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Wave Analysis

Meta5 Scalping Indicator//@version=5 indicator("Meta5 Scalping Indicator", shorttitle="MSI", overlay=true) // Inputs for Moving Averages fastLength = input.int(9, title="Fast EMA Length") slowLength = input.int(21, title="Slow EMA Length") // Inputs for RSI rsiLength = input.int(14, title="RSI Length") rsiOverbought = input.int(70, title="RSI Overbought Level") rsiOversold = input.int(30, title="RSI Oversold Level") // Inputs for Scalping Conditions atrLength = input.int(14, title="ATR Length") atrMultiplier = input.float(1.5, title="ATR Multiplier") // Calculations fastEMA = ta.ema(close, fastLength) slowEMA = ta.ema(close, slowLength) rsi = ta.rsi(close, rsiLength) atr = ta.atr(atrLength) // Conditions for Buy and Sell Signals bullishCondition = ta.crossover(fastEMA, slowEMA) and rsi < rsiOversold bearishCondition = ta.crossunder(fastEMA, slowEMA) and rsi > rsiOverbought // Stop Loss and Take Profit Levels longStopLoss = close - (atr * atrMultiplier) shortStopLoss = close + (atr * atrMultiplier) // Plot Buy and Sell Signals plotshape(bullishCondition, title="Buy Signal", style=shape.labelup, location=location.belowbar, color=color.new(color.green, 0)) plotshape(bearishCondition, title="Sell Signal", style=shape.labeldown, location=location.abovebar, color=color.new(color.red, 0)) // Plot EMAs plot(fastEMA, title="Fast EMA", color=color.blue) plot(slowEMA, title="Slow EMA", color=color.orange) // Background Color for Overbought and Oversold RSI bgcolor(rsi > rsiOverbought ? color.new(color.red, 90) : rsi < rsiOversold ? color.new(color.green, 90) : na)
Pine Script™ indicator
by aftabalam13011984
Arco-íris v2 by Marcelo MouraArco-íris v2 by Marcelo Moura A PRIMEIRA LINHA DEVE SER O PREÇO DO MOMENTO # Recomendações - Use linha no lugar de Candle-stick - Use a cor preta na linha # Análise dos Cruzamentos de 8 Médias Móveis ( 8 cores ) ## Configuração das Médias - MA1 (5 períodos): Vermelho, mais fina - Tendência muito curto prazo - MA2 (10 períodos): Laranja - Tendência curto prazo - MA3 (20 períodos): Amarelo - Tendência curto-médio prazo - MA4 (50 períodos): Verde - Tendência média - MA5 (100 períodos): Azul - Tendência média-longa - MA6 (150 períodos): Índigo - Tendência longa - MA7 (180 períodos): Violeta - Tendência muito longa - MA8 (200 períodos): Roxo, mais grossa - Tendência super longa ## Principais Cruzamentos e Significados ### Cruzamentos de Curto Prazo 1. MA1 x MA2 (5 x 10): - Cruzamento para cima: Sinal muito rápido de momentum positivo - Cruzamento para baixo: Sinal muito rápido de momentum negativo - Útil para day trade e scalping 2. MA1 x MA4 (5 x 50): - Cruzamento para cima: Forte sinal de reversão de tendência de curto prazo para alta - Cruzamento para baixo: Forte sinal de reversão de tendência de curto prazo para baixa - Confirmação mais confiável que MA1 x MA2 ### Cruzamentos de Médio Prazo 1. MA3 x MA5 (20 x 100): - Cruzamento para cima: Confirmação de tendência de média duração de alta - Cruzamento para baixo: Confirmação de tendência de média duração de baixa - Bom para swing trade 2. MA4 x MA6 (50 x 150): - Cruzamento para cima: Forte sinal de tendência de médio-longo prazo de alta - Cruzamento para baixo: Forte sinal de tendência de médio-longo prazo de baixa - Mais adequado para posições de algumas semanas ### Cruzamentos de Longo Prazo 1. MA5 x MA8 (100 x 200): - Cruzamento para cima: Sinal muito forte de mudança de tendência de longo prazo para alta - Cruzamento para baixo: Sinal muito forte de mudança de tendência de longo prazo para baixa - Ideal para investimentos de longo prazo ## Estratégias de Confirmação 1. Confirmação Múltipla: - Observe quando várias médias mais curtas cruzam simultaneamente médias mais longas - Quanto mais cruzamentos simultâneos, mais forte o sinal 2. Alinhamento das Médias: - Todas as médias apontando para cima: Tendência de alta muito forte - Todas as médias apontando para baixo: Tendência de baixa muito forte - Médias entrelaçadas: Período de consolidação ou indefinição ## Observações Importantes 1. Atrasos (Lag): - Médias mais longas têm maior atraso - Use médias curtas para entradas e médias longas para confirmar tendência 2. Volume: - Cruzamentos com alto volume são mais significativos - Baixo volume pode indicar sinais falsos 3. Falsos Sinais: - Mais comuns em médias curtas (MA1, MA2) - Use sempre confirmação de preço e volume - Considere outros indicadores técnicos
Pine Script™ indicator
by marcelomodular
