double top and double bottom detector - M&W patterns - Indicators

Hi all,

I create an algorithm that detects local minimums and local maximums in the proximity were two crossing moving average are located.

Base on this information, then simple mathematics is use for detect and draw a triangle where a double top is located.

Please check it, improve the algorithm and share your luck!

//LOCALS MINIMUMS AND MAXIMUMS USING LEO MOVING AVERAGE
//Autor: LEO

//VARIABLES TO BE OPTIMIZED

//PERIOD=20    //Period for analysis
//Kdouble=0.2 //Factor for defining what is double top or bottom

//-----------

//Leo Moving Average, formula: LMA= WMA+(WMA-SMA)
LMA=2*weightedaverage[period](close)-average[period](close)

//Smoothed curve of Leo Moving Average
IF BARINDEX > period THEN
 smoothLMA=weightedaverage[period](LMA)
ELSE
 smoothLMA=undefined
ENDIF

// << Storage of minimums and maximums >>
once mintemp=low
once posmintemp=1
once maxtemp=high
once posmaxtemp=1

IF BARINDEX>2 THEN
 // the value 0.75 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked)
 IF low < lowest[round(0.75*period)](low[1]) THEN
  mintemp=low //minimum temporal
  posmintemp=BARINDEX //postition of minimum temporal
 ENDIF
 IF high > highest[round(0.75*period)](high[1]) then
  maxtemp=high //maximum temporal
  posmaxtemp=BARINDEX //position maximum temporal
 ENDIF
ENDIF

//  << Detecting and locating a local minimums >>
//  Where the LMA is crossing the smoothed LMA, there is a maximum or minimum nearby
//  If there is a new local min/max, the preivus one is stored in de varible B... (before)
once LEVMIN=low
once POSLEVMIN=1
once LEVMAX=high
once POSLEVMAX=1
once bullcross=0
once bearcross=0

IF BARINDEX > PERIOD THEN //For avoid computer errors
 bullcross=LMA crosses over smoothLMA
 bearcross=LMA crosses under smoothLMA
ENDIF


IF bullcross THEN
 BLEVMIN=LEVMIN        //previus local minimum is saved
 BPOSLEVMIN=POSLEVMIN
 LEVMIN=mintemp
 POSLEVMIN=posmintemp
 support=LEVMIN
 DRAWARROWUP(POSLEVMIN,LEVMIN) coloured(0,0,0,30)
ENDIF

// --> Detecting and locating a local maximum
IF bearcross THEN
 BLEVMAX=LEVMAX       //previus local maximum is saved
 BPOSLEVMAX=POSLEVMAX
 LEVMAX=maxtemp
 POSLEVMAX=posmaxtemp
 resistance=LEVMAX
 DRAWARROWDOWN(POSLEVMAX,LEVMAX) coloured(0,0,0,30)
ENDIF

support=min(low,support)
resistance=max(high,resistance)


// << DETECTING DOUBLE TOP OR BOTTOMS  >>

once WidthDoubleTop = high-low
once WidthDoubleBottom = high-low

//--> Double bottoms

//looking for the top between two local minimums
IF bullcross THEN
 doublebottomtop=high[BARINDEX-POSLEVMIN+1] // we start looking for the top in between two local minimums
 POSdoublebottomtop=BARINDEX-POSLEVMIN+1
 FOR i = (BARINDEX-POSLEVMIN+1) to (BARINDEX-BPOSLEVMIN-1) DO
  IF high[i] > doublebottomtop THEN
   doublebottomtop=high[i]
   POSdoublebottomtop=BARINDEX-i
  ENDIF
 NEXT
 WidthDoubleBottom = doublebottomtop-(BLEVMIN+LEVMIN)/2 // (top betwen local minimums) - (average of the las two local minimums)
 IF abs(BLEVMIN-LEVMIN) < Kdouble*WidthDoubleBottom THEN
 //       <<<<<<<  HERE WE HAVE A DOUBLE BOTTOM FOR TRADING  >>>>>
  DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSdoublebottomtop,doublebottomtop,BPOSLEVMIN,BLEVMIN) COLOURED(0,255,0,200)
 ENDIF
ENDIF

