OPEN-SOURCE SCRIPT

Elliot Wave - Impulse

Updated

Lets dabble a bit into Elliot Waves.

This is a simple script which tries to identify Wave 1 and 2 of Elliot Impulese Wave and then projects for Wave 3.

Ratios are taken from below link: https://elliottwave-forecast.com/elliott-wave-theory/ - Section 3.1 Impulse

Wave 2 is 50%, 61.8%, 76.4%, or 85.4% of wave 1 - used for identifying the pattern.
Wave 3 is 161.8%, 200%, 261.8%, or 323.6% of wave 1-2 - used for setting the targets

Important input parameters

Length : Zigzag Length. Keep the numbers low if you are looking for smaller and shorter trades. Keep the numbers high if you are looking for longer and bigger trades.
Error Percent : Adjustments for ratios as it is not always possible to find exactly equal retracement ratio.
Entry Percent : Once Wave 2 is formed, entry is set after reversing 30% of wave 2. This number can be increased or decreased. Caution: Keeping the number too low may result in false signals.
Ignore Trend Direction: If unchecked, it will only look for pattern if Wave 1 has made a higher high. If not, it will ignore Wave 1 condition and only look at wave 1 to 2 ratio.
Handle Duplicates: Since, the labels are generated upon crossover of entry price, this crossover may happen multiple times. Or sometimes wave 2 can further extend and generate new signal with same wave 1. This parameter says how to handle such cases. Keep Last is set to default and is most preferred option.
ShowRatios and ShowWaves lets you display wave line and retracement ratios for each pivots

Release Notes

Default error Percent set to 5
Added option for waitForConfirmation - this will wait till zigzag pivot is fully formed before considering it for wave
Added tightstop option which makes use of entryPercent in reverse direction.

Release Notes

Ok, I have rewritten the code completely to avoid errors on shorter timeframes. With this logic, target and stop labels appear only for last formed pattern. This is again done to avoid errors related to too many objects on the chart.

Release Notes

Adjust stop, entry and target label, line position based on timeframes

Release Notes

Added alert condition

Release Notes

Fix zigzag calculation error.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

Trendoscope

Trial - trendoscope.io/trial
Subscribe - trendoscope.io/pricing
Telegram: p.trendoscope.io/telegram
Rate us : trustpilot.com/review/trendoscope.io

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.