Harmonic patterns make up a major part of the many patterns traders use to make investment decisions. The following tool aims to automatically categorize which XABCD harmonic pattern is highlighted by the user and to alert when the price reaches the PRZ or D point.
The tool can categorize Bat, Gartley, Butterfly, and Crab patterns.
Settings
XA Precision: The Gartley and Butterfly patterns require precise ratios for the XA segment, this setting allows giving some headroom for the detection of these patterns. For example, the Gartley pattern requires a ratio for the XA segment of 0.618, using an XA precision of 0.01 will allow the segment to be considered correct if above 0.608 and under 0.628.
Bullish: Color of a bullish pattern
Bearish: Color of a bearish pattern
The X, A, B, C, D settings determine the location of the harmonic pattern vertices. The user does not need to change them from the settings, instead only requiring adjusting their location on the chart like with a regular drawing tool. Setting these vertices is required when adding the indicator to your chart.
Usage
Upon setting the harmonic pattern vertices, the segments, as well as each ratio and PRZ, will be displayed. A dashboard in the top right displays which harmonic pattern has been detected.
Detected bearish crab pattern on BTCUSD15.
Bullish butterfly pattern on MATICUSD15. It is important not to use an XA precision value that would return overlapping ranges between the Gartley/Harmonic and other patterns. Using the default value is recommended.
The upper limit of the PRZ is determined as vertex D plus 38.2% of segment DX, while the lower limit is the vertex D minus 38.2% of segment DX. Various methods exist for the determination of the PRZ, this one is general but the user can use one proper to the detected harmonic pattern.
Finally hovering on the label highlighting the segment ratios return the proper ratio used by each harmonic pattern for that precise segment.
thank you for this tool, and improving pinescript in general for every one, altho the title is a bit misleading :)
alexgrover
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@RicardoSantos, Sorry to hear that, the tool does indeed identify/detect a harmonic pattern given various user set vertices, no attempt of being misleading was done whatsoever.
Mooxe
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Hey guys, sorry for asking but I receive the following message when adding the Indicator: Set the "X" time for "Name".
Thank you for helping!
alexgrover
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@Mooxe, You need to set the XABCD point directly by clicking on the chart, like with the regular XABCD built-in drawing tool.
when I try to add it to my chart it tells me "Set the X time...." message. Well, how do I set it?... where?
alexgrover
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@OvidiuCraciun, You need to set the XABCD points manually, it's like a regular drawing tool, click on your chart to set the point time location.
Lunatic_Fringe
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@alexgrover, why should we use it instead of the default drawing tool ? Your indicator makes no sense to the people who want an auto chart pattern recognizer.
tyler8910
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This is awesome -- but how does one determine where to place X, A,B,C,D?
alexgrover
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@tyler8910, By clicking on the chart, like with the regular XABCD built-in drawing tool.