Young Ho Seo / プロファイル

Volume Spread Analysis Indicator List

We provide three different Volume Spread Analysis indicators and volume based tools. Our volume spread analysis tools are the hybrid of volume spread analysis and signal processing theory.

These tools will help you to complete your trading decision with high precision. As long as you understand the concept of the Accumulation and Distribution area in the volume spread analysis, these tools will help you to predict the presence of Accumulation and Distribution area. Hence, you can predict the best trading opportunity.

Firstly, Volume Spread Pattern Indicator is the powerful volume spread analysis indicator that operated across multiple timeframe. Volume Spread Pattern Indicator will not only provide the bearish and bullish volume spread pattern in the current time frame but also it will detect the same patterns across all timeframe. You just need to open one chart and you will be notified bullish and bearish patterns in all timeframe in real time.

Here is the link to Volume Spread Pattern Indicator.

https://www.mql5.com/en/market/product/32961

https://www.mql5.com/en/market/product/32960

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-indicator/

Secondly, Volume Spread Pattern Detector is the light version of Volume Spread Pattern Indicator above. This is free tool with some limited features. However, Volume Spread Pattern Detector is used by thousands of traders. Especially, it works great with the support and resistance to confirm the turning point. This is free tool. Just grab one.

https://www.mql5.com/en/market/product/28438

https://www.mql5.com/en/market/product/28439

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-detector/

Both Volume Spread Pattern Indicator and Volume Spread Pattern Detector works well with Excessive Momentum indicator as Excessive Momentum indicator helps to detect the potential Accumulation and Distribution area automatically. Hence, if you are using Excessive Momentum Indicator, then you can use one between Volume Spread Pattern Indicator or Volume Spread Pattern Detector. In addition, we provide the YouTube video to accomplish the basic operations of Excessive Momentum Indicator.

YouTube Video (Excessive Momentum Indicator): https://youtu.be/oztARcXsAVA

YouTube Video (Excessive Momentum Indicator Explained): https://youtu.be/A4JcTcakOKw

Here is link to Excessive Momentum Indicator for MetaTrader 4 and MetaTrader 5.

https://algotrading-investment.com/portfolio-item/excessive-momentum-indicator/

https://www.mql5.com/en/market/product/30641

https://www.mql5.com/en/market/product/30621

Thirdly, we provide the volume Zone Oscillator. This is another useful free tool that utilizes the volume information for your trading. You can use these tools for volume spread analysis, Harmonic Pattern, Elliott Wave Pattern, X3 Price Pattern further. This is free tool. Just grab one.

https://algotrading-investment.com/portfolio-item/volume-zone-oscillator/

Wave Process (Cycle)


Figure 7-1: Wave process is corresponding to price pattern (1, 2), (1, 3) and (1, 4) in the table.

Wave process is any cyclic patterns repeating in the fixed time interval. Two main references for Wave process can be found from Physics and Time series Analysis. Both references deal exclusively with periodic cycle of an object or a signal. However, they use different methodology to describe the periodic cycle. In physics, wave is the main term describing the periodic cycle of an object or a signal. In time series analysis, the term “Seasonality” is used to deal with seasonal fluctuations in the price series. In the Price Pattern Table (Figure 7-1), Wave Process covers both wave in Physics and seasonality in time series analysis. To better illustrate the Wave process, we provide simple description for Wave and Seasonality in this section.

In Physics, Wave can be described by three independent variables, which are frequency, wavelength and amplitude. Frequency is the number of waves passing a point in certain time interval. Scientists and engineers normally use a time of one second. Therefore, number of waves passing a point in 1 second is described by the unit called Hertz. 1 Hertz equals to one Wave per second. Wavelength is the distance from any point on one wave to the same point on the next wave along. Amplitude is the height of wave from the top of a crest to the centre line of the wave.



Figure 7-2: Description of Wave in Physics.

Normally textbook will show you a clean sine or cosine wave function to describe the property of wave. In the real world, the wave often consists of multiple cyclic components. For example, Figure 7-3 shows the synthetic multiple cycles built by adding three Sine Wave Functions: Sine (2x) + Sine (13x) + Sine (30x). Many real world signals can have more complex cyclic structure than this example. In addition, many real world signal will exhibit decreasing or increasing amplitude to make your analysis more difficult as shown in Figure 7-4.



Figure 7-3: Synthetic Cyclic Function of Sine (2x) + Sine (13x) + Sine (30x).



Figure 7-4: Synthetic Cyclic Function with increasing amplitude.

In time series analysis, seasonal fluctuation is described with smoothing factor gamma and previous seasonal level. Alternatively, one can use multiple regression with dummy variable or artificial intelligence techniques for the same task. Figure 7-5 shows typical annual seasonal fluctuations in the data. This type of series can be modelling using either additive seasonality or multiplicative seasonality.



Figure 7-5: Annual Seasonal fluctuations in the price series.

The ways to describe periodic wave in physics and in time series analysis are different. However, in fact, two concepts are still the very same thing. The main difference of the seasonality from the periodic wave in Physics is that seasonality are normally assumed to have some common seasonal period in calendar like hourly, daily, monthly or quarterly. Although modelling methodology might differ, the seasonality can be detected with Fourier Transformation and periodogram equally well. One disadvantage of seasonality in time series is that the math become quite complex if we have to model multiple seasonality. For example, if we have more than three distinctive seasonal fluctuations in our data, say hourly daily, weekly and monthly, then it is quite difficult to model using seasonal exponential smoothing model. At the same time, multiple periodic cycles present in price series can be modelled readily with combination of sine and cosine curve with various amplitude and wavelength.

