Discussing the article: "Automating Trading Strategies in MQL5 (Part 27): Creating a Price Action Crab Harmonic Pattern with Visual Feedback"

New comment
 

Check out the new article: Automating Trading Strategies in MQL5 (Part 27): Creating a Price Action Crab Harmonic Pattern with Visual Feedback.

In this article, we develop a Crab Harmonic Pattern system in MQL5 that identifies bullish and bearish Crab harmonic patterns using pivot points and Fibonacci ratios, triggering trades with precise entry, stop loss, and take-profit levels. We incorporate visual feedback through chart objects like triangles and trendlines to display the XABCD pattern structure and trade levels.

Bullish Crab Harmonic Pattern:

BULLISH CRAB HARMONIC PATTERN

Bearish Crab Harmonic Pattern:

BEARISH CRAB HARMONIC PATTERN

To identify the patterns, below is our structured approach:

  • Defining the XA Leg: The initial impulsive move from point X to point A establishes the pattern's foundation, determining the direction (downward for bullish, upward for bearish) and serving as the reference for Fibonacci calculations.
  • Establishing the AB Leg: Point B should retrace approximately 0.618 of the XA leg, confirming a correction without reversing the initial move too aggressively.
  • Analyzing the BC Leg: This leg should extend between 0.382 and 0.886 of the AB leg, creating a sharp counter-move that sets up the final extension.
  • Setting the CD Leg: The final leg should extend 1.618 of the XA leg, marking the potential reversal zone at point D, where the pattern completes and a trade signal is generated.

Author: Allan Munene Mutiiria

 

I must have missed something...

When did "Gartley's butterfly" become "Crab" ? :-)

 
Maxim Kuznetsov #:

I must have missed something...

When did "Gartley's butterfly" become "Crab" ? :-)

ask google query "how harmonic pattern crab differs from gartley butterfly" -- you'll get an explanation.

 
Andrey F. Zelinsky #:
how does the crab harmonic pattern differ from the gartley butterfly?

nothing at all :-)

The right ledge is increased by 1.68, i.e. the same butterfly, but with one more fibo attached. If you do it, the code is the same.

 
Maxim Kuznetsov #:

nothing at all :-)

The right ledge is increased by 1.68, i.e. the same butterfly, but with another fibo attached. If you do it, the code is the same.

any pattern is not about the code, but about the signal.

Patterns have different types of signals, which means that one pattern can be used in one situation and another pattern in another.

 
Andrey F. Zelinsky #:

any pattern is not about the code, it's about the signal.

Patterns have different types of signals, which means that one pattern is suitable for one situation and another pattern for another.

... and the result is the same = 50/50.
 
Vitaly Muzichenko #:
... and still the same result = 50/50.

the article is about the pattern, not about the signal philosophy.

The signal philosophy has long been described, played out and clearly explained, for example, in the cult film "The Wolf of Wall Street" in the dialogue between Mark Hanna and Jordan Belfort:

Video in Russian translation here: https: //www.youtube.com/watch?v=fRVwyZ6t7Fk&t=112s

Quote:"Nobody knows if the stock price will go up, down, sideways, or in circles -- it's all humera, humera, humera will figure it out."

 
Vitaly Muzichenko #:
... and the result is the same = 50/50.

except for one signal from a pattern -- there is a set of different types of signals (input/output signals, filtering signals), there is man-management -- as a result, the probability of the output is far from 50/50.

New comment