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Liquidity Sentiment Profile [LuxAlgo]The Liquidity Sentiment Profile is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights within a sequence of profiles the distribution of the liquidity and the market sentiment at specific price levels. The Liquidity Sentiment Profile allows traders to reveal significant price levels, dominant market sentiment, support and resistance levels, supply and demand zones, liquidity availability levels, liquidity gaps, consolidation zones, and more based on price and volume data. Liquidity refers to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly. 🔶 USAGE A Liquidity Sentiment Profile is a combination of a liquidity and a sentiment profile, where the right part of the profile displays the distribution of the traded activity at different price levels and the left part displays the market sentiment at those price levels. The Liquidity Sentiment Profiles are visualized with different colors, where each color has a different meaning. The Liquidity Sentiment Profiles aim to present Value Areas based on the significance of price levels, thus allowing users to identify value areas that can be formed more than once within the range of a single profile. Level of Significance Line - displays the changes in the price levels with the highest traded activity (developing POC) 🔶 SETTINGS The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip. 🔹 Liquidity Sentiment Profiles Anchor Period: The indicator resolution is set by the input of the Anchor Period, the default option is AUTO. 🔹 Liquidity Profile Settings Liquidity Profile: Toggles the visibility of the Liquidity Profiles High Traded Nodes: Threshold and Color option for High Traded Nodes Average Traded Nodes: Color option for Average Traded Nodes Low Traded Nodes: Threshold and Color option for Low Traded Nodes 🔹 Sentiment Profile Settings Sentiment Profile: Toggles the visibility of the Sentiment Profiles Bullish Nodes: Color option for Bullish Nodes Bearish Nodes: Color option for Bearish Nodes 🔹 Other Settings Level of Significance: Toggles the visibility of the Level of Significance Line Profile Price Levels: Toggles the visibility of the Profile Price Levels Number of Rows: Specify how many rows each profile histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and fewer historical profiles will be displayed Profile Width %: Alters the width of the rows in the histogram, relative to the profile length Profile Range Background Fill: Toggles the visibility of the Profiles Range 🔶 LIMITATIONS The amount of drawing objects that can be used is limited, as such using a high number of rows can display fewer historical profiles and occasionally incomplete profiles. 🔶 RELATED SCRIPTS 🔹 Buyside-Sellside-Liquidity 🔹 ICT-Concepts 🔹 Swing-Volume-Profiles
Indicador Pine Script®
por LuxAlgo
29
MTF Evolving Weighted Composite Value Area🧾 Description: This indicator calculates evolving value areas across 3 different timeframes/periods and combines them into one composite, multi-timeframe evolving value area - with each of the underlying timeframes' VAs assigned their own weighting/importance in the final calculation. Layered with extra smoothing options, this creates an informative and useful 'rolling value area' effect that can give you a better perspective on the value area across multiple periods at once as it develops - without total calculation resets at the onset of every new period. Let's start with a simplified primer on value areas and then jump in to the new ideas this indicator introduces. 🤔 What is a value area? Value areas are a tool used in market profile analysis to determine the range of prices that represents where most trading activity occurred during a specific time period, typically within a single 'bar' of a certain higher timeframe, such as the 4-hour, daily, or weekly. It helps traders understand the levels where the market finds value. To calculate the value area, we look at the distribution of prices and trading volume. We determine a percentage, usually 70% or 80%, that represents the significant portion of trading volume. Then, we identify the price range that contains this percentage of trading volume, which becomes the value area. Value areas are useful because they provide insights into market dynamics and potential support and resistance levels. They show where traders have been most active and where they find value, and traders can use this information to make better-informed decisions. For example, if price is trading within the value area, it suggests that it's within a range where traders see value and are actively participating, which could indicate a balanced market. If the price moves above or below the value area, it may signal a potential shift in market sentiment or a breakout/breakdown from the established range. By understanding the value area, traders can identify potential areas of supply and demand, determine levels of interest for buyers and sellers, and make decisions based on the market's perception of value. 📑 Limitations of traditional value areas Static representation: Value areas are usually represented as static zones calculated after the fact. For example, after a daily period is completed, a typical 1D VA indicator will display the value area for the past period with static horizontal lines. This approach doesn't give you the power to see how the value area evolved, or developed, during the time period, as it is only displayed retroactively. It also doesn't give you the ability to view it as it evolves in real-time. This is why we chose to use an evolving value area representation, specifically borrowed from @sourcey's Value Area POC/VAH/VAL script function for calculating evolving VAs. Rollover resets - no memory of past periods!: The traditional value area is calculated over a static period - it is calculated from the beginning of the period, for example a 1 day period, to the end, and that's the end of it. When the