It is very difficult to observe any strong seasonality in Forex market data. It is probably because the currency markets are traded all years around with high trading volume. However, some weak form of seasonality might be observed from Stock market and commodity market. If any price series shows wave process (cycle), then it is important to define seasonal period, the time interval repeating its cycle. With the identified seasonal period, one can determine period where price stays below or above the seasonal average for your trading advantage. For example, in Figure 7-6, we can observe some bullish effect on April and December on S&P500 monthly data. It is rare for forex trader. However, there are still many group of traders looking for seasonality in Stock market.



Figure 7-6: Seasonal Effects of the S&P 500 monthly price series. Seasonality was extracted from the central moving average construction.



About this Article

This article is the part taken from the draft version of the Book: Scientific Guide to Price Action and Pattern Trading (Wisdom of Trend, Cycle, and Fractal Wave). Full version of the book can be found from the link below:

https://algotrading-investment.com/portfolio-item/scientific-guide-to-price-action-and-pattern-trading/

Fractal Pattern Scanner provides the way to measure the fractal cycles in forex and stock market data. In addition, the turning Point Probability and trend Probability can be measured with Fractal Pattern Scanner at every price action in your chart. For the simplest usage, Fractal Pattern Scanner can turn the simple support and resistance to the powerful killer strategy. Below is the landing page to Fractal Pattern Scanner in MetaTrader 4 and MetaTrader 5.

https://www.mql5.com/en/market/product/49170

https://www.mql5.com/en/market/product/49169

https://algotrading-investment.com/portfolio-item/fractal-pattern-scanner/

Below is the landing page for Optimum Chart (Standalone Charting and Analytical Platform).

https://algotrading-investment.com/2019/07/23/optimum-chart/

Excessive Momentum Indicator and Trading Operation

Excessive Momentum Indicator automatically detects the broken balance between supply and demand in the financial market. Detection of this broken balance provides the great market timing for the entry and exit for our trading. In this short article, we explain some of the controllable inputs in the Excessive Momentum Indicator.

There are the four main inputs, controlling the calculation process of Excessive Momentum Indicator. They are:

* Bars To Scan: amount of candle bars to calculate the indicator. Choose bigger numbers if you want to see the calculation over longer historical period.

* Momentum Strength Factor: Momentum Strength is the strength of Excessive Momentum to detect. It can stay between 0.1 and 0.5. In theory, it can go up to 1.0. However, you will not get many signals to trade. The default setting is 0.1. You can try various Momentum Strength Factor to optimize your trading performance if you wish.

* Equilibrium Fractal Wave Scale: This input controls the size of Fractal Wave when we detect the excessive momentum. If you put bigger number, then you get less signals to trade. The default setting is 0.5.

* Detrending Period: This input controls the statistical calculation in the algorithm. It should stay between 20 and 50.

Above four inputs are important because they can affect the number and quality of trading signals. You can use the default setting most of time. However, it is also possible that you can try different inputs and check how they perform in the historical data. Rest of inputs are probably self-explanatory from their name.

Now, let us cover the trading signals. In the Excessive Momentum indicator, you get two signal alerts. Firstly, you will get alert when the Excessive Momentum is starting in the market. In this case, it will notify you the starting price. At this stage, the excessive momentum is not completely expanded yet.

Secondly, you will get alert when the Excessive Momentum is completed in the market. At this stage, you will be notified both starting price and ending price of Excessive Momentum.

Both starting price and ending price of Excessive Momentum form the Excessive Momentum Zone. At which signal you want to trade is up to your choice. You can use the zone as the breakout trading when the zone is narrow. When the zone is sufficiently large, it might be possible to aim some reversal trading opportunity too.

At the same time, this Excessive Momentum Zone can be considered as either Accumulation or Distribution area in the Volume Spread Analysis. You can further find the symptoms of accumulation and distribution area using our Volume Spread Pattern Indicator (Paid and Advanced version) or Volume Spread Pattern Detector (Free and Light version).

YouTube Video 1: https://youtu.be/oztARcXsAVA

YouTube Video 2: https://youtu.be/A4JcTcakOKw

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Below is the landing page for Excessive Momentum Indicator.

https://algotrading-investment.com/portfolio-item/excessive-momentum-indicator/

https://www.mql5.com/en/market/product/30641

https://www.mql5.com/en/market/product/30621

Here is the link to Volume Spread Pattern Indicator (Paid and Advanced Version).

https://www.mql5.com/en/market/product/32961

https://www.mql5.com/en/market/product/32960

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-indicator/

Here is the link to Volume Spread Pattern Detector (Free and Light Version).

https://www.mql5.com/en/market/product/28438

https://www.mql5.com/en/market/product/28439

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-detector/

Advanced Harmonic Pattern Detection Indicator for MetaTrader 5

Harmonic Pattern Scenario Planner is an advanced Harmonic Pattern Detection Indicator. This is probably the most sophisticated harmonic pattern detection indicator for MetaTrader 5 platform.

Harmonic Pattern Scenario planner can be used like Harmonic Pattern Plus. Hence, it is easy and friendly to use. At the same time, it combines powerful Monte Carlos Simulation to provide you advanced harmonic pattern search capability.

Monte Carlo Simulation can help you to find future reversal points in advance.

