Hello Everyone,
It’s with great excitement we release our 3rd version of our harmonic recognition software. This is a very special release as it allows us to create custom patterns.
For instance, if you want your harmonic software to show and correctly identify the harmonic alternative bat pattern, then you can add this pattern based on the ratios and save it as a template. Whenever you load up the template you will scan for all the common patterns like the butterfly, bat, crab, gartley, 5-0, three drives and ab=cd, and now your custom pattern such as the alternative bat!
Here are some screenshots:
Notice there are a few fields where you can get a better idea of the flexibility and customization of your patterns and lets you tailor your preferences. Let’s start with the PRZ Colors; this would be the box that outlines your entry point. This box can be filled in or it can be just an outline color, defaulted to yellow, but can be changed to the color you prefer.
There will be a few lines inside the PRZ, those being the AB Extension line and the BC Extension line; these are also indicated by the color selected. In other software these colors are not different from each other, or are not even available. By having these colors shown it allows for faster analysis and greater flexibility.
This is where we get to the nuts and bolts behind the V3 custom pattern indicator. Harmonic patterns have always been defined as X, A, B, C, D points even when we expand to other patterns. Some have it labeled as starting with a zero. We can still expand the same principle to define our custom patterns.
Each ratio has a minimum and a maximum. If you want to be very specific with your ratios you can set these values to be identical, and by doing this you’re telling the software that it has to be an exact match. (Although you might want to consider putting a bit of a buffer between the minimum and the maximum and setting a deviation from the two.) Since the Forex doesn’t have a central exchange you will notice that price can differ on peoples’ platforms and often will differ by a couple of pips. On some patterns these couple of pips can make a big difference in the ratios you see. The general rule of thumb is the more specific you are, the less patterns will be identified, but being specific doesn’t make it better. Thus we’ve been running tests and a 0.002-0.005 deviation of the initial number seems to bring up the best results.
Further, in V2 the customization was taken a step further. Bullish and Bearish patterns can be colored for a fast “at a glance” analysis. It doesn’t seem like an impressive feature, but you will see its value immediately after you start using it.
Let’s look at an example. Here we are using the custom parameters as set by default for the alternative bat pattern. You can see that the 1.13 extension was identified, indicating that a potential reversal might be under way. Sure enough( as these patterns work around 70%+ of the time), we saw the reversal occur and price fell like a rock for an easy +150 pips.
Without the indicator identifying the pattern and the ratios you might have missed it.
The indicator is available now and can be downloaded through the members area. To create your account or login now, please visit Register Now or Login.
