These are the most common scan which SOME appear to be reliable:
Separating Lines
3 Outside
Marubozu (I will keep tit)
Matching Low
Hammer
Inverted Hammer
I had to remove these patterns as I question the lower reliability potential:
Haramicross
Rickshawman
There is nothing really nothing conclusive but I have filtered it down to 6 patterns that may ‘work’. Apparently these are more reliable and common according to thepatternsite.com.
There are a number of corrections I believe in this script but I am unsure of the importance of these pattern (s) since they are quite rare anyhow. So why continue? Why even bother trying to develop for wedges as well?
In summary; Should I abandon both flag/pennants and wedges patterns. They are tough to program and plot among other reasons listed.
In the last 3 minutes of this video is a new segment which shows the improvement of how I define a bull or bear flag. Also, you need to measure the trend before the pattern so I used 10 candle/bars before the pattern forms as a test. Just remember I allocated 20 candles/bars to allow the completion of the flag or pennant pattern. It should at least show there is consolidation in the price of at least 20 bars. These programming conditions hopefully are correct to reflect the right pattern with expected price direction.
There seems to be a strange anomaly in the code where patterns form sometime in early April. I am unsure if it this is weird bug on the Binance data servers or in my programming script.
As the way it goes, I am not even sure if these patterns really matter since they are quite rare to capture.
Does Murrey Math or ABC Pattern recognition work for trading?
I tested these against20 different assets including indices and commodities. Let me know what you think as the results appear mixed. Download the images of both indicator charts charts for Murrey Math and ABC
Say hello to our ABC Pattern Fib band trading chart
This is the first of many coming from the world of Matlab, there 6 bands of 3 upper and 3 lower. Don’t worry, there is more to come but consider this a progress report
Fib bands with k moving average trend
Fib band zone pivots of 21 pd moving average 89 ema 200 sma
Uses combine market internals which is 7 indicators with one histogram to show market direction with 5 min chart
Enter trade once pattern Is completely formed. Price must be below neckline.
Price needs to trade at 2 bar high or 2 bar low 40:06. Price must close below that line before entry takes place. Or it must trade above swing high or low. Or wait for the breakout bar to take place. Also enter at a high range bar high/low.
Planned exits
Key support and resistance
Fib levels defined
ATR exits
Bar size exits
Moving average periods of 21 and 89 EMA and 200 SMA
Abc pattern is harmonic which works best 56:34 is type of abc formation which can be retracement or externsion (c went beyond ab leg) so they belong to either side, price projections are 62%ab 100%ab or 162%ab 57:24 you can project the time to t1 t2 or t3. This could be used for daily as in options timing projection but cannot be used intraday effectively. 1:06 shows c bearish leg for pricing projection.
Ktrend indicators can be used with this.
1:13 abc can be used in options data of options price which affects stock price. You could target premium price as well.
Perfect abc pattern (goal to target for these levels) 1:16
Outside fib band, is above mid fib band
Is retraced below mid fib band at least 50% but retracement no more than 78.6%
After long above the el or mid fib band level el is entry level
STop below c
Target 1: 62% ab 100% ab
Target 2: 127% ab 162 % ab
Example chart at 1:19:30
Set trade as same direction of ab
For ab how many bars were there? What was retracement for c%? Need entry and stop targets
Quant analytics: How to model this pattern to improve intra-day executions?
I am trying to improve the intra-day executions. For example, I wanna sell a stock but its mid price keeps monotone decreasing/increasing/unchanging at most of time (the small graph). occasionally, it has abrupt price fluctuation (the big graph). imbalance=ask depth – bid depth of top 5 price levels. Do you have any suggestion to model this to get good executions assuming time frame is 10 minutes? Are MACD hist and EMA applicable here? How to combine imbalance and price indicator?
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This price action happens in a lot of markets. It might be helpful for you to look at Euro/USD forex chart (URL below) to be able to take a step back from the stock chart you are looking improve your intra-day executions. I would look and see that an initial high and low established followed by a stop hunt continuing on to the opposite side breakout. Think from the perspective of an investor who can see all the order flow. How would that investor make money?
I think if you are that investor, MACD indicator would help you make money but in an opposite way –an easy signal means too many market participants on one side of the trade –then move market against them and make their stops move out and out. I hope you can see the smaller counter trend just before the big move in the opposite direction.
I personally would look at 15 minute chart or longer not 10 minute chart or shorter. Hope this helps
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your link isn’t working I am not sure if it worked for others.
The sudden moves often have reasons, the problem is seeing the reason in time to react by pulling the trigger. It really depends on how much effort are you going to put to calculate/see other factors. The market is full of data different people choose different areas of specialization. By the way the macd and many other indicators might work one day and fail on a nother day.
NOTE I now post myTRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
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