This indicator has first been published on mql4.com here (Russian). The indicator is built by four points forming the pattern.
It works on H1.
The idea of the system – is visual defining of the subsequent movement. The author proposes the following interpretation:
- If the last figure is narrowing and that narrowing is less than the figure's base, a trend is expected to be continued (at least by the size of a base).
- If the last figure has expansion exceeding the figure's base, the trend will possibly change (at least by the size of a base).
- If the figure's base and end are visually equal, correction is expected.
- TimeBar - number of days for processing.
- WIDTH - width of plotted lines.