Nen Star Harmonic Pattern [TradingFinder] NenStar Reversal Auto🔵 Introduction
The Nen-Star Harmonic Pattern is an advanced reversal pattern in technical analysis, designed to identify market trend changes and predict key price reversal points. This pattern is defined by a combination of Fibonacci ratios and critical concepts such as Potential Reversal Zones (PRZ), market structure, and corrective waves.
The key points of this pattern include X, A, B, C, and D, and it appears in both bullish and bearish forms. In its bullish form, the pattern resembles the letter M, while in its bearish form, it takes the shape of W. The critical Fibonacci ratios for this pattern are 0.382 to 0.786 for the XA wave, 1.13 to 1.414 for the AB wave, and 1.272 to 2.618 for the BC wave.
The Nen-Star Harmonic Pattern is one of the most precise tools for identifying market reversals and executing reversal trades. Traders can use it to pinpoint optimal entry and exit points and benefit from high risk-to-reward ratios.
By emphasizing Fibonacci retracement levels, XABCD waves, the formation of bullish and bearish patterns, and precise trade entry points, this pattern has become a practical tool in advanced technical analysis.
Bullish Nen-Star Pattern :
Bearish Nen-Star Pattern :
🔵 How to Use
The Nen-Star Harmonic Pattern indicator allows traders to automatically identify the bullish and bearish structures of this pattern and locate optimal entry and exit points. By accurately analyzing Fibonacci ratios and determining points X, A, B, C, and D, the indicator highlights Potential Reversal Zones (PRZ) on the chart. Traders can rely on the generated signals to manage their trades with greater precision.
🟣 Bullish Nen-Star Pattern
The bullish Nen-Star pattern begins with a price increase from point X to point A, followed by a retracement to point B, which lies between 0.382 and 0.786 of the XA wave.
After this retracement, the price moves to point C, located between 1.13 and 1.414 of the AB wave. The final movement is a price decline to point D, which is between 1.272 and 2.618 of the BC wave and 1.13 to 1.272 of the XA wave.
Point D : Serves as the key Potential Reversal Zone (PRZ).
Entry : A buy trade is initiated at point D, signaling the end of the corrective movement and the beginning of a price increase.
Price Targets :
61.8% retracement of the CD wave
Point A
Point C
1.272 and 1.618 extensions of the CD wave if resistance at point C is broken
Stop Loss : Placed slightly below point D.
🟣 Bearish Nen-Star Pattern
The bearish Nen-Star pattern starts with a price decrease from point X to point A, followed by a retracement to point B, which lies between 0.382 and 0.786 of the XA wave.
After this retracement, the price moves to point C, located between 1.13 and 1.414 of the AB wave. The final movement is a price increase to point D, which is between 1.272 and 2.618 of the BC wave and 1.13 to 1.272 of the XA wave.
Point D : Serves as the key Potential Reversal Zone (PRZ).
Entry : A sell trade is initiated at point D, signaling the end of the corrective movement and the beginning of a price decline.
Price Targets :
61.8% retracement of the CD wave
Point A
Point C
1.272 and 1.618 extensions of the CD wave if support at point C is broken
Stop Loss : Placed slightly above point D.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Nen-Star Harmonic Pattern is a highly effective analytical tool in global financial markets, playing a crucial role in identifying reversal points and market trend changes. By leveraging Fibonacci principles and price structure, this pattern enables precise analysis across various assets, including stocks, cryptocurrencies, forex, and commodities.
Traders operating in global markets can use this pattern to identify high risk-to-reward trading opportunities. Its clear entry and exit points, defined Potential Reversal Zones (PRZ), and accurate price targets make it an excellent tool for risk management and profitability enhancement.
In the global context, the Nen-Star pattern is widely used by professional analysts in both advanced and emerging markets due to its versatility in analyzing long-term and short-term charts. Beyond trend prediction, it enhances trading strategies and optimizes investment decisions.
Combining this pattern with complementary tools such as volume analysis, technical indicators, and macroeconomic conditions can provide traders with deeper market insights, helping them capitalize on global opportunities.
Autodraw
Auto Pivot Level Drawer [TipsChain]a pivot point is a price level that is used by traders as a possible indicator of market movement. A pivot point is calculated as an average of significant prices (high, low, close) from the performance of a market in the prior trading period. If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the pivot point is seen as bearish .
Calculation
Several methods exist for calculating the pivot point (P) of a market. Most commonly, it is the arithmetic average of the high (H), low (L), and closing (C) prices of the market in the prior trading period:
P = (H + L + C) / 3.
Sometimes, the average also includes the previous period's or the current period's opening price (O):
P = (O + H + L + C) / 4.
In other cases, traders like to emphasize the closing price, P = (H + L + C + C) / 4, or the current periods opening price, P = (H + L + O + O) / 4.
Support and resistance levels
The first and most significant level of support (S1) and resistance (R1) is obtained by recognition of the upper and the lower halves of the prior trading range, defined by the trading above the pivot point (H − P), and below it (P − L). The first resistance on the up-side of the market is given by the lower width of prior trading added to the pivot point price and the first support on the down-side is the width of the upper part of the prior trading range below the pivot point .
R1 = P + (P − L) = 2×P − L
S1 = P − (H − P) = 2×P − H
Thus, these levels may simply be calculated by subtracting the previous low (L) and high (H) price, respectively, from twice the pivot point value:
The second set of resistance (R2) and support (S2) levels are above and below, respectively, the first set. They are simply determined from the full width of the prior trading range (H − L), added to and subtracted from the pivot point , respectively:
R2 = P + (H − L)
S2 = P − (H − L)
Commonly a third set is also calculated, again representing another higher resistance level (R3) and a yet lower support level (S3). The method of the second set is continued by doubling the range added and subtracted from the pivot point:
R3 = H + 2×(P − L) = R1 + (H − L)
S3 = L − 2×(H − P) = S1 − (H − L)
This concept is sometimes, albeit rarely, extended to a fourth set in which the tripled value of the trading range is used in the calculation.
Qualitatively, the second and higher support and resistance levels are always located symmetrically around the pivot point , whereas this is not the case for the first levels, unless the pivot point happens to divide the prior trading range exactly in half.
