Bearish Cassiopeia B Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bearish Cassiopeia B harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia B Harmonic Patterns
• Bullish Cassiopeia B patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is also lower than the first.
• Bearish Cassiopeia B patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is also higher than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
"GOLD" için komut dosyalarını ara
Bullish Cassiopeia B Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia B harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia B Harmonic Patterns
• Bullish Cassiopeia B patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is also lower than the first.
• Bearish Cassiopeia B patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is also higher than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bearish Cassiopeia A Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bearish Cassiopeia A harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia A Harmonic Patterns
• Bullish Cassiopeia A patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being higher than both the first and second troughs, while the second trough is also higher than the first.
• Bearish Cassiopeia A patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being lower than both the first and second peaks, while the second peak is also lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Bullish Cassiopeia A Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia A harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns. As can be seen in the picture above the bullish Cassiopeia A caught the 2009 bear market bottom almost perfectly.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia A Harmonic Patterns
• Bullish Cassiopeia A patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being higher than both the first and second troughs, while the second trough is also higher than the first.
• Bearish Cassiopeia A patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being lower than both the first and second peaks, while the second peak is also lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Murrey Math
The Murrey Math indicator is a set of horizontal price levels, calculated from an algorithm developed by stock trader T.J. Murray.
The main concept behind Murrey Math is that prices tend to react and rotate at specific price levels. These levels are calculated by dividing the price range into fixed segments called "ranges", usually using a number of 8, 16, 32, 64, 128 or 256.
Murrey Math levels are calculated as follows:
1. A particular price range is taken, for example, 128.
2. Divide the current price by the range (128 in this example).
3. The result is rounded to the nearest whole number.
4. Multiply that whole number by the original range (128).
This results in the Murrey Math level closest to the current price. More Murrey levels are calculated and drawn by adding and subtracting multiples of the range to the initially calculated level.
Traders use Murrey Math levels as areas of possible support and resistance as it is believed that prices tend to react and pivot at these levels. They are also used to identify price patterns and possible entry and exit points in trading.
The Murrey Math indicator itself simply calculates and draws these horizontal levels on the price chart, allowing traders to easily visualize them and use them in their technical analysis.
HOW TO USE THIS INDICATOR?
To use the Murrey Math indicator effectively, here are some tips:
1. Choose the appropriate Murrey Math range : The Murrey Math range input (128 by default in the provided code) determines the spacing between the levels. Common ranges used are 8, 16, 32, 64, 128, and 256. A smaller range will give you more levels, while a larger range will give you fewer levels. Choose a range that suits the volatility and trading timeframe you're working with.
2. Identify potential support and resistance levels: The horizontal lines drawn by the indicator represent potential support and resistance levels based on the Murrey Math calculation. Prices often react or reverse at these levels, so they can be used to spot areas of interest for entries and exits.
3. Look for price reactions at the levels: Watch for price action like rejections, bounces, or breakouts at the Murrey Math levels. These reactions can signal potential trend continuation or reversal setups.
4. Trail stop-loss orders: You can place stop-loss orders just below/above the nearest Murrey Math level to manage risk if the price moves against your trade.
5. Set targets at future levels: Project potential profit targets by looking at upcoming Murrey Math levels in the direction of the trend.
7. Adjust range as needed: If prices are consistently breaking through levels without reacting, try adjusting the range input to a different value to see if it provides better levels.
In which asset can this indicator perform better?
The Murrey Math indicator can potentially perform well on any liquid financial asset that exhibits some degree of mean-reversion or trading range behavior. However, it may be more suitable for certain asset classes or trading timeframes than others.
Here are some assets and scenarios where the Murrey Math indicator can potentially perform better:
1. Forex Markets: The foreign exchange market is known for its ranging and mean-reverting nature, especially on higher timeframes like the daily or weekly charts. The Murrey Math levels can help identify potential support and resistance levels within these trading ranges.
