The Triangle pattern Triangle chart patterns are one of the most resourceful and practically advanced templates in technical analysis. These charts are the underpinnings of a well-calculated move when it comes to the assessment of risk and reward ratios. The pattern is often represented by drawing trendlines along an intersecting price scale, which suggests a stoppage in the ongoing trend.
The Wedge pattern It is a price pattern that is denoted by the intersection of trend lines on a price chart. The opposing trend lines are drawn to connect the respective highs and lows of a price activity progression over the stretch of 10 to 50 periods. The lines can exhibit the magnitude of the highs and lows, signifying whether they are ascending or descending; this pattern gives the appearance of a wedge, hence the name. The wedge pattern has a good track record for forecasting price reversals.
This script is one of an attempt to help traders look for triangles and wedge patterns as soon as a breakout occurs. How this script works: 1. First, it identifies the two tops of the pattern using the ta.pivot() function. 2. Next, it draws a trendline connecting those 2 tops, top A and top C (called the upper resistance line of the pattern). 3. Next, it draws a trendline connecting those 2 peaks (called the upper resistance line of the pattern). 4. Right now it will test 2 bottoms of the pattern (bottom B and bottom D). 5. Next, it will measure the ratio of waves AB, BC and CD (for example with triangle pattern, we need wave BC to retrace about 0.5 wave AB, same for wave CD and wave BC). 6. Finally, it will alert the trader if a break of a valid pattern occurs. In addition, this script has more information about average trading volume, volume of candlestick breakouts. Those factors help us further confirm to enter the order.
This script is not all, you should combine other methods to increase your win rate.
Thanks a lot!, highly appreciated!. Please, can I have it with an option for long/short so I can have the option to add text in the alert message box? Can you please send me a message?
Impulse_Traders
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Hi, Thank you for your wonderful script! Could you please tell me how to setup alert? Do I need to select any alert function call from alert dropdown options?
VIPindicators
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hi could you private message me, i cant message. thanks