PZ Head and Shoulders MT5
A head and shoulders pattern is a chart formation that resembles a baseline with three peaks, the outside two are close in height and the middle is highest. It predicts a bullish-to-bearish trend reversal and is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that a trend is nearing its end.
- Clear trading signals
- Customizable colors and sizes
- Implements performance statistics
- Customizable Fibonacci retracement levels
- Displays suitable stop-loss and take-profit levels
- The indicator can be used to find continuation or reversal patterns
- It is non-repainting and non-backpainting
- It implements email/sound/visual alerts
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 amplitude represents the minimum amount of bars
between alternative price points. To find big patterns, increase the
amplitude parameter. To find smaller patterns, decrease the amplitude
parameter. You can load the indicator many times in the chart with different amplitudes.
- Min. Retracement - The minimum Fibonacci retracement needed in a pattern. Set to zero not to evaluate it.
- Max. Retracement - The maximum Fibonacci retracement possible in a pattern. Set to zero not to evaluate it.
- Neck Flatline Ratio - This parameter describes how "flat" must the neckline of the pattern.
- Max History Bars - Amount of past bars to evaluate when the indicator loads in the chart.
- Display Stats - Show or hide the statistics dashboard and performance data.
- Display SL/TP Levels - Show or hide suitable SL and TP levels for each signal.
- Drawing Options - Colors and sizes for bullish or bearish lines and labels, as well as font sizes.
- Breakouts - Colors and sizes for breakout arrows.
- Alerts - Enable or disable alerts at will.
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.