next daily period begins, the calculation resets, and has no memory of the preceding period. This limits the usefulness of the value area visual when viewed near the beginning of a new period before price and volume have been given ample time to define an area. Hard to absorb all of that information: Value areas aren't generally meant to be a hardline representation of something extremely exact - they're based on a percentage of the area where traders appeared to find value over a certain time period. Most traders use them as a guide for support and resistance levels or finding an expected range. Traders typically overlay multiple VAs - sometimes requiring several instances of the same indicator to be applied - to represent the VA across multiple timeframes such as the 4H, 1D, or 1W. The chart quickly gets cluttered and it's not necessarily easy to understand the relationship between these multiple periods' VAs at a glance. 🧪 New concepts introduced in this indicator With the evolving weighted composite value area we tried to address these limitations, and we think the result can be useful and intuitive for traders who want more dynamic and practical VAs for their everyday technical analysis. ⚖️ 1. A composite, weighted multi-timeframe VA This indicator's value areas represent a combination or composite of the value areas calculated across multiple timeframes. The VAs calculated across each timeframe are then given a weighting percentage, which determines their contribution to the final 'weighted composite value area'. Pictured below: a 4H/1D/1W MTF evolving weighted composite VA on the BTCUSDT Perpetual Futures (Binance) 5 minute chart: Traditionally, when traders wanted to get a view of where the majority of trading activity occurred over the past four hours, day, and week, they would need to apply three value area indicators (or sometimes one if it allows multiple custom timeframes), each set to a different period (4H, 1D, 1W). The chart gets cluttered quickly and the information is hard to absorb in one shot. Addressing this problem was the main impetus for creating this weighted composite process. 〰️ 2. Rolling and smoothed evolving VAs Because the composite VA is calculated based on multiple period VAs, there is no one single point where the area calculation resets (unless all 3 selected timeframes happen to rollover on the same bar). This creates a 'rolling' effect that gives a sense of the progression of the VA as price transitions through the different underlying time periods, without the traditional 'jump' in calculations between periods. Pictured below: a 1D/1W/1M MTF evolving weighted composite VA on the NQ futures 1H chart: To help give even more of a sense of perspective and 'progression' of the VA, there are also smoothing options to even out the 'jumps' at period-rollover points. ✔️ What's it good for? Smoothed, rolling, and evolving multi-timeframe VAs that give you a better real-time perspective of where traders are finding value across multiple time periods at once. 📎 References 1. @sourcey's Value Area POC/VAH/VAL script by adapting its f_poc(tf) function. 💠 Features: A MTF evolving weighted composite value area based on 3 underlying VAs calculated across customizable timeframes Aesthetic and flexible coloring and color theme styling options Period-roller labels and options for ease-of-use and legibility ⚙️ Settings: Calculation Decimal Resolution: This setting essentially determines how 'granular' the value area calculating process is. This value should be set to some multiple of the tick size/smallest decimal of the symbol's price chart. Eg. On BTCUSDT, the tick size/decimal is usually 0.1. So, you might use 0.5. On TSLA, the tick size is 0.01. You might use 0.05 or 0.25. Beware: if the resolution is too small, calculation will take too long and the script may timeout. Show Me Suggested Resolutions: If enabled, a label will display in the bottom right of the chart with some suggested resolutions for the current chart. Area Percentage: Set the displayed percentage of the calculated composite value area. Igor method = 70%; Daniel method: 68%. Use a Color Theme: When this setting is enabled, all manual 'Bullish and Bearish Colors' are overridden. All plots will use the colors from your selected Color Theme - excepting those plots set to use the 'Single Color' coloring method. Color Theme: When 'Use a Color Theme' is enabled, this setting allows you to select the color theme you wish to use. Resistance Color: When 'Use a Color Theme' is disabled, this will set the 'resistance color' for the composite VA. Support Color: When 'Use a Color Theme' is disabled, this will set the 'support color' for the composite VA. Show Period Rollover Labels: When enabled, a label will show above or below the composite VA marking any underlying period rollovers with the label 'New __' (eg. 'New 4H', 'New 1D', 'New 1W'). Size: Sets the font size of the period rollover labels. Show Period Rollover Lines: When enabled, a translucent vertical dashed line will be drawn across the composite VA when one of the underlying periods rolls over. Fill Composite Value Area: When enabled, the composite VA will be filled with a gradient coloring from the support line to the resistance line using their respective colors. Smooth: When enabled, a smoothing moving average will be applied to the composite value area. Smoothing Period: Set the lookback period for the smoothing average. Smoothing Type: Set the calculation type for the smoothing average. Options include: Exponential, Simple, Weighted, Volume-Weighted, and Hull. Enable: Include/exclude a timeframe's VA in the composite VA calculation. Timeframe: Set the timeframe for this specific underlying VA. Weighting %: Set the weighting percentage or 'importance' of this timeframe's value area in calculating the composite VA. Beware! The sum of the weighting percentages across all enabled timeframes must ALWAYS add up to 100 in order for this indicator to work as designed.