In addition, you can watch the YouTube Video to feel what is the automated harmonic pattern indicator like. For your information, we provides two YouTube videos with title and links below.

YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk

YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ

Here is the product link to Harmonic Pattern Scenario Planner for MetaTrader 5. You can find more about the features of this advanced Harmonic Pattern Scenario Planner.

https://www.mql5.com/en/market/product/6101

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

Equilibrium Process (Trend)


Figure 6-1: Equilibrium process is corresponding to price pattern (2, 1), (3, 1) and (4, 1) in the table.

Simply speaking, Equilibrium process is conceptually similar to trend. It is the market force moving the price series in one direction. Equilibrium process is not different from the equilibrium concept found in the classic supply-demand economic theory. Literally, it is the force to move price to release the unbalance between supply and demand. There are many types of Equilibrium process (trend). They might be linear trend like Pattern (2, 1) in Figure 6-2 or they might be nonlinear trend like Pattern (3, 1) and (4, 1) in Figure 6-2. The three trend patterns, that are linear, exponential and damped, are common. Exponential trend (3, 1) represents the strong trend with increasing momentum. Damped trend (4, 1) represents the trend with reducing momentum. Figure 6-2 presents the six trend patterns for both bullish and bearish markets. These six trend patterns are found most frequently in the financial market comparing to other trend patterns.



Figure 6-2: Trend Patterns for bullish and bearish market.

Equilibrium process is highly related to market fundamentals. Equilibrium process is the direct representation of the supply demand balance in the financial market. Assuming there is the fixed number of shares for Google, if more people want to buy a stock than sell it, then the share price for Google will move up. We call this as a bullish trend. Likewise, if more people want to sell a stock than buy it, there would be greater supply than demand and the price would fall. We call this as a bearish trend. When there is the imbalance in supply and demand force, then the price will try to move towards equilibrium to release the imbalance. The supply demand imbalance is often caused by the fundamental change in the market. For example, change in the taxation or interest rate can change the quantity of supply and demand force dramatically. Natural disasters like Earthquake or Hurricanes or other serious transmissible diseases can influence the dynamics of supply demand too in the financial markets. War, terror, or other political corruption can reduce the demand of the financial assets affected by them.



Figure 6-3: Economic Supply Demand curve.

If the Equilibrium process (trend) is overwhelmingly dominating in the price series, prediction is easier. However, the strength of Equilibrium process differs for different financial price series. It is also not easy to quantify or to isolate the portion of Equilibrium process from rest of regularities perfectly. In reality, Equilibrium process can be caused by multiple information sources introduced in different time (Figure 6-4). Each information source will be diffusing across the market in time. Some of them are slowly and some of them are quickly. Some information source will introduce bullish Equilibrium process, which increase demand and reduce supply. Some other information source will introduce bearish Equilibrium process, which reduce demand and increase supply. Since each trader and investor will react differently to different information sources, the diffusion process of each information source can vary dramatically. Modelling or visualization of diffusion process of multiple information sources is complex. If there are many bullish and bearish Equilibrium process acts together in the price series, the simplest way of guessing the market direction is calculating the net of bullish and bearish equilibrium process in the market. However, with simple netting, you will still miss the time factor because each information source will be diffused in different speed. Another difficulty comes from quantifying bullish and bearish strength of each source. Typically, to quantify them correctly, we need good amount of historical data. Especially if you need the accuracy for trading quality, you will need much more data than just doing some academic research. To most of average trader, this is not accessible.



Figure 6-4: EURUSD candlestick chart with various Fundamental Data Release.

Therefore, trader uses technical indicator because technical indicator is simple alternative to the complex diffusion process modelling. Moving average type of technical indicators can work well for this type of market because they eliminate randomness and leave the trend pattern in the price series. Simple moving average, exponential moving average and zero lag moving average can be the great help for this type of market. Normally the strong Equilibrium process can be captured with typical momentum trading strategy. For example, all moving average cross over strategy will work well. In this type of market, following trend is wiser than using the counter trend trading strategy. The real question is “Can we have such a simple market we can trade with moving average alone”? If so, we will be very lucky. Most of time, the financial market will show more complex behaviour, which will be introduced in later chapters. However, in some stock market, you might be able to find few easy opportunities. In Forex market, I think there is not so much opportunity to win with moving average indicator alone.



Figure 6-5: Moving Average Cross over strategy. Fast simple moving average is cross over slow simple moving average for buy opportunity.



Figure 6-6: Moving Average Cross over strategy. Fast simple moving average is cross down slow simple moving average for sell opportunity.

About this Article

This article is the part taken from the draft version of the Book: Scientific Guide to Price Action and Pattern Trading (Wisdom of Trend, Cycle, and Fractal Wave). Full version of the book can be found from the link below:

https://algotrading-investment.com/portfolio-item/scientific-guide-to-price-action-and-pattern-trading/

You can also use Ace Supply Demand Zone Indicator in MetaTrader to accomplish your technical analysis. Ace Supply Demand Zone indicator is non repainting and non lagging supply demand zone indicator with a lot of powerful features built on.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

Below is the landing page for Optimum Chart (Standalone Charting and Analytical Platform).

https://algotrading-investment.com/2019/07/23/optimum-chart/

YouTube Video for X3 Chart Pattern Scanner

Video can explain a lot of details about how things works. You can use this video for first guide on using X3 Chart Pattern Scanner.

