Triangle and Wedges Patterns recognition

Here you can post and download custom indicators. PLEASE: Do not start topics unless you are posting your own indicator, they will be moved to appropriate section even if you do.

Moderator: admin

Triangle and Wedges Patterns recognition

Postby Apprentice » Mon Aug 02, 2010 12:10 pm

Triangle.png


Triangles often form as uncertainty fills the market, and traders are unsure in which direction is market moving.
Triangles are continuation patterns, represent lines of supply and demand.
But modern technical analysis is not limited by this narrow description.
There are three different types of triangles, the Ascending triangle, the Descending triangle, and the Symmetrical triangle.
Because of their similarities, we can add them, and growing or declining Wedge pattern.

If confirmed, the main application of the triangle pattern is to give price targets.
The direction of the trend is determined by the direction of the breakout.

Triagle.PNG

An example of entry signals and exit target obtained using this method.
Time frame a few weeks, max. profit over 1000 pips.

There are some basic validation rules.
1.The pattern upper and lower sloping trendlines must have at least two points of confirmation.
2. Volume usually decreases as the pattern progresses and increases at the point of breakout, forming a wide spread candle.
3. Market (Closing price) "must" respect the pattern.
4.Closing price above the trendline in a bullish pattern and below the trendline in a bearish chart pattern.
5.Strong pattern break through the trend line in the first 2 / 3 of the pattern.

Triangle.lua
(10.16 KiB) Downloaded 9270 times


This is an indicator that we've written a few months ago,
one of the first indicators that I have help to write, One of the most valuable.
I did almost forget and lost It.


MT4/MQ4 version.
viewtopic.php?f=38&t=70457

Indicator based strategy.
viewtopic.php?f=17&t=67122
User avatar
Apprentice
FXCodeBase: Confirmed User
 
Posts: 36341
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

Re: Triangle and Wedges Patterns recognition

Postby schnuggelbugge » Wed Jan 12, 2011 10:41 am

Hi! Thanks a lot! Maybe this is what I've been looking for for a long time...
Now that I'vetasted blood, I have some short questions:
Can you explain the parameters "Max. Base/ Side Ratio" and "Max. Side / Side Ratio" and the "Frame Size"?
Is it possible to play a configurable Soundfile, when a triangle is drawn?
Is it possible to draw the price target in a way you did it in your sample chart?
Is ist possible to play the sound only if a certain condition is met - for example RSI is in a Range between 35 and 65?

I would be very thankful for an answer. Perhaps you can give me some sample lines of code, if you haven't the time to work on some of my audacious requests - I'm a programmer and could try it on my own like a script kiddy...

Again, thanks a lot!

schnuggelbugge
schnuggelbugge
 
Posts: 5
Joined: Wed Jan 12, 2011 10:15 am

Re: Triangle and Wedges Patterns recognition

Postby Apprentice » Wed Jan 12, 2011 2:27 pm

First, this is one of the first things I wrote, helped write.

You can try of course.

Code is available here just opened it using any text editor.

The parameters are used in the comparison of triangles.

Base - Open, Or No Line Triangle Side
Side - Triangle Side indicated by Triange line, lines.

Frame Size -Length of time in which we seek triangle pattern.
User avatar
Apprentice
FXCodeBase: Confirmed User
 
Posts: 36341
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

Re: Triangle and Wedges Patterns recognition

Postby Apprentice » Mon Jan 17, 2011 12:39 pm

Triangle.lua
(10.01 KiB) Downloaded 5542 times


I presented an additional option, Lookback Search lengt,
which defines the Triangle searching area starting from last candle.
In order to improve performance.
User avatar
Apprentice
FXCodeBase: Confirmed User
 
Posts: 36341
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

Re: Triangle and Wedges Patterns recognition

Postby compulsive » Mon Jan 17, 2011 4:44 pm

You mentioned..."If confirmed, the main application of the triangle pattern is to give price targets.
The direction the trend is determined by the direction of breakout
." but I don't see it on the chart. I see the triangles, wedges and etc but price targets?
Attachments
triangles.jpg
compulsive
 
Posts: 30
Joined: Mon Jan 17, 2011 2:39 pm

Re: Triangle and Wedges Patterns recognition

Postby Apprentice » Mon Jan 17, 2011 5:41 pm

This is normal and expected.
In this version, the indicator does not give price targets.

Price target example I have added only as an example.
User avatar
Apprentice
FXCodeBase: Confirmed User
 
Posts: 36341
Joined: Thu Dec 31, 2009 11:59 am
Location: Zagreb, Croatia

Re: Triangle and Wedges Patterns recognition

Postby shinobi_brian » Wed Jan 26, 2011 4:27 pm

Is there a strategy for this? I think it would be a good development idea. The trade could be placed on a retest of the triangle in the appropriate direction?
shinobi_brian
 
Posts: 5
Joined: Sat Oct 09, 2010 8:32 am

Re: Triangle and Wedges Patterns recognition

Postby superleo » Sun Dec 04, 2011 9:31 pm

hi apprendice,

can you create strategy based on this indicator.
User avatar
superleo
 
Posts: 91
Joined: Mon Oct 17, 2011 5:45 am


Re: Triangle and Wedges Patterns recognition

Postby rshoemake » Sun Mar 17, 2013 10:33 am

Does this in fact identify wedges also? That would be very desirable behavior. In fact, if you could also add channels while you are at it it would deal with all three circumstances: paralle, converging,l diverging. Thanks alot!
rshoemake
 
Posts: 5
Joined: Sun Mar 18, 2012 8:00 pm

Next

Return to Custom Indicators

Who is online

Users browsing this forum: Bing [Bot], Google [Bot], Majestic-12 [Bot] and 52 guests