Harmonic Pattern Entries with Fibonacci Levels and Repainting Risk

Summary

This script combines a Zigzag swing detector with harmonic-pattern rules to generate long and short entries. It compares the ratios between five successive pivots with ranges for patterns such as Bat, Butterfly, Gartley, Crab, Shark, and ABCD. After a qualifying pattern, Fibonacci-style levels derived from the latest pivots define an entry window, profit threshold, and stop threshold. The script then tracks trade state and issues alerts when entries or exits occur.

The document describes the rules and exposes configurable pattern and level parameters, but it provides no backtest results or evidence of profitability. Its higher-timeframe data request uses lookahead, which can introduce repainting, and Zigzag pivots can change before confirmation; the source does not clearly establish that its signals are safe from these effects. The implementation also includes many pattern definitions and fixed trade sizing, so results depend on settings, data, and execution assumptions. Treat it as an example to inspect and validate, not as proof that harmonic patterns predict profitable trades.

Key ideas

• The strategy identifies candidate setups by comparing ratios across five Zigzag pivots.
• A qualifying pattern supplies pivot-derived levels for entry, profit taking, and stopping out.
• The script combines multiple harmonic pattern families and offers adjustable ratio tolerances.
• Unconfirmed pivots and higher-timeframe lookahead can make historical signals differ from live signals.
• The document reports no performance evidence, so the rules require independent validation.

Tags

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