Sarthak Dehkale Oscillator #Sarthak Dehkale Oscillator (SDO) **The Ultimate Oscillator for Precision Trading!** The **Sarthak Dehkale Oscillator (SDO)** is a powerful tool designed to identify overbought and oversold zones, giving you clear signals to capitalize on market reversals and trends. Perfect for traders of all levels, the SDO combines trend-following WaveTrend logic with visual enhancements for easy decision-making. Key Features: ✨ **Customizable Parameters**: Adjust `Channel Length` and `Average Length` to suit your trading style. ✨ **Dynamic Levels**: Highlights primary (70, -70) and secondary (50, -50) zones with vibrant dashed lines for quick identification. ✨ **Dual WaveTrend Lines**: Observe WT1 and WT2 for trend strength and crossover signals. ✨ **Visual Area Effect**: Shaded regions between WT1 and WT2 make divergence spotting a breeze. How to Use: ✅ Look for WT1 crossing above or below the overbought/oversold levels for potential reversals. ✅ Watch WT1 and WT2 crossovers for precise buy or sell signals. ✅ Use the shaded divergence area to gauge momentum shifts. Empower your trades with **SDO**, the perfect balance of simplicity and technical depth. Add it to your chart today and trade with confidence!
Pine Script™ indicator
by sarthakdhekale
MMXM ICT [TradingFinder] Market Maker Model PO3 CHoCH/CSID + FVG🔵 Introduction The MMXM Smart Money Reversal leverages key metrics such as SMT Divergence, Liquidity Sweep, HTF PD Array, Market Structure Shift (MSS) or (ChoCh), CISD, and Fair Value Gap (FVG) to identify critical turning points in the market. Designed for traders aiming to analyze the behavior of major market participants, this setup pinpoints strategic areas for making informed trading decisions. The document introduces the MMXM model, a trading strategy that identifies market maker activity to predict price movements. The model operates across five distinct stages: original consolidation, price run, smart money reversal, accumulation/distribution, and completion. This systematic approach allows traders to differentiate between buyside and sellside curves, offering a structured framework for interpreting price action. Market makers play a pivotal role in facilitating these movements by bridging liquidity gaps. They continuously quote bid (buy) and ask (sell) prices for assets, ensuring smooth trading conditions. By maintaining liquidity, market makers prevent scenarios where buyers are left without sellers and vice versa, making their activity a cornerstone of the MMXM strategy. SMT Divergence serves as the first signal of a potential trend reversal, arising from discrepancies between the movements of related assets or indices. This divergence is detected when two or more highly correlated assets or indices move in opposite directions, signaling a likely shift in market trends. Liquidity Sweep occurs when the market targets liquidity in specific zones through false price movements. This process allows major market participants to execute their orders efficiently by collecting the necessary liquidity to enter or exit positions. The HTF PD Array refers to premium and discount zones on higher timeframes. These zones highlight price levels where the market is in a premium (ideal for selling) or discount (ideal for buying). These areas are identified based on higher timeframe market behavior and guide traders toward lucrative opportunities. Market Structure Shift (MSS), also referred to as ChoCh, indicates a change in market structure, often marked by breaking key support or resistance levels. This shift confirms the directional movement of the market, signaling the start of a new trend. CISD (Change in State of Delivery) reflects a transition in price delivery mechanisms. Typically occurring after MSS, CISD confirms the continuation of price movement in the new direction. Fair Value Gap (FVG) represents zones where price imbalance exists between buyers and sellers. These gaps often act as price targets for filling, offering traders opportunities for entry or exit. By combining all these metrics, the Smart Money Reversal provides a comprehensive tool for analyzing market behavior and identifying key trading opportunities. It enables traders to anticipate the actions of major players and align their strategies accordingly. MMBM : MMSM : 🔵 How to Use The Smart Money Reversal operates in two primary states: MMBM (Market Maker Buy Model) and MMSM (Market Maker Sell Model). Each state highlights critical structural changes in market trends, focusing on liquidity behavior and price reactions at key levels to offer precise and effective trading opportunities. The MMXM model expands on this by identifying five distinct stages of market behavior: original consolidation, price run, smart money reversal, accumulation/distribution, and completion. These stages provide traders with a detailed roadmap for interpreting price action and anticipating market maker activity. 