Double bottom or double top

• 10/20/2017 at 3:07 PM #50073
  rama

  Thanks for your replies , to test the code I need to add buy and sell condition.

  the code is for returning the values

   

  how to add to this buy and sell condintons

  example

  buy 1 perpoint at support stop

  sellsshort 1 perpoint at resistance stop

   

   

   

   

  

  rama

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  10/21/2017 at 12:29 AM #50096
  Abz

  Leo how will put this indicator into a automated system , buy on arrow up and sell on arrow down?

  

  Abz

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  10/21/2017 at 8:41 PM #50157
  Leo

  Yes, right Nicolas! another way can be with a slope of a triangle between two maximums/minimus

  If we learn to analyse the history of the locals minimums and locals maximum, then we can detects not only doble top/bottoms but channels, triangles, even head and shoulders!!!

  And getting an issue that some minimums and maximum in certain cases are duplicated therefore cause a false signals of doble bottoms/top… anyway there is a lot work to do.

   

   

  

  Leo

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  10/21/2017 at 8:49 PM #50158
  Leo

  Abz wrote:

  Leo how will put this indicator into a automated system , buy on arrow up and sell on arrow down?

  No, we have the study how the arrows behave and get a profitable robot! 🙂

   

  

  Leo

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  10/22/2017 at 9:05 PM #50259
  Leo

  Hi all,

  Here my first approximation… I feel very optimistic about this approach although there is a lot work to do (that’s why there is not algorithm to detects double bottom/tops yet )

  Please see the picture attached, the triangle is draw by the algorithm here:

  Double Top and bottoms

  //LOCALS MINIMUMS AND MAXIMUMS Kdouble=0.1 //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 // << Storage of minimums and maximums >> once mintemp=low once posmintemp=1 once maxtemp=high once posmaxtemp=1 IF BARINDEX>1 THEN // the value 0.75 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked) IF low < lowest[round(0.75*period)](low[1]) THEN mintemp=low //minimum temporal posmintemp=BARINDEX //postition of minimum temporal ENDIF IF high > highest[round(0.75*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 IF LMA crosses over smoothLMA 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 LMA crosses under smoothLMA 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 //--> Double bottoms IF LMA crosses over smoothLMA THEN WidthDoubleBottom = LEVMAX-(BLEVMIN+LEVMIN)/2 // local max minus average of the las two local min IF abs(BLEVMIN-LEVMIN) < Kdouble*WidthDoubleBottom THEN DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSLEVMAX,LEVMAX,BPOSLEVMIN,BLEVMIN) COLOURED(0,255,0,200) ENDIF ENDIF //--> Double tops IF LMA crosses under smoothLMA THEN WidthDoubleTop=(BLEVMAX+LEVMAX)/2 -LEVMIN IF abs(BLEVMAX-LEVMAX) < Kdouble*WidthDoubleTop THEN DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSLEVMAX,LEVMAX,BPOSLEVMAX,BLEVMAX) COLOURED(255,0,0,200) ENDIF ENDIF RETURN LMA AS "LMA", support as "support", resistance as "resistance", smoothLMA as "smooth LMA" //, lowest[round(0.75*period)](low[1]), highest[round(0.75*period)](high[1])

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84

  //LOCALS MINIMUMS AND MAXIMUMS   Kdouble=0.1 //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   // << Storage of minimums and maximums >> once mintemp=low once posmintemp=1 once maxtemp=high once posmaxtemp=1   IF BARINDEX>1 THEN // the value 0.75 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked) IF low < lowest[round(0.75*period)](low[1]) THEN mintemp=low //minimum temporal posmintemp=BARINDEX //postition of minimum temporal ENDIF IF high > highest[round(0.75*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   IF LMA crosses over smoothLMA 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 LMA crosses under smoothLMA 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   //--> Double bottoms IF LMA crosses over smoothLMA THEN WidthDoubleBottom = LEVMAX-(BLEVMIN+LEVMIN)/2 // local max minus average of the las two local min IF abs(BLEVMIN-LEVMIN) < Kdouble*WidthDoubleBottom THEN DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSLEVMAX,LEVMAX,BPOSLEVMIN,BLEVMIN) COLOURED(0,255,0,200) ENDIF ENDIF //--> Double tops IF LMA crosses under smoothLMA THEN WidthDoubleTop=(BLEVMAX+LEVMAX)/2 -LEVMIN IF abs(BLEVMAX-LEVMAX) < Kdouble*WidthDoubleTop THEN DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSLEVMAX,LEVMAX,BPOSLEVMAX,BLEVMAX) COLOURED(255,0,0,200) ENDIF ENDIF   RETURN LMA AS "LMA", support as "support", resistance as "resistance", smoothLMA as "smooth LMA" //, lowest[round(0.75*period)](low[1]), highest[round(0.75*period)](high[1])