Indicador Pine Script®
por DarkWaveAlgo
9
Supply and Demand Based Pattern [RH]This indicator focuses on detecting RBR and DBD patterns, which signify periods of increased momentum and potential continuation or reversal of the prevailing trend. The RBR pattern consists of a rally (upward movement), followed by a base (consolidation or retracement), and then another rally. It suggests that the upward momentum may persist and provide trading opportunities. On the other hand, the DBD pattern comprises a drop (downward movement), followed by a base, and then another drop. It indicates that the downward momentum might continue, offering potential shorting opportunities. Bullish(RBR) example: Bearish(DBD) example: 1. The bullish (RBR) and bearish (DBD) patterns share the same underlying logic, only differing in their directionality. 2. For both RBR and DBD patterns, the first rise/drop can consist of one or multiple candles. However, in the case of multiple candles, all candles must exhibit a bullish nature for RBR and a bearish nature for DBD. Example: 3. It is a prerequisite for the first rise/drop to include at least one candle with a defined percentage of health, as determined by the user. 4. The base, following the first rise/drop, may comprise one or multiple candles. Example: 5. To maintain consistency, the base is not allowed to retrace beyond 80%, although this value can be adjusted by the user. 6. Similar to the first rise/drop, the second rise/drop in both RBR and DBD patterns can consist of one or multiple candles. However, all candles within this phase must demonstrate a bullish nature for RBR and a bearish nature for DBD. 7. Confirmation of the bullish (RBR) pattern occurs when a candle closes above the high of the first rise. Conversely, the bearish (DBD) pattern is confirmed when a candle closes below the low of the first drop. Example: Alerts can be set for all bullish and bearish pattern or for the first pattern in the range of similar pattern.
Indicador Pine Script®
por HasanRifat
22
VOLD Ratio (Volume Difference Ratio) by TenozenAnother helpful indicator is here! VOLD Ratio is calculated by the net volume of a buying candle, divided by the net volume of a sell candle. Formula: buying net volume/selling net volume It's a simple indicator, but don't underestimate this simplicity. It's a powerful indicator that would help you to decide whether the volume is getting interested in the direction that the market would take. So assume when the market is above the Bollinger Bands, it means that the volume is at a buying extreme, by that, we could expect the market to get back towards the mean, as there is a lot of buying demand that entered the market. How about below the Bollinger Bands? it means that the volume is at a selling extreme, we could expect that there is a lot of volume getting in toward the sellers, so we could take advantage of the opportunity to go for a long. Lastly, the Bollinger Bands would help you guys to determine the liquidity of the market, if the Bollinger Bands get smaller over time, it means there is no interest for the market to enter yet, and if the Bollinger Bands get bigger over time, it means there is interest for the market to enter in the session. Tips & Reminder: - We shouldn't use this indicator by itself, make sure to use an Indicator that would help you guys to determine the momentum and the liquidity of the market. - The higher the timeframe, the slower this indicator would signal an entry, by that use a smaller timeframe... I suggest using a 15M chart for the execution. - Always trade in the medium-longterm direction if you want to have a high probability trade. - Be patient in your execution, it's more likely the market would go higher or lower after going in the extreme of the Bollinger Bands. Well, that's it! Hope you guys enjoy using this indicator, let me know if there is any question or suggestion. Ciao...
Indicador Pine Script®
por Tenozen
2
MonkeyblackmailThis script consists of several sections. test it and tell me your concerns. a lot of more works will be done Volume Accumulation : The first part of the script checks for a new 5-minute interval and accumulates the volume of the current interval. It separates the volume into buying volume and selling volume based on whether the closing price is closer to the high or low of the bar. Volume Normalization and Pressure Calculation : The script then normalizes the volume with a 20-period EMA, and calculates buying pressure, selling pressure, and total pressure. These calculations provide insight into the underlying demand (buying pressure) and supply (selling pressure) conditions in the market. RSI Calculation and Overbought/Oversold Conditions : The script calculates the RSI (Relative Strength Index) and checks whether it is in an overbought (RSI > 70) or oversold (RSI < 30) state. The RSI is a momentum indicator, providing insights into the speed and change of price movements. Volume Condition Check and Wondertrend Indicator : The script checks if the volume is high for the past five bars. If it is, it applies the Wondertrend Indicator, which uses a combination of the Parabolic SAR (Stop and Reverse) and Keltner Channel to identify potential trends in the market. Swing High/Low and Fibonacci Retracement : The script identifies swing high and swing low points using a specified pivot length. Then, it draws Fibonacci retracement levels between these swing high and swing low points. he monkeyblackmail script works well in the 5 minutes chart and combines several elements of technical analysis, including volume analysis, momentum indicators, trend-following indicators, volatility channels, and Fibonacci retracements. It aims to provide a comprehensive view of the market condition, highlighting key levels and potential trends in an easily understandable format. Don’t be too quick to start trading with it, first study how it work and you will blackmail the market.
