MTF Fair Value Gap [BigBeluga]The MTF Fair Value Gap (FVG) indicator provides multi-timeframe options to observe lower or higher gaps in different timeframes within your current one. This can enhance the confluence in your trading decisions.
🔶 USAGE
An FVG is formed when a candle has an 'empty' body, leaving a gap. These areas are often filled before the market continues to trend in its original direction.
In practical terms, FVGs serve to highlight support areas (bullish FVGs) and resistance zones (bearish FVGs). As a gap is filled, signaling the end of the existing imbalance, it tends to foreshadow an impending price reversal.
While this approach is inherently contrarian, individuals seeking a more trend-following strategy can opt to use FVG identification as straightforward signals. This entails taking a long position upon detecting a bullish FVG and adopting a short position in the presence of a bearish FVG.
🔹 Mitigation
The mitigation point is where the user selects when the FVG is considered filled or no longer usable.
Source => Choose the candle's low/high or close as the mitigation point.
Point => Choose the FVG's mitigation point to trigger after the candle's Source has filled it. Users can choose between the middle point or the top/bottom of the FVG.
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🔹 MTF
This script can display MTF FVGs from different timeframes while showing the current one. This is extremely useful as it avoids the need to switch timeframes frequently and can add significant confluence with the current FVG.
🔹 Threshold
The Threshold is an input to remove insignificant FVGs that are too small to be truly useful. Users can choose between:
Auto => Automatically remove unusable FVGs.
Manual => Set an automatic Threshold.
🔶 TIPS
Users can choose how many FVGs to display on the current chart for better visualization.
Users can choose which FVGs to display: only the current one, only MTF ones, or both.
ค้นหาในสคริปต์สำหรับ "gaps"
MTF FVGThis script finds Imbalance (Fair Value Gap (FVG)) on multi timeframes.
If needed all TF can be used at once: 1, 3, 5, 15, 30, 45, 60, 120, 180, 240, D, W.
It finds FVG on any desired TF that is greater or equal than TF on the chart.
FVG stands for fair value gap, which is a three-candle structure that indicates an imbalance or inefficiency in the market. An imbalance means that the buying and selling is not equal, and there is a gap between the fair value and the market value of an asset. A bullish FVG shows that the market value is lower than the fair value, and a bearish FVG shows the opposite.
FVG takes place in a series of 3 candles when the middle candle gaps up or down. This signals strong buying or selling pressure in the direction of the gap. When a gap occurs the wicks of the candles do not overlap each other.
ICT Institutional Order Flow (fadi)ICT Institutional Order Flow indicator is intended to provide wholistic view to better analyze order flow and where price may go to next. The concept follows ICT principles.
ICT Market Structure
ICT breaks down Pivot points into three categories:
Short Term High/Low (STH/STL) is a 3 candle pattern with a low with higher low on each side (STL), or a high with lower high on each side (STH)
Intermediate Term High/Low (ITH/ITL) uses the calculated STH/STL and marks any STH that has lower or STH on each side, and STL that has higher STL on each side
Long Term High/Low (LTH/LTL) uses the calculated ITH/ITL and marks any ITH that has lower or ITH on each side, and ITL that has higher ITL on each side
Note: ICT also states that if a STH wicks into and closes (almost?) a FVG, he marks it as ITH even if it does not have STH on reach side. This scenario is not covered by this indicator
Liquidity
liquidity is usually present under pivot points. The more prominent the pivot point, the more likely higher values liquidity pools reside under/above it. Liquidity under ITL and LTL as an example, will have better indication of which liquidity the price may seek next.
Displacement
Displacement registers above average move in the price resulting in strong visible move. If requiring a FVG is enabled (in settings), then the displacement could possibly (but never guaranteed) be used to visually recognize a move as it develops.
Full Credit: The calculation for Displacement is derived from TFO's Visualizing Displacement
Imbalances
Imbalances can come in different forms. This indicator identifies three type of imbalances:
1. FVG
2. Volume Imbalance
3. Open Gaps
Imbalances completes the picture by help visualize strong moves, where possible pivot points may develop, and how to enter or manage a trade.
Lower timeframe chartHi all!
I've made this script to help with my laziness (and to help me (and now you) with efficiency). It's purpose is to, without having to change the chart timeframe, being able to view the lower timeframe bars (and trend) within the last chart bar. The defaults are just my settings (It's based on daily bars), so feel free to change them and maybe share yours! It's also based on stocks, which have limited trading hours, but if you want to view this for forex trading I suggest changing the 'lower time frame' to a higher value since it has more trading hours.
