with the uptrend tactic. Consequently, we will have three buy signals and two sell signals. Sideways Tactic During sideways, the oscillators fluctuate between their upper and lower boundaries. Crossing the lower boundary to the upside will generate a buy signal. On the other hand, crossing the upper boundary to the downside will generate a sell signal. When the bears take control, the oscillators will cross down the lower boundaries, triggering exit signals. Therefore, this tactic will consist of one buy signal and two sell signals. The sideway tactic is defined when stocks close above their 50-day EMA and the ADX is below 18
Pine Script™ indicator
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Vanilla ABCD PatternPatterns makes parts of the many predictive tools available to technical analysts, the most simples ones can be easily detected by using scripts. The proposed tool detect the simple (vanilla) form of the ABCD pattern, a pattern aiming to detect potential price swings. The script can use an additional confirmation condition that aim to filter potential false signals. ABCD PATTERN The ABCD pattern is not meant to be detected by analyzing individuals closing price observations but by analyzing longer term movements, this is done by using tools such as zig-zag. Like any pattern the ABCD one comes in different flavors, the simplest being based on the following structures: Once price reach D we can expect a reversal. The classical pattern has the following conditions : BC = 0.618*AB and CD = 1.618*AB , as you can see this condition is based on 0.618 which is a ratio in the Fibonacci sequence. Other conditions are for AB to equal to CD or for CD to be 161.8% longer than AB. Why these conditions ? Cause Fibonacci of course . The ABCD pattern that the proposed tool aim to detect is not based on the zig-zag but only on individual price observations and don't make use of any of the previously described conditions, thus becoming more like a candle pattern. When the label is blue it means that the tool has detected a bullish ABCD pattern, while a red label means that the tool has detected a bearish ABCD pattern. We can't expect patterns based on the analysis of 1,2,3 or 4 closing price observations to predict the reversal of mid/long term movements, this can be seen on the above chart, but we can see some signals predicting short term movements. Since the pattern is based on a noisy variation, using smoother input can result in less signals. Above the tool on BTCUSD using closing price as input. Below the tool using ohlc4 as input: TOOL OPTIONS Being to early can be as devastating as being to late, therefore a confirmation point can be beneficial, the tool allow you to wait for confirmation thus having a potentially better timing. Below is a chart of AMD with no confirmation: As we can see there are many signals with some of them occurring to early, we can fix this by checking the confirmation option: The confirmation is simply based on the candle color, for example if a bearish ABCD pattern has been detected in the past and the closing price is greater than the opening price then the tool return a buy signal. The same apply with a bearish ABCD pattern. The "last bar repaint" option is true by default, this in order to show the bar where the D point of the pattern has been detected, since the closing price of the last bar is constantly changing the signals on the last bar can be constantly appearing/disappearing, unchecking the option will fix this but will no longer the bar where the D point of the pattern has been detected. SUMMARY The pattern is simple and can sometimes be accurate when predicting the direction of future short terms movements. The tool was a request, as it seems i don't post many pattern detectors, well thats true, and the reason is that for me patterns are not super significant, and their detection can be extremely subjective, this is why simple patterns are certainly the only ones worth a look. Don't expect me to post many pattern related indicators in the future ^^'
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Phi35 - Candlestick Reversal Patterns V1 ©Candlestick Reversal Pattern V1 by Phi35 - 9rd September 2016 © Check also my " Candlestick Continuation Pattern " indicator which will follow soon! Do not modify the code without my permission! If there is an issue or any suggestions, feel free to contact me on the link below www.tradingview.com www.tradingview.com It seems to work well but still no guarantee on completeness! RISK WARNING! PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. IN MAKING AN INVESTMENT DECISION, TRADERS MUST RELY ON THEIR OWN EXAMINATION OF THE ENTITY MAKING THE TRADING DECISIONS! Wait always for confirmation (next opening price or closing price)!! RECOGNIZABLE REVERSAL PATTERNS 01.Engulfing 02.Harami 03.Piercing Line 04.Morning Star 05.Evening Star 06.Belt Hold 07.Three White Soldiers 08.Three Black Crows 09.Three Stars in the South 10.Stick Sandwich 11.Meeting Line 12.Kicking 13.Ladder Bottom Although the Engulfing and Harami Patterns are important but can occur too often and give false signals, I give you the option to turn them completely off.
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