Automated Harmonic Pattern Detection with ZigZag Swings

Summary

This document describes an indicator for detecting harmonic chart patterns. These patterns use five price turning points and constraints on their relative proportions, which can be difficult to assess consistently by eye. The tool uses a ZigZag indicator to identify peaks and troughs, then applies a matching algorithm to locate patterns, including patterns that are still forming.

The indicator displays pattern names and point labels, highlights potential reversal zones, and offers several ZigZag choices. The reversal-zone boundary is presented as a way to assess risk before a trade, while emerging-pattern display is intended to show possible setups earlier. The document describes features and installation requirements but provides no test results, accuracy measures, trading rules, or evidence of profitability. Pattern identification therefore does not establish that a reversal will occur.

Key ideas

• Harmonic patterns are defined through five turning points and proportional relationships among them.
• The indicator uses ZigZag swings and an algorithm to identify completed and emerging patterns.
• It displays potential reversal zones, pattern names, and turning-point labels.
• The document reports no validation or profitability evidence for trades based on the signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.