   

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  Ste, Abz

  

  Leo

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  10/23/2017 at 8:16 AM #50274
  Madrosat

  Good morning

  good work Leo
  how can I spot and use the arrows in automatic trading

  

  Madrosat

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  10/23/2017 at 8:25 AM #50276
  rama

  Hi Leo

  your code is for screen return

  my coding knowledge is poor add a buy condition and sell condition by removing screen retrun

  can you advice me

  where to add and how to add

  x=5

  buy 1 perpoint at resistance+x stop

  sellshort 1 perpoint at support -x stop

   

  I will change the other conditions after back testing. x=5 and buy condition etc are example only

  after back testing I will post my results

  

  rama

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  10/23/2017 at 1:24 PM #50317
  Abz

  Leo i tested the first version and i saw that the arrows appears sometimes on the 2-3 previous candle. is this something that you have seen?

  

  Abz

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  10/23/2017 at 9:13 PM #50343
  Leo

  Hi all,

  Madrosat, so far I am developing an algorithm for detecting double top or bottoms. For trading is more or less what Rama says: instead of drawing a triangle, it will be the executing order or a boleean or whatever.

  Rama, right now I do not know how is the executed a trade, the theory is (for long)

  – entry above the resistance

  – stop loss below the support

  – stop profit at a distance of Resistance – support i.e. a trade with profit/risk ratio of one

  … that’s the theory maybe we can entry on the market earlier and take more profit

  Abz, odd that error. What I notice is that some arrows are duplicated ( or repeated), try my last version, please and tell us if it is better.

  

  Leo

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  10/24/2017 at 9:16 PM #50419
  Leo

  Hey,

  I made an algorithm for detecting double top and double bottoms and is working so awesome and I feel so proud of it that I put it in the library as an indicator. Have a look to it when @Nicolas validate it for posting… and please give it a like or comment it, I want to improve my ranking in this forum  🙂

  I think my algo is promising and I hope we work together for make the proper modification for automatic trading.

  1 user thanked author for this post.

  mamio

  

  Leo

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  10/25/2017 at 6:53 PM #50520
  swapping

  Hello Leo, very good algorithm

  Tested today and very efficient for visual technical analyse at different frame; Also coupled with LMA is cool

  Thank you (sorry for my english)

  

  swapping

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  10/25/2017 at 7:15 PM #50521
  Nicolas

  Hey Leo, you made a great job with your approach on these particular patterns, a big thumb up for you 🙂

   

  

  Nicolas

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  10/25/2017 at 9:23 PM #50535
  Leo

  Thanks, those message encourage me for continuing my endeavour.

  Here is my detector:

  https://www.prorealcode.com/prorealtime-indicators/double-top-double-bottom-detector/

  Now we have to found a clever way to employ that detector…

  

  Leo

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  10/26/2017 at 1:45 PM #50606
  Madrosat

  Abz as write : Leo i tested the first version and i saw that the arrows appears sometimes on the 2-3 previous candle. is this something that you have seen?

   

  I think arrows are repainting is true Léo??

  Madrosat

  

  Madrosat

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  10/26/2017 at 5:28 PM #50635
  Leo

  Hi Madrosat,

  around line 20 of the code,  says:

  // the value 0.75 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked)

  I thought this solve the issue, but no…. hope we find another way no repeating the arrows (I.e duplicating the information of a local maximum or minimum)

  

  Leo

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