Three Bar Reversal & Patterns with TP, SL and Entry

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The indicator I shared implements a strategy to detect and plot several key patterns (Three Bar Reversal, Double Bottom, Double Top, W, and M patterns) along with visual markers for buy and sell signals. It also uses line drawing to connect the patterns and alert the user when a signal is detected.

To identify the time frame suitability for each pattern and signal, let's break down how certain timeframes might affect the effectiveness and frequency of these patterns. Here are some general guidelines:

1. Three Bar Reversal
Best Timeframe: 5-minute to 1-hour.
Why: The Three Bar Reversal is a relatively short-term pattern that reacts quickly to price changes, making it more suitable for lower timeframes (5-minute, 15-minute, 30-minute, or 1-hour). On higher timeframes (like daily), these reversals might become too broad or rare, decreasing their effectiveness.

2. Double Bottom & Double Top
Best Timeframe: 1-hour to 4-hour.
Why: Double bottoms and tops tend to be more reliable on slightly longer timeframes (1-hour, 4-hour). These patterns signify stronger market reversals, so they need more time to form. On shorter timeframes, the patterns might appear too frequently or be invalidated by minor price fluctuations.

3. W Pattern
Best Timeframe: 1-hour to daily.
Why: The W pattern is a trend reversal pattern that tends to form over a longer period of time. It requires a series of price movements to complete, so it is better suited for 1-hour, 4-hour, or daily charts. On shorter timeframes, the pattern could appear too frequently, reducing its reliability.

4. M Pattern
Best Timeframe: 1-hour to daily.
Why: Like the W pattern, the M pattern is a reversal signal that requires more time to form. It’s more reliable on mid-range timeframes (1-hour to daily) where the market has time to develop these top structures. Shorter timeframes will produce more noise and less reliable M patterns.

5. Buy/Sell Signals
Best Timeframe for Buy Signals: 5-minute to 4-hour (for short-term momentum).
Best Timeframe for Sell Signals: 5-minute to 4-hour.
Why: The buy/sell signals can be applied across a range of timeframes. On shorter timeframes (5-minute, 15-minute, or 30-minute), the signals can help capture smaller, quick trends. For more significant moves, you can extend to 1-hour or 4-hour timeframes. Longer timeframes (like daily) would reduce signal frequency, but the signals would likely represent stronger price movements.

Example of Timeframe Suitability:
5-minute charts: Good for Three Bar Reversal and Buy/Sell Signals. Patterns like Double Bottom and Double Top may appear too often and be less significant.
30-minute charts: Suitable for Three Bar Reversal, Double Bottom, Double Top, and Buy/Sell Signals. More reliable than shorter timeframes.
1-hour charts: A balanced timeframe for Double Bottom, Double Top, W, M, and Buy/Sell Signals.
4-hour charts: Excellent for more substantial patterns like Double Bottom, Double Top, W, and M. Three Bar Reversal and Buy/Sell Signals will also be reliable.
Daily charts: Best for identifying more significant patterns like Double Bottom, Double Top, W, and M. Buy and sell signals will appear less frequently.

ieri

Note di rilascio

What I added:

Alert Function:
For bullish_reversal, I added alert() that sends a notification with the Buy signal, including entry, TP, and SL.

For bearish_reversal, I added a similar alert() for Sell signals.

Alert Frequency: alert.freq_once_per_bar ensures that you receive an alert once per bar when a new signal is triggered.

Now, when a buy or sell signal occurs, you'll receive an alert with details about the entry price, take profit, and stop loss. You can customize the text and alert frequency as needed!