The script prints a label chart (ASCII) based on your chosen timeframe and the trend, based on @KivancOzbilgic script SuperTrend The printed ASCII chart has rows (slots) that are based on ATR (14 bars) and empty gaps are removed. The current trend is decided by a percentage of bars (user defined but defaults to 80%, which is really big but let's you be very conservative in defining a trend to be bullish. Set to 50% to have the trend being decided equally or lower to be more conservative in defining a trend to be bearish) that must have a bullish SuperTrend, it's considered to be bearish otherwise. Big price range (based on the ATR for 14 bars) and big volume (true if the volume is bigger than a user defined simple moving average (defaults to 20 bars)) can be disabled for faster execution.
The chart displayed will consist of bars and thicker bars that has a higher volume than the defined simple moving average. The bars that has a 'big range' (user defined value of ATR (14 days) factor that defaults to 0.5) will also have a wick. The characters used are the following:
Green bar = ┼
Green bar with large volume = ╪
Green bar wick = │
Red bar = ╋
Red bar with large volume = ╬
Red bar wick = ┃
Bar with no range = ─
Bar with no range and high volume = ═
Best of trading!
Fair Value Gap ChartThe Fair Value Gap chart is a new charting method that displays fair value gap imbalances as Japanese candlesticks, allowing traders to quickly see the evolution of historical market imbalances.
The script is additionally able to compute an exponential moving average using the imbalances as input.
🔶 USAGE
The Fair Value Gap chart allows us to quickly display historical fair value gap imbalances. This also allows for filtering out potential noisy variations, showing more compact trends.
Most like other charting methods, we can draw trendlines/patterns from the displayed results, this can be helpful to potentially predict future imbalances locations.
Users can display an exponential moving average computed from the detected fvg's imbalances. Imbalances above the ema can be indicative of an uptrend, while imbalances under the ema are indicative of a downtrend.
Note that due to pinescript limitations a maximum of 500 lines can be displayed, as such displaying the EMA prevent candle wicks from being displayed.
🔶 DETAILS
🔹 Candle Structure
The Fair Value Gap Chart is constructed by keeping a record of all detected fair value gaps on the chart. Each fvg is displayed as a candlestick, with the imbalance range representing the body of the candle, and the range of the imbalance interval being used for the wicks.
🔹 EMA Source Input
The exponential moving average uses the imbalance range to get its input source, the extremity of the range used depends on whether the fvg is bullish or bearish.
When the fvg is bullish, the maximum of the imbalance range is used as ema input, else the minimum of the fvg imbalance is used.
MACD Higher TimeFrameThis Pine script is an indicator called "MACD Higher TimeFrame" that calculates and displays the Moving Average Convergence Divergence (MACD) on a higher timeframe. It is designed to be used on a lower timeframe chart but show the MACD values from a specified higher timeframe.
The indicator takes several inputs, including the fast length, slow length, source data, signal smoothing length, and the types of moving averages to be used for the MACD and signal lines. The default values are set to 12, 26, the closing price, 9, and exponential moving averages (EMA) for both lines, respectively. These inputs can be modified by the user.
The script calculates the MACD and signal lines based on the specified inputs and the source data. It uses the `init_ma` function to initialize the moving average calculation based on the selected moving average type (EMA or SMA) and length.
To display the MACD and signal lines from the higher timeframe, the script utilizes the `request.security` function, fetching the values of MACD and signal lines one bar ago on the higher timeframe. It handles any gaps in data and lookahead considerations.
The script also includes a function called `int_htf_fillna`, which handles the filling of `na` (not available) values for the higher timeframe indicators. It ensures that the indicator values are carried forward if they are not available for a particular bar.
To enhance the visualization, the script includes customizable colors for the MACD line, signal line, and histogram bars. The histogram bars are styled using the `plot.style_columns` option, and their color is determined by the `color_handle_ducplicate_value` function. This function checks for duplicate values and assigns colors based on whether the indicator is rising or falling, and whether it is above or below zero.
The script also includes a zero line (color #787B86) to provide a visual reference for the zero level.
Overall, this Pine script allows users to view the MACD indicator from a higher timeframe on a lower timeframe chart, providing insights into the broader market trend.
