divergingchartpatternLibrary "divergingchartpattern"
Library having implementation of converging chart patterns
getPatternNameByType(patternType)
Returns pattern name based on type
Parameters:
patternType (int) : integer value representing pattern type
Returns: string name of the pattern
method find(this, sProperties, dProperties, patterns, ohlcArray)
find converging patterns for given zigzag
Namespace types: zg.Zigzag
Parameters:
this (Zigzag type from Trendoscope/ZigzagLite/2) : Current zigzag Object
sProperties (ScanProperties) : ScanProperties Object
dProperties (DrawingProperties type from Trendoscope/abstractchartpatterns/5) : DrawingProperties Object
patterns (array type from Trendoscope/abstractchartpatterns/5) : array of existing patterns to check for duplicates
ohlcArray (array type from Trendoscope/ohlc/1) : array of OHLC values for historical reference
Returns: string name of the pattern
ScanProperties
Object containing properties for pattern scanning
Fields:
baseProperties (ScanProperties type from Trendoscope/abstractchartpatterns/5) : Object of Base Scan Properties
convergingDistanceMultiplier (series float)
Wedgepatterns
Three Drive [TradingFinder] 3 Drive Harmonic Pattern Indicator🔵 Introduction
The "Three Drive" pattern is one of the light "RTM" setups suitable for identifying price trend reversals. For this reason, this pattern is considered one of the "Reversal Patterns."
🟣 Bullish 3 Drive
At a price bottom, a formation occurs where the negative trend appears to continue, and lower lows are made.
However, the second low penetrates the range of the first low, and the third low penetrates the range of the second low, indicating a decrease in selling pressure and an increase in buying pressure.
Entry point is issued after the penetration of the third low to the second low, and targets are the highs formed in the "3 Drive."
🟣 Bearish 3 Drive
At a price top, a formation occurs where the positive trend appears to continue, and higher highs are made.
However, the second high penetrates the range of the first high, and the third high penetrates the range of the second high, indicating a decrease in buyers' strength and an increase in sellers' strength.
Entry point is issued after the penetration of the third high to the second high, and targets are the lows formed in the "3 Drive."
Importance :
This pattern bears a striking resemblance to the some of "Harmonic Pattern" and "Ending Diagonal" in the "Elliott Pattern".
🔵 How to Use
There is no need for further confirmation to use this pattern, and you can use it as soon as the pattern forms. However, to reduce errors, it is better to use this pattern when it forms within a "Supply and Demand" or "Support and Resistance" structure.
Bullish 3 Drive in Demand Zone :
Bearish 3 Drive in Supply Zone :
🔵 Settings
You can set your desired "Pivot Period" via settings for the indicator to identify setups based on it.
chartpatternsLibrary "chartpatterns"
Library having complete chart pattern implementation
method draw(this)
draws pattern on the chart
Namespace types: Pattern
Parameters:
this (Pattern) : Pattern object that needs to be drawn
Returns: Current Pattern object
method erase(this)
erase the given pattern on the chart
Namespace types: Pattern
Parameters:
this (Pattern) : Pattern object that needs to be erased
Returns: Current Pattern object
method findPattern(this, properties, patterns)
Find patterns based on the currect zigzag object and store them in the patterns array
Namespace types: zg.Zigzag
Parameters:
this (Zigzag type from Trendoscope/ZigzagLite/2) : Zigzag object containing pivots
properties (PatternProperties) : PatternProperties object
patterns (Pattern ) : Array of Pattern objects
Returns: Current Pattern object
PatternProperties
Object containing properties for pattern scanning
Fields:
offset (series int) : Zigzag pivot offset. Set it to 1 for non repainting scan.