🟣 Market Maker Buy Model In the MMBM state, the market transitions from a bearish trend to a bullish trend. Initially, SMT Divergence between related assets or indices reveals weaknesses in the bearish trend. Subsequently, a Liquidity Sweep collects liquidity from lower levels through false breakouts. After this, the price reacts to discount zones identified in the HTF PD Array, where major market participants often execute buy orders. The market confirms the bullish trend with a Market Structure Shift (MSS) and a change in price delivery state (CISD). During this phase, an FVG emerges as a key trading opportunity. Traders can open long positions upon a pullback to this FVG zone, capitalizing on the bullish continuation. 🟣 Market Maker Sell Model In the MMSM state, the market shifts from a bullish trend to a bearish trend. Here, SMT Divergence highlights weaknesses in the bullish trend. A Liquidity Sweep then gathers liquidity from higher levels. The price reacts to premium zones identified in the HTF PD Array, where major sellers enter the market and reverse the price direction. A Market Structure Shift (MSS) and a change in delivery state (CISD) confirm the bearish trend. The FVG then acts as a target for the price. Traders can initiate short positions upon a pullback to this FVG zone, profiting from the bearish continuation. Market makers actively bridge liquidity gaps throughout these stages, quoting continuous bid and ask prices for assets. This ensures that trades are executed seamlessly, even during periods of low market participation, and supports the structured progression of the MMXM model. The price’s reaction to FVG zones in both states provides traders with opportunities to reduce risk and enhance precision. These pullbacks to FVG zones not only represent optimal entry points but also create avenues for maximizing returns with minimal risk. 🔵 Settings Higher TimeFrame PD Array : Selects the timeframe for identifying premium/discount arrays on higher timeframes. PD Array Period : Specifies the number of candles for identifying key swing points. ATR Coefficient Threshold : Defines the threshold for acceptable volatility based on ATR. Max Swing Back Method : Choose between analyzing all swings ("All") or a fixed number ("Custom"). Max Swing Back : Sets the maximum number of candles to consider for swing analysis (if "Custom" is selected). Second Symbol for SMT : Specifies the second asset or index for detecting SMT divergence. SMT Fractal Periods : Sets the number of candles required to identify SMT fractals. FVG Validity Period : Defines the validity duration for FVG zones. MSS Validity Period : Sets the validity duration for MSS zones. FVG Filter : Activates filtering for FVG zones based on width. FVG Filter Type : Selects the filtering level from "Very Aggressive" to "Very Defensive." Mitigation Level FVG : Determines the level within the FVG zone (proximal, 50%, or distal) that price reacts to. Demand FVG : Enables the display of demand FVG zones. Supply FVG : Enables the display of supply FVG zones. Zone Colors : Allows customization of colors for demand and supply FVG zones. Bottom Line & Label : Enables or disables the SMT divergence line and label from the bottom. Top Line & Label : Enables or disables the SMT divergence line and label from the top. Show All HTF Levels : Displays all premium/discount levels on higher timeframes. High/Low Levels : Activates the display of high/low levels. Color Options : Customizes the colors for high/low lines and labels. Show All MSS Levels : Enables display of all MSS zones. High/Low MSS Levels : Activates the display of high/low MSS levels. Color Options : Customizes the colors for MSS lines and labels. 🔵 Conclusion The Smart Money Reversal model represents one of the most advanced tools for technical analysis, enabling traders to identify critical market turning points. By leveraging metrics such as SMT Divergence, Liquidity Sweep, HTF PD Array, MSS, CISD, and FVG, traders can predict future price movements with precision. The price’s interaction with key zones such as PD Array and FVG, combined with pullbacks to imbalance areas, offers exceptional opportunities with favorable risk-to-reward ratios. This approach empowers traders to analyze the behavior of major market participants and adopt professional strategies for entry and exit. By employing this analytical framework, traders can reduce errors, make more informed decisions, and capitalize on profitable opportunities. The Smart Money Reversal focuses on liquidity behavior and structural changes, making it an indispensable tool for financial market success.