2. Futures Markets: Futures contracts, such as those for commodities (e.g., crude oil, gold, etc.) or equity indices, often exhibit trading ranges and mean-reversion trends. The Murrey Math indicator can be useful in identifying potential turning points within these ranges.
3. Stocks with Range-bound Behavior: Some stocks, particularly those of large-cap companies, can trade within well-defined ranges for extended periods. The Murrey Math levels can help identify the boundaries of these ranges and potential reversal points.
4. I ntraday Trading: The Murrey Math indicator may be more effective on lower timeframes (e.g., 1-hour, 30-minute, 15-minute) for intraday trading, as prices tend to respect support and resistance levels more closely within shorter time periods.
5. Trending Markets: While the Murrey Math indicator is primarily designed for range-bound markets, it can also be used in trending markets to identify potential pullback or continuation levels.
Fibonacci Archer Box [ChartPrime]Fibonacci Archer Box (ChartPrime) is a full featured Fibonacci box indicator that automatically plots based on pivot points. This indicator plots retracement levels, time lines, fan lines, and angles. Each one of these features are fully customizable with the ability to disable individual features. A unique aspect to this implementation is the ability to set targets based on retracement levels and time zones. This is set to 0.618 by default but you can pick any Fibonacci zone you like. Also included are markings that show you when Fibonacci levels are met or exceeded. These moments are plotted on the chart as colored dots that can be enabled or disabled. Along with these markings are crosses that can be shown when targets are hit. Both of these markings are colored with the related Fibonacci level colors.
When there is a zig-zag, this indicator will test to see if the zig-zag meets the criteria set up by the user before plotting a new Fibonacci box. You can pick from either higher highs or lower highs for bearish patterns, and higher lows or lower lows for bullish patterns. Both patterns can be set to use both when finding new boxes if you want to make it more sensitive. You also have the option to filter based on minimum and maximum size. If the box isn't within the selected size range, it will simply be ignored. The pivot levels can be configured to use either candle wicks or candle bodies. By default this is configured to use candle wick with a lookforward of 5 and lookback of 10.
We have included alerts for Fibonacci level crosses, Fibonacci time crosses, and target hits. All alerts are found in the add alert section built into tradingview to make alert creation as easy as possible. Each alert is labeled with their correct names to make navigation simple.
W.D. Gann, a renowned figure in the world of trading and market analysis, is often questioned for his use of Fibonacci levels in his strategies. However, evidence points to the fact that Gann did not directly employ Fibonacci price levels in his work. Instead, Gann had his unique approach, dividing price ranges into thirds, eighths, and other fractions, which, although somewhat aligning with Fibonacci levels, are not exact matches. It is clear that Gann was familiar with Fibonacci and the golden ratio, as references to them appear in his recommended reading list and some of his writings. Despite this awareness, Gann chose not to incorporate Fibonacci levels explicitly in his methodologies, preferring instead to use his divisions of price and time. Notably, Gann's emphasis on the 50% level—a marker not associated with Fibonacci numbers—further illustrates his departure from Fibonacci usage. This level, despite its popularity among some Fibonacci enthusiasts, does not stem from Fibonacci's sequence. This is why we opted to call this indicator Fibonacci Archer Box instead of a Gann Box as we didn't feel like it was appropriate.
In summary, the Fibonacci Archer Box (ChartPrime) is a tool that incorporates Fibonacci retracements and projections with an automated pivot point-based plotting system. It allows for customization across various features including retracement levels, timelines, fan lines, and angles, and integrates visual cues for level crosses and target hits. While it acknowledges the methodologies of W.D. Gann, it distinctively utilizes Fibonacci techniques, providing a straightforward tool for market analysis. We hope you enjoy using this indicator as much as we enjoyed making it!
Enjoy
DCA StrategyIntroducing the DCA Strategy, a powerful tool for identifying long entry and exit opportunities in uptrending assets like cryptocurrencies, stocks, and gold. This strategy leverages the Heikin Ashi candlestick pattern and the RSI indicator to navigate potential price swings.
