D-Shape Swing Patterns and Arc Breakout Signals
Summary
This indicator detects alternating swing-high to swing-low and swing-low to swing-high patterns, then draws them as paired arcs around a midpoint. Users can adjust the swing lookback, pattern width, included swing types, and historical display style. A pattern becomes a breakout signal when price closes beyond the relevant arc boundary; the script marks the event and switches its trend state.
After a breakout, it updates a trailing level using the pattern midpoint and the prior trend state, then plots that level with optional color fill. Historical patterns can remain displayed as arcs, a midline, or both, while a setting limits how many inactive patterns are retained. The document provides implementation details for a chart indicator, but no performance testing or evidence that these signals predict profitable moves. Pivot-based pattern detection and the configurable geometry are therefore descriptive tools whose usefulness would need independent evaluation.
Key ideas
- The indicator forms patterns from successive swing highs and lows.
- It represents each pattern with arcs and a horizontal midpoint.
- A close beyond an arc boundary triggers a bullish or bearish breakout signal.
- The trailing level is updated from the pattern midpoint and current trend state.
- Users can configure swing selection, pattern width, and historical display.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.