//--> Double tops

//looking for the bottom between two local maximums
IF bearcross THEN
 doubletopbottom=low[BARINDEX-POSLEVMAX+1]
 POSdoubletopbottom=BARINDEX-POSLEVMAX+1
 FOR i = (BARINDEX-POSLEVMAX+1) to (BARINDEX-BPOSLEVMAX-1) DO
  IF low[i] < doubletopbottom THEN
   doubletopbottom=low[i]
   POSdoubletopbottom=BARINDEX-i
  ENDIF
 NEXT
 WidthDoubleTop=(BLEVMAX+LEVMAX)/2 -doubletopbottom
 IF abs(BLEVMAX-LEVMAX) < Kdouble*WidthDoubleTop THEN
 //       <<<<<<<  HERE WE HAVE A DOUBLE TOP FOR TRADING  >>>>>
 DRAWTRIANGLE(POSdoubletopbottom,doubletopbottom,POSLEVMAX,LEVMAX,BPOSLEVMAX,BLEVMAX) COLOURED(255,0,0,200)
 ENDIF
ENDIF

RETURN LMA AS "Leo Moving Average", support as "support", resistance as "resistance", smoothLMA as "smooth LMA" //, lowest[round(0.75*period)](low[1]), highest[round(0.75*period)](high[1])

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//LOCALS MINIMUMS AND MAXIMUMS USING LEO MOVING AVERAGE

//Autor: LEO

//VARIABLES TO BE OPTIMIZED

//PERIOD=20 //Period for analysis

//Kdouble=0.2 //Factor for defining what is double top or bottom

//-----------

//Leo Moving Average, formula: LMA= WMA+(WMA-SMA)

LMA=2*weightedaverage[period](close)-average[period](close)

//Smoothed curve of Leo Moving Average

IF BARINDEX > period THEN

smoothLMA=weightedaverage[period](LMA)

ELSE

smoothLMA=undefined

ENDIF

// << Storage of minimums and maximums >>

once mintemp=low

once posmintemp=1

once maxtemp=high

once posmaxtemp=1

IF BARINDEX>2 THEN

// the value 0.75 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked)

IF low < lowest[round(0.75*period)](low[1]) THEN

mintemp=low //minimum temporal

posmintemp=BARINDEX //postition of minimum temporal

ENDIF

IF high > highest[round(0.75*period)](high[1]) then

maxtemp=high //maximum temporal

posmaxtemp=BARINDEX //position maximum temporal

ENDIF

// << Detecting and locating a local minimums >>

// Where the LMA is crossing the smoothed LMA, there is a maximum or minimum nearby

// If there is a new local min/max, the preivus one is stored in de varible B... (before)

once LEVMIN=low

once POSLEVMIN=1

once LEVMAX=high

once POSLEVMAX=1

once bullcross=0

once bearcross=0

IF BARINDEX > PERIOD THEN //For avoid computer errors

bullcross=LMA crosses over smoothLMA

bearcross=LMA crosses under smoothLMA

ENDIF

IF bullcross THEN

BLEVMIN=LEVMIN //previus local minimum is saved

BPOSLEVMIN=POSLEVMIN

LEVMIN=mintemp

POSLEVMIN=posmintemp

support=LEVMIN

DRAWARROWUP(POSLEVMIN,LEVMIN) coloured(0,0,0,30)

ENDIF

// --> Detecting and locating a local maximum

IF bearcross THEN

BLEVMAX=LEVMAX //previus local maximum is saved

BPOSLEVMAX=POSLEVMAX

LEVMAX=maxtemp

POSLEVMAX=posmaxtemp

resistance=LEVMAX

DRAWARROWDOWN(POSLEVMAX,LEVMAX) coloured(0,0,0,30)

ENDIF

support=min(low,support)

resistance=max(high,resistance)

