Harmonic Patterns 2

The Harmonic Patterns 2 indicator identifies high-probability reversal zones by automatically detecting five-point harmonic structures including Crab, Bat, Butterfly, and Shark patterns. This tool provides a comprehensive trading framework by plotting automated entry, take-profit, and stop-loss levels upon pattern confirmation.

Usage

The script monitors price action to identify five consecutive pivot points (X, A, B, C, D) that meet specific Fibonacci ratio requirements. When a pattern is confirmed at point D, the indicator:

• Displays a labeled drawing of the harmonic structure.
• Plots an entry line at the confirmation price.
• Calculates and displays multiple Take Profit (TP) and Stop Loss (SL) levels.
• Optional animal icons (🦀, 🦇, 🦋, 🦈) provide quick visual identification of the active pattern type.

Users can toggle specific patterns on or off to focus on preferred structures and adjust the "Ratio tolerance" to account for market noise or strictness requirements.

Details

The indicator utilizes a ZigZag algorithm to identify significant market pivots. Each pattern is verified by comparing the internal Fibonacci relationships between the legs (e.g., the B point relative to XA, or the D point relative to XC).

• Crab/Deep Crab: Identified by a deep D point extension.
• Bat / Alt Bat: Focused on specific B point retracements.
• Butterfly: Noted for its D point extension beyond the X point.
• Shark: A unique five-point pattern that relies on the 0.886 and 1.13 ratios.

Settings

Patterns

• Show Patterns: Toggle visibility for Crab, Bat, Alt Bat, Butterfly, and Shark patterns.
• Ratio tolerance: Adjusts the percentage of error allowed in Fibonacci calculations (0-10%).
• Minimum % Change: Sets the sensitivity for the underlying ZigZag pivot detection.

Visuals

• Show Drawings/Labels: Toggles the geometric shapes and price labels.
• Size Label: Changes the text size for entry and target labels.
• Period Drawings: Defines how many bars back the script looks to connect pattern coordinates (increase this if drawings appear incomplete).

Levels

• TP level: Select the Fibonacci multiplier used to calculate the primary Take Profit targets.
• Show SL/TP Lines: Toggles the horizontal price levels for trade management.

FAQ

How do I access Harmonic Patterns 2?

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

Why do some patterns disappear?

To maintain chart performance and clarity, the script limits the number of historical drawings. The most recent and currently active patterns will always remain visible.

What does "No Wick" mode do?

When enabled, the script calculates pivots based on candle bodies (Open/Close) rather than the absolute High/Low, which can help filter out volatile price spikes.