Auto Harmonic Pattern - PRO [AlgoScopes] V1

18 nov 2021

Harmonic Patterns is a powerful tool for identifying potential reversal areas in the financial markets. Auto Harmonic Pattern Pro it is based on the work of Scott Carney, a renowned trader and author who developed the concept of harmonic patterns.

Scott Carney's extensive research and contributions have greatly enhanced our understanding of market patterns and their application in trading. Auto Harmonic Pattern Pro is adapted from Scott Carney's original work on harmonic patterns, as well as other sources that have contributed to the recognition and understanding of harmonic patterns beyond Carney's initial research.

Auto Harmonic Pattern Pro offers traders a valuable tool for identifying potential reversal zones in the markets. We would like to express our gratitude to Scott Carney for his pioneering work in developing harmonic patterns, as well as to the various contributors and sources that have expanded our knowledge and understanding of harmonic patterns beyond Carney's original research.

Remember to always practice proper risk management and combine the indicator's signals with other technical analysis tools for a comprehensive trading approach.

For more information about Scott Carney and his work on harmonic patterns, you can find additional resources on his official website.

💠 ABOUT THE SCRIPT

💎 DISPLAY
󠀠󠀠⚬ The following things are displayed by default on the chart
https://www.tradingview.com/x/Ujjhb7Zd

🔸 Live patterns in trade with XABCD labels. (filled major triangle)
🔸 Entry, Stop and Target levels on chart for all live patterns. Target level are dimmed along with reducing size when they become irrelevant
🔸 Open Trades Stat table - Show patterns ID, patterns name, status for patterns, size&age, Entry, I.Stop, T.Stop and Targets (TP1 - TP4).
󠀠󠀠⚬ Highlighted present stop (and/or trailing stop if is enabled) and next target
󠀠󠀠⚬ When there are multiple patterns on chart, Entry, Stop, and Target labels & lines & PRZ* boxes are created with specific distance from each other to provide clarity to the users
*(potential reversal zone)
https://www.tradingview.com/x/ugKq87Cv

⬜ SETTINGS
󠀠󠀠⚬ Let's talk about some of the settings. Almost all of these settings have already been optimized and tested over time, but for some tickers it might be better to do a new test.

💎 ZIGZAG
https://www.tradingview.com/x/A0btHWgg

🔸 Length - Default is set to 8. User can change settings but it is a good idea to keep with fibonacci (5, 13, 21, 34, 55 etc)
🔸 Depth - This setting is for how many pivots indicator scan to find harmonic pattern. By default it is set as 200
🔸 Recursive Algorithm - Enabled will use recursive instead standard zigzag

💎 HARMONIC PATTERN SETTINGS
https://www.tradingview.com/x/ALf8Lgjj

🔸 Trade Direction - Default is set to show all (bearish and bullish) harmonic patterns. Can be filtered to bullish or bearish direction.
🔸 Error Percent - Default is 8. That is error percent tolerance from perfect pattern ratio.
🔸 Maximum patterns - Maximum patterns allowed on chart at any time
󠀠󠀠⚬ When it reaches the maximum patterns and the indicator finds a new one, the old patterns will be removed
- (important for algo traders because alerts for those removed patterns will no longer be a trigger)
🔸 Pattern size
󠀠󠀠⚬ Without filter will show all patterns (regardless of size)
https://www.tradingview.com/x/7732Quak
⚬ Show only patterns for user preference size (no more two patterns because is smaller of 280 bars)
https://www.tradingview.com/x/XFFrp8j3

🔸 External Filter - It can be used to filter harmonic patterns. You can build your own custom trend based scripts and use it with AHP to filter trades.
󠀠󠀠⚬ The structure of the external script must be
1 for Long/Bullish patterns
-1 for Short/Bearish patterns
2 for all (Long and Short patterns)
0 Trade is not allowed
🔸 Filter Pattern Starts
󠀠󠀠⚬ When Filter starts is enabled pattern will start for logical pivot (see example)
https://www.tradingview.com/x/PiT5Ff9W
https://www.tradingview.com/x/lDC0qYjL
⚬ Disabled filter will show more patterns (still can be very profitable)