Pine Script™ indicator
by TFlab
6
MACD Histogram Strategy by Narsa MACD Histogram Strategy Description: This strategy uses the MACD histogram to identify potential buy and sell signals based on momentum shifts in the market. It operates as follows: - **Entry Signal (Long):** The strategy enters a long position when the MACD histogram crosses above the zero line, indicating a shift towards bullish momentum. - **Exit Signal:** The strategy exits the long position when the MACD histogram crosses below the zero line, suggesting a potential shift towards bearish momentum or weakening bullish momentum. The strategy aims to capitalize on momentum trends by entering trades when upward momentum strengthens and exiting when it weakens. It is designed to work best in trending markets, where momentum shifts are more pronounced.
Pine Script™ strategy
by ANITA27
1
Normalized Price ComparisonNormalized Price Comparison Indicator Description The "Normalized Price Comparison" indicator is designed to provide traders with a visual tool for comparing the price movements of up to three different financial instruments on a common scale, despite their potentially different price ranges. Here's how it works: Features: Normalization: This indicator normalizes the closing prices of each symbol to a scale between 0 and 1 over a user-defined period. This normalization process allows for the comparison of price trends regardless of the absolute price levels, making it easier to spot relative movements and trends. Crossing Alert: It features an alert functionality that triggers when the normalized price lines of the first two symbols (Symbol 1 and Symbol 2) cross each other. This can be particularly useful for identifying potential trading opportunities when one asset's relative performance changes against another. Customization: Users can input up to three symbols for analysis. The normalization period can be adjusted, allowing flexibility in how historical data is considered for the scaling process. This period determines how many past bars are used to calculate the minimum and maximum prices for normalization. Visual Representation: The indicator plots these normalized prices in a separate pane below the main chart. Each symbol's normalized price is represented by a distinct colored line: Symbol 1: Blue line Symbol 2: Red line Symbol 3: Green line Use Cases: Relative Performance Analysis: Ideal for investors or traders who want to compare how different assets are performing relative to each other over time, without the distraction of absolute price differences. Divergence Detection: Useful for spotting divergences where one asset might be outperforming or underperforming compared to others, potentially signaling changes in market trends or investment opportunities. Crossing Strategy: The alert for when Symbol 1 and Symbol 2's normalized lines cross can be used as a part of a trading strategy, signaling potential entry or exit points based on relative price movements. Limitations: Static Alert Messages: Due to Pine Script's constraints, the alert messages cannot dynamically include the names of the symbols being compared. The alert will always mention "Symbol 1" and "Symbol 2" crossing. Performance: Depending on the timeframe and the number of symbols, performance might be affected, especially on lower timeframes with high data frequency. This indicator is particularly beneficial for those interested in multi-asset analysis, offering a streamlined way to observe and react to relative price movements in a visually coherent manner. It's a powerful tool for enhancing your trading or investment analysis by focusing on trends and relationships rather than raw price data.
Pine Script™ indicator
by Provenzano77
WMA y EMA in 1 indicatorThis Pine Script code defines a custom indicator for the TradingView platform that combines two widely used moving averages: the Weighted Moving Average (WMA) and the Exponential Moving Average (EMA). The indicator plots both WMA and EMA on the chart, allowing traders to visualize and analyze the trends in the market more effectively. Users can customize the periods and colors of both moving averages through the input settings, making the indicator flexible for various trading strategies. The WMA provides a weighted approach that emphasizes more recent data, while the EMA offers a smoothed curve that reacts faster to price changes.