Inside Candle ViewerInside Candle Viewer
What it’s meant for:
- This indicator is used to identify inside candles that might generate an upcoming trading range
- Works best on large timeframe (Suggested from 2 days up to 1 week) and crypto asset (Index don't show much because of daily gaps)
How it works:
- It check for daily close (or the chosen timeframe), highlight inside candles and also plot trading range limits generated by inside pattern
- Trading range limits extend until candle closes are within those limits
- Usually the longer the trading range last, the stronger the following trend is when it break in any direction
Settings:
- Change color of inside bars and enable/disable from chart
- Change color of trading range and enable/disable from chart
Alerts:
- No alerts are defined at the moment
HTF FVG D/W/M 25%/50%/75% [MK]Do you use HTF FVG (fair value gaps) in your trading strategy? Do you monitor price on the 25%/50%/75% levels within the FVG on a lower timeframe?
This script will allow the user to display either Daily, Weekly or Monthly FVGs on a lower timeframe chart. The script will then also show the 25%/50%/75% levels within the HTF FVG so traders can see how price reacts in the FVG.
For example, a Weekly FVG may be chosen by the trader as a possible reversal point, or somewhere to add to an existing position. The trader might want to see the FVG almost fully filled, then watch price climb up/down out of the Weekly FVG
before taking the trade.
Previously traders would draw the FVG to the chart, then use maybe the tradingview fib tool to display the 25%/50%/75% levels. The problem with this is that its easy to accidently move the fib while dragging the chart around.
Chart below shows example of price almost filling a D FVG, then using the 25%/50%/75% levels as it climbs out of the FVG and reverses to the upside.
ATR DeltaThe ATR Delta indicator is based on the concept of Average True Range (ATR), which reflects the average price range over a specified period. By calculating the difference between current and previous ATR values, the ATR Delta provides valuable insights into volatility shifts in the market. This information can help traders identify periods of heightened or diminished price movement, enabling them to adjust their strategies accordingly.
The ATR Delta indicator consists of two main calculations:
-- ATR Calculation : The Average True Range (ATR) is calculated using the specified length parameter. It measures the average price range (including gaps) during that period. A larger ATR value indicates higher volatility, while a smaller value indicates lower volatility.
-- ATR Delta Calculation : The ATR Delta is calculated by subtracting the ATR value of the previous bar from the current ATR value. This calculation captures the change in volatility between the two periods, providing a measure of how volatility has evolved.
Positive ATR Delta values indicate an increase in volatility compared to the previous period. It suggests that price movements have expanded, potentially indicating a more active market. On the other hand, negative ATR Delta values indicate a decrease in volatility compared to the previous period. It suggests that price movements have contracted, potentially signaling a calmer or range-bound market.
The ATR Delta indicator uses coloration to visually represent the relationship between the ATR Delta, zero, and a signal line:
-- Green color is assigned when the ATR Delta is positive, above the signal line, and increasing. This coloration suggests a scenario of higher volatility, as the market is experiencing upward momentum in price swings.
-- Red color is assigned when the ATR Delta is negative, below the signal line, and decreasing. This coloration suggests a scenario of lower volatility, as the market is experiencing downward momentum in price swings.
-- Gray color is assigned for other cases when the ATR Delta and signal line relationship does not meet the above conditions.
These colors are reflected in the columns of the ATR Delta as well as the bar coloration.
The ATR Delta indicator includes a signal line, which acts as a reference for interpreting the ATR Delta values. The signal line is calculated as a moving average (EMA) of the ATR Delta over a specified length. It helps smooth out the ATR Delta fluctuations, providing a clearer indication of the underlying trend in volatility changes. When the ATR Delta crosses above the signal line, it may suggest a potential increase in volatility, indicating a market that is becoming more active. Conversely, when the ATR Delta crosses below the signal line, it may suggest a potential decrease in volatility, indicating a market that is becoming less active.
The coloration of the signal line in the ATR Delta indicator helps to differentiate between positive and negative values and provides further insight into market sentiment. When the signal line is positive, indicating increasing volatility, it is colored lime. This color choice reinforces the bullish sentiment and signifies potential opportunities for trend continuation or breakouts. On the other hand, when the signal line is negative, indicating decreasing volatility, it is colored fuchsia. This color choice highlights the bearish sentiment and suggests potential range-bound or consolidation periods. These colors are reflected in the background of the indicator.
The ATR Delta indicator offers several potential applications for traders:
-- Volatility Analysis : The ATR Delta is invaluable for understanding and analyzing volatility dynamics in the market. Traders can observe the changes in ATR Delta values and use them to assess the current level of price movement. This information can help determine the appropriate strategies and risk management approaches.
