This indicator was designed based on Book written by Scott Carney. It was simplified to user who may always used tools such as XABCD Pattern and Long Position / Short Position, which consume a lot of time, recommended for both beginner and expert of Traders. XABCD Pattern require tool usage of Magnet tool either Strong Magnet, Week Magnet or none, which cause error or human mistake especially daily practice.
Simplified Guideline by sequence for if using manual tools :
- Step 1 : Trade Identification - XABCD Pattern
- Step 2 : Trade Execution - Any manual tools of your choice
- Step 3 : Trade Management - Position / Short Position
- Inspired by design, code and usage of CAGR . Basic usage of custom range / interactive, pretty much explained here. Credits to TradingView.
- I use a lot of XABCD Pattern and Long Position / Short Position, require 5 to 10 minutes on average, upon determine the validity of .
- Upon creating this indicator, I believed that time can be reduced, gain more confidence, reduce error during drawing XABCD, which helps most of users.
- Table can positioned by any postion and font size can be resized.
- Table can be display through optimized display or manual control.
- Validility of depends on BC ratio.
- Harmonic pattern can be displayed fully or optimized while showing BC ratio validity.
- Trade Execution at point D can be displayed on / off.
- Stop Loss and Take Profit can be calculated automatically or manually.
- Optimized table display based extend line setup and profit and loss setup.
- Execution zone can be offset to Point C, by default using Point D.
- Currency can be show or hide.
- Profit and Loss can be displayed on axis once line is extended.
█ HOW TO USE
- Step 1 : Trade Identification - Draw points from Point X to Point C. Dont worry about magnet, point will attached depends on High or Low of the candle.
- Step 2 : Trade Execution - Check the validity of BC to determine the validity of generated. Pattern only generate 1 pattern upon success. Otherwise, redraw to other points.
- Step 3 : Trade Management - Determine the current candle either reach Point D or Potential Reversal Zone (PRZ). Check for Profit & Loss once reach PRZ.
█ USAGE LIMITATIONS
- Harmonic Patterns only limits to patterns mentioned in Trading 3 due to other pattern may have other or different philosophy.
- Only can be used for and below due to bar_time is based on minutes by default.
- Not recommended for Weekly and .
- If Point X, A, B, C and D is next to each other, it is recommend to use lower timeframe.
- Automated alert is not supported for this release. However, alert can be done manually. Alert will updated on the version.
█ PINE SCRIPT LIMITATIONS
- Known bug for when calculate time in array, causing label may not appeared or offset.
- Unable to convert to library due to usage of array.get(). I prefer usage for a combination of array.get(id, 0), array.get(id, 1), array.get(id, 2) into custom function, however I faced this issue during make arrays of label. Index can be simply refered as int, for id, i not sure, already try id refered as simple, nothing happens.
- linefill.new() will appeared as diamond box if overused.
- Text in box.new() unable to use ternary condition or switch to change color. Bgcolor also affected.
- Label display is larger than XABCD tool. Hopefully in future, have function to resize label similar to XABCD tools.
- Trade Management (Profit & Loss) is calculated from Point A to D.
- Take Profit is calculated based on ratio 0.382 and 0.618 of Point A to D.
- Always check BC validity before proceed to Trade Management.
- Length of XABCD is equal to XAB plus BCD , where XAB and BCD are one to one ratio. Length is measured in time.
- Use other oscillator to countercheck. Normally use built-in ( ) and Divergence Indicator to determine starting point of Point X and A.
█ HARMONIC PATTERNS SUPPORTED
// Credits to Scott M Carney, author of Trading 3: Reaction vs. Reversal
- Alt Bat - Page 101
- Bat - Page 98
- Crab - Page 104
- Gartley - Page 92
- Butterfly - Page 113
- Deep - Page 107
- Shark - Page 119 - 220
- Pattern such as , perfect XABCD and that not included, will updated on either next version or new release.
- Point D time is for approximation only, not including holidays and extended session.
- Basic explaination for Trading System (Trade Identification, Trade Execution and Trade Management).
- Harmonic Patterns values is pretty much summarized here including Stop Loss.
- Basic explanation for , Bat, , , and .
█ USAGE / TIPS EXAMPLES (Description explained in each image)
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.