This indicator predicts the nearest bars of the chart based on the search of up to three most appropriate patterns (a sequence of bars of a given length) in the history of the current instrument of the current timeframe.
The identified patterns are combined with the current pattern at the opening price of the current (last) bar. The predicted bars are a continuation of the patterns found in the history.
Pattern search is performed once every time a new bar of the current timeframe opens. The indicator is not redrawn during the formation of a bar.
The coincidence error (standard deviation in points) and the time of the pattern found are displayed in the lower right corner of the chart in the corresponding color.
The indicator works with any timeframes and instruments (including stock exchange). It can be useful for predicting the market behavior and making decisions on trading operations.
For the indicator to find the most suitable patterns, it is necessary to provide the greatest possible depth of bars history.
- Pattern length - pattern length (positive integer value), i.e. the number of suitable bars of the desired pattern.
- Count of forecasted bars - the number of predicted bars (positive integer value).
- Search for patterns - enumeration type parameter with the values one_best_matched, two_best_matched, three_best_matched, which allows setting the number of the most suitable patterns to be searched in history (up to three).
- Show patterns - boolean parameter (true/false), indicating the need to display the found patterns.
- History depth to search patterns (0 - all available) - history depth (the number of last bars) to search for patterns. If the parameter is set to 0, them all available history of bars is used.
The indicator plots
- 1st best pattern - the identified most suitable pattern with the least error of coincidence with the current pattern. The indicator buffers 10 - 14 are used for plotting the bars of the pattern.
- 2nd best pattern - the second most suitable pattern with the next lowest error of coincidence with the current pattern (indicator buffers 5 - 9).
- 3rd best pattern - the third most suitable pattern with the highest error of coincidence with the current pattern of the three (indicator buffers 5 - 9).
By default, the predicted bars are displayed in lighter tones relative to the colors of the corresponding patterns.
By default, the thickness of lines used to plot the bars of all three patterns are set to a single fixed value of 2. It is also possible to set different line widths (for example, 1, 3, 5) to display the full shape of bars of all three patterns (see the last screenshot).