Harmonic Pattern Educational Volume 2 (Source Code)This indicator was intended as educational purpose only for Harmonic Patterns using XABCD Pattern Tool.
This indicator was build upon Harmonic Trading : Volume Two, which was continuation from Harmonic Trading : Volume One and The Harmonic Trader, written by Scott M Carney.
Explaination was similar to previous build, build 0 and build 1 .
Volume 2 introduce Harmonic Ratio Progression, which result new patterns such as 5-0 and Alternate Bat.
Indikator ini bertujuan sebagai pendidikan sahaja untuk Harmonic Pattern menggunakan XABCD Pattern Tool.
Indikator ini dibina berdasarkan buku Harmonic Trading : Volume Two, juga sambungan daripada Harmonic Trading : Volume One and The Harmonic Trader, ditulis oleh Scott M Carney.
Penerangan yang sama berdasarkan binaan lepas, build 0 and build 1 .
Volume 2 memperkenalkan Harmonic Ratio Progression, membolehkan pattern baru seperti 5-0 dan Alternate Bat.
Indicator features :
1. List XAB=CD patterns including ratio and reference page.
2. For desktop display only, not for mobile.
Kemampuan indikator :
1. Senarai XAB=CD pattern termasuk ratio and rujukan muka surat.
2. Untuk paparan desktop sahaja, bukan untuk mobile.
FAQ
1. Credits / Kredit
Scott M Carney, Harmonic Trading : Volume One
2. Pattern and Chapter involved / Pattern dan Bab terlibat
Bullish 5-0 - Page 79
Bearish 5-0 - Page 88
Bullish Alternate Bat - Page 103
Bearish Alternate Bat - Page 106
3. Code Usage / Penggunaan Kod
Free to use for personal usage but credits are most welcomed especially for credits to Scott M Carney.
Bebas untuk kegunaan peribadi tetapi kredit adalah amat dialu-alukan terutamanya kredit kepada Scott M Carney.
5-0
Alternate Bat
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Multi Level ZigZag Harmonic PatternsLets make things bit complicated.
Main difference between this script and the earlier Multi Zigzag Harmonic Pattern is the calculation logic of Zigzag 2, 3 and 4
In the earlier script, all zigzags were plain and were calculated on the basis of different lengths. (Such as 5, 10, 15, 20). These were derived on the basis of Multi Zigzag indicator
In this script, Zigzag 2, 3 and 4 are calculated in slightly different way. They are calculated on the basis of previous zigzag. This means, Zigzag 1 will be the input for Zigzag2 calculation and Zigzag 2 will be the input for Zigzag3 and so on. This is demonstrated in the script - Multi Level Zigzag
One important parameter which is specific to this script is: UseZigZagChain
If checked:
Zigzag2 is formed based on Zigzag1
Zigzag3 is formed based on Zigzag2
Zigzag4 is formed based on Zigzag3
This can lead to patterns covering huge number of candles as this chaining causes exponential effect in each levels. (Effective length grows exponentially in each level)
If unchecked:
Zigzag2 is formed based on Zigzag1 (Same as when checked)
Zigzag3 is formed based on Zigzag1. But, length is set to zigzag2Length + zigzag3Length
Zigzag4 is formed based on Zigzag1. But, length is set to zigzag2Length + zigzag3Length + zigzag4Length
This reduces exponential increase of zigzag lengths over next levels.
