Double top and double bottom SCREENER

Hi all,

This is a screener that detect double top and double bottom.

A double top or a double bottom, are chartists figures that announce a reversal of trend. In general, a double top is created in the context of a downward trend and therefore marks its end and a return of the bullish movement while a double bottom, is created in the context of a downward trend and therefore marks its end and a return of the bullish movement.

Base on my Leo Moving Average indicator, the following screener detects double bottom and double top.

I am looking forward to read your comments and improvements in the systems.

If you earn money with this methodology please share your luck with the people in the world who do not.

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

//VARIABLES TO BE OPTIMIZED

PERIOD=40    //Period for analysis


//Definition of what is a double top or double bottom
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

// Direction or trend of the LMA


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

IF BARINDEX>2 THEN
 // the value 0.7 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked)
 IF low < lowest[round(0.7*period)](low[1]) THEN
  mintemp=low //minimum temporal
  posmintemp=BARINDEX //postition of minimum temporal
 ENDIF
 IF high > highest[round(0.7*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 and POSLEVMIN<>posmintemp  THEN
 BLEVMIN=LEVMIN        //previus local minimum is saved
 BPOSLEVMIN=POSLEVMIN
 LEVMIN=mintemp
 POSLEVMIN=posmintemp
 support=LEVMIN
ENDIF

// --> Detecting and locating a local maximum
IF bearcross and POSLEVMAX<>posmaxtemp THEN
 BLEVMAX=LEVMAX       //previus local maximum is saved
 BPOSLEVMAX=POSLEVMAX
 LEVMAX=maxtemp
 POSLEVMAX=posmaxtemp
 resistance=LEVMAX
ENDIF

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


// << DETECTING DOUBLE TOP OR BOTTOMS  >>

once WidthDoubleTop = high-low
once WidthDoubleBottom = high-low
once Wpattern=0
once Mpattern=0


//  <<<<<<  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
  // we have a double bottom
  Wpattern=1
 else
  Wpattern=0
 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
  // we have a double top
  Mpattern=1
 else
  Mpattern=0
 ENDIF
ENDIF

//    <<<<<<<<<<  DOUBLE TOP AND DOUBLE BOTTOM FOR TRADING  >>>>>>>>


myATR=AverageTrueRange[2*period](close)

IF Wpattern=1 THEN
 IF close > (doublebottomtop+myATR) or close < (LEVMIN-0.5*myATR) THEN
  Wpattern=0 //  <<<< double bottom has been activated or it was cancelled >>>>>
 ELSE
 //       <<<<<<<  HERE WE HAVE A DOUBLE BOTTOM FOR TRADING  >>>>>
  exactness=abs(BLEVMIN-LEVMIN) / WidthDoubleBottom
 ENDIF
ENDIF

IF Mpattern=1 THEN
 IF close < (doubletopbottom-myATR) or close > (LEVMAX+0.5*myATR) THEN
  Mpattern=0 //double top has been activated or it was cancelled
 ELSE
 //       <<<<<<<  HERE WE HAVE A DOUBLE TOP FOR TRADING  >>>>>
  exactness= abs(BLEVMAX-LEVMAX) / WidthDoubleTop
 ENDIF
ENDIF


SCREENER[Wpattern=1 or Mpattern=1](exactness)

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//LOCALS MINIMUMS AND MAXIMUMS USING LEO MOVING AVERAGE

//Autor: LEO

//VARIABLES TO BE OPTIMIZED

PERIOD=40 //Period for analysis

//Definition of what is a double top or double bottom

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

// Direction or trend of the LMA

// << Storage of minimums and maximums >>

once mintemp=low

once posmintemp=1

once maxtemp=high

once posmaxtemp=1

IF BARINDEX>2 THEN

// the value 0.7 is to ensure that the donchian channel is faster than the curves analysis (this value to be checked)

IF low < lowest[round(0.7*period)](low[1]) THEN

mintemp=low //minimum temporal

posmintemp=BARINDEX //postition of minimum temporal

ENDIF

IF high > highest[round(0.7*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 and POSLEVMIN<>posmintemp THEN

BLEVMIN=LEVMIN //previus local minimum is saved

BPOSLEVMIN=POSLEVMIN

LEVMIN=mintemp

POSLEVMIN=posmintemp

support=LEVMIN

ENDIF

// --> Detecting and locating a local maximum

IF bearcross and POSLEVMAX<>posmaxtemp THEN

BLEVMAX=LEVMAX //previus local maximum is saved

BPOSLEVMAX=POSLEVMAX

LEVMAX=maxtemp

POSLEVMAX=posmaxtemp

resistance=LEVMAX

ENDIF

support=min(low,support)

resistance=max(high,resistance)

// << DETECTING DOUBLE TOP OR BOTTOMS >>

once WidthDoubleTop = high-low

once WidthDoubleBottom = high-low

once Wpattern=0

once Mpattern=0

// <<<<<< 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

// we have a double bottom

Wpattern=1

else

Wpattern=0

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

// we have a double top

Mpattern=1

else

Mpattern=0

ENDIF

// <<<<<<<<<< DOUBLE TOP AND DOUBLE BOTTOM FOR TRADING >>>>>>>>

myATR=AverageTrueRange[2*period](close)

IF Wpattern=1 THEN

IF close > (doublebottomtop+myATR) or close < (LEVMIN-0.5*myATR) THEN

Wpattern=0 // <<<< double bottom has been activated or it was cancelled >>>>>

ELSE

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

exactness=abs(BLEVMIN-LEVMIN) / WidthDoubleBottom

ENDIF

IF Mpattern=1 THEN

IF close < (doubletopbottom-myATR) or close > (LEVMAX+0.5*myATR) THEN

Mpattern=0 //double top has been activated or it was cancelled

ELSE

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

exactness= abs(BLEVMAX-LEVMAX) / WidthDoubleTop

ENDIF

SCREENER[Wpattern=1 or Mpattern=1](exactness)

double bottom double top M pattern patterns trend reversal W pattern

Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

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bolsatonimora2 • 10/31/2017 #
many thanks Leo!!! Great!!