Indicador Pine Script®
por cerlc
Open Interest Profile [Fixed Range] - By LeviathanThis script generates an aggregated Open Interest profile for any user-selected range and provides several other features and tools, such as OI Delta Profile, Positive Delta Levels, OI Heatmap, Range Levels, OIWAP, POC and much more. The indicator will help you find levels of interest based on where other market participants are opening and closing their positions. This provides a deeper insight into market activity and serves as a foundation for various different trading strategies (trapped traders, supply and demand, support and resistance, liquidity gaps, imbalances,liquidation levels, etc). Additionally, this indicator can be used in conjunction with other tools such as Volume Profile. Open Interest (OI) is a key metric in derivatives markets that refers to the total number of unsettled or open contracts. A contract is a mutual agreement between two parties to buy or sell an underlying asset at a predetermined price. Each contract consists of a long side and a short side, with one party consenting to buy (long) and the other agreeing to sell (short). The party holding the long position will profit from an increase in the asset's price, while the one holding the short position will profit from the price decline. Every long position opened requires a corresponding short position by another market participant, and vice versa. Although there might be an imbalance in the number of accounts or traders holding long and short contracts, the net value of positions held on each side remains balanced at a 1:1 ratio. For instance, an Open Interest of 100 BTC implies that there are currently 100 BTC worth of longs and 100 BTC worth of shorts open in the market. There might be more traders on one side holding smaller positions, and fewer on the other side with larger positions, but the net value of positions on both sides is equivalent - 100 BTC in longs and 100 BTC in shorts (1:1). Consider a scenario where a trader decides to open a long position for 1 BTC at a price of $30k. For this long order to be executed, a counterparty must take the opposite side of the contract by placing a short order for 1 BTC at the same price of $30k. When both long and short orders are matched and executed, the Open Interest increases by 1 BTC, indicating the introduction of this new contract to the market. The meaning of fluctuations in Open Interest: - OI Increase - signifies new positions entering the market (both longs and shorts). - OI Decrease - indicates positions exiting the market (both longs and shorts). - OI Flat - represents no change in open positions due to low activity or a large number of contract transfers (contracts changing hands instead of being closed). Typically, we monitor Open Interest in the form of its running value, either on a chart or through OI Delta histograms that depict the net change in OI for each price bar. This indicator enhances Open Interest analysis by illustrating the distribution of changes in OI on the price axis rather than the time axis (akin to Volume Profiles). While Volume Profile displays the volume that occurred at a given price level, the Open Interest Profile offers insight into where traders were opening and closing their positions. How to use the indicator? 1. Add the script to your chart 2. A prompt will appear, asking you to select the “Start Time” (start of the range) and the “End Time” (end of the range) by clicking anywhere on your chart. 3. Within a few seconds, a profile will be generated. If you wish to alter the selected range, you can drag the "Start Time" and "End Time" markers accordingly. 4. Enjoy the script and feel free to explore all the settings. To learn more about each input in indicator settings, please read the provided tooltips. These can be accessed by hovering over or clicking on the ( i ) symbol next to the input.
Indicador Pine Script®
por LeviathanCapital
21
Golden ZoneIntroducing the "Golden Zone" indicator, a powerful tool that simplifies the Fibonacci indicator by creating a clear Golden Zone to identify potential future price movements. The Golden Zone is a supply or demand zone that corresponds to the 61.8% and 50% Fibonacci retracement levels. These levels are important because they often mark zones where the price reacts, making it an essential area for traders to watch. The script plots the Fibonacci levels in the background, enabling traders to identify potential support and resistance levels quickly. The Golden Zone is highlighted with a yellow filled area, making it easy to spot on the chart. Traders use this zone to identify areas where the stock price may react, either bouncing off the support level or encountering resistance at the resistance level. For example, if a stock price is moving up and reaches the Golden Zone, a trader may look for signs of resistance and consider selling the stock if the price begins to move back down. Conversely, if a stock price is moving down and reaches the Golden Zone, a trader may look for signs of support and consider buying the stock if the price begins to move back up. The "Golden Zone" indicator is highly versatile and can be used in all markets, whether you are a swing trader or a day trader. It can be combined with other strategies, such as an EMA crossover strategy or price action, or as an area of confluence. In summary, the "Golden Zone" indicator is a must-have tool for traders looking to identify potential price movements and locate key support and resistance levels. Its user-friendly inputs and clear display make it a valuable addition to any trading arsenal. So, the "Golden Zone" indicator is like a magic tool that helps people who trade in the stock market find valuable things to buy or sell. And with its ability to identify key support and resistance levels, it can help traders make better-informed decisions when buying or selling stocks. I hope you like it!
Indicador Pine Script®
por Bpmstocks
7
Bearish Cypher Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish cypher harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Cypher Patterns • Bullish cypher patterns are fundamentally composed of three troughs and two peaks, with the second peak being higher than the first peak and the second trough being higher than the first trough. The third trough must be lower than the second trough but higher than the first. • Bearish cypher patterns are fundamentally composed of three peaks and two troughs, with the second trough being lower than the first trough and the second peak being lower than the first peak. The third peak must be higher than the second peak but lower than the first. The most commonly recognised ratio measures used by traders today are as follows: • Wave 1 of the pattern, referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, referred to as AB, should retrace to at least 38.2%, but no further than 61.8% of the range set by wave 1. • Wave 3 of the pattern, referred to as BC, should extend to at least 113%, but no further than 141.4% of the range set by wave 2. • Wave 4 of the pattern, referred to as CD, should extend to at least 127.2%, but no further than 200% of the range set by wave 3. • The last measure, that of wave 4 as a ratio of the range set between points X and C, referred to as XC, should retrace to 78.6%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • XC Lower Tolerance • XC Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines Alerts Users can set alerts for when the patterns occur. █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES The cypher pattern was initially discovered by Darren Oglesbee, but I was unable to find any direct sources to his work on harmonic patterns. And although there seems to be some contention over whether or not there should be a ratio requirement for the CD wave, I decided to include it nonetheless.