Pine Script™ indicator
by AndresSeven
Dow waveform analyzerDow Waveform Analyzer 1. Overview and Features of the Indicator This indicator is a tool designed to analyze chart waveforms based on Dow Theory, identifying swing lows (support) and swing highs (resistance). It allows users to quickly and consistently determine trend direction. Compared to manual analysis, it provides more efficient and accurate results. By using swing lows and swing highs, the indicator offers a more detailed understanding of trends than simple updates to highs and lows, aiding in the creation of effective trading strategies. 2. Identifying Wave Lows and Highs Stock prices do not move in straight lines; instead, they rise and fall in waves. This indicator starts by identifying the wave lows and wave highs. - Wave Low: The lowest point during a temporary price decline. - Wave High: The highest point during a temporary price increase. These are automatically identified using Pine Script’s built-in functions `pivotlow` and `pivothigh`. 3. Drawing the Waveform The identified wave lows and highs are alternately connected to draw the waveform. However, there are cases where wave lows or highs occur consecutively: - Consecutive Wave Lows: The lower low is used for drawing the waveform. - Consecutive Wave Highs: The higher high is used for drawing the waveform. 4. Tracking Swing Lows/Highs and Trend Determination Swing lows and swing highs are crucial markers that indicate the state of wave progression: - Swing Low: The starting point of a wave (wave low) when the closing price exceeds the previous wave high. - Swing High: The starting point of a wave (wave high) when the closing price falls below the previous wave low. The changes in swing lows and swing highs as the waves progress allow for trend state determination. 5. Examples of Trend States During an Uptrend: - When the price surpasses a wave high, the swing low is updated, confirming the continuation of the uptrend. End of an Uptrend: - When the price falls below the swing low, the swing low disappears, and a swing high appears, signaling the end of the uptrend. Sideways Movement: - Swing lows and swing highs alternately appear, indicating a sideways trend. Start of a Downtrend: - When the price breaks below a wave low for the first time, the swing high is updated, confirming the start of the downtrend. During a Downtrend: - When the price breaks below a wave low, the swing high is updated, confirming the continuation of the downtrend. End of a Downtrend: - When the price surpasses a wave high, the swing high disappears, and a swing low reappears, signaling the end of the downtrend. Restart of an Uptrend: - When the swing low is updated, the uptrend resumes. The uptrend begins when the price surpasses a wave high, and the swing low is updated for the first time. 6. Applications Trade Entries and Exits: - Set stop orders for entry at the price level where a trend starts. - Set stop orders for exit at the price level where a trend ends. Trend Filtering: - Use the indicator to confirm whether market conditions are suitable for entry based on the trend state. Analyze waveforms to aid trading strategies. Guide for Drawing Trendlines: - Utilize wave lows and highs as starting and ending points when drawing trendlines with drawing tools. 