Birdies [LuxAlgo]

19 set

The Birdies indicator uses a unique technique to provide support/resistance curves based on a circle connecting the last swing high/low.

A specific, customizable part of this circle acts as a curve of interest, which can trigger visual breakout signals.

🔶 USAGE



The script projects a bird-like pattern when a valid Swing point is found. Multiple customization options are included.

🔹 Trend & Support/Resistance Tool



The color fill patterns and the wing boundaries can give insights into the current trend direction as well as serve as potential support/resistance areas.



In the example above, "Birdies" coincide with pullback and support/resistance zones.

🔹 Swing Length & Buffer



Besides the "Swing Length", with higher values returning longer-term Swing Levels, the script's behavior can be fine-tuned with filters ("Settings" - "Validation").

🔹 Validation

To minimize clutter, three filters are included:

• Minimum X-Distance: The minimum amount of bars between subsequent Swings
  
• Minimum Y-Distance: The minimum amount of bars between subsequent Swings
  
• Buffer (Multiple of ATR)
  

The "Minimum X/Y-Distance" creates a zone where a new Swing is considered invalid. Only when the Swing is out of the zone, can it be considered valid.

In other words, in the example above, a Swing High can only be valid when enough bars/time have passed, and the difference between the last Swing and the previous is more than the ATR multiplied by the "Minimum Y-Distance" factor.



The "Buffer" creates a line above/below the "Birdy", derived from the measured ATR at the conception of the "Birdy" multiplied with a factor ("Buffer").

When the closing price crosses the "Birdy", it must also surpass this buffer line to produce a valid signal, lowering the risk of clutter as a result.

🔶 DETAILS



Birdies are derived from a circle that connects two Swing points. The left-wing curve originates from the most recent "Swing point" to the last value on the circle before crossing its midline. The mirror image of the left wing creates the right wing.



Enabling "Origine" will draw a line from the last Swing to the first.

🔹 Style

The publication includes a style setting with four options.

The first, "Birdy," shows a bird-like shape derived from a circle connecting the last Swing High and Swing Low.



The second option holds everything from the first option but connects both wingtips, providing potential horizontal levels of interest.

When setting "Birdy" to "None", the visual breakout signals will not defer from previous settings, but the focus is shifted towards the fill color, which can help detect potential trend shift.



A fourth setting, "Left Wing", will only show the left part of the "Birdy" pattern, removing the right part from the equation. This will change the visual breakout signals, providing alternative signals.

🔶 SETTINGS

• Swing Length: The period used for swing detection, with higher values returning longer-term Swing Levels.
  

🔹 Validation

• Minimum X-Distance: The minimum amount of bars between subsequent Swings
  
• Minimum Y-Distance: The minimum amount of bars between subsequent Swings
  
• Buffer (Multiple of ATR)
  

🔹 Style

• Bullish Patterns: Enable / color
  
• Bearish Patterns: Enable / color
  
• Buffer Zone: Show / Color
  
• Color Fill: Show color fill between two Birdies (if available)
  
• Origine: Show the line between both Swing Points
  

🔹 Calculation

• Calculated Bars: Allows the usage of fewer bars for performance/speed improvement