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Are you an harmonic trader? Finding harmonic patterns in the chart and calculating ratios and projections can be time consuming, but not anymore! The PZ Harmonic Trading indicator is probably the most complete harmonic patterns auto-recognition indicator, and has a set of features which make it unique.

  • It detects Bat, Gartley, Crab, Butterfly, Cypher and Shark patterns
  • It plots the pattern name and vector ratios on the chart
  • It plots primary, secondary and derived Fibonacci projections
  • Fibonacci projections are vector-independent (0.618BC is not the same as 0.618XA)
  • It evaluates past price action and displays every past pattern (not just the last one)
  • It waits for a meaningful breakout after a pattern has been formed to signal the trade
  • It differentiates between perfect and unperfect patterns
  • It plots the AB=CD projection!
Inspired by Scott M. Carney's book (Harmonic Trading Vol1), this indicator has been designed to fulfill the needs of the most purist and exigent traders. It is not just a "fancy triangles" indicator, as colored triangles without the proper measurements are completely useless.


Settings

When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks. This is what each block of parameters does.

  • Amplitude
    The indicator is constantly looking for tops and bottoms. The amplitude is the minimal amount of bars where there will not be two tops or two bottoms. Increase the period to see bigger patterns or for intraday trading. You can also have several indicators loaded on the chart with different amplitudes.
  • OnlyPerfectPatterns
    Enable this option to display only perfect and pure harmonic patterns, with perfect ratio measurements.
  • MaxHistoryBars
    This parameter controls how many past bars are examined to minimize memory usage.
  • SuperLightMode
    Enable this option to display only colored triangles to minimize memory usage.
  • Patterns
    Choose pattern colors and enable/disable the patterns you want to use.
  • Labels
    Customize the label's font sizes and colors.
  • Ratios
    Customize the ratio's font size and line width.
  • Projections
    Customize the Fibonacci projections font size, line length and line width
  • Breakouts
    This indicator waits for a meaningful breakout after a pattern has been formed to signal the trade.
    Increase the BreakoutPeriod parameter to decrease repainting or for intraday trading.
    This feature can also be disabled.
  • Alerts
    Enable display/email/push/sound alerts for patterns and breakouts.


Some Nitty-Gritty Details

  • The indicator is evaluated every bar, not every tick.
  • The D point of the pattern repaints as the pattern expands.
  • You can have several indicators on the chart with different amplitudes.
  • An alert is displayed when the pattern forms and also when a price breakouts confirms the pattern
  • A small percentage of trading signals can repaint (Increase the DonchianBreakout parameter for intraday trading).
  • Harmonic Patterns can be confirmed with oscillator divergences or Bollinger Bands, for example.
  • It implements visual, sound, email and push alerts for patterns and breakouts


Author

Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.

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