Harmonic Patterns

Harmonic Patterns looks at the last few swing pivots and tests whether the legs between them fit the Fibonacci ratios of a known pattern. The XABCD harmonics use five pivots, and the D point is the potential reversal zone, the place the pattern says price may turn.

It carries two detectors in one script, both on by default. Harmonics finds the Gartley, Bat, Butterfly and Crab, each with its own toggle. ABCD finds the four-point measured move, where the second impulse is close in length to the first. Matches are drawn as an outline through the pivots with a label and a marker.

Harmonic Patterns combines 2 tools in one script. Each one has its own switch in the settings.

• Harmonics. The XABCD patterns Gartley, Bat, Butterfly and Crab, each with its own toggle, with D as the potential reversal zone.
• ABCD. The ABCD measured move, where BC retraces AB, CD extends BC, and AB and CD are close in length.

• D as the reversal zone. A bullish pattern completes at a low D and a bearish one at a high D. Traders watch D for price to turn in the pattern's direction.
• Which harmonic. Gartley, Bat, Butterfly and Crab differ in how deep the legs retrace and extend. The label names the pattern that matched.
• ABCD symmetry. In an ABCD the legs AB and CD should be close in length. The symmetry is the core of the pattern.
• A pattern that fails. Price running well beyond D without turning is the pattern failing. The script does not mark that for you.

Components

Structure

Harmonics

ABCD

Display

Colours

Alerts: harmonic_bullish, harmonic_bearish, abcd_bullish, abcd_bearish.

The script keeps a list of confirmed swing pivots that alternate between highs and lows. When a newer pivot on the same side as the last one is more extreme, it replaces it. The last five pivots are tested against each harmonic's textbook ratio bands, with a tolerance you can set, and the last four against the ABCD rules.

The test is repeated on every confirmed bar while the latest pivots stand, so a pattern can be drawn again while its points are unchanged. Its alert fires only once per set of pivots. If D is replaced by a more extreme pivot, that is a new pattern and it alerts again.

Max Patterns keeps the most recent ten matches per detector on the chart.

• Confirmation lag. D has to be a confirmed swing, so a pattern appears Swing Length bars after D formed.
• Harmonics are rare. The ratio bands are strict. On some markets and timeframes the default settings find no harmonic at all for long stretches. Widening the tolerance finds more, at the cost of looser matches.
• D can move. If price pushes beyond D before turning, the more extreme pivot replaces D and a new pattern may be drawn.
• Ratios are not reasons. A good fit to the ratios says the swings have a familiar shape, not that price must reverse at D.
• It is not a strategy. There is no stop or target attached to a match.

Premium scripts are a one-time purchase in the Altrady marketplace and need a paid Altrady plan to run.

• Reversal Patterns. Head and shoulders, double and triple tops and bottoms, and the Quasimodo, found from swings and confirmed by a close through the neckline.
• Continuation Patterns. Triangles, wedges and flags or pennants found automatically from swings and confirmed when price closes through the pattern's boundary.
• Divergence. Regular and hidden divergences between price and an oscillator at swing pivots, marked on the chart with a line between the two pivots.
• Confluence Scorer. A score from 0 to 1 for how many of six signals agree on direction, covering trend, momentum, volume, support and resistance, structure and displacement.