Indicador Pine Script®
por theEccentricTrader
Bullish Cypher Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish cypher harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Cypher Patterns • Bullish cypher patterns are fundamentally composed of three troughs and two peaks, with the second peak being higher than the first peak and the second trough being higher than the first trough. The third trough must be lower than the second trough but higher than the first. • Bearish cypher patterns are fundamentally composed of three peaks and two troughs, with the second trough being lower than the first trough and the second peak being lower than the first peak. The third peak must be higher than the second peak but lower than the first. The most commonly recognised ratio measures used by traders today are as follows: • Wave 1 of the pattern, referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, referred to as AB, should retrace to at least 38.2%, but no further than 61.8% of the range set by wave 1. • Wave 3 of the pattern, referred to as BC, should extend to at least 113%, but no further than 141.4% of the range set by wave 2. • Wave 4 of the pattern, referred to as CD, should extend to at least 127.2%, but no further than 200% of the range set by wave 3. • The last measure, that of wave 4 as a ratio of the range set between points X and C, referred to as XC, should retrace to 78.6%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • XC Lower Tolerance • XC Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines Alerts Users can set alerts for when the patterns occur. █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES The cypher pattern was initially discovered by Darren Oglesbee, but I was unable to find any direct sources to his work on harmonic patterns. And although there seems to be some contention over whether or not there should be a ratio requirement for the CD wave, I decided to include it nonetheless.
Indicador Pine Script®
por theEccentricTrader
Bearish Deep Crab Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish deep crab harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Deep Crab Patterns • Bullish deep crab patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is higher than the first. • Bearish deep crab patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is lower than the first. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as AB, should retrace to 88.6% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as BC, should retrace by at least 38.2%, but no further than 88.6% of the range set by wave 2. • Wave 4 of the pattern, generally referred to as CD, should extend to at least 200%, but no further than 361.8% of the range set by wave 3. • The last measure, generally referred to as AD, is that of wave 4 as a ratio of the range set by wave 1, which should extend to 161.8%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • AD Lower Tolerance • AD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines Alerts Users can set alerts for when the patterns occur. █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES A link to Scott's harmonic patterns webpage for anyone who may be interested: harmonictrader.com/harmonic-patterns/
Indicador Pine Script®
por theEccentricTrader
Bullish Deep Crab Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish deep crab harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Deep Crab Patterns • Bullish deep crab patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is higher than the first. • Bearish deep crab patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is lower than the first. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as AB, should retrace to 88.6% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as BC, should retrace by at least 38.2%, but no further than 88.6% of the range set by wave 2. • Wave 4 of the pattern, generally referred to as CD, should extend to at least 200%, but no further than 361.8% of the range set by wave 3. • The last measure, generally referred to as AD, is that of wave 4 as a ratio of the range set by wave 1, which should extend to 161.8%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • AD Lower Tolerance • AD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines Alerts Users can set alerts for when the patterns occur. █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES A link to Scott's harmonic patterns webpage for anyone who may be interested: harmonictrader.com/harmonic-patterns/
Indicador Pine Script®
por theEccentricTrader
3
Bearish Alternate Bat Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish alternate bat harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Alternate Bat Patterns • Bullish alternate bat patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak and the second trough being higher than the first, with the third trough being lower than both the first and second troughs. • Bearish alternate bat patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough and the second peak being lower than the first, with the third peak being higher than both the first and second peaks. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as AB, should retrace to 38.2% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as BC, should retrace by at least 38.2%, but no further than 88.6% of the range set by wave 2. • Wave 4 of the pattern, generally referred to as CD, should extend to at least 200%, but no further than 361.8% of the range set by wave 3. • The last measure, generally referred to as AD, is that of wave 4 as a ratio of the range set by wave 1, which should extend to 113%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • AD Lower Tolerance • AD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines Alerts Users can set alerts for when the patterns occur. █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES A link to Scott's harmonic patterns webpage for anyone who may be interested: harmonictrader.com/harmonic-patterns/
Indicador Pine Script®
por theEccentricTrader
Bullish Alternate Bat Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish alternate bat harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Alternate Bat Patterns • Bullish alternate bat patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak and the second trough being higher than the first, with the third trough being lower than both the first and second troughs. • Bearish alternate bat patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough and the second peak being lower than the first, with the third peak being higher than both the first and second peaks. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as AB, should retrace to 38.2% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as BC, should retrace by at least 38.2%, but no further than 88.6% of the range set by wave 2. • Wave 4 of the pattern, generally referred to as CD, should extend to at least 200%, but no further than 361.8% of the range set by wave 3. • The last measure, generally referred to as AD, is that of wave 4 as a ratio of the range set by wave 1, which should extend to 113%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • AD Lower Tolerance • AD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines Alerts Users can set alerts for when the patterns occur. █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES A link to Scott's harmonic patterns webpage for anyone who may be interested: harmonictrader.com/harmonic-patterns/