This video was originally created for the previous Optimal Turning Point Pattern Scanner. However, X3 Chart Pattern Scanner uses almost same user interface (with a lot of powerful additional features). Hence, you can use this video for X3 Chart Pattern Scanner too. For your information, since X3 Chart Pattern Scanner comes with a lot of new additional features, the video does not cover for those features. For example, X3 Chart pattern scanner can provide

Harmonic Patterns
X3 Chart Patterns
52 Japanese candlestick patterns
Automatic double standard deviation channel
and many more powerful features
Youtube: https://www.youtube.com/watch?v=uMlmMquefGQ

Also here is the product page for the X3 Chart Pattern Scanner. Enjoy the powerful non repainting and non lagging Harmonic Pattern, X3 Pattern and Elliott Wave Pattern indicator.

https://www.mql5.com/en/market/product/41993

https://www.mql5.com/en/market/product/41992

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

Intro Video for Advanced Price Pattern Scanner

Advanced Price Pattern Scanner is the non repainting pattern scanner designed for both MetaTrader 4 and MetaTrader 5. It can detects many important price patterns for your trading like rising wedge, falling wedge, head and shoulder patterns, Cup and Handle, etc. Here is an intro video for Advanced Price Pattern Scanner from YouTube. Please check the YouTube Video titled as “Intro Video to Advanced Price Pattern Scanner”. This video covers some basic operation with Advanced Price Pattern Scanner in MetaTrader.

Advanced Price Pattern Scanner YouTube Video: https://www.youtube.com/watch?v=A1-IUr6u5Tg

In addition, you can watch the following YouTube Video to understand why price pattern is so important for your technical analysis.

Fractal to Advanced Technical Analysis YouTube Video: https://www.youtube.com/watch?v=RiTsWthvxfA

Below is the direct link to Advanced Price Pattern Scanner. As usual, we provide it for both MetaTrader 4 and MetaTrader 5 platforms.

https://algotrading-investment.com/portfolio-item/advanced-price-pattern-scanner/

https://www.mql5.com/en/market/product/24679

https://www.mql5.com/en/market/product/24678

Impulse Wave Structural Score and Corrective Wave Structural Score

With the three tools including template, Fibonacci retracement and three wave rules, traders can identify the correct patterns to trade from their chart. We have provided six mechanical steps, which anyone can use to count waves in objective manner. Often, there are many traders focus more on fitting the wave counting to their chart. Fitting the wave counting can be useless unless every wave counting is accurate for every single label. For example, Figure 5-11 shows some complex wave labelling. Such a complex labelling can be often attempted by traders. The complex labelling does not results in high accuracy for your trading in general. Often the small error in the wave counting will be amplified later. Therefore, you will likely to override your counting repeatedly when the market does not move according to your wave counting. Complex labelling do not show your intellectual level either. For trading, we should aim to identify accurate pattern and avoid any complexity. Remember that in the financial market, the fractal geometry itself is not strict. In addition, financial market always have decent amount of random process going on. The random fluctuation will always contribute towards some unpredictable portion of the financial market. Therefore, we do not have to attempt labelling the wave for every single candle bar in our chart. Instead, we should try to use the most accurate pattern for our trading.



Figure 5-11: Example of complex wave counting fitted to chart.

Therefore, for better trading practice, we recommend “approach of the pattern detection” rather than “approach of fitting the wave counting”. We strongly emphasize not to use inaccurate wave counting for your decision-making. Instead, you can only rely on the wave patterns meeting certain quality for your trading. The question is how do we differentiate accurate pattern from inaccurate patterns? In order to assess the accuracy of wave patterns, we can revisit the pattern matching accuracy from the Harmonic Pattern. To recap what is the pattern matching accuracy in the case of Harmonic Pattern, it is the metrics showing how close our detected harmonic pattern matches to the perfect pattern made up from the ideal Fibonacci ratios. The concept of the pattern matching accuracy can be extended for the case of Elliott Wave counting too. Since three wave rules and the Fibonacci ratios provide the guideline for the quality of the pattern, we can incorporate such information into these error metrics as we did in the case of harmonic patterns:



Figure 5-12: Some possible Error Metrics for Elliott Wave pattern matching.

Once again, we can use the Mean Absolute Percent Error to quantify the pattern matching error for each Elliott Wave pattern.



Pattern matching accuracy can be calculated simply using the following formula:

Pattern matching accuracy (%) = 100 – Pattern matching error (%).

For both impulse wave and corrective wave, we can name the pattern matching accuracy as the Impulse Wave Structural Score (IWSS) and Corrective Wave Structural Score (CWSS). Since the term “impulse” and “motive” are used interchangeably. One can call the Impulse Wave Structure Score to Motive Wave Structural Score too. Simply speaking, Impulse Wave Structural Score tells you how closely the identified impulse wave pattern matches to the structure of the ideal impulse wave pattern. Likewise, Corrective Wave Structural Score tells you how closely the identified corrective wave pattern matches to the structure of the ideal corrective wave pattern. To give you working example on using the impulse Wave Structural Score and Corrective Wave Structural Score, consider our previous example with two candidate peaks for wave 3. With first candidate peak, our calculation for impulse Wave Structural Score was 83.7%. With second candidate peak, our calculation for impulse Wave Structural Score was 95.5%. This number support our conclusion made from our six steps. From our experience, Wave Structural Score below 80% considered as poor quality. For the decision making for trading, it is advised to use the Wave Structural Score over 80%. If you have two or three alternative scenarios for your wave counting at least satisfying three wave rules, then you can always choose the scenario with maximum Wave Structural Score. What if you never find any wave patterns that meet over 80% of Wave Structural Score at best, then you should not trade. It is always much better not to trade than trading with inaccurate pattern.