-- Breakout Strategies : Traders often use the ATR Delta to identify periods of increased volatility, which frequently accompany breakouts. By monitoring the ATR Delta, traders can anticipate potential price breakouts and adjust their entry and exit levels accordingly.
-- Trend Confirmation : Combining the ATR Delta with trend-following indicators allows traders to validate the strength of a trend. Higher ATR Delta values during an uptrend may indicate stronger momentum and a higher likelihood of continuation. Conversely, lower ATR Delta values during a downtrend may suggest a potential consolidation phase or trend reversal.
Limitations :
-- Lagging Indicator : The ATR Delta indicator is based on historical data and calculates the difference between current and previous ATR values. As a result, it may lag behind real-time market conditions. Traders should be aware of this delay and consider it when making trading decisions. It is advisable to combine the ATR Delta with other indicators or price action analysis for a more comprehensive assessment of market conditions.
-- Parameter Sensitivity : The ATR Delta indicator's effectiveness can be influenced by the selection of its parameters, such as the length of the ATR and signal line. Different market conditions may require adjustments to these parameters to better capture volatility changes. Traders should carefully test and optimize the indicator's parameters to align with the characteristics of the specific market or asset they are trading.
-- Market Regime Changes : The ATR Delta indicator assumes that volatility changes occur gradually. However, in rapidly changing market regimes or during news events, volatility can spike or drop abruptly, potentially rendering the indicator less effective. Traders should exercise caution and consider using additional tools or techniques to identify and adapt to such market conditions.
The ATR Delta indicator is a valuable tool for traders seeking to analyze and monitor volatility dynamics in the market. By calculating the difference between current and previous ATR values, it provides insights into changes in price movement and helps identify periods of increased or decreased volatility. Traders can leverage the ATR Delta to fine-tune their strategies, validate trend strength, and identify potential breakout opportunities. However, it is essential to recognize the limitations of the indicator, including its lagging nature and sensitivity to parameter selection. By combining the ATR Delta with other technical analysis tools and applying sound risk management practices, traders can enhance their decision-making process and potentially improve their trading outcomes.
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
HTF Candle Support & Resistance «NoaTrader»This script uses higher timeframe candle's High, Low & Close as a source for drawing a line representing potential Supports and Resistances.
The more lines you see on a level, probably the more important that level is.
The script has a single input for setting the source candle's timeframe, so it can be used on any timeframe with the proper settings. For example, higher timeframes like weekly and monthly can use "3M" or "12M" settings, Daily timeframes with "W", or even lower timeframes like minutes and seconds with "240" and "60" (M means monthly candle, W is weekly, and numbers are for minutes.)
As you can see on the code:
Red lines represent candle's High.
Green lines represent candle's Low.
Blue lines represent candle's Close.
Give it a try on different timeframes with different settings to see interesting gaps between lines!
Nexus Blast Trading Strategy [Kaspricci]Nexus Blast Trading Strategy - Kaspricci
This indicator shows the different sessions during the day (London session, New York AM session, New York PM session and Asian session) by adding vertical lines and draws horizontal lines for the high and low during each session. Furthermore those lines turn red once the price has taken this high or low. Blue lines indicate liquidity not yet taken.
On top the indicator draws boxes of different color to indicate bullish and bearish Fair Value Gaps (FVG).
Happy to receive your feedback. Please leave a comment for bugs as well as ideas for improvement.
General Settings
Time Zone - used for marking sessions and end of day.
Sessions
Sessions - start and end time for each session based on set time zone
Number of Days back - for how many days in the past the startegy will draw strategy highs and lows. Theres is a maximum of 50 days defined.
FVG Settings
Threshold in Ticks - you can hide very small FVGs by increasing this threshold
FVG Colors - colors used for the bearish and bullish FVG box
This script is for educational purposes only! It is not meant to be a financial advice.
PS: The former strategy script was removed by TV, as it would violate several rules according to them.
Multi-Timeframe FVG [TFO]The goal of this indicator is to find Fair Value Gaps (FVGs) that overlap on multiple timeframes. FVGs are already meant to be “sensitive” areas where one might expect price to react from, therefore FVGs that overlap on multiple timeframes could provide even more confluence that there may be a reaction in said area (with proper context).
Mitigation Type allows users to select how FVGs should be mitigated, either by wick or by completely closing through the area.
The displacement option helps to filter out smaller FVGs by looking for areas where price ran rather quickly (causing displacement). This is done by comparing the candle that made the FVG to a fractional ATR value, so that one may fine-tune how much “larger” the candle range needs to be, relative to recent price action.