💎 STOP & ENTRY & TRAILING STOP
https://www.tradingview.com/x/VrfVYYqD

🔸 Trail Entry Price - If Entry is still not reached and the price is still in PRZ zone, at the new high/low will adjust Entry.
󠀠󠀠⚬ Open Stats table will show the first Entry (when patterns were found) as well as the last corrected Entry (when patterns reached Entry level).
https://www.tradingview.com/x/ufimbOVF
https://www.tradingview.com/x/dsrOr9dY
󠀠󠀠⚬ Disable this option Entry will remain at the level when patterns are found.
https://www.tradingview.com/x/dsrOr9dY

🔸 Enable Targets (awaiting entry) - enabled will show potential Targets for "awaiting entry" patterns (not active patterns because they have not yet reached Entry).
󠀠󠀠⚬ The Open stats table will show all other information, risk %, R:R etc).
https://www.tradingview.com/x/cCt08D1H
⚬ Risky trade but with very good R:R (not recommended for inexperienced traders, very high risk of trading hitting Stop before reaching a Target)

🔸 Stop Distance - By default is set to 5. That is percent from the last low/high when the pattern reaches Entry. Stop trail from price till pattern reached Entry level.
🔸 Entry Distance - By default is set to 16. Same for SL that is percent distance from live price. You can increase/decrease percent but remember you have to give space between live price and the entry.
⚬ If entry is close to price, trade will become active too quickly
⚬ Remember if you change Stop Distance as well as Entry Distance to check Risk : Reward (recommended R:R for the first target is about 1:1)
🔸 Trailing Type - Options for trailing type, Continuous, Stepped, Breakeven and Disabled.
󠀠󠀠⚬ Continuous - When the price reaches "Trailing Active" (initial level for activating the trailing stop), T.Stop will start from Entry or Initial Stop (based on "Trailing Starts") and follow the price by Distance or Percent (based on "Trailing by").
󠀠󠀠- example one (trailing starts from Initial Stop when TP1 reached by distance/price on picture 1 and by percent on picture 2)
https://www.tradingview.com/x/MpAftTS0
https://www.tradingview.com/x/GxyfNgE2

- example two (trailing starts from Entry when TP1 reached by distance/price on picture 1 and by percent on picture 2)
https://www.tradingview.com/x/375Vlc0K
https://www.tradingview.com/x/yViNJ71V

⚬ Stepped - when price reaches Trailing Active (initial level for activating the trailing stop), T.Stop will move to the previous level
󠀠󠀠- (If "Trailing Active" is set to Target2, then T.Stop will move to Target1 when price reached TP2)
https://www.tradingview.com/x/2GjYl1rn

⚬ Breakeven - when price reaches Trailing Active (initial level for activating the trailing stop), T.Stop will move to Entry and stay there the entire time for that harmonic trade
󠀠󠀠- (till reached all targets or reached T.Stop)
https://www.tradingview.com/x/n7xxZHeF

🔸 Trailing Active - When will the Trailing Stop be activated ("Trailing Type" must be enabled)
🔸 Trailing by - Distance or Percent
󠀠󠀠⚬ Distance - T.Stop will follow live price by initial distance
󠀠󠀠⚬ Percent - T.Stop will follow live price by initial percent
🔸 Trailing Starts - Entry or Initial Stop
󠀠󠀠⚬ Entry - T.Stop will start trailing from Entry level
󠀠󠀠⚬ I.Stop - T.Stop will start trailing from initial Stop level
󠀠󠀠- (Check Continuous picture for information)

💎 TARGET
https://www.tradingview.com/x/1gLqVJTx

🔸 Base - The level from which the calculation for Targets is made.
🔸 Target 1/Target 4 dropdown - Targets are set by default and set in the dropdown most often used for those targets.
🔸 Target 1/Target 4 custom - If the desired ratio is not in the dropdown, then it is possible to manually enter the desired ratio.
󠀠󠀠⚬ (If you want to change some of the targets, maybe to confluence with support/resistance)
https://www.tradingview.com/x/pjr1pYah