Indicador Pine Script®
por theEccentricTrader
Crypto Uptrend Script + Pullback//Volume CandlesDescription: his is an adaption of my Pullback candle - This works on all timeframes and Markets (Forex//Stocks//) Crypto Uptrend Script with Pullback Candle allows traders to get into a trend when the price is at end of a pullback and entering a balance phase in the market (works on all markets). The use of Moving averages to help identify a Trends and the use of Key levels to help traders be aware of where strong areas are in the market. This script can work really well in Crypto Bull Runs when used on HTF and with confluences The script has key support and resistance zones which are made up of quarterly data. Price reacts to these areas but patience is required as price will take time to come into these areas I have updated the Pullback Candle with the use of Volume to filter out the weak Pullback Candles - There are new candles to the script. The First candle is the Bullish Volume Candle - This candle is set to a multiplier of 2x with a crossover of 50/100 on Volume - this then will paint a purple candle. Uses of the Bullish Volume Candle: Breakthrough of key areas // special chart patterns Rejection of key areas End of a impulse wave (Profit Takers) The second candle is a Hammer - I prefer using the Hammers on Higher Timeframes however they do work on all timeframes. . The third candle is a Exhaustion of impulse downward move. Uses of this candle - can denote a new trend but has to be with confluence to a demand area // support area or with any use of technical analysis - using this alone is not advised The fourth candle is a indecision candle in the shape of a Doji - this candle can help identify if the trend is in a continuation or a reversal This script can work really well in Crypto Bull Runs Disclaimer: There will be Pullbacks with High Volume (Breakouts) and not go the way as intended but this script is to allow traders to get into trends at good price levels. The script can paint signals in areas where price is too expensive so please do your own due diligence on the markets as this script is to help get into good areas of price Please leave a thumbs up if you like this script and message me for information on how to use the script.
Indicador Pine Script®
por LuxTradeVenture
8
Bearish 5-0 Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish 5-0 harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish 5-0 Patterns • Bullish 5-0 patterns are fundamentally composed of three peaks and three troughs, with the second peak being lower than the first peak and the third peak being higher than the first peak. And similarly, the second trough being lower than the first trough and the third trough being higher than both the first and second troughs. • Bearish 5-0 patterns are fundamentally composed of three troughs and three peaks, with the second trough being higher than the first trough and the third trough being lower than the first trough. And similarly, the second peak being higher than the first peak and the third peak being lower than both the first and second peaks. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, referred to as OX, has no specific ratio requirements. • Wave 2 of the pattern, referred to as XA, has no specific ratio requirements. • Wave 3 of the pattern, referred to as AB, should extend to at least 113%, but no further than 161.8% of the range set by wave 2. • Wave 4 of the pattern, referred to as BC, should extend to at least 161.8%, but no further than 224% of the range set by wave 3. • Wave 5 of the pattern, referred to as CD, should retrace to 50.0% of the range set by wave 4. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES Here is a link to Scott's harmonic patterns webpage for those who may be interested: harmonictrader.com
Indicador Pine Script®
por theEccentricTrader
Bullish 5-0 Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish 5-0 harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish 5-0 Patterns • Bullish 5-0 patterns are fundamentally composed of three peaks and three troughs, with the second peak being lower than the first peak and the third peak being higher than the first peak. And similarly, the second trough being lower than the first trough and the third trough being higher than both the first and second troughs. • Bearish 5-0 patterns are fundamentally composed of three troughs and three peaks, with the second trough being higher than the first trough and the third trough being lower than the first trough. And similarly, the second peak being higher than the first peak and the third peak being lower than both the first and second peaks. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, referred to as OX, has no specific ratio requirements. • Wave 2 of the pattern, referred to as XA, has no specific ratio requirements. • Wave 3 of the pattern, referred to as AB, should extend to at least 113%, but no further than 161.8% of the range set by wave 2. • Wave 4 of the pattern, referred to as BC, should extend to at least 161.8%, but no further than 224% of the range set by wave 3. • Wave 5 of the pattern, referred to as CD, should retrace to 50.0% of the range set by wave 4. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES Here is a link to Scott's harmonic patterns webpage for those who may be interested: harmonictrader.com
Indicador Pine Script®
por theEccentricTrader
2
Bearish Shark Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish Shark harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Shark Patterns • Bullish shark patterns are fundamentally composed of three troughs and two peaks, with the second peak being higher than the first peak and the second trough being higher than the first trough. The third trough must be lower than the second trough but can be above or below the first trough providing it meets the ratio requirements. • Bearish shark patterns are fundamentally composed of three peaks and two troughs, with the second trough being lower than the first trough and the second peak being lower than the first peak. The third peak must be higher than the second peak but can be above or below the first peak providing it meets the ratio requirements. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, referred to as OX, has no specific ratio requirements. • Wave 2 of the pattern, referred to as XA, has no specific ratio requirements. • Wave 3 of the pattern, referred to as AB, should extend to at least 113%, but no further than 161.8% of the range set by wave 2. • Wave 4 of the pattern, referred to as BC, should extend to at least 161.8%, but no further than 224% of the range set by wave 3. • The last measure, referred to as XC, is that of wave 4 as a ratio of the range set by wave 1, which should extend to at least 88.6%, but no further than 113%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • XC Lower Tolerance • XC Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES Here is a link to Scott's harmonic patterns webpage for those who may be interested: harmonictrader.com
