General info and acknowledgements
Date of publishing: 20th of july 2017
This script is based upon Davinci's dav-o meter and his original script, which searches for W's and M's in price, OBV, and/or Willy.
Although the original script is elegant, a W or M has to occur within 5 bars.
However, often what you will see is that a W or M forms over more than 5 bars.
This script tries to remove that limit.
It took me several different approaches to find a good solution. For the most part because of the lack of any real debugging tool in Pine script.
Let me know what you think, because I feel like I need tone down the number of options so it is easier to use.
If you have any questions, or things you would like to see different please contact me at TRI .
Have fun playing and goofing around with it!
How it works
Now, trading is more of an art form than a science and this indicator is no exception.
When talking about M's and W's, it begs the question: what exactly counts as a W or M?
My personal experience is that for a W to count as such, it has to adhere to the following rules:
1. A 'W' has 5 points, A, B, C, D and E E
2. Point A can be any point C /
3. Point B should be lower than A A / \ /
4. Point C should be higher than B \ / D
5. Point D should be lower than C, but higher than B B
6. Point E should be higher than C
1. A 'M' has 5 points, A, B, C, D and E B
2. Point A can be any point / \ D
3. Point B should be higher than A A \ / \
4. Point C should be lower than B C \
5. Point D should be higher than C, but lower than B E
6. Point E should be lower than C
Script input parameters
You can use the following indicators to search for W's or M's:
- price (close)
For each of these indicators you set the following options:
- Use: whether you want to use it
- The maximum width: over how many bars a W / M is allowed to form
- The maximum offset: how many bars back a W / M is allowed to form
- Strict: when not set, rule 5 (see 'How it works') changes: point D no longer has to be above B (for W), and no longer has to be below B (for M)
- Length: length of the indicator, for example a 14 bar
- Potential dav-o: show potentials which are like regulars dav-o's, except that rule 6 (see 'How it works') no longer applies.
- Period: you can limit the period for backtesting. Useful to identify under what market conditions the script works best.
Final note: using the potential dav-o in combination with unsetting the 'Strict' rule will make this script all but useless.
The option "SMA above / below price" takes into account the width of the price. Previously, it was always calculated over 5 bars.
- Fixed a bug in RSI (thank you Benjamin!)
- Added a list of future improvements