💎 PATTERNS
https://www.tradingview.com/x/JjZ8aVD1

🔸 Harmonic Patterns Type
󠀠󠀠⚬ Enable/Disable harmonic patterns by Type of patterns (for Classic and Anti patterns)
󠀠󠀠⚬ B󠀠󠀠y default all patterns are enabled (for standard patterns). Users can control and select/deselect all Classic, Anti or Non Standard patterns but also disable individual patterns.
󠀠󠀠⚬ For some patterns (like Shark and Navarro 200) we change PRZ or place in different Type groups. That is just cosmetic things.
🔸 Classic - This includes all and most popular Harmonic Patterns.
󠀠󠀠⚬ Gartley (Type I)
󠀠󠀠⚬ Bat (Type I)
󠀠󠀠⚬ Butterfly (Type II)
󠀠󠀠⚬ Crab (Type II)
󠀠󠀠⚬ Deep Crab (Type II)
󠀠󠀠⚬ Cypher (Type II)
󠀠󠀠⚬ Shark (Type III)
󠀠󠀠⚬ Nenstar (Type IV)
🔸 Anti Patterns
󠀠󠀠⚬ Anti Nenstar (Type I)
󠀠󠀠⚬ Anti Shark (Type II)
󠀠󠀠⚬ Anti Cypher (Type II)
󠀠󠀠⚬ Anti Crab (Type II)
󠀠󠀠⚬ Anti Butterfly (Type III)
󠀠󠀠⚬ Anti Bat (Type IV)
󠀠󠀠⚬ Anti Gartley (Type IV)
󠀠󠀠⚬ Navarro 200 (Type IV)
🔸 Non Standard -
󠀠󠀠⚬ White Swan
󠀠󠀠⚬ Black Swan
󠀠󠀠⚬ 3 Drive
󠀠󠀠⚬ Anti 3 Drive
󠀠󠀠⚬ Wolfe
󠀠󠀠⚬ Snorm
󠀠󠀠⚬ 121 Pattern
󠀠󠀠⚬ 5-0 Pattern
󠀠󠀠⚬ Sea Pony
󠀠󠀠⚬ Leonardo

💎 PATTERN DISPLAY OPTION
https://www.tradingview.com/x/pVtas0f7

🔸 Pattern Lines Size - thickness for harmonic patterns
🔸 Pattern Lines Type - type for harmonic pattern lines (solid, dotted, dashed)
🔸 Fill XAB/BCD - major harmonic triangle
🔸 Fill ABC/XBD - minor harmonic triangle
🔸 Enable XABCD Label - labels for harmonic pattern
🔸 XABCD Label Size - size for harmonic xabcd labels
🔸 Enable Ratio Label & Line - lines and labels that connect harmonic patterns levels and that show the patterns ratio
🔸 Ratio Label Size - ratio labels size
󠀠󠀠⚬ Lines for pattern ratio are set by default dashed and can’t be changed.
https://www.tradingview.com/x/reLkgOCZ

💎 PRZ & ENTRY | STOP | TARGET SETTINGS
https://www.tradingview.com/x/ot70FzD8

🔸 Entry & Stop & Target Labels - by default is set to small (opt small & normal)
🔸 Entry & Stop & Target Lines - by default is set to show lines & labels & price (opt lines & labels & price or lines & labels or disable all)
https://www.tradingview.com/x/1mO2HT0m

🔸 PRZ Box size - size in bars for PRZ box
󠀠󠀠⚬ Added option when it is not readable on chart pattern names or entry/stop/targets offset
󠀠󠀠⚬ Maximum (last pattern) can be drawn up to 500 bars in future or you will get error for script (use this option only when you need)
🔸 PRZ Box Type of Spacing - distance between PRZ boxes. "Auto" will make the maximum distance when there are more than 3 patterns on the chart for better visibility
󠀠󠀠- (the maximum can be projected up to 500 bars in the future)
🔸 PRZ Box Manual Spacing - manual distance between PRZ boxes if is “PRZ Box Type of Spacing” set to manual
https://www.tradingview.com/x/DTAOhgnb

💎 STATS AND DISPLAY
󠀠󠀠⚬ These settings can be used to manage display of open and close statistic tables
https://www.tradingview.com/x/VknW7LSP

🔸 Open Trades - By default is enabled and set to the top right position.
🔸 Closed Trades - By default is disabled and set to bottom left position.
󠀠󠀠⚬ The size of the table can be changed (by default it is set to small)
🔸 Enable Tool Tip for Table - can be enabled/disabled. Shows important information for each section related to Open or Closed tables.
󠀠󠀠⚬ Recommended enabled until everything related to tables is understood, and later disabled (it starts to get annoying when you accidentally cross the tables with the mouse and tooltip box pop up)
https://www.tradingview.com/x/mcPr8pIw

💎 OPEN STATS
🔸 Percentage - show percentage for Targets and Stops
🔸 Risk/Reward - show patterns risk to reward for each Targets
🔸 Size/Age - show patterns size (from X to D in bars) and patterns age (distance in bars when patterns “In Trade”)
🔸 Live % & R:R - enabled will show live % and R:R if you take trade in that moment
https://www.tradingview.com/x/pXiCCQol