Indicador Pine Script®
por theEccentricTrader
2
Bullish Shark Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish Shark harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Shark Patterns • Bullish shark patterns are fundamentally composed of three troughs and two peaks, with the second peak being higher than the first peak and the second trough being higher than the first trough. The third trough must be lower than the second trough but can be above or below the first trough providing it meets the ratio requirements. • Bearish shark patterns are fundamentally composed of three peaks and two troughs, with the second trough being lower than the first trough and the second peak being lower than the first peak. The third peak must be higher than the second peak but can be above or below the first peak providing it meets the ratio requirements. The ratio measurements recommended by Scott Carney, who originated the pattern, are as follows: • Wave 1 of the pattern, referred to as OX, has no specific ratio requirements. • Wave 2 of the pattern, referred to as XA, has no specific ratio requirements. • Wave 3 of the pattern, referred to as AB, should extend to at least 113%, but no further than 161.8% of the range set by wave 2. • Wave 4 of the pattern, referred to as BC, should extend to at least 161.8%, but no further than 224% of the range set by wave 3. • The last measure, referred to as XC, is that of wave 4 as a ratio of the range set by wave 1, which should extend to at least 88.6%, but no further than 113%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • XC Lower Tolerance • XC Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES Here is a link to Scott's harmonic patterns webpage for those who may be interested: harmonictrader.com
Indicador Pine Script®
por theEccentricTrader
2
Bearish ABCD Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish ABCD harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Double Trends • A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price. • A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price. Muti-Part Double Trends • A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend. • A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish ABCD Patterns • Bullish ABCD patterns are fundamentally composed of two peaks and two troughs, with the second peak being lower than the first peak and the second trough being lower than the first trough. Which is the same as a double downtrend. • Bearish ABCD patterns are fundamentally composed of two troughs and two peaks, with the second trough being higher than the first trough and the second peak being higher than the first peak. Which is the same as a double uptrend. The most commonly recognised ratio measurements used by traders today are as follows: • Wave 1 of the pattern, generally referred to as AB, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as BC, should retrace by at least 61.8%, but no further than 78.6% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as CD, should extend to at least 127.2%, but no further than 161.8% of the range set by wave 2. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
Indicador Pine Script®
por theEccentricTrader
Bullish ABCD Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish ABCD harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Double Trends • A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price. • A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price. Muti-Part Double Trends • A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend. • A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish ABCD Patterns • Bullish ABCD patterns are fundamentally composed of two peaks and two troughs, with the second peak being lower than the first peak and the second trough being lower than the first trough. Which is the same as a double downtrend. • Bearish ABCD patterns are fundamentally composed of two troughs and two peaks, with the second trough being higher than the first trough and the second peak being higher than the first peak. Which is the same as a double uptrend. The most commonly recognised ratio measurements used by traders today are as follows: • Wave 1 of the pattern, generally referred to as AB, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as BC, should retrace by at least 61.8%, but no further than 78.6% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as CD, should extend to at least 127.2%, but no further than 161.8% of the range set by wave 2. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
Indicador Pine Script®
por theEccentricTrader
2
Bearish Three-Drive Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish three-drive harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Double Trends • A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price. • A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price. Muti-Part Double Trends • A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend. • A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Three-Drive Patterns • Bullish three-drive patterns are fundamentally composed of three peaks and three troughs, with the second peak being lower than the first peak and the third peak being lower than the second peak. And similarly, the second trough being lower than the first trough and the third trough being lower than the second trough. • Bearish three-drive patterns are fundamentally composed of three troughs and three peaks, with the second trough being higher than the first trough and the third trough being higher than the second troughs. And similarly, the second peak being higher than the first peak and the third peak being higher than the second peak. The most commonly recognised ratio measurements used by traders today are as follows: • Wave 1 of the pattern, referred to as X1, should extend to at least 127.2% of the preceding range. • Wave 2 of the pattern, referred to as 1A, should retrace to 61.8% of the range set by wave 1. • Wave 3 of the pattern, referred to as drive A2, should extend to at least 127.2%, but no further than 161.8% of the range set by wave 2. • Wave 4 of the pattern, referred to drive 2B, should retrace to 61.8% of the range set by wave 3. • Wave 5, generally referred to as drive B3, should extend to at least 127.2%, but no further than 161.8% of the range set by wave 4. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, for example, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • X1 Lower Tolerance • 1A Lower Tolerance • 1A Upper Tolerance • A2 Lower Tolerance • A2 Upper Tolerance • 2B Lower Tolerance • 2B Upper Tolerance • B3 Lower Tolerance • B3 Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES Please note I have set the default tolerances to 20% for this indicator as the patterns seem to be pretty rare.