The timeframe alignment option allows users to select how many timeframes must be converging in order to draw FVGs. For instance, with all timeframes selected, a timeframe alignment value of 2 would require that there be overlapping FVGs on 2 or more timeframes. A value of 3 would require that there be overlapping FVGs on all 3 timeframes in order for them to be drawn.
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.
Triple Top Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws triple top 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Triple Bottom and Triple Top Patterns
• Triple bottom patterns are composed of two peaks and three troughs, with the second and third troughs being roughly equal to the first trough.
• Triple top patterns are composed of two troughs and three peaks, with the second and third peaks being roughly equal to the first peak.
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 triple bottom and triple top patterns to increase to the frequency of pattern occurrences.
For example, a perfect triple bottom is very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A ratio tolerance of 10% to both downside and upside, which is the default setting, means we would have a tolerable ratio measurement range between 90-110% for the second and third troughs as ratios of the first trough, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• Unbroken Troughs
• Lower Tolerance
• Upper Tolerance
• Pattern Color
• Neckline Color
• Extend Current Neckline
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Triple Bottom Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws triple bottom 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Triple Bottom and Triple Top Patterns
• Triple bottom patterns are composed of two peaks and three troughs, with the second and third troughs being roughly equal to the first trough.
• Triple top patterns are composed of two troughs and three peaks, with the second and third peaks being roughly equal to the first peak.
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 triple bottom and triple top patterns to increase to the frequency of pattern occurrences.
For example, a perfect triple bottom is very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A ratio tolerance of 10% to both downside and upside, which is the default setting, means we would have a tolerable ratio measurement range between 90-110% for the second and third troughs as ratios of the first trough, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• Unbroken Peaks
• Lower Tolerance
• Upper Tolerance
• Pattern Color
• Neckline Color
• Extend Current Neckline
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Double Top Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws double top 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Double Bottom and Double Top Patterns
• Double bottom patterns are composed of one peak and two troughs, with the second trough being roughly equal to the first trough.
• Double top patterns are composed of one trough and two peaks, with the second peak being roughly equal to the first peak.
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 double bottom and double top patterns to increase to the frequency of pattern occurrences.
For example, a perfect double bottom is very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A ratio tolerance of 10% to both downside and upside, which is the default setting, means we would have a tolerable ratio measurement range between 90-110% for the second trough, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• Unbroken Troughs
• Lower Tolerance
• Upper Tolerance
• Pattern Color
• Neckline Color
• Extend Current Neckline
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Double Bottom Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws double bottom 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Double Bottom and Double Top Patterns
• Double bottom patterns are composed of one peak and two troughs, with the second trough being roughly equal to the first trough.
• Double top patterns are composed of one trough and two peaks, with the second peak being roughly equal to the first peak.
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 double bottom and double top patterns to increase to the frequency of pattern occurrences.
For example, a perfect double bottom is very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A ratio tolerance of 10% to both downside and upside, which is the default setting, means we would have a tolerable ratio measurement range between 90-110% for the second trough, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• Unbroken Peaks
• Lower Tolerance
• Upper Tolerance
• Pattern Color
• Neckline Color
• Extend Current Neckline
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Bearish Alternate Flag Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws bearish alternate flag 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
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.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Bullish and Bearish Alternate Flag Patterns
• Bullish alternate flags are composed of one peak and two troughs. The second trough being higher than the first.
• Bearish alternate flags are composed of one trough and two peaks. The second peak being lower than the first.
In this script I have used minimum and maximum retracement and extension ratios to set parameters for pattern identification:
• Wave 1 of the pattern, referred to as AB, is set to a minimum ratio of 100%.
• Wave 2 of the pattern, referred to as BC, is set to a maximum ratio of 30%.
█ FEATURES
Inputs
• Unbroken Troughs
• AB Minimum Ratio
• BC Maximum Ratio
• Pole Color
• Flag Color
• Extend Current Flag Lines
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Bullish Alternate Flag Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws bullish alternate flag 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
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.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Bullish and Bearish Alternate Flag Patterns
• Bullish alternate flags are composed of one peak and two troughs. The second trough being higher than the first.
• Bearish alternate flags are composed of one trough and two peaks. The second peak being lower than the first.
In this script I have used minimum and maximum retracement and extension ratios to set parameters for pattern identification:
• Wave 1 of the pattern, referred to as AB, is set to a minimum ratio of 100%.