Nicolas • 10/31/2017 #
Great addition Leo, many thanks for your work on this project and for sharing the code with us! 😉

Leo • 10/31/2017 #
Thanks for your time invested here as well. I hope we all find a way to made a very profitable strategy out of it

cantillon • 10/31/2017 #
Thanks Leo, great piece of code !

ali zidouri • 10/31/2017 #
please help i dont know how to convert code to indicator

ALE • 10/31/2017 #
Thanks Very Much Leo, could you help us with an example of trading strategy using these signal?

ALE • 10/31/2017 #
the indicator is here: https://www.prorealcode.com/prorealtime-indicators/double-top-double-bottom-detector/

Sapo • 10/31/2017 #
Merci beaucoup pour le partage à bientôt Leo.

Leo • 10/31/2017 #
Hi all,
We are adding all our ideas and improvements here :
https://www.prorealcode.com/topic/dobule-bottom-or-double-top/

djtaktik • 10/31/2017 #
Nice Screener ! Is it possible to screen when a green or red arrow appears ? thks in advance.
- Leo • 10/31/2017 #
  I do not focus so much in screeners. You can see our progress in the forum.
  Cheers

ludo6977 • 10/31/2017 #
it’s very good job léo

Mick3y • 10/31/2017 #
Is there a way to sort the results by price? Let’s say just return stocks under X price? Thanks

rama • 10/31/2017 #
I am using the this code to buy or sell in a program which is not working

rama • 10/31/2017 #
I am using

if [Wpattern=1 and (exactness) then
buy at market
endif

however system is not accepting the code for buy orders , what is the correct for buy?

Breeze • 10/31/2017 #
Hi Leo. I am not an IT person so I need help to know how I can run this code. I am a trader in South Africa.
- Nicolas • 10/31/2017 #
  Download the itf file on this page, import it into your platform and run it through the ProScreener module.

sally31120 • 10/31/2017 #
Bonjour,
J’ai deux questions concernant Double top and double bottom detector – M&W patterns
a) A partir de quand les flèches dessinées sur le graphique sont-elles définitives, car :
https://www.prorealcode.com/prorealtime-indicators/double-top-double-bottom-detector/
« lokbuscas • 25/10/2017 #
Salut les signaux que la peinture est fantastique. Mais j’ai un doute. L’indicateur repeint-il? ? Dans le passé marque très bien des hauts et des bas Mais dans le présent je n’ai pas de stock que l’indicateur montre les signaux merci »
« Nicolas • 25/10/2017 #
Je ne pense pas que cet indicateur “repeigne” la façon dont vous pensez. Il donne des signaux après, mais il ne doit pas supprimer un signal donné une fois la barre fermée. »

b) Peut-on screener uniquement les flèches en fin de journée et quel en serait le code ?

Merci par avance pour vos réponses

Dadoo • 10/31/2017 #
Incredible workLeo. Thankyou to share you time and knowledge

tommygtb • 10/31/2017 #
what does the criteria mean in the box on the screen is it the time frame the screener searches ie 01.1hour TF , 0.2 2hour? thanks tom

Saberi2023 • 124 days ago #
Hello dear
Can you please write it also in java script?

Anonymous Sorry I mean vertical red / green line

Anonymous Found: just remove "T coloured(r,g,b) as "Top", Bo coloured(r,g,b) as "Bottom"... after return

darbes Hi I tried to use indicator in a strategy code. But backtesting is asking to define Signalb...

Steven Bahia Hi Nicolas - great indicator - is there a way to place a alert when the Oscillator crosses ...

Nicolas Alerts can't be programmed, you have to set them yourself with the Alert tool of the platfor...

Steven Bahia just to add to this would there be a way to establish a entry price from the Oscillator

Ciccio As written some posts above, there is an update here https://www.prorealcode.com/prorealtim...

Mrmamps079 Hi Admin, I can't plug this indicator on my metatrader 4 on my laptop. When I add it on my i...

Nicolas Sorry but we do not provide any help for mt4 users. Our website is dedicated to ProRealTime ...

Nicolas EDIT: identifying pattern number in the ProScreener window: https://www.prorealcode.com/to...

pyhrus Nicolas , Could you communicate to us the indicator you have used to draw patterns ...

Nicolas Description of falling/rising wedges: https://www.centralcharts.com/en/gm/1-learn/7-technica...

Wilko This code is the work of a simple genius! Profitability lies in simplicity and repetition.

Nicolas Good joke. FYI, you'll find many identified recurring patterns there: http://paststat.com G...

Yngve i added a MA as a filter, that improved the equity curve quit nice actually

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