Core Functionality:
Buy Signal : A buy signal is generated when a bullish (green) Heikin Ashi candle appears after a bearish (red) one, indicating a potential reversal in a downtrend. Additionally, the RSI must be below a user-defined threshold (default: 85) to prevent buying overbought assets.
Sell Signal : The strategy exits the trade when the RSI surpasses the user-defined exit level (default: 85), suggesting the asset might be overbought.
Backtesting Flexibility : Users can customize the backtesting period by specifying the start and end years.
Key Advantages:
Trend-Following: Designed specifically for uptrending assets, aiming to capture profitable price movements.
Dynamic RSI Integration: The RSI indicator helps refine entry signals by avoiding overbought situations.
User-Defined Parameters: Allows customization of exit thresholds and backtesting periods to suit individual trading preferences.
Commission and Slippage: The script factors in realistic commission fees (0.1%) and slippage (2%) for a more accurate backtesting experience.
Beats Buy-and-Hold: Backtesting suggests this strategy outperforms a simple buy-and-hold approach in uptrending markets.
Overall, the DCA Strategy offers a valuable approach for traders seeking to capitalize on long opportunities in trending markets with the help of Heikin Ashi candles and RSI confirmation.
SHIBO V6.0**SHIBO v6 - Fibonacci Impulse Analysis Indicator**
*By Shahab Sadeghi (@shahabs2004)*
**Overview:**
Welcome to SHIBO v6, a revolutionary Fibonacci Impulse Analysis Indicator designed to harness the power of a unique chart pattern. The script employs a reverse Fibonacci methodology to identify powerful impulses that first reach Fibonacci level 0.382, experience a correction, and then continue toward Fibonacci level 1. This description delves into the intricacies of how the script calculates precise price targets based on this distinctive pattern.
keep in mind that this Indicator is based on this Idea that each Impulse have its own support and Resistant Levels(stop loss and Target)
**Key Features:**
1. **Reverse Fibonacci Calculation:** SHIBO v6 introduces a novel approach to Fibonacci analysis. Instead of the conventional method where price targets are set from Fibonacci 0 to 1, this script calculates the distance price moves towards Fibonacci 1 from 0.382. This innovative technique identifies potential reversal and continuation zones with unparalleled accuracy.
2. **Impulse and Correction Identification:** Users play a pivotal role in recognizing high-probability trading opportunities. The script requires manual selection and marking of powerful impulses, focusing on identifying corrections and anticipating potential reversal zones within these impulses.
3. **Optimized Fibonacci Levels:** Leveraging the reverse Fibonacci approach, the script dynamically computes and draws Fibonacci retracement levels (R1, R2, R3) based on the calculated distance the price has moved towards Fibonacci 1. These levels serve as strategic benchmarks, offering insights into potential price movements and areas of interest.
4. **Dynamic Line Drawings:** SHIBO v6 features dynamic line drawings, including impulse start and end points, Fibonacci levels, and stop-loss levels. These visual elements facilitate a comprehensive understanding of the analysis, assisting users in making well-informed trading decisions.
5. **Informative Table Display:** A dedicated table provides crucial information, including impulse start and end points, Fibonacci levels, and percentage deviations from the current price. This table enhances the user's grasp of the analyzed data, fostering effective decision-making.
6. **Prefix Identification:** Users employing multiple SHIBO indicators on a chart can use the Prefix input to assign a unique identifier to each instance. This streamlines the analysis process, particularly when dealing with multiple instances of the indicator.
**How the Script Calculates Targets:**
1. **Impulse Recognition:** Users manually identify a robust impulse in the price movement, signifying a potential trend change or continuation.
2. **Correction Confirmation:** Anticipate or confirm the start of a correction phase within the selected impulse. Corrections often occur after a strong price movement.
3. **Manual Setting of IS and IE Points:** Set the impulse start (IS) and end (IE) points manually based on the identified impulse and correction.
4. **Fibonacci Level Calculation:** The script dynamically calculates Fibonacci levels (R1, R2, R3) based on the distance the price has moved towards Fibonacci 1 from 0.382. These levels serve as potential targets and areas of interest.
