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Indicators: Harmonic Pattern Finder V2 - page 8

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Andre Enger
1085
Andre Enger  
danizani95:
ok no problem.. what do you think about implement in your indicator a "time filter'" that can be turned on or off from the settings ? Not for all the patterns but maybe only for the Scott Carney's 5 points and ABCD patterns.. For  example the rules : XD must be double than XB
and AB must be equal to CD. I think that this filter could make the difference 

The latest iteration of the indicator does so, though on all patterns indiscriminatively but the timezones can be changed in the settings. Double clicking a pattern automatically draws the timezones, comparing the XB to BD on 5-point patterns and AB to CD on 4-point patterns. I'm attaching it here so you could test your hypothesis, I find that the filter also removes some successful patterns but usually more failures than successes.

It also contains some other features, new patterns and adjustments for ease-of-usage. Its not yet picture perfect, might contain some bugs etc, but if/when I have the time I'd be sure to take a shot at a V3 in the codebase. Until then your feedback and feature requests are appreciated :)

danizani95
135
danizani95  
Andre Enger:

The latest iteration of the indicator does so, though on all patterns indiscriminatively but the timezones can be changed in the settings. Double clicking a pattern automatically draws the timezones, comparing the XB to BD on 5-point patterns and AB to CD on 4-point patterns. I'm attaching it here so you could test your hypothesis, I find that the filter also removes some successful patterns but usually more failures than successes.

It also contains some other features, new patterns and adjustments for ease-of-usage. Its not yet picture perfect, might contain some bugs etc, but if/when I have the time I'd be sure to take a shot at a V3 in the codebase. Until then your feedback and feature requests are appreciated :)


Wow you did a great job! Now the chart is clearer. but I noticed a bug, sometimes the indicator, after finding the patterns, does not stop refreshing and the patterns appear and disappear continuously... I have two questions: Can you expain me how to interpret the new comment box ? And how do you calculate the levels to show in the PRZ ? Because I calculate them with a fibo on xa and another one on bc but I see that my levels don't correspond to yours.

Andre Enger
1085
Andre Enger  
danizani95:

Wow you did a great job! Now the chart is clearer. but I noticed a bug, sometimes the indicator, after finding the patterns, does not stop refreshing and the patterns appear and disappear continuously... I have two questions: Can you expain me how to interpret the new comment box ? And how do you calculate the levels to show in the PRZ ? Because I calculate them with a fibo on xa and another one on bc but I see that my levels don't correspond to yours.

I also see the refreshing indicator thing sometimes, but usually not more than two or three times in a succession. It can only be caused by quote history updates like when your client receives new quotes on the left side of the chart, so is unlikely to occur on instruments+timeframes that you have looked upon earlier, but likely to occur if you zoom the chart maximally out.

The commentbox has some new fields yes, when you click a pattern it shows the most information

  1. Either F. T. P. or O. F stands for "Focused" so indicates that you clicked the pattern. T stands for Transient so denotes a pattern that is pending with the PRZ stop line drawn. A transient pattern will become either "Persistent" (hence the P.) if the zigzag reverses while it is transient, or it will become "Overshot" (the O.) if the price violates the PRZ end.
  2. The second field is the direction either Bull. or Bear.
  3. Third field is the pattern name.
  4. Lastly is the success rate, calculated as number of patterns becoming Persistent rather than Overshot, also showing the counts like (5 S / 3 F), where S is success and F is failure.

Can you upload a screenshot of the PRZ level error? If you hover the mouse over a level it will show its ID, the ratio used, and the price too as the following picture shows. Here is also the fibos placed manually (green) being at the corresponding level.


So whenever there are singular PRZ ratios in a pattern descriptor they are drawn. Would really like to have the indicator automatically select the important one from range constraints too which are common in the CD to BC comparison, but am a bit unsure of which one should be used, the closest one to the others? or the first one above? or several?

danizani95
135
danizani95  
Andre Enger:

I also see the refreshing indicator thing sometimes, but usually not more than two or three times in a succession. It can only be caused by quote history updates like when your client receives new quotes on the left side of the chart, so is unlikely to occur on instruments+timeframes that you have looked upon earlier, but likely to occur if you zoom the chart maximally out.

The commentbox has some new fields yes, when you click a pattern it shows the most information

  1. Either F. T. P. or O. F stands for "Focused" so indicates that you clicked the pattern. T stands for Transient so denotes a pattern that is pending with the PRZ stop line drawn. A transient pattern will become either "Persistent" (hence the P.) if the zigzag reverses while it is transient, or it will become "Overshot" (the O.) if the price violates the PRZ end.
  2. The second field is the direction either Bull. or Bear.
  3. Third field is the pattern name.
  4. Lastly is the success rate, calculated as number of patterns becoming Persistent rather than Overshot, also showing the counts like (5 S / 3 F), where S is success and F is failure.

