Smart Patterns

24 feb 2022

Hi Traders, and welcome to Smart Patterns.
Patterns can be very profitable, yet hard to trade, even when combined with other indicators and techniques. This script aims to increase the accuracy of signals by adding a statistical approach to candle patterns, along with tools to filter them.
For example, if the Success Rate is above a certain threshold, it means that the pattern has resulted in a higher ratio of profitable trades and hence it has a higher likelihood of succeeding in the current market conditions. However, should that pattern fall below the desired Success Rate, the script will "hide" it and won't trigger a signal, but still keeping track of its performance to start firing it again when coming back above the Success Rate.

Key Features

• The script features custom patterns as well as some of TradingView's built-in patterns. Not all patterns can be added of course, but let me know if I missed other interesting ones and I will do my best to add them in future updates.
  
• When a Pattern reaches the Min. Target % within the Candles Range selected, it is then considered valid. Please remember that doesn't take into account possible draw-downs or stop-losses.
• Patterns are constantly evaluated inside the script; when a pattern's overall score (Success Rate %) is below the required minimum, the signal won't be triggered. However, the script will keep monitoring it in the background, and trigger a signal again when its score comes back above the minimum Success Rate.
  
• The Patterns' signals can be filtered by Success Rate, Minimum Patterns detected and candle size (calculated via ATR).
  
• The Data Panel will show individual statistics for Enabled Patterns as well as final statistics for Triggered Patterns.
  
• Tooltips in the settings panel will further explain available options.
  
• Alerts: simple alerts can be added by selecting "any alert() function call" when adding an Alert. Customizable alerts can also be created through dropdown menu ( Bullish \ Bearish Patterns Detected).
  

Fully customizable to adapt to light and dark themes

Notes and Recommendations

• Always be realistic when tweaking settings, making sure the output makes sense in a normal trading environment. Statistics are helpful but shouldn't be the only factor to base your decisions on - even if a pattern reaches 100% Success Rate, it doesn't mean it will keep being profitable.
  
• Since the script crunches quite some data it may give output errors especially if settings are not properly tweaked - or if the filters are too liberal (e.g. Min Target % set to 0.1) - hence triggering lots of signals. Please adjust the settings or enable only the Patterns you are trading.
  
• If the script gives the error "Too many drawings, cannot clean oldest" it means your settings give too many signals and that is usually not a good sign - it's recommended to double-check your settings as mentioned above.
  

Credits
Trading View for built-in patterns
Special thanks go to PineCoders community for their incredible efforts and learning material to help mastering PineScript!

16 mar 2022

Note di rilascio

Version 1.1
- Patterns Data panel has been remade (looks like a silent PineScript update broke it). Now Bull and Bear Patterns statistics are separated for better readability.