Figure 5-13: Impulse Wave Structural Score comparison. Impulse Wave Structural Score on the left was calculated when the first peak is considered as wave 3. Impulse Wave Structural Score on the right was calculated when the second candidate peak is considered as wave 3.

About this Article

This article is the part taken from the draft version of the Book: Scientific Guide to Price Action and Pattern Trading (Wisdom of Trend, Cycle, and Fractal Wave). Full version of the book can be found from the link below:

https://algotrading-investment.com/portfolio-item/scientific-guide-to-price-action-and-pattern-trading/

Elliott Wave Trend is the powerful metatrader indicator. It allows you to perform Elliott wave counting as well as Elliott wave pattern detection. On top of them, it provides built in accurate support and resistance system to improve your trading performance. You can watch this YouTube Video to feel how the Elliott Wave Indicator look like:

https://www.youtube.com/watch?v=Oftml-JKyKM

Here is the landing page for Elliott Wave Trend.

https://www.mql5.com/en/market/product/16479

https://www.mql5.com/en/market/product/16472

https://algotrading-investment.com/portfolio-item/elliott-wave-trend/

Harmonic Pattern Indicator List for MetaTrader 4

Harmonic Pattern Indicator provide a mean of detecting the turning point in the market. It is one way to solve the puzzle of market geometry, which is often not solvable with technical indicators. How about automatic harmonic pattern detection for your trading ?

We provide the list of Harmonic Pattern Indicator for your MetaTrader 4 platform. These harmonic pattern indicators are not only detecting harmonic pattern but they also provide the addtional features to help you to win in your trading.

1. Harmonic Pattern Plus for MetaTrader 4

Harmonic Pattern Plus is the harmonic pattern scanner. It can detect harmonic patterns with predefined trading entries and stops. Pattern Completion Interval, Potential Reversal Zone and Potential Continuation Zone are supported. In addition, other dozens of powerful features are added like Japanese candlestick detection, automatic channel, etc.

https://www.mql5.com/en/market/product/4488

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

2. X3 Chart Pattern Scanner for MetaTrader 4

X3 Chart Pattern Scanner is non repainting and non lagging pattern scanner for Harmonic Pattern, Elliott Wave pattern and X3 patterns. It is the most advanced but user friendly harmonic pattern indicator. As a bonus, this tool can detect around 52 bearish and bullish Japanese candlestick patterns + advanced Channel features. This is the most advanced Harmonic and Elliott wave scanner in the market. You must try.

https://www.mql5.com/en/market/product/41992

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

3. Harmonic Pattern Scenario Planner for MetaTrader 4

With additional features of predicting future harmonic patterns, this is the tactical harmonic pattern indicator with advanced simulation capability on top of many powerful features of harmonic pattern plus. Try it then you will know its power.

https://www.mql5.com/en/market/product/6240

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

In addition, you can watch the YouTube Video to feel what is the automated harmonic pattern indicator like. For your information, we provides two YouTube videos with title and links below.

YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk

YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ

Most advanced Elliott Wave Software for MetaTrader 5

MetaTrader 5 is the next generation trading platform developed by Meta Quote who developed MetaTrader 4. MetaTrader 5 is far exceeding trading platform of its predecessor, MetaTrader 4. MetaTrader 5 is accessible for free of charge for any trader from all over the world. More and more brokers are now offering MetaTrader 5 trading options even including US based firms.

Elliott Wave Trend is the most advanced Elliott Wave Trading software, which helps you to trade with various Elliott Wave patterns like Wave .12345 pattern and Wave .ABC and Wave .ABCDE, etc. Elliott Wave Trend was built on the concept of Precision Trading with Elliott Wave Structure Score. Our Elliott Wave Trend is professional tool for professional trader. Yet, the price of it is affordable.

Our Elliott Wave Trend is available in both MetaTrader 4 and MetaTrader 5 version.

https://algotrading-investment.com/2018/10/25/how-elliott-wave-can-improve-your-trading-performance/

At the same time, you can watch YouTube video titled as “Elliott Wave Trend Intro to find out more about Elliott Wave Trend Indicator.

YouTube Link: https://youtu.be/Oftml-JKyKM

Link to Elliott Wave Trend.

https://algotrading-investment.com/portfolio-item/elliott-wave-trend/

https://www.mql5.com/en/market/product/16472

https://www.mql5.com/en/market/product/16479

Forex Robot Advisor Jane. Live Presentation for Technical Analysis for Today.

https://youtu.be/al2guOKHQdY

Rolling Ball Effect and Harmonic Pattern Trading

We use turning point strategy because of their high reward/risk ratio. Higher rewards/risk ratio means relatively lower winning rate comparing to other lower rewards/risk trading setup. As an extreme example, in scalping, you can achieve over 90% of winning rate if you have the target profit of 1 pip against 20 or 30 pips risk. However, it does not mean that scalping is better technique than other strategies. With scalping, you have to increase frequency of trading to achieve the same profit level as other techniques do. In addition, few losing trades will risk your account quickly. In harmonic pattern trading, higher rewards/risk ratio will reduce your winning rate dramatically. It is hard to say exact winning rate. Roughly, your chance to be successful is somewhere between 10% and 60%. Of course, it can be higher depending on your discipline and rewards/risk ratio. When we trade with turning points, we can be wrong many times. However, few winning trades will offset your loss and will offer you profits. Several losing trades will never impose a lot of pressure on your account when you are taking reasonable risk for each trade. Turning point strategy has nice operating characteristics for trader. Unlimited profit range is the key merit on why the turning point strategy is loved by many traders (Figure 11-1). In addition, the required frequency of trading is much less than other trading strategy. This sort of strategy will fit to the life style of many of us. Having said that, many traders do not understand the skills and discipline required for turning point strategy. In essence, the key to apply successful turning point strategy is reducing number of losing trades.