Can you upload a screenshot of the PRZ level error? If you hover the mouse over a level it will show its ID, the ratio used, and the price too as the following picture shows. Here is also the fibos placed manually (green) being at the corresponding level.


So whenever there are singular PRZ ratios in a pattern descriptor they are drawn. Would really like to have the indicator automatically select the important one from range constraints too which are common in the CD to BC comparison, but am a bit unsure of which one should be used, the closest one to the others? or the first one above? or several?


Ok here is an example.. 

Now in the images you can see what levels should be visible in the prz, but now there are no levels so I think this is a thing to correct. I posted also an example of how could be changed the prz... all the levels of bc and xa retracements in the prz are visible. Once they are visible then will be a trader decision of what level consider the most important...

Files:
no_fibo.png 127 kb
fibo.png 133 kb
example.PNG 6 kb
Andre Enger
1085
Andre Enger  
danizani95:

Ok here is an example.. 

Now in the images you can see what levels should be visible in the prz, but now there are no levels so I think this is a thing to correct. I posted also an example of how could be changed the prz... all the levels of bc and xa retracements in the prz are visible. Once they are visible then will be a trader decision of what level consider the most important...

Thanks for the suggestion.

I'm actually aiming to keep the amount of graphical objects to a sheer minimum, so drawing all the fibo-ratios is a no-go.

Take a look at this tutorial on the Shark pattern http://www.you-forex.com/uploads/2/7/8/3/2783475/how-to-profit-with-the-harmonic-shark-pattern.pdf. The author is a founder of an accredited harmonic trading academy and mentored by Scott Carney himself. Even though the Shark has 3 XC levels (88.6, 100, 113) and 3 BC levels (1.618, 2, 2.24), he presents techniques to find the only 2 levels that matters for execution.

Nevertheless I'm a bit unsure if the same method can be straightforwardly generalized to the other patterns. Furthermore I'm a bit negative towards shaping the indicator according to some specific trading system. As the code is open, people can rather add-in their own rules should it so be desired and experiment to create their own system fitted to the market in which it is applied.

danizani95
135
danizani95  
Andre Enger:

Thanks for the suggestion.

I'm actually aiming to keep the amount of graphical objects to a sheer minimum, so drawing all the fibo-ratios is a no-go.

Take a look at this tutorial on the Shark pattern http://www.you-forex.com/uploads/2/7/8/3/2783475/how-to-profit-with-the-harmonic-shark-pattern.pdf. The author is a founder of an accredited harmonic trading academy and mentored by Scott Carney himself. Even though the Shark has 3 XC levels (88.6, 100, 113) and 3 BC levels (1.618, 2, 2.24), he presents techniques to find the only 2 levels that matters for execution.

Nevertheless I'm a bit unsure if the same method can be straightforwardly generalized to the other patterns. Furthermore I'm a bit negative towards shaping the indicator according to some specific trading system. As the code is open, people can rather add-in their own rules should it so be desired and experiment to create their own system fitted to the market in which it is applied.


Ok thank you for your share, few pages but very instructive. I realized that it's important to point out the prz upper and lower limits to take a good trade... Do you think you can add function to highlight the prz with both the limits when the pattern has appeared ? Maybe to highlight the prz of a pattern only when it is focused too...

Andre Enger
1085
Andre Enger  
danizani95:

Ok thank you for your share, few pages but very instructive. I realized that it's important to point out the prz upper and lower limits to take a good trade... Do you think you can add function to highlight the prz with both the limits when the pattern has appeared ? Maybe to highlight the prz of a pattern only when it is focused too...

No I don't think I will do that

danizani95
135
danizani95  
Andre Enger:

No I don't think I will do that

Are you sure ? Because a lot of books and guides suggest to wait that price leaves the prz before enter the trade...
Andre Enger
1085
Andre Enger  
danizani95:
Are you sure ? Because a lot of books and guides suggest to wait that price leaves the prz before enter the trade...

Yeah I'm sure.

I know the PRZ price action analysis methodology for pure harmonic trading, its not what I use. None of my trades are based on a single indicator or a single timeframe. Instead confluences of signals from pivots, trendlines, diverging oscillators, bollinger bands, etc on several timeframes are what I use. If I execute a harmonic pattern in the PRZ instead of waiting for confirmation, its because I already think the price will reverse there, and the pattern serves only as an additional factor.

danizani95
135
danizani95  
Andre Enger:

Yeah I'm sure.

I know the PRZ price action analysis methodology for pure harmonic trading, its not what I use. None of my trades are based on a single indicator or a single timeframe. Instead confluences of signals from pivots, trendlines, diverging oscillators, bollinger bands, etc on several timeframes are what I use. If I execute a harmonic pattern in the PRZ instead of waiting for confirmation, its because I already think the price will reverse there, and the pattern serves only as an additional factor.


Ok as you wish.. Anyway you shared a really valid indicator so.. thanks a lot :)

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