Holy-Cow Indicator

26 dic 2024

Holy-Cow Indicator
Advanced Multi-Pattern Candlestick Analyzer (HC, NV, RN)

Description
Overview
This indicator is designed to detect key candlestick patterns based on foundational principles of price action analysis, now presented with a modernized approach for easier recognition and enhanced utility. Drawing inspiration from the work of candlestick charting pioneer Steve Nison (Japanese Candlestick Charting Techniques) and advanced price action strategies popularized by Linda Raschke (Street Smarts), this tool identifies and highlights unique combinations such as the Holy-Cow (HC), Nova (NV), and Red-Nova (RN) patterns.

These patterns simplify the complexities of price action into actionable setups, making them suitable for all types of traders.

Features

Inside Bars (IB):
Marks consolidation zones where the current candle’s range is inside the previous candle’s range. Useful for spotting breakout opportunities.

Outside Bars (OB):
Identifies candles where the current range exceeds the previous candle’s range.
Indicates potential reversals or trap setups.

Holy-Cow Pattern (HC):
Inspired by: Trap + Consolidation Setup
An Outside Bar followed by an Inside Bar.
Highlights volatility followed by tight consolidation, often preceding a breakout.

Nova Pattern (NV):
Inspired by: Breakout Trap + Expansion
An Inside Bar followed by an Outside Bar.
Signals breakout traps and subsequent volatility, useful for reversals or momentum moves.

Red-Nova Pattern (RN):
Inspired by: Volatility Trap + Major Breakout Zone
A combination of Holy-Cow (HC) and Nova (NV) patterns.
Represents a highly compressed market state, often leading to significant, high-intensity moves.

Bollinger Bands Integration:
Provides context on volatility and potential overbought/oversold levels.

Customizable Visibility:
Toggle specific patterns (IB, OB, HC, NV, RN) to suit your trading strategy.

How to Use

Pattern Detection:
Enable the patterns you want to focus on through the settings panel (e.g., HC for breakout setups, RN for high-intensity moves).
Observe highlighted zones and labels for actionable trade setups.

Trading Strategies:

Breakout Trades:
Look for HC, NV, or RN patterns near support/resistance and trade in the breakout direction.

Reversal Trades:
Use NV or RN patterns forming near key levels to catch reversals.

Stop-Loss:
Place below/above the low/high of the identified pattern.

Take Profit:
Use support/resistance levels, Fibonacci extensions, or a predefined risk-reward ratio (e.g., 2:1).

Recommended Timeframes:
1–15 minutes: Scalping or intraday trading.
1-hour: Intraday and swing trading.
Daily/Weekly: Ideal for significant trend analysis and major market moves.

Acknowledgments
This indicator is based on well-established trading principles and enhanced with unique combinations for modern trading. The foundational ideas behind these patterns are drawn from:

Steve Nison: Who introduced candlestick charting to Western traders in his seminal work, Japanese Candlestick Charting Techniques, and popularized concepts such as Inside and Outside Bars.

Linda Raschke: Who furthered the application of price action patterns in her book Street Smarts, showcasing multi-bar setups and momentum strategies.
While the patterns Holy-Cow (HC), Nova (NV), and Red-Nova (RN) are unique to this indicator, they build upon these foundational principles to offer traders actionable insights.

Disclaimer
This indicator is an independent creation inspired by publicly available price action principles. It is not affiliated with any proprietary tool or service. Back testing and proper risk management are strongly advised before live trading.