// << DETECTING DOUBLE TOP OR BOTTOMS >>

once WidthDoubleTop = high-low

once WidthDoubleBottom = high-low

//--> Double bottoms

//looking for the top between two local minimums

IF bullcross THEN

doublebottomtop=high[BARINDEX-POSLEVMIN+1] // we start looking for the top in between two local minimums

POSdoublebottomtop=BARINDEX-POSLEVMIN+1

FOR i = (BARINDEX-POSLEVMIN+1) to (BARINDEX-BPOSLEVMIN-1) DO

IF high[i] > doublebottomtop THEN

doublebottomtop=high[i]

POSdoublebottomtop=BARINDEX-i

ENDIF

WidthDoubleBottom = doublebottomtop-(BLEVMIN+LEVMIN)/2 // (top betwen local minimums) - (average of the las two local minimums)

IF abs(BLEVMIN-LEVMIN) < Kdouble*WidthDoubleBottom THEN

// <<<<<<< HERE WE HAVE A DOUBLE BOTTOM FOR TRADING >>>>>

DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSdoublebottomtop,doublebottomtop,BPOSLEVMIN,BLEVMIN) COLOURED(0,255,0,200)

ENDIF

//--> Double tops

//looking for the bottom between two local maximums

IF bearcross THEN

doubletopbottom=low[BARINDEX-POSLEVMAX+1]

POSdoubletopbottom=BARINDEX-POSLEVMAX+1

FOR i = (BARINDEX-POSLEVMAX+1) to (BARINDEX-BPOSLEVMAX-1) DO

IF low[i] < doubletopbottom THEN

doubletopbottom=low[i]

POSdoubletopbottom=BARINDEX-i

ENDIF

WidthDoubleTop=(BLEVMAX+LEVMAX)/2 -doubletopbottom

IF abs(BLEVMAX-LEVMAX) < Kdouble*WidthDoubleTop THEN

// <<<<<<< HERE WE HAVE A DOUBLE TOP FOR TRADING >>>>>

DRAWTRIANGLE(POSdoubletopbottom,doubletopbottom,POSLEVMAX,LEVMAX,BPOSLEVMAX,BLEVMAX) COLOURED(255,0,0,200)

ENDIF

RETURN LMA AS "Leo Moving Average", support as "support", resistance as "resistance", smoothLMA as "smooth LMA" //, lowest[round(0.75*period)](low[1]), highest[round(0.75*period)](high[1])

double bottom double high Double low double top M pattern patterns W pattern

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swapping • 10/25/2017 #
Very good Leo, thank for this detector

yuzer • 10/25/2017 #
Thank you so much my friend

Alai-n • 10/25/2017 #
Très intéressant Merci…

Leo • 10/25/2017 #
Popular post of the week! what an honour!
We all are developing a system for trading double top or double bottoms here
http://www.prorealcode.com/topic/dobule-bottom-or-double-top/

Francesco78 • 10/25/2017 #
great job! I will try to test it to see if I can find a nice robust strategy around it.

lokbuscas • 10/25/2017 #
Hi the signals that paint are fantástic. But I have one doubt. Does the indicator repaint? ? In the past marks very well ups and bottoms But in the present I haven’t any stock that the indicator shows the signals thank you

proreal82 • 10/25/2017 #
Take this indicator on the second timeframe, and you will see that it ”repaints’ the top and bottom. Maybe useful on a bigger timeframe, but not on the smaller ones.
- Nicolas • 10/25/2017 #
  I don’t feel that this indicator “repaint” the way you think about. It gives signals afterwards, but it should not delete a signal given once bar is closed.

lokbuscas • 10/25/2017 #
Ok Nicolas
Then is it posible programme a screener to look for stocks in daily for examine? ?

lokbuscas • 10/25/2017 #
Thanks proreal82

Leo • 10/25/2017 #
Screener done (waiting to be approved), with many improvements in the system

lokbuscas • 10/25/2017 #
Thanks leo

bolsatonimora2 • 10/25/2017 #
Please Leo, let us know when screener be approved!! 😉 many thanks!!

