Harmonic Patterns 1

The Harmonic Patterns 1 indicator automatically identifies and plots classic harmonic chart patterns to assist traders in finding high-probability reversal zones. It scans for ABCD, Gartley, Cypher, and 5.0 patterns by evaluating five consecutive pivot points (X, A, B, C, D) and verifying their Fibonacci ratios.

Usage

The script is used to automate the complex task of manual pattern recognition. Once a pattern is confirmed at point D, the indicator plots a descriptive label along with suggested Entry, Take Profit (TP), and Stop Loss (SL) levels.

Traders can use this tool to:

• Identify Reversals: Spot potential market turning points based on historical Fibonacci relationships.
• Risk Management: Utilize the automatically generated SL and TP lines to plan trades.
• Confirmation: Use the pattern labels in conjunction with other oscillators or trend indicators to validate trade setups.

The "Error Marge" (Ratio tolerance) setting allows users to adjust how strictly the script adheres to specific Fibonacci ratios, with a higher percentage providing more frequent but potentially less "perfect" patterns.

Details

The indicator operates by monitoring price action via a built-in ZigZag mechanism. It identifies peaks and troughs to establish the XABCD sequence. At the final point (D), the script calculates the internal retracement and extension levels (e.g., B relative to XA, C relative to AB).

A unique feature is the "Drawing" system, which visually connects the points to form the classic harmonic shapes. Because these drawings are computationally intensive, the "Look-Back" period setting determines how far back the script searches for the origin point (X) to complete the visual representation.

Settings

Patterns

• Show 'ABCD' / 'Gartley' / 'Cypher' / '[5-0]': Toggles the detection and display of each specific pattern type.
• Ratio tolerance: Sets the percentage of deviation allowed from the ideal Fibonacci ratios (0-10%).

Visuals

• Show ZigZag: Displays the underlying trend lines used to identify pivot points.
• Size Label: Adjusts the text size of the pattern labels (Tiny to Huge).
• Distance Label vs Bar: Controls the vertical offset of the labels from the price bar.
• Linewidth: Customizes the thickness of the pattern shapes and connection lines.

Trade Levels

• Show Entry / SL / TP Lines: Toggles the visibility of the price target levels.
• TP level settings: Allows selection of specific Fibonacci levels (e.g., 0.382, 0.618) for different Take Profit targets.
• Bullish/Bearish Lines: Customizes the colors for patterns based on their direction.

FAQ

How do I access Harmonic Patterns 1?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why are some drawings not appearing or appearing flat?

This usually occurs if the pattern's origin point (X) is further back than the "Look-Back" period. Increase the "Period [Look-Back]" setting in the script inputs to resolve this.

Can I use this for crypto and forex?

Yes, the indicator is designed to work across all asset classes, though you may need to adjust the "Minimum % Change" in the ZigZag settings to account for different volatility levels.