5. **Visual Representation:** The script visually represents the calculated levels through dynamic line drawings, providing a clear picture of potential reversal and continuation zones.
**Advanced Usage (Pro Users):**
- **Customizable Line Drawings:** Explore the commented-out lines in the script for additional functionalities and customization options for line drawings. Pro users can tailor the script to align with unique trading strategies.
**Disclaimer:**
Trading carries inherent risks, and SHIBO v6 introduces a distinctive approach to technical analysis. Exercise caution, conduct thorough analysis, and consider risk management strategies before making trading decisions. Past performance does not guarantee future results.
**Support and Feedback:**
Join the community of traders committed to refining strategies based on reverse Fibonacci impulse analysis. Share your experiences, insights, and suggestions to contribute to the continuous improvement of SHIBO v6.
**how Calculations Goes ?**
Imagine you're analyzing a stock price:
IS (Initial Start Price): Let's say the stock price starts at $100.
IE (Initial End Price): After a significant movement, the price reaches $120.
1. Identify Fibonacci Retracement Levels:
fi1 (0.382): This level suggests a potential retracement of 38.2% of the upward move.
fi2 (0.5000): This level represents a 50% retracement, or halfway back to the starting price.
fi3 (0.6180): This level represents the "Golden Ratio" and another potential support/resistance area.
fi4 (0.7860): This level suggests a retracement of 78.6% and can also be used for stop-loss calculations.
2. Calculate Multiples:
m1: Divide the final price ($120) by the starting price ($100) raised to the power of fi1 (120 / 100^0.382). This gives you a value we'll use later.
m2: Similar calculation, but using fi2 instead of fi1.
m3: Similar calculation, but using fi3 instead of fi1.
3. Calculate Target Prices:
Take Profit (Resistance)
TP1: Raise the value of m1 to the power of 1/(1-fi1). This gives you a potential upside target price based on the 38.2% retracement level.
TP2: Similar calculation, but using m2 and fi2.
TP3: Similar calculation, but using m3 and fi3.
4. Calculate Stop-Loss Levels:
Stop loss(Support)
SL1 or Support: Multiply TP1 by the starting price ($100) raised to the power of fi4. This gives you a potential downside stop-loss level based on the 78.6% retracement from TP1.
SL2: Similar calculation, but using TP2 and fi4.
SL3: Similar calculation, but using TP3 and fi4.
5. Calculate Midpoint Level:
MID: Multiply TP1 by the starting price ($100) raised to the power of fi3. This gives you a potential support/resistance level halfway between TP1 and the starting price.
Remember, these are just potential levels and not guaranteed. It's important to use other technical and fundamental analysis alongside Fibonacci retracements.
Here's the breakdown of the steps and their results:
1. Fibonacci levels define potential support and resistance areas:
The chosen Fibonacci levels (0.382, 0.5, 0.618, and 0.786) are often seen as potential zones where the price might stall or reverse after a strong move.
2. Multiples and target prices:
The multiples (m1, m2, m3) represent price ratios based on different retracement levels.
Target prices (TP1, TP2, TP3) are calculated by raising these multiples to specific exponents. These prices suggest areas where the price might encounter resistance after a retracement (not guaranteed predictions).
3. Stop-loss levels:
Stop-loss levels (SL1, SL2, SL3) are based on the target prices and another Fibonacci level (0.786). They mark price points where a trader might exit a trade to manage risk if the price moves against them.
Essentially, the calculations translate Fibonacci retracement levels into concrete price points for potential entry (targets) and exit (stop-loss) points.
*Happy Trading and Empowered Analysis!*
Trend with Mathematical Approach GOLD [AstroHub]
Welcome to the Trend with Mathematical Approach! 🚀
This tool uses a unique mathematical approach to help you spot potential trend beginnings in the market.
By analyzing the derivative of closing prices and applying a specialized moving average, SmartTrend identifies
key points where a new trend might be starting.