Figure 11-1: Profit range of turning point strategy compared to others.

To reduce number of losing trades and to increase your winning rate, you must understand the rolling ball effect. What is rolling ball effect? To explain the rolling ball effect in harmonic pattern context, let us start with some example of bullish harmonic patterns. We will be using bullish trading example thoroughly in this chapter. For selling case, please turn the logic explained here the other way around.



Figure 11-2: Schematic diagram of rolling ball on the slope.

Most of time the bullish turning point will come after heavy selling period. In the case of global turning point, it would come after intensive selling (Figure 11-3). In the case of continuation and local turning point, the turning point will come after some selling (Figure 11-4). When we look back this in chart, it seems everything is ok. However, if we are standing at the time before the turning point happens, this is not fun to be honest. Especially we have just sent some large buying orders when all bearish investors think this might be suiciding. Even in this fearful moment, we still do this because we know that there are people waiting to enter buy when price is sufficiently discounted. However, this is only half of our equation.

To win, you have to understand the other half of equation. The other half of equation is that it is not easy to stop the rolling ball on the slope as shown in Figure 11-2. Even the rolling ball reaches end of the slope, we cannot expect the rolling ball to be stopped right at the end because the rolling ball has the built up momentum in the rolling direction. Instead, it usually takes several hard attempts to stop them or they will role until they lose all the momentum by the friction of surface and air and other obstacles on its way. This rolling ball effect is the typical cause behind the failed harmonic patterns. Less sophisticated trader does not see this rolling ball effect. They are almost careless about the built-up momentum of the selling market. If you miss this point, you will be joining the 90/90/90 club, 90% of the traders losing 90% of their money within 90 days.



Figure 11-3: Global turning point example after heavy selling pressure.



Figure 11-4: Local turning point example.

To deal with this rolling ball effect, sometimes, you can employ the multiple entry technique for harmonic pattern trading. In multiple entry technique, you will split your order into two or three smaller. At first, you will open first entry with the order size of half or one third of one full order. Then you will monitor how the market is responding. If market is going down further, this means that the rolling ball effect is still not cleared yet. As price is going down further, the harmonic pattern can fail. During this process, this might be losing trade or this might be breakeven if you are skilled. At the same time, you have to check if the market is showing some intent to become bullish or not for your future second entry. If the market showed some intent to become bullish, then you can wait for the second opportunity. It is important to have sufficient price distance between your first and second entry though. Second entry must be well below outside the Pattern Completion Interval of the first entry to account for the rolling ball effect. If we meet the turning point in our first entry, it is the best scenario. In such scenario, make sure that you are using maximum profit range to account for the reduced position size. Even if our first entry did not go well, we still have the second chance. Now, you might be wondering how many entries are recommended in multiple entry. Typically, two is recommended and three is the maximum I can suggest. If you split your order into too many pieces, then you profit size is getting smaller too. I do not recommend going over more than three typically. Two is good choice and three is the maximum.



Figure 11-5: Multiple entry demonstration with AB=CD pattern.

Sometimes, there are people doing exactly opposite to multiple entries recommended here. That is they are taking multiple exits. For your information, multiple exit technique can not deal with the rolling ball effect if the entry of two orders are identical. Multiple exits with same entry isn’t efficient technique because the end result is more or less the same with single entry with the averaged take profit between two take profits. For example, some trader sets two take profits at 0.381 and 0.618 Fibonacci projected level from D point. The results of this will become close or identical to one take profit at 0.500 Fibonacci projected level in long run. I do not recommend this sort of multiple exit setup. However, if you must do this sort of multiple exit setup, then I recommend using Potential Continuation Zone, instead of simple Fibonacci projection. Potential Continuation Zone, introduced in this book, is much better predictor of turning point after the D point is confirmed. Hence, you can use two Potential Continuation Zone sensibly to place your two take profit targets. In addition, if you are going to employ two orders, try to differ the entries to account for the rolling ball effect. If you are differing the entries of the two orders, then it will become the multiple entry technique we have been explaining here.



Figure 11-6: Multiple exit demonstration with AB=CD pattern.



Figure 11-7: Single exit setup equivalent to multiple exit setup in Figure 11-4.

About this Article

This article is the part taken from the draft version of the Book: Guide to Precision Harmonic Pattern Trading (Mastering Turning Point Strategy for Financial Trading). This article is only draft and it will be not updated to the completed version on the release of the book. However, this article will serve you to gather the important knowledge in financial trading. This article is also recommended to read before using Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner, which is available for MetaTrader or Optimum Chart.

Below is the landing page for Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner in MetaTrader. All these products are also available from www.mql5.com too.

