Harmonic Pattern Detection Indicator V10 Utilization: Capture the Double Top!
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It also retains powerful waveform exploration features, and users are surely aware that it is not merely a match by zigzag.
This time, we would like to challenge detection of double tops and double bottoms.
Previous article: “Capture the Wolfe Wave!”
Please refer to the previous article for preparation, etc.
This time as well I drew one diagram to consider double tops. For double tops/double bottoms, when the price reaches point D that coincides with point B in an uptrend, detection is performed. For now, I’ve set the B point position a bit higher than in the previous Wolfe wave.
Well then, let’s start writing into the CSV.
Like this.
Since I decided to compute point D from AB, I set DType to 3 and TDType to 1.
Since the target is at the same position as point B, the minimum and maximum for D are ±5%. By setting TD1 to 1 and reaching point B, the shape will be drawn. Let’s display it now.
USD 1H
...It appears in a fairly good place.
Within the visible screen range there are slight pushes sometimes, but the win rate is 100%. Amazing (laugh).
Since we condition A to be higher than X-1, it does not appear at simple V-shaped spots. Conversely, this seems to work well as a filter, but for now let’s remove the condition.
Registered as TD2.
Changed the minimum and maximum of point A to 0.
Let’s close Excel and display it in the indicator right away.
※ The indicator fails to display if Excel is not closed.
The result looks like this.
The number of detections is detected just before the dollar-yen sharp rise in the lower left, but all of them are off. Considering reliability, keeping the condition X-1 < A seems better.
Also, when reviewing past charts, overly small waveforms are detected repeatedly. When actually using it, it would be better to reconfigure the ATR filter.
Now, with the USD/JPY, the recent range-bound period’s double-top-looking instance has not been detected. This seems due to the condition A < C.
Considering this, it seems possible to detect head-and-shoulders shapes as well.
So, next time I’d like to consider detecting head-and-shoulders.