7. Parameters and Display Items Pivot Points: - Wave lows are marked with circles below the candlestick’s low, and wave highs are marked with circles above the candlestick’s high. Number of Bars for Pivot Calculation: - Specify the number of bars on either side used to identify highs (default: 2). Waveform: - Specify the color (default: blue) or toggle its visibility (default: visible). Swing Lows/Highs: - Displayed as large circles. The rightmost large circle on the chart indicates the current swing low or swing high. Historical swing points are also displayed to show the progression of state changes. Specify the color (default: green) or toggle visibility (default: visible). 1. インジケーターの概要と特徴 このインジケーターは、ダウ理論を基にチャートの波形を分析し、押し安値や戻り高値を特定するツールです。これにより、トレンドの方向を迅速かつ一貫して判断できます。手動での分析と比較して、効率的かつ精度の高い結果が得られる点が特徴です。 押し安値や戻り高値を利用することで、単純な高値・安値の更新よりも詳細にトレンドの状況を把握し、効果的な取引戦略の構築に役立ちます。 2. 波の谷と波の頂の特定 株価は直線的に動くのではなく、波を描きながら上昇や下落を繰り返します。このインジケーターは、まず波の谷と波の頂を特定するところから始まります。 波の谷: 一時的な下落の最安値 波の頂: 一時的な上昇の最高値 これらを Pine Script の内蔵関数（ピボットローとピボットハイ）を用いて自動的に特定しています。 3. 波形の描画方法 特定した波の谷と波の頂を交互に結んで波形を描画します。ただし、波の谷や頂が連続する場合があります。 波の谷が連続する場合: より低い谷を採用して波形を描く 波の頂が連続する場合: より高い頂を採用して波形を描く 4. 押し安値・戻り高値の追跡とトレンド判断 押し安値と戻り高値は、波の進行状況を示す重要な指標です。 押し安値: 終値が前回の高値を超えた際の波の谷 戻り高値: 終値が前回の安値を割り込んだ際の波の頂 波の進行に伴う押し安値・戻り高値の変化から、トレンドの状態を判断します。 5. トレンド状態の具体例 上昇トレンド中: 波の頂を株価が上抜け押し安値が更新され続けることで上昇トレンドを継続。 上昇トレンドの終了: 株価が押し安値を割ると、押し安値が消え、戻り高値が新たに出現して、上昇トレンドを終了。 横ばい状態: 押し安値と戻り高値が交互に切り替わる。 下降トレンドの開始: 波の谷を株価が下抜け戻り高値がはじめて更新されることで下降トレンド開始を確認。 下降トレンド中: 波の谷を株価が下抜け戻り高値が更新され続けることで下降トレンドを継続。 下降トレンドの終了: 株価が波の頂を超えると、戻り高値が消え、押し安値が再び出現して、下降トレンドを終了。 横ばい状態: 押し安値と戻り高値が交互に切り替わる。 上昇トレンドの再開: 押し安値が更新されることで上昇トレンドを確認。 波の頂を株価が上抜け押し安値がはじめて更新されることで上昇トレンド開始を確認。 6. 応用例 トレードのエントリーとエグジット: トレンド発生の価格に逆指値を設定してエントリー。 トレンド終了の価格に逆指値を設定してエグジット。 トレンドフィルターとして活用: エントリーに適したトレンド状況かを確認。波形を分析してトレード戦略の参考に。 トレンドラインを描く時の参考として活用: 波の谷と頂を描画ツールを使ってトレンドラインを描く時の起点や終点として活用。 7. パラメーターと表示項目 ピボット: 波の谷はローソク足の安値にサークルを表示、波の頂はローソク足の高値にサークルを表示。 ピボット計算用のバーの数: 高値を特定するために左右何本のローソク足を使用するかを設定（初期値: 2）。 波形: 色（初期値: 青）や表示（初期値: 表示）の指定。 押し安値・戻り高値: 大きなサークルで表示。チャートの一番右の大きなサークルが現在のもの。過去のものも状態変化の経緯を示すために表示。色（初期値: 緑）や表示（初期値: 表示）の指定。
Pine Script™ indicator
by fightpm
1
HTF Anchor DotsHigh Time Frame Anchor Dots is designed for traders who use the 15m or 1H chart and want a clear visual of higher-timeframe momentum conditions without constantly switching timeframes. The script builds on the Wave Anchor Indicator concept and is intended to complement the TP Mint Trading Strategy. Using the momentum waves (similar to VuManChu Cipher B / Market Cipher B), the script identifies “anchor” states on higher timeframes (1H, 4H, Daily) and plots colored dots on your current chart: • Yellow Dots: TP1 timeframe is anchored (overbought/oversold) • Red Dots: TP2 timeframe is anchored (overbought/oversold) • Orange Dots: Both TP1 and TP2 timeframes are simultaneously anchored, indicating a significant confluence. Dots above the price indicate overbought anchors; dots below indicate oversold anchors. Because the indicator checks these conditions at the close of your entry timeframe candles, you may occasionally see a dot even though the higher-timeframe candle later closes out of anchor. Remember, this indicator offers no direct entry signals; it merely highlights potential confluence or caution zones. Why Use It? - Quickly assess if momentum on higher timeframes is stretched in one direction. - Avoid entering a new position when a higher timeframe has just hit a potential turning point. - Spot patterns in anchor dot clusters that can refine your trading entries or exits. If you have questions or suggestions, feel free to share them! The script is open to improvements, and I appreciate all feedback. As with any indicator, this tool is not guaranteed to be an accurate prediction of future price action. Most successful traders combine indicators with sound risk management practices and their own personal analysis.