Logical ratios of patterns are coded as below:
Notations:
Lines XABCD forms the pattern in all cases. (OXABCD in case of Three drives )
abc = BC retacement of AB, xab = AB retracement of XA and so on
ABCD Classic
0.618 <= abc <= 0.786
1.272 <= bcd <= 1.618
AB=CD
Price difference between AB and CD are equal
Time difference between AB and CD are equal
ABCD Extension
0.618 <= abc <= 0.786
1.272 <= AD/ BC (price) <= 1.618
Gartley
xab = 0.618
0.382 <= abc <= 0.886
1.272 <= bcd <= 1.618 OR xad = 0.786
Crab
0.382 <= xab <= 0.618
0.382 <= abc <= 0.886
2.24 <= bcd <= 3.618 OR xad = 1.618
Deep Crab
xab = 0.886
0.382 <= abc <= 0.886
2.0 <= bcd <= 3.618 OR xad = 1.618
Bat
0.382 <= xab <= 0.50
0.382 <= abc <= 0.886
1.618 <= bcd <= 2.618 OR xad = 0.886
Butterfly
xab = 0.786
0.382 <= abc <= 0.886
1.618 <= bcd <= 2.618 OR 1.272 <= xad <= 2.618
Shark
xab = 0.786
1.13 <= abc <= 1.618
1.618 <= bcd <= 2.24 OR 0.886 <= xad <= 1.13
Cypher
0.382 <= xab <= 0.618
1.13 <= abc <= 1.414
1.272 <= bcd <= 2.0 OR xad = 0.786
Three Drives
oxa = 0.618
1.27 <= xab <= 1.618
abc = 0.618
1.27 <= bcd <= 1.618
5-0
1.13 <= xab <= 1.618
1.618 <= abc <= 2.24
bcd = 0.5
Double Bottom
Last two pivot High Lows make W shape
Last Pivot Low is higher than previous Last Pivot Low.
Last Pivot High is lower than previous last Pivot High.
Price has not gone below Last Pivot Low
Price breaks out of last Pivot High to complete W shape
Double Top
Last two pivot High Lows make M shape
Last Pivot Low is higher than previous Last Pivot Low.
Last Pivot High is lower than previous last Pivot High.
Price has not gone above Last Pivot High
Price breaks out of last Pivot Low to complete M shape
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Spread by//Every spread & central tendency measure in 1 script with comfortable visualization, including scrips's status line.
Spread measures:
- Standard deviation (for most cases);
- Average deviation (if there are extreme values);
- GstDev - Geometric Standard Deviation (exclusively for Geometric Mean);
- HstDev - Harmonic Deviation (exclusively for Harmonic Mean).
These modified functions will calculate everything right, they will take source, length, AND basis of your choice, unlike the ones from TW.
Central tendency measures:
- Mean (if everything's cool & equal);
- Median (values clustering towards low/high part of the rolling window);
- Trimean (3/more distinguishable clusters of data);
- Midhinhe (2 distinguishable clusters of data);
- Geometric Mean ( |low.. ... ... .. .... ... . . . . . . . . . . . .high| this kinda data); <- Exp law
- Harmonic Mean { |low. . . . . . . . . . . . . . .. . . .high| kinda data). <- Reciprocal law
Listen:
1) Don't hesitate using Standard Deviation with non-mean, like "Midhinge Standard Devition", despite what ol' stats gurus gonna say, it works when it's appropriate;
2) Don't check log space while using Geometric Mean & Geometric Standard Deviation, these 2 implement log stuff by design, I mean unless u wanna make it double xd
3) You can use this script, modify it how you want, ask me questions whatever, just make money using it;
4) Use Midrange & Midpoints in tandem when data follows ~addition law (like this . . . . . . . . . . . . . . . . . . . . .). <- just addition law
Look at the data, choose spread measure first, then choose central tendency measure, not vice versa.
!!!
Ain't gonna place ® sign on standard deviations like one B guy did in 1980s lmao, but if your wanna use Harmonic Deviations in science/write about/cite it/whatever, pls give me a lil credit at least, I've never seen it anywhere and unfortunately had to develop it by myself. it's useful when your data develops by reciprocals law (opposite to exponential).
Peace TW Indicator
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Simple Harmonic Oscillator (SHO)The indicator is based on Akram El Sherbini's article "Time Cycle Oscillators" published in IFTA journal 2018 (pages 78-80) (www.ftaa.org.hk)
The SHO is a bounded oscillator for the simple harmonic index that calculates the period of the market’s cycle. The oscillator is used for short and intermediate terms and moves within a range of -100 to 100 percent. The SHO has overbought and oversold levels at +40 and -40, respectively. At extreme periods, the oscillator may reach the levels of +60 and -60. The zero level demonstrates an equilibrium between the periods of bulls and bears. The SHO oscillates between +40 and -40. The crossover at those levels creates buy and sell signals. In an uptrend, the SHO fluctuates between 0 and +40 where the bulls are controlling the market. On the contrary, the SHO fluctuates between 0 and -40 during downtrends where the bears control the market. Reaching the extreme level -60 in an uptrend is a sign of weakness. Mostly, the oscillator will retrace from its centerline rather than the upper boundary +40. On the other hand, reaching +60 in a downtrend is a sign of strength and the oscillator will not be able to reach its lower boundary -40.
