This script detects W and M patterns in price action and alerts the trader when these patterns occur, providing potential trading opportunities.
W Pattern: A W pattern forms when the price creates two bottoms, separated by a higher low in the middle. It often indicates a reversal from a downtrend to an uptrend. The script plots a green line at the neckline of the W pattern.
M Pattern: An M pattern forms when the price creates two tops, separated by a lower high in the middle. It often indicates a reversal from an uptrend to a downtrend. The script plots a red line at the neckline of the M pattern.
Key Features:
Alerts: The script generates alerts when W or M patterns are detected, allowing traders to stay informed of potential trading opportunities. Recent Breakout: W and M pattern lines are drawn only after the recent breakout of support or resistance levels, helping traders focus on current market conditions. Visual Representation: The script visually represents W and M patterns with vertical lines at the neckline, making it easier for traders to identify potential reversal points. Usage:
Watch for alerts indicating the detection of W or M patterns. Verify the pattern visually on the chart, paying attention to recent support or resistance levels. Consider entering a trade based on the direction suggested by the pattern (e.g., long on W pattern, short on M pattern), using additional technical analysis to confirm the trade setup.