Scanning Price Swings for Geometric Chart Patterns

Summary

This scanner uses zigzag swing points to search price data for geometric chart formations. Its configurable pattern groups include channels, wedges, and triangles, which can be classified by slope, direction, and whether their boundaries converge, diverge, or remain roughly parallel. Users can enable different zigzag configurations and select how many pivots a pattern needs, alongside filters for trend-line error, flatness, bar spacing, and the final pivot’s direction.

The tool draws detected patterns and can issue an alert when it finds one, while display settings limit how many recent patterns remain visible. A setting controls whether calculations use confirmed bars or allow realtime data, which the author describes as repainting; overlap avoidance is also configurable. The document explains scanner inputs and chart behavior, but it provides no evidence that detected formations predict profitable trades. Pivot-based patterns depend on parameter choices, and realtime detection may change as bars develop, so any trading use would need separate validation.

Key ideas

• The scanner builds candidate formations from zigzag pivots in price data.
• It groups patterns into channels, wedges, and triangles with different directional and boundary behaviors.
• Pivot count, zigzag settings, trend-line error, bar spacing, and pivot direction can be filtered.
• Detected formations are drawn on the chart and may trigger alerts.
• Realtime scanning can repaint, and the document does not establish predictive or trading performance.

Tags

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