Hi all,
I was working in the detection of double top and double bottom (W&M).
- I solve the issue of repeating the locas max and min by adding another condition
- It knows where the pattern is activated or cancelled
- It draws an arrow in possible places to open a trade
- It still having a strange signal when the markets moves very quickly (but I don’t have any idea why is drawing a very strange triangle)
But I do not know yet how will be the ideal W and M pattern, I wonder why there are so many false double top or double bottoms. I though it was the most reliable technical pattern.
Hope I heard from you
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//LOCALS MINIMUMS AND MAXIMUMS USING LEO MOVING AVERAGE //Autor: LEO //VARIABLES TO BE OPTIMIZED //PERIOD=20 //Period for analysis //Kdouble=0.2 //Factor for defining what is double top or bottom //----------- //Leo Moving Average, formula: LMA= WMA+(WMA-SMA) LMA=2*weightedaverage[period](close)-average[period](close) //Smoothed curve of Leo Moving Average IF BARINDEX > period THEN smoothLMA=weightedaverage[period](LMA) ELSE smoothLMA=undefined ENDIF // Direction or trend of the LMA //once LMAdirection=1 IF BARINDEX > period THEN IF LMA > smoothLMA THEN //LMAdirection=1 //colors r=0 g=130 b=0 ELSE //LMAdirection=-1 r=200 g=0 b=0 ENDIF ENDIF // << Storage of minimums and maximums >> once mintemp=low once posmintemp=1 once maxtemp=high once posmaxtemp=1 IF BARINDEX>2 THEN // the value 0.7 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked) IF low < lowest[round(0.7*period)](low[1]) THEN mintemp=low //minimum temporal posmintemp=BARINDEX //postition of minimum temporal ENDIF IF high > highest[round(0.7*period)](high[1]) then maxtemp=high //maximum temporal posmaxtemp=BARINDEX //position maximum temporal ENDIF ENDIF // << Detecting and locating a local minimums >> // Where the LMA is crossing the smoothed LMA, there is a maximum or minimum nearby // If there is a new local min/max, the preivus one is stored in de varible B... (before) once LEVMIN=low once POSLEVMIN=1 once LEVMAX=high once POSLEVMAX=1 once bullcross=0 once bearcross=0 IF BARINDEX > PERIOD THEN //For avoid computer errors bullcross=LMA crosses over smoothLMA bearcross=LMA crosses under smoothLMA ENDIF IF bullcross and POSLEVMIN<>posmintemp THEN BLEVMIN=LEVMIN //previus local minimum is saved BPOSLEVMIN=POSLEVMIN LEVMIN=mintemp POSLEVMIN=posmintemp support=LEVMIN DRAWARROWUP(POSLEVMIN,LEVMIN) coloured(0,0,0,30) ENDIF // --> Detecting and locating a local maximum IF bearcross and POSLEVMAX<>posmaxtemp THEN BLEVMAX=LEVMAX //previus local maximum is saved BPOSLEVMAX=POSLEVMAX LEVMAX=maxtemp POSLEVMAX=posmaxtemp resistance=LEVMAX DRAWARROWDOWN(POSLEVMAX,LEVMAX) coloured(0,0,0,30) ENDIF support=min(low,support) resistance=max(high,resistance) // << DETECTING DOUBLE TOP OR BOTTOMS >> once WidthDoubleTop = high-low once WidthDoubleBottom = high-low once Wpattern=0 once