numberOfPivots (series int) : Number of pivots to be used in pattern search. Can be either 5 or 6
errorRatio (series float) : Error Threshold to be considered for comparing the slope of lines
flatRatio (series float) : Retracement ratio threshold used to determine if the lines are flat
checkBarRatio (series bool) : Also check bar ratio are within the limits while scanning the patterns
barRatioLimit (series float) : Bar ratio limit used for checking the bars. Used only when checkBarRatio is set to true
avoidOverlap (series bool)
patternLineWidth (series int) : Line width of the pattern trend lines
showZigzag (series bool) : show zigzag associated with pattern
zigzagLineWidth (series int) : line width of the zigzag lines. Used only when showZigzag is set to true
zigzagLineColor (series color) : color of the zigzag lines. Used only when showZigzag is set to true
showPatternLabel (series bool) : display pattern label containing the name
patternLabelSize (series string) : size of the pattern label. Used only when showPatternLabel is set to true
showPivotLabels (series bool) : Display pivot labels of the patterns marking 1-6
pivotLabelSize (series string) : size of the pivot label. Used only when showPivotLabels is set to true
pivotLabelColor (series color) : color of the pivot label outline. chart.bg_color or chart.fg_color are the appropriate values.
allowedPatterns (bool ) : array of bool encoding the allowed pattern types.
themeColors (color ) : color array of themes to be used.
Pattern
Object containing Individual Pattern data
Fields:
pivots (Pivot type from Trendoscope/ZigzagLite/2) : array of Zigzag Pivot points
trendLine1 (Line type from Trendoscope/LineWrapper/1) : First trend line joining pivots 1, 3, 5
trendLine2 (Line type from Trendoscope/LineWrapper/1) : Second trend line joining pivots 2, 4 (, 6)
properties (PatternProperties) : PatternProperties Object carrying common properties
patternColor (series color) : Individual pattern color. Lines and labels will be using this color.
ratioDiff (series float) : Difference between trendLine1 and trendLine2 ratios
zigzagLine (series polyline) : Internal zigzag line drawing Object
pivotLabels (label ) : array containning Pivot labels
patternLabel (series label) : pattern label Object
patternType (series int) : integer representing the pattern type
patternName (series string) : Type of pattern in string
Wolfe Scanner (Multi - zigzag) [HeWhoMustNotBeNamed]Before getting into the script, I would like to explain bit of history around this project. Wolfe was in the back of my mind for some time and I had several attempts so far.
🎯Initial Attempt
When I first developed harmonic patterns, I got many requests from users to develop script to automatically detect Wolfe formation. I thought it would be easy and started boasting everywhere that I am going to attempt this next. However I miserably failed that time and started realising it is not as simple as I thought it would be. I started with Wolfe in mind. But, ran into issues with loops. Soon figured out that finding and drawing wedge is more trickier. I decided will explore trendline first so that it can help find wedge better. Soon, the project turned into something else and resulted in Auto-TrendLines-HeWhoMustNotBeNamed and Wolfe left forgotten.
🎯Using predefined ratios
Wolfe also has predefined fib ratios which we can use to calculate the formation. But, upon initial development, it did not convince me that it matches visual inspection of Wolfe all the time. Hence, I decided to fall back on finding wedge first.
🎯 Further exploration in finding wedge
This attempt was not too bad. I did not try to jump into Wolfe and nor I bragged anywhere about attempting anything of this sort. My target this time was to find how to derive wedge. I knew then that if I manage to calculate wedge in efficient way, it can help further in finding Wolfe. While doing that, ended up deriving Wedge-and-Flag-Finder-Multi-zigzag - which is not a bad outcome. I got few reminders on Wolfe after this both in comments and in PM.
🎯You never fail until you stop trying!!
After 2 back to back hectic 50hr work weeks + other commitments, I thought I will spend some time on this. Took less than half weekend and here we are. I was surprised how much little time it took in this attempt. But, the plan was running in my subconscious for several weeks or even months. Last two days were just putting these plans into an action.
Now, let's discuss about the script.
🎲 Wolfe Concept
Wolfe concept is simple. Whenever a wedge is formed, draw a line joining pivot 1 and 4 as shown in the chart below:
Converging trendline forms the stop loss whereas line joining pivots 1 and 4 form the profit taking points.
🎲 Settings
Settings are pretty straightforward. Explained in the chart below.
