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
Notes de version
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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.
Notes de version
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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.
Notes de version
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Adjust stop, entry and target label, line position based on timeframes
This is amazing script.. One question. What is the Bullish/Bearing counts? From which point does it start?
princerustle
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Keep up the good work! You're talented! Please how do we know where the waves 1 and 2 are starting? For example, when I change the timeframes, I'm unsure where each wave begins. Do help when you have time, thanks
Trendoscope
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@princerustle, we don’t need to know where wave 1 or 2 begin. Idea here is to ride wave3 which is the biggest wave of all in most cases.
Amazing indicator, really highly underrated on TV given that it is a proven strategy with great risk: reward ratio for part-time or full-time traders.
I was wondering if you would at all make it possible for the fib extensions to have a logarithmic option for those that trade on the log-based charts. I am happy to draw these myself but a toggle on/off check-box would be useful, IMO.
Thanks once again.
Trendoscope
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@berkcollective, Hi, thanks for the suggestion. I will check. Btw, I have next version of this script. You can take a look at them as well.
This is working really well for me as a trigger for crypto bots. I made some modifications such as leaving the previous plots, ignoring OB or OS signals using a slow stochastic(21,3), and adding a switch for long only vs both directions. zigzag lengths from 2 - 4 with 15m - 30m charts seem to work nice. Great job!
Asimmalil
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How to use alerts for bullish and bearish
jamescobolt
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This is amazing indicator. I used it for 30m TF and back tested (on gold) for 10 times. It’s 70% win-rate!! and RR is 2:1 at-least *0*
alvaroand
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Excelentes productos, las alertas se deberían poder programar indefinidamente, gracias por su trabajo
One question. What is the Bullish/Bearing counts? From which point does it start?