Mpattern=0 // <<<<<< Double bottoms >>>>>>>>> //looking for the top between two local minimums IF bullcross THEN doublebottomtop=high[BARINDEX-POSLEVMIN+1] // we start looking for the top in between two local minimums POSdoublebottomtop=BARINDEX-POSLEVMIN+1 FOR i = (BARINDEX-POSLEVMIN+1) to (BARINDEX-BPOSLEVMIN-1) DO IF high[i] > doublebottomtop THEN doublebottomtop=high[i] POSdoublebottomtop=BARINDEX-i ENDIF NEXT WidthDoubleBottom = doublebottomtop-(BLEVMIN+LEVMIN)/2 // (top betwen local minimums) - (average of the las two local minimums) IF abs(BLEVMIN-LEVMIN) < Kdouble*WidthDoubleBottom THEN // we have a double bottom Wpattern=1 else Wpattern=0 ENDIF ENDIF // <<<<<<<<<< Double tops >>>>>>> //looking for the bottom between two local maximums IF bearcross THEN doubletopbottom=low[BARINDEX-POSLEVMAX+1] POSdoubletopbottom=BARINDEX-POSLEVMAX+1 FOR i = (BARINDEX-POSLEVMAX+1) to (BARINDEX-BPOSLEVMAX-1) DO IF low[i] < doubletopbottom THEN doubletopbottom=low[i] POSdoubletopbottom=BARINDEX-i ENDIF NEXT WidthDoubleTop=(BLEVMAX+LEVMAX)/2 -doubletopbottom IF abs(BLEVMAX-LEVMAX) < Kdouble*WidthDoubleTop THEN // we have a double top Mpattern=1 else Mpattern=0 ENDIF ENDIF // <<<<<<<<<< DOUBLE TOP AND DOUBLE BOTTOM FOR TRADING >>>>>>>> myATR=AverageTrueRange[2*period](close) IF Wpattern=1 THEN IF close > (doublebottomtop+myATR) or close < (LEVMIN-0.5*myATR) THEN Wpattern=0 // <<<< double bottom has been activated or it was cancelled >>>>> ELSE // <<<<<<< HERE WE HAVE A DOUBLE BOTTOM FOR TRADING >>>>> DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSdoublebottomtop,doublebottomtop,BPOSLEVMIN,BLEVMIN) COLOURED(0,255,0,200) DRAWARROWUP(BARINDEX,low) coloured(0,255,0,100) DRAWRECTANGLE(BPOSLEVMIN,doublebottomtop+WidthDoubleBottom,POSLEVMIN,doublebottomtop+WidthDoubleBottom-Kdouble*WidthDoubleBottom) coloured(0,120,0,255) DRAWTEXT("Target",(BPOSLEVMIN+POSLEVMIN)/2,doublebottomtop+WidthDoubleBottom,SansSerif,Bold,13)coloured(0,120,0,255) ENDIF ENDIF IF Mpattern=1 THEN IF close < (doubletopbottom-myATR) or close > (LEVMAX+0.5*myATR) THEN Mpattern=0 //double top has been activated or it was cancelled ELSE // <<<<<<< HERE WE HAVE A DOUBLE TOP FOR TRADING >>>>> DRAWTRIANGLE(POSdoubletopbottom,doubletopbottom,POSLEVMAX,LEVMAX,BPOSLEVMAX,BLEVMAX) COLOURED(255,0,0,200) DRAWARROWDOWN(BARINDEX,high) coloured(255,0,0,100) DRAWRECTANGLE(BPOSLEVMAX,doubletopbottom-WidthDoubleTop,POSLEVMAX,doubletopbottom-WidthDoubleTop+Kdouble*WidthDoubleTop) coloured(200,0,0,255) DRAWTEXT("Target",(BPOSLEVMAX+POSLEVMAX)/2,doubletopbottom-WidthDoubleTop,SansSerif,Bold,13)coloured(200,0,0,255) ENDIF ENDIF RETURN LMA coloured(r,g,b,200) AS "LMA", support[1] coloured(140,0,200,250) style(DOTTEDLINE,1) as "support[1]", resistance[1] coloured(0,0,250,250) style(DOTTEDLINE,1) as "resistance[1]", smoothLMA coloured(r,g,b,200) style(DOTTEDLINE,1) as "smooth LMA" //, lowest[round(0.7*period)](low[1]), highest[round(0.7*period)](high[1]) |