Centerline Crossover Tactic
This tactic is tested during uptrends. The buy signals are generated when the WPO/SHI cross their centerlines to the upside. The sell signals are generated when the WPO/SHI cross down their centerlines. To define the uptrend in the system, stocks closing above their 50-day EMA are considered while the ADX is above 18.
Uptrend Tactic
During uptrends, the bulls control the markets, and the oscillators will move above their centerline with an increase in the period of cycles. The lower boundaries and equilibrium line crossovers generate buy signals, while crossing the upper boundaries will generate sell signals. The “Re-entry” and “Exit at weakness” tactics are combined with the uptrend tactic. Consequently, we will have three buy signals and two sell signals.
Sideways Tactic
During sideways, the oscillators fluctuate between their upper and lower boundaries. Crossing the lower boundary to the upside will generate a buy signal. On the other hand, crossing the upper boundary to the downside will generate a sell signal. When the bears take control, the oscillators will cross down the lower boundaries, triggering exit signals. Therefore, this tactic will consist of one buy signal and two sell signals. The sideway tactic is defined when stocks close above their 50-day EMA and the ADX is below 18 Indicator
Vanilla ABCD PatternPatterns makes parts of the many predictive tools available to technical analysts, the most simples ones can be easily detected by using scripts. The proposed tool detect the simple (vanilla) form of the ABCD pattern, a pattern aiming to detect potential price swings. The script can use an additional confirmation condition that aim to filter potential false signals.
ABCD PATTERN
The ABCD pattern is not meant to be detected by analyzing individuals closing price observations but by analyzing longer term movements, this is done by using tools such as zig-zag. Like any pattern the ABCD one comes in different flavors, the simplest being based on the following structures:
Once price reach D we can expect a reversal. The classical pattern has the following conditions : BC = 0.618*AB and CD = 1.618*AB , as you can see this condition is based on 0.618 which is a ratio in the Fibonacci sequence. Other conditions are for AB to equal to CD or for CD to be 161.8% longer than AB. Why these conditions ? Cause Fibonacci of course .
The ABCD pattern that the proposed tool aim to detect is not based on the zig-zag but only on individual price observations and don't make use of any of the previously described conditions, thus becoming more like a candle pattern.
When the label is blue it means that the tool has detected a bullish ABCD pattern, while a red label means that the tool has detected a bearish ABCD pattern.
We can't expect patterns based on the analysis of 1,2,3 or 4 closing price observations to predict the reversal of mid/long term movements, this can be seen on the above chart, but we can see some signals predicting short term movements.
Since the pattern is based on a noisy variation, using smoother input can result in less signals.
Above the tool on BTCUSD using closing price as input. Below the tool using ohlc4 as input:
TOOL OPTIONS
Being to early can be as devastating as being to late, therefore a confirmation point can be beneficial, the tool allow you to wait for confirmation thus having a potentially better timing. Below is a chart of AMD with no confirmation:
As we can see there are many signals with some of them occurring to early, we can fix this by checking the confirmation option:
The confirmation is simply based on the candle color, for example if a bearish ABCD pattern has been detected in the past and the closing price is greater than the opening price then the tool return a buy signal. The same apply with a bearish ABCD pattern.
The "last bar repaint" option is true by default, this in order to show the bar where the D point of the pattern has been detected, since the closing price of the last bar is constantly changing the signals on the last bar can be constantly appearing/disappearing, unchecking the option will fix this but will no longer the bar where the D point of the pattern has been detected.
SUMMARY
The pattern is simple and can sometimes be accurate when predicting the direction of future short terms movements. The tool was a request, as it seems i don't post many pattern detectors, well thats true, and the reason is that for me patterns are not super significant, and their detection can be extremely subjective, this is why simple patterns are certainly the only ones worth a look.
Don't expect me to post many pattern related indicators in the future ^^' Indicator
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