💎 CLOSED STATS
https://www.tradingview.com/x/jSe6ISfN

🔸 Percentage - show stats by percent instead of numbers
🔸 Display Mode - Closed trade table have three display option, Compact, Detailed and Selective
󠀠󠀠⚬ Compact - show stats for Long/Bullish and Short/Bearish patterns
󠀠󠀠⚬ Selective - show stats just for active patterns
https://www.tradingview.com/x/RY20NLnv

⚬ Detailed - show stats for each enabled patterns
https://www.tradingview.com/x/S0AI2ZI3

- All stats is for “Backtest Bars” if enabled.
󠀠󠀠- I removed some things from the previous indicator (R:R as well as trailing R:R and win rate) because I think they are not relevant in Closed Table for trade or for statistics (Open Table have that)

💎 PATTERN | CHART COLOR THEME
https://www.tradingview.com/x/Al7mxDiH

⚬ By default it is set to Light color theme. Color theme will affect pattern lines, XABCD labels, ratio lines and label, entry/sl/targets labels and text in the open statistics table.
🔸 Dark Theme / Light Theme - Users can change any default individual color for dark or light theme (transparency too).
https://www.tradingview.com/x/ecGbUG5F

⚬ Light/Dark Theme suits dark or light chart background or user can change all color to preferred trade style.
https://www.tradingview.com/x/g2Bj7nsE
⚬ Users have extra control to change all color to preferred trade style.

💎 ALERTS
󠀠󠀠⚬ Alerts - These settings help users to choose the type of alerts they want to receive.
https://www.tradingview.com/x/KrMhQPzJ

🔸 New - New Harmonic Pattern is identified
🔸 Entry - Harmonic Pattern reached Entry level
🔸 Target 1/Target4 - Alert when patterns reached on of Target levels
https://www.tradingview.com/x/xRwEJygz

🔸 Closure - Harmonic Pattern trade is closed. Reached all Targets or Stop or Trailing Stop (if is enabled)
https://www.tradingview.com/x/ZMMuX2xm

🔸 Long & Short placeholders - Enabled will change for alerts Bullish/Bearish text for Long/Short text
󠀠󠀠⚬ example of custom alerts with some placeholders
https://www.tradingview.com/x/CmI3i8cl
https://www.tradingview.com/x/bvhQLYop

💎 BACKTEST WINDOW
🔸 Backtest bars - Enabled will scan patterns for that bar range (default is set to 5000)
https://www.tradingview.com/x/HcAaqbRi

🔷 TOOL TIP

⚬ In setting you have help from tooltip to give you almost all this information for easy understanding. Hover mouse above tool tip and windows with info will appear.
https://www.tradingview.com/x/uNdTBbxe

⚬ On the chart, tool tip is added for each individual Harmonic pattern to show extra information (pattern ratio, type of harmonic and where often that pattern appears in Elliott wave fractal)
https://www.tradingview.com/x/HhOjIBpX

⚬ Tooltip for tables will also provide all the information related to Open and Closed tables. Disabled tooltip for tables will hide all information, but the tooltip for patterns will still remain.
https://www.tradingview.com/x/p7e5TCEH
https://www.tradingview.com/x/4v6clV7z

🔴 Possible Errors
󠀠󠀠⚬ If a mistake is made in the settings and, for example, TP2 is set to 0.618 ratio and TP3 is changed to 0.5 ratio
- (the larger target is set to a smaller ratio than the smaller target), a red text will appear over most charts to indicate the error.
https://www.tradingview.com/x/6Zngg0GW

⚬ If Trailing Type is enabled and "Trailing Active" and "Trailing Starts" are set to the same level (Entry), a red text will appear on the charts to indicate an error
- (change "Trailing Active" to a higher level, TP1, or lower "Trailing Starts " to "I.Start")
https://www.tradingview.com/x/6Z8GLSk2

26 may 2023

Notas de prensa

Auto Harmonic Pattern - PRO [AlgoScopes]

27 may 2023

Notas de prensa

Correction for long/short bullish/bearish alert placeholders

6 jun 2023

Notas de prensa

Correct auto PRZ box distance, better clean tooltip and update for patterns

12 oct 2023

Notas de prensa

Small correction for tooltip and alert