Disclaimer: Only use this pattern recognition on a RENKO chart. Renko charts plot different than traditional candles and therefore do not represent all price moves. There is a possibility of repainting while using ATR based renko charts so past results are not a 100% accurate representation of future results. Use this indicator as a part of your strategy and not as your only means of obtaining gains in the market.
Hello traders, it has been said time and time again that algorithmic software is unable to identify complex market structure like head and shoulders, quasimodo, triangle patterns and other methods humans use to base their trading decisions on. With this indicator I intend to completely crush that assumption and prove that it actualy is possible. Ofcourse an indicator is less likely to find all variation on a chart pattern and a human is probably still your best bet in finding these patterns early.
That is wy this indicator does not only use textbook patterns and has 7 variation on head and shoulders build into it. I will keep updating this indicator if I see it missed some crucial patterns. Right now it has a total of 38 patterns build into it with them being grouped under specific names. Feel free to turn off any pattern you do not like to see.
Renko patterns solve the problem of time and chaos in the markets which have been the biggest hurdle in pattern recognition software as the amount of variations to account for is just too great a number. With this script using renko it will soon be able to identify any pattern in the market and I plan to add Wyckoff to it in the future, right now I have a beta version of Wyckoff build into it but planning to add better version of it in the future. The amount of variations on Wyckoff is quite extreme so it will take a very long time to get an optimised Wyckoff identification system.
If you do not want to miss patterns I recommend to use a multi chart aproach so that you can find patterns in multiple renko brick sizes at the same time to find more entrys.
Feel free to comment any pattern you want me to add and let's make the most dedicated pattern recognition software on this platform.
Regards
HonestCowboy
Sürüm Notları
⋅
I've added 1 extra head and shoulders variant. Also made labels identify which type of pattern is formed and added a pattern description for each pattern.
Sürüm Notları
⋅
Added 2 more variations on the Quasimodo pattern and pattern description for Quasimodo. One of the patterns is a big pattern and thus I use 2 bricks to confirm it as it is less clear of a Quasimodo pattern.
Sürüm Notları
⋅
I've added pivot points and a moving average based trend filter. Continuation patterns now only happen in trends and reversals during an opposite trend.
Sürüm Notları
⋅
Added visual for the moving average filter
Sürüm Notları
⋅
Fixed a bug where the patterns would not show up at all with trendfilter disabled.
@Honestcowboy, Thanks for making such wonderful script, could u please add MPL and 3drive to it. Also if possible can u make an option to use with candlestick.... I understand due to copy codes u hide/protect ur script. But an open code give us freedom to add/remove/refine codes as per our need. Its just a request if u can share code with us that would be very helpful to us. Thanks for ur valable contribution to community. cheers
Honestcowboy
⋅
@Indyantrade1, atm I am working on other projects but MPL is already inside it under the name quasimodo. It does not work as good as it would work on candlesticks. 3-drive would be hard to do in renko and would be much more suited for some kind of auto channel indicator. I chose renko bars as it is easy to identify patterns in these as they are just made out of specific brick patterns while in candlestick you have to take price/time/resolution etc into account which makes it extremely difficult to recognise these patterns using a script on normal candles. I might do this in future but do not expect it soon and maybe never at all.
@longtheshort1, I am no longer working on this for a while, at the moment all my focus is on my honest algo suite. After I am satisfied with that I will continue work on my free scripts.