[blackcat] L1 Beauty Shoulder

6 de nov. de 2022

Level 1

Background

A classic candle pattern : beauty shoulder.

Function

Beauty shoulder, as the name suggests, is that the trend of the candle chart is like a beauty shoulder. The most important feature of the beauty shoulder pattern is that after it reaches the shoulder, it does not wash the market through the downward trend of the stock price, but only by slowing down the rising speed to achieve washing out float chips.Therefore, the shape of the beauty shoulder is not rising from beginning to end, but the acceleration of the rise has changed.

Morphological characteristics:
1. Beauty shoulder is a candlestick pattern. It is usually the trace left by the main force opening up positions. This pattern is encountered by dozens every year, and you will always find it if you look for it carefully.
2. The technical characteristics of the beauty shoulder, the 5-day moving average and the 10-day moving average must continue to form a golden fork.
3. The trend in the first half of the candle chart must present an arch, and only in this way can it be called a beauty shoulder.
4. The candle chart must be above the 60-day moving average. It is best to hang it in the air, or a stronger shoulder of the beauty. The candle chart is above the 30-day moving average, so the magnitude of the pull up will become larger.
5. The bottom of the shoulder of the beauty is the part of the consolidation, and the volume must be increased, because the shoulder of the beauty is the result of the main force building a strong position in a short time, so the volume must be increased.
6. The rise of the shoulders of the beauty is very scary, and the increase is usually more than 30%.

Remarks
Feedbacks are appreciated.

Notas de Lançamento

OVERVIEW
L1 Beauty Shoulder is a comprehensive indicator designed to identify potential beauty shoulder patterns on charts. This script employs sophisticated technical analysis techniques to detect bullish reversal signals by analyzing price movements relative to moving averages. The indicator combines multiple conditions to provide reliable entry points for traders looking to capitalize on bullish momentum.

FEATURES

• Identifies Beauty Shoulder patterns using precise mathematical calculations ✨
• Utilizes two critical moving averages (5-period SMA and 10-period SMA) 📈
• Includes helper functions for accurate data processing 💻
• Provides visual confirmation through custom labels ⚡
• Supports backtesting with configurable maximum bars and labels 🔍

HOW TO USE

Add the indicator to your chart via the Script Editor
Monitor the plotted moving averages for convergence/divergence 👀
Look for green-labeled "Beauty Shoulder" signals at potential turning points 🟢
Combine with additional confirmations before taking action 💯
TECHNICAL DETAILS

The indicator performs several key operations:

Calculates Short-term (5-period) and Long-term (10-period) SMAs
Detects consecutive price rises exceeding 9.5% threshold ↑
Monitors price behavior below shorter-term MA
Evaluates highest prices within specified lookback periods 📊
LIMITATIONS

⚠️ Please note:

May generate false signals during highly volatile markets
Best used in conjunction with other technical indicators
Historical performance does not guarantee future results
NOTES

This script was developed based on standard technical analysis principles and market patterns. Users should always conduct their own due diligence and risk management strategies prior to trading decisions 🛠️

THANKS

Special thanks to the TradingView community for providing valuable resources and inspiration 💫