Double Top/Bottom V2

Trendoscope Wizard Updated   
This is an enhanced version of Double Top/Bottom detector.

Initial basic version can be found here:

Concept of deriving pattern is similar but there are few major changes.

Double Top:
  • Get the highest pivot high from last X pivot highs (DTHigh1)
  • Look for next top most pivot high which happened after DTHigh1 (DTHigh2)
  • Look for lowest pivot low between DTHigh1 and DTHigh2 (DTLow)

Double Bottom:
  • Get the lowest pivot low from last X pivot lows (DBLow1)
  • Look for next lowest pivot low which happened after DBLow1 (DBLow2)
  • Look for highest pivot high between DBLow1 and DBLow2 (DbHigh)

Other Key parameters:
  • checkForAbsolutePeaks and absolutePeakLoopback work together. When selected, double top and double bottom is formed only if DTHigh1/DBLow1 are highest/lowest points from last absolutePeakLoopback bars back.
  • considerPivotDistance will make sure distance between Highs(in double top) and lows(in double bottom) are below 2 (MaxAtrDistanceBase) times ATR. And distance between average Highs/Lows to Low/High forming triangle is less than 6 (MaxAtrDistanceHighLow) times ATR. This will avoid showing steep triangles as double top/bottoms.
  • showLastLevels option allows users to display dashed lines on double top/bottom confirmation and invalidation levels for last formed double bottom and tops. These can be treated as strong support and resistence. Dashed lines are permanently formed on double top/bottom setups when an invalidation or confirmation occurs by price crossing either lowest or highest points of double top/bottom triangles.

  • Probable double top/bottom - when double top or bottom triangles formed.
  • Double top/bottom confirmation - when double top or bottom is confirmed.
  • Double top/bottom invalidation - when double top or bottom is invalidated.

Few important points about adjusting parameters:
  • Lower pivot lengths will generate more signals. But, too frequent signals may not be desirable as well.
  • higher absolutePeakLoopback will reduce number of signals while strengthening them.
  • Unchecking consider pivot distance or reducing MaxAtrDistanceBase/MaxAtrDistanceHighLow may considerably increase the number of pivots specially when pivot lengths are lower side. This may result in reduced quality of signals as well.

Moving average condition which is part of basic script is not included in this. We can add Hull Suite or moving average crossover on the chart as confirmation of strong signal.
Release Notes:
Added option for showOnlyLast. When checked, only last double top/bottom will be displayed. Also, the labels of confirmation and invalidation will not be shown when showOnlyLast is selected. Alerts will be unaffected.

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