Pine Script™ indicator
by StormCat1
Nen Star Harmonic Pattern [TradingFinder] NenStar Reversal Auto🔵 Introduction The Nen-Star Harmonic Pattern is an advanced reversal pattern in technical analysis, designed to identify market trend changes and predict key price reversal points. This pattern is defined by a combination of Fibonacci ratios and critical concepts such as Potential Reversal Zones (PRZ), market structure, and corrective waves. The key points of this pattern include X, A, B, C, and D, and it appears in both bullish and bearish forms. In its bullish form, the pattern resembles the letter M, while in its bearish form, it takes the shape of W. The critical Fibonacci ratios for this pattern are 0.382 to 0.786 for the XA wave, 1.13 to 1.414 for the AB wave, and 1.272 to 2.618 for the BC wave. The Nen-Star Harmonic Pattern is one of the most precise tools for identifying market reversals and executing reversal trades. Traders can use it to pinpoint optimal entry and exit points and benefit from high risk-to-reward ratios. By emphasizing Fibonacci retracement levels, XABCD waves, the formation of bullish and bearish patterns, and precise trade entry points, this pattern has become a practical tool in advanced technical analysis. Bullish Nen-Star Pattern : Bearish Nen-Star Pattern : 🔵 How to Use The Nen-Star Harmonic Pattern indicator allows traders to automatically identify the bullish and bearish structures of this pattern and locate optimal entry and exit points. By accurately analyzing Fibonacci ratios and determining points X, A, B, C, and D, the indicator highlights Potential Reversal Zones (PRZ) on the chart. Traders can rely on the generated signals to manage their trades with greater precision. 🟣 Bullish Nen-Star Pattern The bullish Nen-Star pattern begins with a price increase from point X to point A, followed by a retracement to point B, which lies between 0.382 and 0.786 of the XA wave. After this retracement, the price moves to point C, located between 1.13 and 1.414 of the AB wave. The final movement is a price decline to point D, which is between 1.272 and 2.618 of the BC wave and 1.13 to 1.272 of the XA wave. Point D : Serves as the key Potential Reversal Zone (PRZ). Entry : A buy trade is initiated at point D, signaling the end of the corrective movement and the beginning of a price increase. Price Targets : 61.8% retracement of the CD wave Point A Point C 1.272 and 1.618 extensions of the CD wave if resistance at point C is broken Stop Loss : Placed slightly below point D. 🟣 Bearish Nen-Star Pattern The bearish Nen-Star pattern starts with a price decrease from point X to point A, followed by a retracement to point B, which lies between 0.382 and 0.786 of the XA wave. After this retracement, the price moves to point C, located between 1.13 and 1.414 of the AB wave. The final movement is a price increase to point D, which is between 1.272 and 2.618 of the BC wave and 1.13 to 1.272 of the XA wave. Point D : Serves as the key Potential Reversal Zone (PRZ). Entry : A sell trade is initiated at point D, signaling the end of the corrective movement and the beginning of a price decline. Price Targets : 61.8% retracement of the CD wave Point A Point C 1.272 and 1.618 extensions of the CD wave if support at point C is broken Stop Loss : Placed slightly above point D. 🔵 Setting 🟣 Logical Setting ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition. Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern. Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk. Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period. 🟣 Genaral Setting Show : Enter "On" to display the template and "Off" to not display the template. Color : Enter the desired color to draw the pattern in this parameter. LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness. LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries. 🟣 Alert Setting Alert : On / Off Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar". Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default. 🔵 Conclusion The Nen-Star Harmonic Pattern is a highly effective analytical tool in global financial markets, playing a crucial role in identifying reversal points and market trend changes. By leveraging Fibonacci principles and price structure, this pattern enables precise analysis across various assets, including stocks, cryptocurrencies, forex, and commodities. Traders operating in global markets can use this pattern to identify high risk-to-reward trading opportunities. Its clear entry and exit points, defined Potential Reversal Zones (PRZ), and accurate price targets make it an excellent tool for risk management and profitability enhancement. In the global context, the Nen-Star pattern is widely used by professional analysts in both advanced and emerging markets due to its versatility in analyzing long-term and short-term charts. Beyond trend prediction, it enhances trading strategies and optimizes investment decisions. Combining this pattern with complementary tools such as volume analysis, technical indicators, and macroeconomic conditions can provide traders with deeper market insights, helping them capitalize on global opportunities.
Pine Script™ indicator
by TFlab
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