Double-Tap Pattern Detection with Fibonacci Targets and ATR Stops
Summary
The excerpt describes a chart strategy named Bjorgum Double Tap and documents several controls for detecting and managing patterns. Pattern pivots are formed from significant highs or lows over a chosen bar length, with a tolerance that allows the two defining points to differ by a percentage of pattern height. A Fibonacci extension projected from the neckline sets a target in the direction of the pattern bias; another extension sets a stop relative to the invalidation point. The script also offers an ATR-based trailing stop after the target extension is breached, which disables the take-profit order in strategy mode.
The supplied material is only a partial source excerpt: it does not show the full detection or trade-entry logic, parameter defaults, or a backtest report. It therefore explains configurable concepts but offers no evidence that the pattern has predictive value or that its exits improve results. Pivot lookback, point tolerance, target extension, and ATR settings can affect detections and risk handling, and would require independent evaluation before drawing conclusions.
Key ideas
- The strategy uses significant swing points and a tolerance to define candidate double-tap patterns.
- Pattern tolerance is expressed relative to pattern height.
- A Fibonacci extension from the neckline is used to set a target in the pattern's directional bias.
- An ATR trailing stop can activate after the target extension is breached and disables the take-profit order.
- The excerpt omits full entry logic and backtest results, so it does not establish strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.