🟢 Green arrows show potential BUY opportunities when a new uptrend begins.
🔴 Red arrows indicate potential SELL opportunities when a new downtrend starts.
Additionally, the indicator provides easy-to-read colored backgrounds to highlight potential trend zones.
Green means a potential uptrend, and red suggests a potential downtrend.
To make it even more user-friendly, SmartTrend adds clear labels for BUY and SELL signals directly on the chart,
making it easy for you to spot opportunities at a glance.
💡 Pro Tip: Use the built-in alerts to get notified when SmartTrend identifies a potential trade opportunity.
Enjoy using SmartTrend and happy trading! 📈💰
Normalized Market IndicatorsExplanation of the Code:
Data Retrieval: The script retrieves the closing prices of the S&P 500 (sp500) and VIX (vix).
Normalization: The script normalizes these values using a simple z-score normalization (subtracting the 50-period simple moving average and dividing by the 50-period standard deviation). This makes the scales of the two datasets more comparable.
Plotting with Secondary Axis: The normalized values of the S&P 500 and VIX are plotted on the same chart. They will share the same y-axis scale as the main chart (e.g. Netflix, GOLD, Forex).
Points to Note:
Normalization Method: The method of normalization (z-score in this case) is a choice and can be adjusted based on your needs. The idea is to bring the data to a comparable scale.
Timeframe and Symbol Codes: Ensure the timeframe and symbol codes are appropriate for your data source and trading strategy.
Overlaying on Price Chart: Since these values are normalized and plotted on a seperate chart, they won't directly correspond to the price levels of the main chart (e.g. Netflix, GOLD, Forex).
Gains CorrelationsScript Description: This script is to tie the major futures indexes together at a macro level with the normal relationships (i.e. 10YR Yield, DXY, VIX inversely related to Equities) and determine how strong the correlation is between them using a 20 period average. For example, a move up in the 10YR yield while having a strong inverse covariance with equities should signal a downward move for equities. In addition, if ES and NQ are going down, and the Dow and RTY have a strong covariance, the probability of them going down as well is strong. Overall, it's a macro indicator on broad market movements.
Originality & Usefulness: The script functions by tying 7 major indexes together using correlation strength relative to the currently selected ticker. The user can change the tickers and also invert if needed. This is different from the single correlation script by adding in several as they track in tandem. The chart used is to illustrate periods where correlations are tight with equities and the lines are clustered towards the top range of strong covariance. It also highlights when Equities are far out of line with others like gold (GC). A loose covariance would mean the relationship is weak and this indicator would show a divergence in price action between them. The overall intent is to show that most indexes rise and fall together but sometimes they move faster together.
Lot Size Calculator (CZ) This is upgraded version of existing Lot size Calculator from melodicfish.
I added CZK as a new base currency and translated the whole user interface into Czech language, so this version is made mainly for people from Czech Republic.
Here is the original code description from the original creator:
This is a public release of my Lot Size Calculator. I received a request for the code from a user so I am republishing the script so I can make it public (TV doesn't seem to give me the option to simply make it public once published ).
This is a very simple script to use. Simply choose your entry level and stop level on the chart and the indicator will calculate the lots. You can change your account risk and base currency units in the settings along with changing the scaling of the calculation to adjust the results with the lot sizing units of your broker. This allows the calculator to be used with CFDs, forex, Gold, etc.. Hope it helps in your trading it has been the single most useful tool in my trading as it has helped me always keep my risk locked up and on point that is why I released it.
One final quick note: Remember you can save your settings for your own account size and risk so you do not always have to modify the defaults when loading the script. Just a ease of use tip. I only add the script to my chart when I am about to take a trade so it is helpful to have everything set up in advance.
As i said, the whole user interface is in Czech language, but you can find exactly the same indicator in english language under the name Lot Size Calculator by melodicfish. So i hope i don´t need to provide english translation here.