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

Below is the landing page for Optimum Chart (Standalone Charting and Analytical Platform).

https://algotrading-investment.com/2019/07/23/optimum-chart/

Automatic Resizing your Stop Loss and Take Profit Level with Harmonic Pattern Plus (Harmonic Pattern Scenario Planner)

Having understood all the concept behind the Pattern Completion Interval, you might observe that sometime price can react outside the pattern completion interval. Sure, there is nothing perfect in the world. As long as you understand the pros and cons of using large stop loss size, it is still fine to control your own stop loss size.

However, we still prefer to express stop loss size in terms of pattern completion interval range for convenience. For example, if the original stop loss size was equal to 1 x pattern completion interval, you can certainly use 1.5 x pattern completion interval or 2 x pattern completion interval.

Another consideration before you are using pattern completion interval, if you can enter the market at the competitive price, then you can feel less guilty when you increase your stop loss size because you are still remaining good rewards/Risk ratio. On the other hands, if you have entered market at not so competitive price, then you might be cautious when you increase your stop loss size.

The same feature applies to X3 Chart Pattern Scanner (Non Repainting and Non Lagging Harmonic Pattern and Elliott Wave pattern scanner.)

In addition, you can watch the YouTube Video titled feel what is the automated harmonic pattern indicator like. For your information, we provides two YouTube videos with title and links below.

YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk

YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ

Harmonic Pattern Plus

https://www.mql5.com/en/market/product/4488

https://www.mql5.com/en/market/product/4475

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

Harmonic Pattern Scenario Planner

https://www.mql5.com/en/market/product/6101

https://www.mql5.com/en/market/product/6240

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

X3 Chart Pattern Scanner

https://www.mql5.com/en/market/product/41993

https://www.mql5.com/en/market/product/41992

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

Using Spread Chart from the Pairs Trading Station in MetaTrader

From Pairs Trading Station in MetaTrader version, you can access the Spread Chart, which is mathematically processed to show the distance between two financial instruments (or between two assets).

You can access the Spread Chart by clicking << button or >> button near the Spread button.

Here is the brief guide on how to interpret the Spread Chart. In this example, we use AUDUSD and XAUUSD as asset 1 and asset 2. The absolute magnitude of these two assets are compared in the normalized sense to compare apple to apple and pear to pear. Two cases exist including the positive spread and negative spread.

In positive spread, AUDUSD (i.e. asset 1) is greater than XAUUSD (i.e. asset 2). Higher the positive spread means that AUDUSD is much greater than XAUUSD in the normalized sense. If the positive spread is small, then the difference between AUDUSD and XAUUSD is also small.

In negative spread, AUDUSD (i.e. asset 2) is smaller than XAUUSD (i.e. asset 2). Higher the negative spread means that AUDUSD is much smaller than XAUUSD in the normalized sense. If the negative spread is small, then the difference between AUDUSD and XAUUSD is also small.

Further you can access more detailed trading operation with below Pairs Trading Manual.

https://algotrading-investment.com/2015/11/14/introduction-to-pair-trading-station_ati/

In addition, you can watch this YouTube Video titled as How to use Pairs Trading Station

https://youtu.be/fAE9pByxZDA

To help you understand the spread chart, we also attach the screenshot.

Pair Trading Station is very unique trading system based on Statistical Arbritage trading principle. Below is the direct link to Pair Trading Station for MetaTrader 4 and MetaTrader 5 platform:

https://algotrading-investment.com/portfolio-item/pair-trading-station/

https://www.mql5.com/en/market/product/3303

https://www.mql5.com/en/market/product/3304

So far, we have explained the functionality of Pairs Trading Station in MetaTrader version, covering both MetaTrader 4 and MetaTrader 5. In addition, we also provide the Pairs Trading Station in Optimum Chart too with more advanced features.

https://algotrading-investment.com/2019/07/23/optimum-chart/

Artificial Intelligence Does Technical Analysis for You. You can just seat back and enjoy the technical analysis presented by the robot. This video provides the forex analysis you can use for your day trading with forex market. Make sure to subscribe to our YouTube Channel so you can receive immediate alert for new Forex Prediction upload.

YouTube: https://youtu.be/F1yF0v0R6dU

Scan Supply Demand Zone Across All Timeframe

In Ace Supply Demand Zone indicator, you can scan the supply and demand zone across all timeframe for your Forex trading. This is a powerful feature included in Ace Supply Demand Zone indicator. Controlling the Multiple Timeframe scanning is similar to our other MetaTrader products like Harmonic Pattern Plus or X3 Chart Pattern Scanner. You can control them from the inputs under the Multiple Timeframe Scanning. With the inputs, you can enable or disable multiple timeframe scanning. You can also choose to switch on or off specific timeframe from your dashboard. In addition, you can also control how frequently the indicator should scan. The default value for update frequency is M5 timeframe. However, you can use M1 for update frequency if you need to scan them more frequently.

If you enabled email or push notification in the inputs under General Setting, then you can also receive the alert for the detected supply and demand zone as well as the touched supply and demand zone. The thing you need to understand about multiple timeframe scanning is that it requires multiple computation too per each timeframe. The computation can be heavier up to 7 times or more when you enabled M1 to D1 timeframes. Hence, due to data loading issues, the calculation might be stuck sometimes. In that case, just click Show button to refresh all the calculation. Of course, it is possible to switch off the multiple timeframe scanning if you only want to trade one timeframe.

Ace Supply Demand Zone in MetaTrader 4 and MetaTrader 5

In addition, we provide the YouTube video for Ace Supply Demand Zone Indicator. Hence, you can watch this YouTube Video to learn the basic operation with the supply demand zone indicator.

