The TradingWolf Premium is a one of a kind indicator which can identify charting patterns unlike any others. Standard Chart patterns take 10+ candles to recognise where as ares are almost instant without repainting! Within this one indicator you will have access to Break Out Levels , Dynamic Support and resistance, Bull Flag, Bear Flag, Rising Wedge, Falling Wedge, Inverse Head & Shoulders, Head & Shoulders, Double Top, Double Bottom, Trend Lines, Ascending Triangle, Descending Triangle, Parallel Channel & Linear Regression Channels.
Below each indicator is explained along with its enhancements to help you understand it better. This script comes with the 'TradingWolf Premium' to get access, read the Author’s Instructions below.
There are extensive explanations on how to use this indicator in our documentation on the website but we will give a simple overview here.
Break Out Levels Break out levels are great for breakout traders, this indicator is scanning for strong points of support & resistance, it does this by finding pivot points where price has had a noticeable pull back. From there it will monitor that level and display a signal soon as price breaks it.
Another use case for this indicator is helping identify the market structure direction. If we are breaking up and getting Green triangles, this suggests we are in a bullish up-trending structure and vice versa for red bearish signals.
Support & Resistance There are lots of ways of deciding how to mark up support and resistance, we like to use ATR values related to daily price action. Marking levels up on lower timeframes tend not to give such good levels to play whereas calculating values from the Higher time frames gives us levels we know are more like to be respected. Although they are calculated from the daily timeframe you will notice these levels will adjust to the daily price action to make sure they are keeping up to date on levels you need to keep an eye on.
Flags Flags show signs of continuation, they are confirmed when price breaks the upper resistance for bull flags and lower support for bear flags. They are commonly used in trading but with this indicator, it will help you spot ones you may normally miss. Everyone judges flags differently so we have given you the ability to decide how strict you would like the flags to be with the correlation setting, if you set it to 100% the top and bottom lines of the flag must be going at the exact same angle to count as a valid flag.
Wedges A wedge pattern is typically a reversal pattern, you would normally use these in correlation with volume. For a confirmed wedge you want declining volume as the price reaches the wedge end. You can either try entering at the top/bottom of the wedge pattern or wait until price breaks into the opposite trending direction.
Head & Shoulders These are reversal patterns, for a confirmed Head and shoulder pattern you want to pair it with declining volume or momentum You will notice you have a HF option, when enabled this will scan multiple different lengths of pivots to try spot more patterns which the regular settings may miss. If you think you are getting enough you may want to disable this.
Triangles Triangles help us identify areas where price starts consolidating in a narrow range, once we reach roughly ¾ of the way through the triangle, we will see a break out in either direction, normally confirmation just requires 1 close out of the triangle along with increased volume. If you miss the initial move you may be able to catch a retest if you are lucky!
Double Tops & Bottoms These patterns are considered reversal patterns. They are confirmed on the break of the neck line with increased volume.
Trend Lines These are as simple as the name suggests, the lines are calculated slightly differently to other support and resistance points but they will work the same spotting potential areas where price will bounce or reject.
Channels Similar to Trend lines but these are looking for trend lines at the same angle forming channels where price tends to range between. You have several options to edit these in the settings including the correlation % of the channel lines, how many candles are allowed outside of the channel (fake outs), sensitivity/ frequency the channels appear and whether you use the Wicks or candle Closes to determine where to calculate the channels from.
Linear Regression Channels[\b] Linear regression is the analysis of two separate variables to define a single relationship and is a useful measure from a technical and quantitative point of view. As seen in the image above, these can be used to help determine key levels in the chart where price is likely to react. In the settings you will be able to adjust its sensitivity to the levels you like to trade.
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Wedges
Revamp on Calculations
Fills
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V1.4 Update
Break Out Zones
Change calculations to be more dynamic
Head & Shoulders
High Frequency option calculated more different to avoid duplicate signals
lengths taken into calculation to make sure drawings connect correct points
condensed code to make run smoother
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V1.5 Update
Double Top & Bottoms
Double Top and Bottom patterns are now spotted much earlier. This can mean there are some false patterns but we rather show too many than not enough or too late.
You now have a choice of alerts, you can either choose to be alerted when the pattern is first spotted, giving you time to plan your trade. Alternatively you can be alerted when the neckline of the pattern is broken.