I hope this time it won´t get taken down :( :D
FX DispersionThis script calculates the dispersion of a basket of 5 FX pairs and then calculates the z-score the z-score is then made into a composite using the 30 and 60 ema of the z-score to smooth any noise. It must be used on one of the FX pairs in the basket and on the 1-minute timeframe as it has been hardcoded for 1 min use below.
Interpretation - Dispersion is a component of volatility - the dispersion of the underlying basket increases above 0.5 and decreases below 0.5.
Although increased dispersion is beneficial to momentum and trend-following strategies on the monthly and weekly timeframes. Observe this on the 1-minute timeframe and how dispersion crossing above/ below 0.5 it can signal reversion or momentum for the next period.
Bitcoin Price to Volume per $1 FeeTransaction value to transaction fee:
The Bitcoin network's efficiency, usability and volume scalability has been improving over time and this can be measured by dividing the average transaction volume by the transaction fee.
The indicator give us:
Price to volume per $1 fee = BTC price / (avg tx value / avg tx fee)
A low ratio of "Price to volume per $1 fee" indicates that the Bitcoin network is being used for high volumes in comparison to the Bitcoin price, which means that the network is cost-effective compared to the price. On the other hand, a high "Price to volume per $1 fee" suggests that the average transaction size is smaller than the price of Bitcoin, which means that the network is less cost-effective compared to the Bitcoin price.
Note that the dynamics of transaction fees may change over time as new use cases emerge in the Bitcoin chain. These use cases include L2s such as Stacks, where DeFi applications can run, and Bitcoin Ordinals.
It's worth mentioning that Bitcoin is not only a cost-effective way of transferring value, but also highly energy efficient. Despite receiving criticism for its energy consumption, when we compare its energy usage to other industries (such as banking and gold) and correlate it with the transaction volumes, we can easily conclude that Bitcoin's energy efficiency is remarkable when compared to other methods of transferring value.
PercenageDropFromATHINFO:
The PercenageDropFromATH script is fairly simple indicator, which is able to:
detect the last ATH (real ATH of the full chart, not related to the selected timeframe) and plot it
user can select a percentage of drop from this price, and once reached can receive a notification
Note that if the ATH is outside of the visibility of the currently selected timeframe the indicator will not be able to show it. Recommended settings is 1D TF!
DETAILS:
The purpose of the script is to serve to ease passive investments in ETFs and indices, once those are dropping below certain point from the ATH.
Individual stocks are not really recommended in my view, as unlike the indices which are cherry picking the best companies from the sector, individual companies can always start drifting away.
Anyway, the indicator should work on all assets, including crypto, gold, etc.
Example usage could be of setting an alert for 25% drop in SPY, and start accumulating positions on every next 10% additional drop, so DCA can be done with favorable prices.
SETTINGS
The settings are pretty straight forward:
ATH Source - source for computing the ATH, default to "high", but user can select to check only on open/close/low as well
Percentage drop target from ATH - self explaining, default to 20
ATH color - only the last ATH until the current bar is been drawn
Plot ATH drop target price - optionally the target price after the percentage drop can be plotted as well
ATH drop target color - the color of the price after the percentage drop from ATH
DUCANH - KELTNER CHANNELS + EMA STRATEGY This is a strategy/combination of warning indicators using 3EMA and Keltner Channels.
I set up this strategy with the aim of reducing analytical labor in the market. When this strategy warns signals, then buy or sell.
This strategy setup works for timeframes, however it can still work for different timeframes.
It works well with Gold in various timeframes. If you want to apply it to other currency pairs, you must fine-tune the parameters for maximum efficiency.
The strategy details are as follows:
Ingredient:
EMA50 + EMA120 + SMA
Keltner Channels
Long position Alert:
EMA50 is above EMA120
The candlestick touches the lower KC band
Long position alert will trigger when the candlestick reaches the above conditions and the candlestick starts crossing up to the SMA
Short position Alert:
EMA50 is below EMA120
The candlestick touches the upper KC band
A short position alert will trigger when the candlestick reaches the above conditions and starts crossing down to SMA
Recommended RR: 1:3
If you have any questions please let me know !