Indicador Pine Script®
por theEccentricTrader
Bullish Three-Drive Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bullish three-drive harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Double Trends • A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price. • A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price. Muti-Part Double Trends • A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend. • A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Three-Drive Patterns • Bullish three-drive patterns are fundamentally composed of three peaks and three troughs, with the second peak being lower than the first peak and the third peak being lower than the second peak. And similarly, the second trough being lower than the first trough and the third trough being lower than the second trough. • Bearish three-drive patterns are fundamentally composed of three troughs and three peaks, with the second trough being higher than the first trough and the third trough being higher than the second troughs. And similarly, the second peak being higher than the first peak and the third peak being higher than the second peak. The most commonly recognised ratio measurements used by traders today are as follows: • Wave 1 of the pattern, referred to as X1, should extend to at least 127.2% of the preceding range. • Wave 2 of the pattern, referred to as 1A, should retrace to 61.8% of the range set by wave 1. • Wave 3 of the pattern, referred to as A2, should extend to at least 127.2%, but no further than 161.8% of the range set by wave 2. • Wave 4 of the pattern, referred to as 2B, should retrace to 61.8% of the range set by wave 3. • Wave 5 of the pattern, referred to as B3, should extend to at least 127.2%, but no further than 161.8% of the range set by wave 4. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, for example, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • X1 Lower Tolerance • 1A Lower Tolerance • 1A Upper Tolerance • A2 Lower Tolerance • A2 Upper Tolerance • 2B Lower Tolerance • 2B Upper Tolerance • B3 Lower Tolerance • B3 Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with. █   NOTES Please note I have set the default tolerances to 20% for this indicator as the patterns seem to be pretty rare.
Indicador Pine Script®
por theEccentricTrader
Bearish Butterfly Harmonic Patterns [theEccentricTrader]█   OVERVIEW This indicator automatically draws bearish butterfly harmonic patterns and price projections derived from the ranges that constitute the patterns. █   CONCEPTS Green and Red Candles • A green candle is one that closes with a close price equal to or above the price it opened. • A red candle is one that closes with a close price that is lower than the price it opened. Swing Highs and Swing Lows • A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak. • A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough. Peak and Trough Prices (Basic) • The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher. • The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower. Historic Peaks and Troughs The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one. Range The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips. Support and Resistance • Support refers to a price level where the demand for an asset is strong enough to prevent the price from falling further. • Resistance refers to a price level where the supply of an asset is strong enough to prevent the price from rising further. Support and resistance levels are important because they can help traders identify where the price of an asset might pause or reverse its direction, offering potential entry and exit points. For example, a trader might look to buy an asset when it approaches a support level , with the expectation that the price will bounce back up. Alternatively, a trader might look to sell an asset when it approaches a resistance level , with the expectation that the price will drop back down. It's important to note that support and resistance levels are not always relevant, and the price of an asset can also break through these levels and continue moving in the same direction. Upper Trends • A return line uptrend is formed when the current peak price is higher than the preceding peak price. • A downtrend is formed when the current peak price is lower than the preceding peak price. • A double-top is formed when the current peak price is equal to the preceding peak price. Lower Trends • An uptrend is formed when the current trough price is higher than the preceding trough price. • A return line downtrend is formed when the current trough price is lower than the preceding trough price. • A double-bottom is formed when the current trough price is equal to the preceding trough price. Muti-Part Upper and Lower Trends • A multi-part return line uptrend begins with the formation of a new return line uptrend, or higher peak, and continues until a new downtrend, or lower peak, completes the trend. • A multi-part downtrend begins with the formation of a new downtrend, or lower peak, and continues until a new return line uptrend, or higher peak, completes the trend. • A multi-part uptrend begins with the formation of a new uptrend, or higher trough, and continues until a new return line downtrend, or lower trough, completes the trend. • A multi-part return line downtrend begins with the formation of a new return line downtrend, or lower trough, and continues until a new uptrend, or higher trough, completes the trend. Wave Cycles A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa. Figure 1. Fibonacci Retracement and Extension Ratios The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144. The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on. 1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven. Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak. Harmonic Patterns The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves. Bullish and Bearish Butterfly Patterns • Bullish butterfly patterns are fundamentally composed of two peaks and three troughs, with the second peak being lower than the first peak. And the third trough being lower than both the second and first troughs, while the second trough is higher than the first. • Bearish butterfly patterns are fundamentally composed of two troughs and three peaks, with the second trough being higher than the first trough. And the third peak being higher than both the second and first peaks, while the second peak is lower than the first. The most commonly recognised ratio measurements used by traders today are as follows: • Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements. • Wave 2 of the pattern, generally referred to as AB, should retrace by 78.6% of the range set by wave 1. • Wave 3 of the pattern, generally referred to as BC, should retrace by at least 38.2%, but no further than 88.6% of the range set by wave 2. • Wave 4 of the pattern, generally referred to as CD, should extend to at least 161.8%, but no further than 261.8% of the range set by wave 3. • The last measure, generally referred to as AD, is that of wave 4 as a ratio of the range set by wave 1, which should extend to 127%. Measurement Tolerances In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences. For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence. █   FEATURES Inputs • AB Lower Tolerance • AB Upper Tolerance • BC Lower Tolerance • BC Upper Tolerance • CD Lower Tolerance • CD Upper Tolerance • AD Lower Tolerance • AD Upper Tolerance • Pattern Color • Label Color • Show Projections • Extend Current Projection Lines █   LIMITATIONS All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
Indicador Pine Script®
por theEccentricTrader