• Wave 2 of the pattern, referred to as BC, is set to a maximum ratio of 30%.
█ FEATURES
Inputs
• Unbroken Peaks
• AB Minimum Ratio
• BC Maximum Ratio
• Pole Color
• Flag Color
• Extend Current Flag Lines
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Bearish Pennant Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws bearish pennant 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
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.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Bullish and Bearish Pennant Patterns
• Bullish pennants are generally composed of three troughs and two peaks. The first peak being higher than the second peak and the first trough being lower than both the second and third troughs, with the third trough being higher than the second trough.
• Bearish pennants are generally composed of three peaks and two troughs. The first trough being lower than the second trough and the first peak being higher than both the second and third peaks, with third peak being lower than the second peak.
In this script I have used minimum and maximum retracement and extension ratios to set parameters for pattern identification:
• Wave 1 of the pattern, referred to as AB, is set to a minimum ratio of 100%.
• Wave 2 of the pattern, referred to as BC, is set to a maximum ratio of 30%.
• Wave 3 of the pattern, referred to as CD, has no ratio measurements but will always be below 100% by default.
• Wave 4 of the pattern, referred to as DE, has no ratio measurements but will always be below 100% by default.
█ FEATURES
Inputs
• Unbroken Troughs
• AB Minimum Ratio
• BC Maximum Ratio
• Pole Color
• Flag Color
• Extend Current Flag Lines
• Show Labels
• Label Color
• Show Projection Lines
• 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.
Bullish Pennant Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws bullish pennant 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
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.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Bullish and Bearish Pennant Patterns
• Bullish pennants are generally composed of three troughs and two peaks. The first peak being higher than the second peak and the first trough being lower than both the second and third troughs, with the third trough being higher than the second trough.
• Bearish pennants are generally composed of three peaks and two troughs. The first trough being lower than the second trough and the first peak being higher than both the second and third peaks, with third peak being lower than the second peak.
In this script I have used minimum and maximum retracement and extension ratios to set parameters for pattern identification:
• Wave 1 of the pattern, referred to as AB, is set to a minimum ratio of 100%.
• Wave 2 of the pattern, referred to as BC, is set to a maximum ratio of 30%.
• Wave 3 of the pattern, referred to as CD, has no ratio measurements but will always be below 100% by default.
• Wave 4 of the pattern, referred to as DE, has no ratio measurements but will always be below 100% by default.
█ FEATURES
Inputs
• Unbroken Peaks
• AB Minimum Ratio
• BC Maximum Ratio
• Pole Color
• Flag Color
• Extend Current Flag Lines
• Show Labels
• Label Color
• Show Projection Lines
• 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
Bearish Flag Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws bearish flag 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.
Broken and Unbroken Peaks and Troughs
Upon the completion of a new swing low the high of the green candle that completes the swing low will be above, below or equal to the current peak price. And similarly, upon the completion of a new swing high the low of the red candle that completes the swing high will be above, below or equal to the current trough price.
If the high price of the green candle that completes the current swing low is higher than or equal to the current peak price then the current peak is broken. If the high of the green candle that completes the current swing low is below the current peak price, then the current peak is unbroken.
Similarly, if the low price of the red candle that completes the current swing high is lower than or equal to the current trough price then the current trough is broken. If the low price of the red candle that completes the current swing high is above the current trough price, then the current trough is unbroken.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
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.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Bullish and Bearish Flag Patterns
• Bullish flags are generally composed of three troughs and two peaks. The first peak being higher than the second 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 flags are generally composed of three peaks and two troughs. The first trough being lower than the second 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.
In this script I have used minimum and maximum retracement and extension ratios to set parameters for pattern identification:
• Wave 1 of the pattern, referred to as AB, is set to a minimum ratio of 100%.
• Wave 2 of the pattern, referred to as BC, is set to a maximum ratio of 30%.
• Wave 3 of the pattern, referred to as CD, has no ratio measurements but will always be below 100% by default.
• Wave 4 of the pattern, referred to as DE, has no ratio measurements but will always be above 100% by default.
• The last measure, referred to as BE, is that of the range set between points B and E as a ratio of the range set by wave 1, which is set to a maximum ratio of 40%.
█ FEATURES
Inputs
• Unbroken Troughs
• AB Minimum Ratio
• BC Maximum Ratio
• BE Maximum Ratio
• Pole Color
• Flag Color
• Extend Current Flag Lines
• Show Labels
• Label Color
• Show Projection Lines
• 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.