YouTube “Supply Demand Zone Indicator”: https://youtu.be/lr0dthrU9jo

Landing page for Ace Supply Demand Zone.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

Introduction to Advanced Price Pattern Scanner (Non Repainting)

Advanced Price Pattern Scanner is the pattern scanner built upon our accumulative knowledge and insight from our financial market research many years. Advanced Price Pattern Scanner uses highly sophisticated pattern detection algorithm. However, we have designed it in the easy to use and intuitive manner. Advanced Price Pattern Scanner will show all the patterns in your chart in the most efficient format for your trading. It is non repainting pattern detector.

Detectable Patterns

Following pattern can be detected.

1) Triangle (Pattern Code = 0)

2) Falling Wedge (Pattern Code = 1)

3) Rising Wedge (Pattern Code = 2)

4) Double Top (Pattern Code = 3)

5) Double Bottom (Pattern Code = 4)

6) Head and Shoulder (Pattern Code = 5)

7) Reverse of Head and Shoulder (Pattern Code = 6)

8) Cup and Handle or Cup with Handle (Pattern Code = 7)

9) Reverse of Cup and Handle or Cup with Handle (Pattern Code = 8)

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Main Functionality

1) Pattern Detection in Indicator Window: Detected Patterns are located in the indicator window for your market analysis. To view or hide, just click the Circle button in the indicator window.

2) Pattern Detection in Main Window: Detected patterns are also located in the main window for your market analysis. To view or hide, just click the circle button in the main window.

3) Call Patterns: You can also call any patterns at the desired location in your chart. To access Call Pattern feature, click call button. Now you will have pointer in your chart. Move the pointer anywhere in your chart to located patterns, then click “Call” button again. You will see patterns corresponding to the location of pointer.

4) Multiple Timeframe Pattern Detection: You can also scan above patterns across different timeframe from one indicator. You can also switch on and off any specific timeframe per your need. Please note that Multiple Timeframe Pattern Detection requires much heavier computation.

5) Pattern Locking: You can also lock any patterns in your chart for your future use. Just click over Lock button to lock patterns in your chart.

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Here is a Simple Video Tutorial on Advanced Price Pattern Scanner.

YouTube: https://www.youtube.com/watch?v=A1-IUr6u5Tg

Below are the links to Advanced Price Pattern Scanner.

https://algotrading-investment.com/portfolio-item/advanced-price-pattern-scanner/

https://www.mql5.com/en/market/product/24679

https://www.mql5.com/en/market/product/24678

You can also use this product together with Peak Trough Analysis tool to yield better profit. Peak Trough Analysis is free tool for everyone.
Below is how to download this free peak trough analysis indicator.

https://algotrading-investment.com/2019/08/29/how-to-download-peak-trough-analysis-tool/

Price Breakout Pattern Scanner and Smart Renko

Our Price breakout pattern scanner is very unique tool in the market because it have built in feature for Smart Renko inside. There is reason for that. Smart Renko is really helpful for any pattern detection in the separate window. So they will reinforce your trading decision. Imagine that in the candlestick chart, Price Breakout Pattern Scanner is automatically detecting the patterns for you. In the indicator window, you can also detect any other important patterns readily. If you can collect evidence for your trading from both candlestick chart and renko chart, you can make very powerful trading decision.

Let us show how to switch on and off the Smart Renko chart from your price breakout pattern Scanner. Before you are using Smart Renko feature enabled, you might download sufficient history in your chart first. Once you have done it, set Use “Smart Renko = true” from your indicator setting. See the screenshots for your better understanding. Some of our customer know that there is great way of trading with Price breakout pattern scanner and our Harmonic Pattern Plus (or Harmonic Pattern Scenario Planner or Profitable Pattern Scanner).

Here are the links for the Price Breakout Pattern Scanner

https://www.mql5.com/en/market/product/4859

https://www.mql5.com/en/market/product/4858

https://algotrading-investment.com/portfolio-item/price-breakout-pattern-scanner/

Forex Analysis done by the Artificial Intelligence Jane with the Supply Demand Analysis. This video provides the forex analysis you can use for your day trading with forex market. Make sure to subscribe to our YouTube Channel so you can receive immediate alert for new Forex Prediction upload.

YouTube: https://youtu.be/M6aiuDlhV2I

Must Read Articles for Professional Harmonic Pattern Trader

Here is the short but insightful article for Harmonic Pattern Trader. This article will explain type of Harmonic Pattern indicators and the technology around the harmonic pattern detection algorithm. If you are professional trader, then you must read these three articles before trading with them.

1) Turning Point and Trend: https://algotrading-investment.com/2019/07/06/turning-point-and-trend/

2) Pattern are good predictor of Market Turning Point: https://algotrading-investment.com/2019/07/07/patterns-are-the-good-predictor-of-market-turning-point/

3) Harmonic Pattern Indicator Types: https://algotrading-investment.com/2019/03/15/harmonic-pattern-indicator-types/

Throughout these articles, we also emphasize the importance of estimating true success rate for harmonic pattern to build the winning trading strategy.

Also below we provide the links for the automated Harmonic Pattern Detection indicator.

4) Harmonic Pattern Scenario Planner

https://www.mql5.com/en/market/product/6101

https://www.mql5.com/en/market/product/6240

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

5) X3 Chart Pattern Scanner

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

https://www.mql5.com/en/market/product/41992

https://www.mql5.com/en/market/product/41993