Detecting Bullish Head-and-Shoulders Patterns with Pivot Geometry

Summary

This indicator searches for an inverse, bullish head-and-shoulders structure using confirmed pivot lows and intervening highs. It links candidate troughs with a sloping baseline, looks for a deeper head, and evaluates shoulder shape and proportional retracement constraints. Inputs let users adjust pivot confirmation widths, acceptable head-to-shoulder proportions, shoulder-height tolerance, and the maximum number of displayed patterns.

When a candidate qualifies, the script draws the pattern legs and a projected extension zone. It colors the zone bullish when price closes above its upper boundary and bearish when price closes below its lower boundary; otherwise it remains neutral. A date filter restricts which bars contribute to pattern detection. The document supplies an indicator implementation, not trading results or evidence that detected patterns predict returns. Pivot confirmation requires later bars, and the chosen geometric thresholds can materially change detections; the chart markings alone do not establish a profitable entry or exit rule.

Key ideas

• The indicator uses pivot lows and highs to construct candidate bullish head-and-shoulders formations.
• A sloping baseline connects troughs, while the head and shoulders are tested against configurable proportions.
• A projected extension zone is colored according to whether price closes above or below its boundaries.
• Date filtering and pattern-shape inputs determine which formations are detected and displayed.
• The script demonstrates visual pattern recognition but does not provide performance evidence or a complete trading system.

Tags

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