Double bottom or double top

rama · 2017-05-15T11:21:57+00:00

Can you one help me with code for double bottom or double top? I want the code on any time frame 5 or 20 min or 60 min.

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10/20/2017 at 3:07 PM #50073 quote

rama
Participant

Senior

Thanks for your replies , to test the code I need to add buy and sell condition.

the code is for returning the values

how to add to this buy and sell condintons

example

buy 1 perpoint at support stop

sellsshort 1 perpoint at resistance stop

10/21/2017 at 12:29 AM #50096 quote

Abz
Participant

Veteran

Leo how will put this indicator into a automated system , buy on arrow up and sell on arrow down?

10/21/2017 at 8:41 PM #50157 quote

Leo
Participant

Veteran

Yes, right Nicolas! another way can be with a slope of a triangle between two maximums/minimus

If we learn to analyse the history of the locals minimums and locals maximum, then we can detects not only doble top/bottoms but channels, triangles, even head and shoulders!!!

And getting an issue that some minimums and maximum in certain cases are duplicated therefore cause a false signals of doble bottoms/top… anyway there is a lot work to do.

10/21/2017 at 8:49 PM #50158 quote

Leo
Participant

Veteran

Abz wrote:

Leo how will put this indicator into a automated system , buy on arrow up and sell on arrow down?

No, we have the study how the arrows behave and get a profitable robot! 🙂

10/22/2017 at 9:05 PM #50259 quote
Leo
Participant

Veteran
Hi all,

Here my first approximation… I feel very optimistic about this approach although there is a lot work to do (that’s why there is not algorithm to detects double bottom/tops yet )

Please see the picture attached, the triangle is draw by the algorithm here:
```
//LOCALS MINIMUMS AND MAXIMUMS

Kdouble=0.1 //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>1 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

IF LMA crosses over smoothLMA 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 LMA crosses under smoothLMA 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
IF LMA crosses over smoothLMA THEN
WidthDoubleBottom = LEVMAX-(BLEVMIN+LEVMIN)/2 // local max minus average of the las two local min
IF abs(BLEVMIN-LEVMIN) < Kdouble*WidthDoubleBottom THEN
DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSLEVMAX,LEVMAX,BPOSLEVMIN,BLEVMIN) COLOURED(0,255,0,200)
ENDIF
ENDIF
//--> Double tops
IF LMA crosses under smoothLMA THEN
WidthDoubleTop=(BLEVMAX+LEVMAX)/2 -LEVMIN
IF abs(BLEVMAX-LEVMAX) < Kdouble*WidthDoubleTop THEN
DRAWTRIANGLE(POSLEVMIN,LEVMIN,POSLEVMAX,LEVMAX,BPOSLEVMAX,BLEVMAX) COLOURED(255,0,0,200)
ENDIF
ENDIF

RETURN LMA AS "LMA", support as "support", resistance as "resistance", smoothLMA as "smooth LMA" //, lowest[round(0.75*period)](low[1]), highest[round(0.75*period)](high[1])
```
Abz and Ste thanked this post

Screen-Shot-2017-10-22-at-22.03.40.png
10/23/2017 at 8:16 AM #50274 quote

Madrosat
Participant

Master

Good morning

good work Leo
how can I spot and use the arrows in automatic trading

10/23/2017 at 8:25 AM #50276 quote

rama
Participant

Senior

Hi Leo

your code is for screen return

my coding knowledge is poor add a buy condition and sell condition by removing screen retrun

can you advice me

where to add and how to add

x=5

buy 1 perpoint at resistance+x stop

sellshort 1 perpoint at support -x stop

I will change the other conditions after back testing. x=5 and buy condition etc are example only

after back testing I will post my results

10/23/2017 at 1:24 PM #50317 quote

Abz
Participant

Veteran

Leo i tested the first version and i saw that the arrows appears sometimes on the 2-3 previous candle. is this something that you have seen?

10/23/2017 at 9:13 PM #50343 quote

Leo
Participant

Veteran

Hi all,

Madrosat, so far I am developing an algorithm for detecting double top or bottoms. For trading is more or less what Rama says: instead of drawing a triangle, it will be the executing order or a boleean or whatever.

Rama, right now I do not know how is the executed a trade, the theory is (for long)

– entry above the resistance

– stop loss below the support

– stop profit at a distance of Resistance – support i.e. a trade with profit/risk ratio of one

… that’s the theory maybe we can entry on the market earlier and take more profit

Abz, odd that error. What I notice is that some arrows are duplicated ( or repeated), try my last version, please and tell us if it is better.

10/24/2017 at 9:16 PM #50419 quote

Leo
Participant

Veteran

Hey,

I made an algorithm for detecting double top and double bottoms and is working so awesome and I feel so proud of it that I put it in the library as an indicator. Have a look to it when @Nicolas validate it for posting… and please give it a like or comment it, I want to improve my ranking in this forum 🙂

I think my algo is promising and I hope we work together for make the proper modification for automatic trading.

mamio thanked this post

10/25/2017 at 6:53 PM #50520 quote

swapping
Participant

Master

Hello Leo, very good algorithm

Tested today and very efficient for visual technical analyse at different frame; Also coupled with LMA is cool

Thank you (sorry for my english)

10/25/2017 at 7:15 PM #50521 quote

Nicolas
Keymaster

Legend

Hey Leo, you made a great job with your approach on these particular patterns, a big thumb up for you 🙂

10/25/2017 at 9:23 PM #50535 quote

Leo
Participant

Veteran

Thanks, those message encourage me for continuing my endeavour.

Here is my detector:

https://www.prorealcode.com/prorealtime-indicators/double-top-double-bottom-detector/

Now we have to found a clever way to employ that detector…

10/26/2017 at 1:45 PM #50606 quote

Madrosat
Participant

Master

Abz as write : Leo i tested the first version and i saw that the arrows appears sometimes on the 2-3 previous candle. is this something that you have seen?

I think arrows are repainting is true Léo??

Madrosat

10/26/2017 at 5:28 PM #50635 quote

Leo
Participant

Veteran

Hi Madrosat,

around line 20 of the code, says:

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

I thought this solve the issue, but no…. hope we find another way no repeating the arrows (I.e duplicating the information of a local maximum or minimum)
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