The Pattern Forecast indicator is a technical analysis tool that scans historical price data to identify common chart patterns and then analyzes the price movements that followed these patterns. It takes this information and projects it into the future to provide traders with potential price actions that may occur if the same pattern is identified in real-time market data. This projection helps traders to understand the possible outcomes based on the previous occurrences of the pattern, thereby offering a clearer perspective of the market scenario. By analyzing the historical data and understanding the subsequent price movements following the appearance of a specific pattern, the indicator can provide valuable insights into potential future market behavior.
The indicator works by scanning historical price data for various candlestick patterns. It includes all in-built TradingView patterns, credit to TradingView that has coded them.
- Essentially, the indicator takes the historical price moves that followed the pattern to forecast what might happen next.
In this example, the algorithm is set to search for the Inverted Hammer Bullish candlestick pattern. If the pattern is found, the historical outcome is then projected into the future. This helps traders to understand how the past pattern evolved over time.
█ How to use
Providing traders with a comprehensive understanding of historical patterns and their implications for future price action allows them to assess the likelihood of specific market scenarios objectively. For example, suppose the pattern forecast indicator suggests that a particular pattern is likely to lead to a bullish move in the market. A trader might consider going long if the same pattern is identified in the real-time market. Similarly, a trader might consider shorting the asset if the indicator suggests a bearish move is likely, if the same pattern is identified in the real-time market.
- Select the pattern that the indicator should scan for. All inbuilt TradingView patterns can be selected.
- Number of candles to project into the future.
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Access my indicators at: linktr.ee/zeiierman_trading
Siguiendo el verdadero espíritu de TradingView, el autor de este script lo ha publicado en código abierto, para que los traders puedan entenderlo y verificarlo. ¡Un hurra por el autor! Puede utilizarlo de forma gratuita, aunque si vuelve a utilizar este código en una publicación, debe cumplir con lo establecido en las Normas internas. Puede añadir este script a sus favoritos y usarlo en un gráfico.
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.