Double Top/Bottom - Ultimate

Trendoscope Wizard Updated   
Hellow traders, this is my final script regarding double top/bottom pattern recognition. This script is built based on zig zag indicator whereas the previous ones are built based on pivot points.

Double Top:
  • Recognition - Checks on Zigzag if LH is followed by HH
  • Confirmation - When low crosses under last lower pivot point on zigzag
  • Invalidation - When high crosses over HH

Double Bottom:
  • Recognition - Checks on Zigzag if HL is followed by LL
  • Confirmation - When high crosses over last higher pivot point on zigzag
  • Invalidation - When low crosses under LL

Few major changes in this version compared to previous ones:
  • Zigzag offers more simplicity in deriving the pattern and also enahnces accuracy. Things such as pivot distance, absolute peaks are removed as they are redundant.
  • Option to display risk per reward which defines how steep is the W-M triangle. This is simply the ratio of price difference between mid point to top most and bottom most points. In case of double top, downside is considered as reward and upside is considered as risk and with double bottom, downside is considered as risk and upside is considered as reward. Lower risk per reward signifies better trade.
  • Option to display stats which shows number of occurances of double top and bottom and how many times price crossed confirmation point and invalidation point (which are also marked with dashed lines) Stats are color coded. Higher success rates are colored in shades of green, lower success rates are colored in shades of orange whereas the neutral success rates are coloed in light yellow.

Example of stat shown in Neutral shade. I could not find any instrument which had confirmation rate less than 0.4 - which suggests confirmation rate for the patter is pretty strong:

Links for the other two scripts are here:

Release Notes:
Added alerts
Release Notes:
Added option to set MaxRiskPerReward to filter out steep triangles.
Release Notes:
Fix 1m timeframe issue
Release Notes:
Updated solution for lower timeframe charts

Protected script
This script is published closed-source and you may use it freely. You can favorite it to use it on a chart. You cannot view or modify its source code.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?