Harmonic Trading

Originally Posted by bamn7

Hi Newdigital,

What is the strong pattern and equilibrium lines used for in zup_v138.

Equilibrium lines was implemented since ZUP v78, as requested by Fortuna member of onix-trade (Pucio from tsd). I extracted a few post made by Nen about equilibrium lines that come with ZUP indicator.

Fortuna proposed name for the line - Equilibrium.

It has long been an idea to do something similar to adaptive trend lines.
Now made in ZUP. Slightly less, as suggested Fortuna, and in accordance with its vIdeniem this tool.
In my view, the goal of Demarku are on a sloping line running parallel to the line of Demark.
So easier to track the movement Demarkovskoy objectives over time.
Now I watch all the build Demarkovskie goal in the form of certain horizontal levels.



In ZUP this tool is now included in conjunction with the search for butterflies Gartley. In doing so, better to search for butterflies with ExtCD = 0.
In ATL, nothing if not prevent, will be added in a somewhat different way.

The basic idea here - the line of Demark. The line of Demark (Equilibrium) built through X and B butterfly.
Also built two more lines Reaction1 and Reaction2. These lines are parallel lines Equilibrium.
The line passes Reaction1 away from Equilibrium Equal Removal From the point of C butterflies from the line Equilibrium.
The line passes Reaction2 at equal distance from Equilibrium point A butterfly Removal of the line of Equilibrium.

Example building through ZUP:



The idea of this. Price after Equilibrium line penetration reaches two goals, which are on the lines Reaction.
The space between the lines is the purpose of trading after penetration Equilibrium.
This tool is realized the possibility of trade butterfly on the CD.

Version 78.

The bug, which was discussed earlier with a little serr.

There was to make this version in the search for new patterns, implemented serr. There are currently no time.

New options are in Group ______________3_____________ = "Parameters for Gartley Patterns"

Equilibrium - includes the withdrawal lines Equilibrium, Reaction1 and Reaction2.
EquilibriumStyle - sets the style lines Equilibrium, Reaction1 and Reaction2.
EquilibriumWidth - sets the thick lines Equilibrium, Reaction1 and Reaction2.
ColorEquilibrium - sets the color for Equilibrium,
ColorReaction - sets the color for Reaction1 and Reaction2.

About the strong pattern i will post it later.

ZUP_v143 released by Nen. Fixed many bugs, and also fix terminal crash when using pitchfork mode.

There's one function in ZUP that many traders ask, the past patterns detected by ZUP. Do these step in ZUP setting :

ExtGartleyTypeSearch = 1
ExtHiddenPP = 2
MaxBarToD = 0

Here is the result of past patterns, ZUP_v143 used :



Obviously latest ZUP also put in text list of the past patterns.

To look for cypher patterns, set algorithm pattern = 2.

From onix-trade forum, about algorithm search function.

In total search of 27 five-dot patterns is built in ZUP.
I will provide the complete list and a sequence. In this order it is prospected so-called "indistinct" patterns.
1 . Gartley
2 . Bat
3 . A Alternate Shark
4 . A Nen STAR
5 . Butterfly
6 . Crab
7 . A Shark
8 . A Cypher
9 . A Butterfly
10 . A Crab
11 . Shark
12 . Cypher
13 . A Gartley
14 . A Bat
15 . Alternate Shark
16 . Nen STAR
17 . Alternate Bat
18 . Deep Crab
19 . Black swan
20 . max Bat
21 . max Gartley
22 . max Butterfly
23 . TOTAL 1
24 . TOTAL 2
25 . TOTAL 3
26 . TOTAL 4
27 . TOTAL

Algorithm of search of "indistinct" patterns. The zigzag is under construction. Further one after another five extrema of a zigzag following in a row on compliance any of patterns are from right to left checked. If on the first five extrema the pattern isn't educated, we move on one extremum to the left and the following five extrema are checked.
As soon as the pattern will be found, on the constructed zigzag further search of patterns stops. The found pattern is brought to the schedule. This algorithm is applied to all zigzags built in ZUP. Thus it is prospected "indistinct" patterns on the current constructed zigzag.
But are available also scanners of patterns. All built-in zigzags are applied to scanners not. In scanners it is prospected patterns not on one zigzag, and on bigger quantity. Certain boundary parameters of a zigzag are set. In these borders with the set step zigzag parameters get over. For each new group of parameters the zigzag is under construction. And on the new constructed zigzag it is prospected patterns.

General algorithm of search of patterns the following.

At first it is prospected "exact" patterns. Options of algorithm of search of "exact" patterns two.
First option. It is prospected patterns at which all four retresment of XB-AC-BD-XD coincide with the set.
Second option. It is prospected patterns at which only three retresment of XB-AC-BD coincide with the set.
Why two options, I will explain later. Options of "exact" patterns 784. That is in base 784 "exact" patterns" are put.
"Exact" patterns are put only since Gartley (1. ) and finishing Deep Crab (18. )
For Black swan and patterns like TOTAL of "exact" patterns isn't present.
Further on other algorithm (see above) it is prospected "indistinct" patterns.
Further one after another we look for the following patterns:
Dragon, the user patterns if it is set, potential levels of a retresment of XD of potential "exact" patterns,
The 4-Point Continuation Pattern, pattern 5-0 and, at last, AB=CD.

The algorithm is given here in order that it is better to understand process of search of patterns.

visiblePattern - sets, what patterns to look for. This parameter is bit parameter.
Each position corresponds to one of 27 patterns and can accept value 0 - отклбчен search of the corresponding pattern or 1 - search of the corresponding pattern is included.
Search of all patterns is by default switched off.

I attached here a pdf file explaining about dragon pattern. It is pretty new to me as well and i'm learning about this pattern.

Thank you for your detailed information matfx. If I am understanding you correctly, the target after price penetrates the Equilibrium is Reaction1 and Reaction2?

Latest version, Zup 144:

Hi
I Am new to this Harmonic Trading (Pattern analysis). Which Time frame(M5,M15,M30....W1) suits well for this harmony analysis. Pairs(eur/usd...) that produces good results using this analysis.



Does there is any hierarchy of patterns?




From the above images does i go for bullish considering h1 time frame or i have to wait for h4 to complete it moment ?.

Hi JaibhavVajrala,

According to my understanding - go for bullish on H1 and wait for H4 to complete the moment (depends on which timeframe you are trading).