sally31120 • 10/25/2017 #
Bonjour,
Merci à Léo!
Le code est trop ardu pour mes connaissance, pourrait-on avoir un screener à partit du code de cet indicateur ?
Un screener qui indique le passage de LMA de positif en négatif confirmé sur 3 barres (soit signal en zéro confirmation en 1 et 2, Achat ou vente en 3).
Merci aux bonnes volontés.
Cordialement

Leo • 10/25/2017 #
Hi Sally, we have already a screener, maybe is what you Need

Sofitech • 10/25/2017 #
Hi Leo. You code is very interesting (Indi+Screener). To use it in my trading i think i will maybe modify it to match the way i trade. I have a very simple question : arrows to spot the local maximums and local minimums are real time ? I mean they appear in real time where they are spotted or they appear few candles after ? Thanks

Leo • 10/25/2017 #
Hi Sofitech.
You never know what then Price will do in the future. That why These gray arrows appears after a while ( when we know that, the specific Price was in reallity a local Minimum or local Maximum)
I do not know if I expleain myself correct

brendab180 • 10/25/2017 #
How do you get the indicator on the chart and not in a frame below? Sorry new to this software
- Nicolas • 10/25/2017 #
  Add it on the price chart with the wrench at the left upper side of your chart.

rama • 10/25/2017 #
how to read the this triangle? I have set up the indicator, little confusing when to buy when to sell

Leo • 10/25/2017 #
Hi Rama, that’s the issue with trading… where and when to trade. If you figure it out, please share 😉

century • 10/25/2017 #
hi,
i have to thank you for this great piece of code
works like a charm and very useful
- Leo • 10/25/2017 #
  Nice to know! 😉

Nick FX Junkie • 10/25/2017 #
Hi Leo, Amazing indicators! Can you please advise if there is a way to utilize your indicator in a automated trading strategy.

Can you suggest a code for an automated sell order or buy order when the arrows appear on your indicator. Cheers Nick.

abhay • 10/25/2017 #
can this indicator be converted in a way that it can be called in screener and return 1 or -1 for doubletop or double bottom formation

bertrandpinoy • 10/25/2017 #
bonjour je ne parvient pas a l installer sur PRT. erreur de syntaxe… et vous il fonctionne?
- Nicolas • 10/25/2017 #
  Il vaut toujours mieux télécharger le fichier .itf et l’importer directement dans la plateforme plutôt que de faire des copier/coller.

Breeze • 10/25/2017 #
I am using an online trading platform in South Africa, I don’t know how to code, how would I run this code given the data that they supply me with?
- Nicolas • 10/25/2017 #
  All codes on our website is made to be used with the ProRealTime trading software, you can try it for free there: https://www.prorealtime.com

zen83 • 10/25/2017 #
Many thanks Leo for your masterpiece indicator, I took the liberty of plugging into it Fibonnacci levels
at the very end insert
difrs=(resistance-support)
F236=resistance -difrs*0.236
F382=resistance -difrs*0.382
F50=resistance-difrs*0.5
F618=resistance-difrs*0.618
F764=resistance-difrs*0.764
and return them into the very last line
… very amazing results

antitrust56 • 10/25/2017 #
Hi Leo,
how to set up an audible alert to be notified of a doubletop or doublebottom detection ?
Thanks for your answer

parthapersonal • 10/25/2017 #
Great job Leo.
Dear Zen83, how do you, “return them into the very last line”?

steve_ • 10/25/2017 #
Hi!

This thread is quite old, but let’s try…

I’m new with Prorealcode and I’ve just disvovered “Double top and double bottom” indicator.

It seems to be a very nice piece of code, nice work Leo !

But I have a question about the associated screener.

Would it be possible to sreen only recent bottoms ?

For exemple, bottoms that appeared in the last x days ? (x as a parameter)

Thanks !

steve_ • 10/25/2017 #
Hi!
I’ve created a topic in french (translatable with Google function) here :

https://www.prorealcode.com/topic/transformer-un-iindicateur-complexe-en-screener/

I’ve developped a prototype of screener using Leo’s indicator.
Please check it and give your opinion.
Thanks!
Steve.