PROTECTED SOURCE SCRIPT
Auto Harmonic Patterns - Long only Strategy
Updated
This is long only strategy where entry and exits are generated based on Harmonic Patterns.
Logic used for generation of harmonic patterns is same as the below script (Double top and bottom are removed in this script):
Now to generate entry and exit signals, following rules are used:
If there is bullish pattern:
If there is bearish pattern and useReverseTradeOnBearishPattern is selected:
If there is any existing trade while new patterns are formed, then existing stoploss and target levels are updated accordingly instead of placing new order.
Optional Profit Targets : When takeInitialProfitOnTargets is selected, minimal profit (20% of open positions) is taken based on harmonic pattern profit targets. These targets are set only based on bullish pattern recognition
Example of XABCD points are shown in below picture:
Other logic involved:
Happy trading. Let me know your views.
Logic used for generation of harmonic patterns is same as the below script (Double top and bottom are removed in this script):
Now to generate entry and exit signals, following rules are used:
If there is bullish pattern:
- Entry : If X is between Point B and D, then use X as entry point. Else use B as entry point. Entries are managed via stop limit orders.
- StopLoss : D - (atrMult times atr)
If there is bearish pattern and useReverseTradeOnBearishPattern is selected:
- Entry : D + (atrMult times atr)
- StopLoss : If X is between Point B and D, then use X as stoploss. Else use B as stoploss
If there is any existing trade while new patterns are formed, then existing stoploss and target levels are updated accordingly instead of placing new order.
Optional Profit Targets : When takeInitialProfitOnTargets is selected, minimal profit (20% of open positions) is taken based on harmonic pattern profit targets. These targets are set only based on bullish pattern recognition
- First Target : Lower of A and C
- Second Target : Higher of A and C
- Third Target: 1.618 times AD
Example of XABCD points are shown in below picture:
Other logic involved:
- Apart from stoploss generated by patterns, there is also trailing stoploss which is simply based on trailingStopAtrMult times ATR
- Stoplosses, entry points and target levels are updated only if new stoploss generated either by ATR or by harmonic patterns are higher than present stoploss. If not, previous stoplosses are used.
Happy trading. Let me know your views.
Release Notes
- useStopOrder option is set to true and removed from user input.
- Three drives and 5-0 patterns removed as they are bit different to rest and the existing logic will not be apt for them.
Trial - trendoscope.io/trial
Subscribe - trendoscope.io/pricing
Telegram: p.trendoscope.io/telegram
Rate us : trustpilot.com/review/trendoscope.io
Subscribe - trendoscope.io/pricing
Telegram: p.trendoscope.io/telegram
Rate us : trustpilot.com/review/trendoscope.io
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.