BEST ABCD Pattern ScreenerHello ladies and gentlemen traders
Continuing deeper and stronger with the screeners' educational series one more time.
This one is heavy crazy mega cool (pardon my french).
I - Concept
I present to you, ladies and gentlemen, the first screener for harmonic patterns.
Starting with an ACBD pattern screener this time!!
I used the calculations from Ricardo Santo's script
In short, he's using fractals (regular or Bill Williams ) for the pattern calculations. A masterpiece !!!
The screener will show in 1 consolidated chart the ABCD patterns for 5 selected assets. Could be stocks, forex, crypto, whatever you feel like making money with
II - Definitions
The ABCD pattern ( AB=CD ) is one of the classic chart patterns which is repeated over and over again.
The ABCD pattern shows perfect harmony between price and time.
More info here
The Williams Fractal is an indicator, developed by Bill Williams, that aims to detect reversal points (highs and lows) and marks them with arrows.
Up fractals and down fractals have specific shapes. The Williams Fractal indicator helps users determine in which direction price will develop
Source: www.tradingview.com
III - How did I set the screener
The visual signals are as follow:
- square: whenever there is an ABCD pattern detected
Then the colors are:
- green when a bullish pattern is detected
- red when a bearish pattern is detected
🔸 The script screenshot shows two red squares matching two ABCD bearish pattern from the above panel. As the chart is showing APPL, I highlighted where the screener mentioned the fruit stock ( APPLE, pun, bad joke, Dave out...)
🔸 I tried to make it as clear as I could with red arrows
Once again, we pushed together the limits of pine script beyond of what we thought was possible, beyond the realm of this world, reaching finally the dreamt pine script heaven (am I going too far? feel free to tell me)
Best regards,
Dave
Abcde
[VIP] ABCD PatternDESCRIPTION
The AB=CD pattern is one of the most popular harmonic chart patterns.
Buy and sell signal s are generated after the final C-to-D leg, when a reversal is expected to occur.
If the pattern is trending higher, you can look to sell or enter a short position at Point D.
If the pattern is trending lower, you can look to buy the security at Point D in anticipation of a turnaround.
Stop-loss points are best placed just above or below Point D, depending on the direction of the trade.
If the move extends beyond that point, the chart pattern is invalidated and the reversal is less likely to occur.
Take-profit points are typically placed using Fibonacci levels.
For example, you might look for a move back to the original Point A and move a trailing stop-loss to 28.2%, 50% and 61.8% Fibonacci levels along the way.
The AB=CD chart pattern works best when combined with other technical indicators or chart patterns, such as the relative strength index (RSI) or pivot points.
You may also want to use volume as a confirmation of a reversal once the AB=CD chart pattern makes a prediction.
CONFIGURATION
Strategy ABCD :
- AB=CD : Leg AB is equal to leg CD
- Ratio : Formula to get leg CD by (AB/0.618) x 1.272 but if
- Forecast : is the continuity of ratio abcd, it is called ABCDE
Different between ABCD vs WXYZ , ABCD is harmonic pattern based on latest chart, but WXYZ based on previous preiodic
Label style : Balloon will show with comment box, but Text just a simple character without comment shape
Line style : default is dotted, available values are dashed, solid and dotted
Colour : change line colour for line and text
Show label : Display or hide label
Please check link below for but report, trial and join with community
