What is it for? 🤔
The "McDonalds Pattern Bézier Curve" indicator is designed to identify and visualize price reversal patterns using Bézier curves. Its main objective is to detect market structures that resemble arcs (similar to an "M" or "W") on the charts, which could indicate potential trend changes 🎯. Additionally, it includes a scoring system to evaluate the quality of the detected pattern.

How does it work? ⚙️

Pivot Detection:
The indicator analyzes a lookback period (defined by "Lookback Period") to identify local highs and lows (pivots). These are marked with circles on the chart: ⚪
Bézier Curves:
Once at least 5 pivots are detected, the indicator draws two arcs using Bézier curves that connect these points. These arcs aim to smooth the transition between pivots to form a visual structure similar to twin arches ("Golden Arches") 🏛️.
Colored Zone:
If enabled, an area is drawn between the first and last pivot. The color of this zone depends on the pattern's direction:
- 🟢 Green: Bullish trend (if the last pivot is higher).
- 🔴 Red: Bearish trend (if the last pivot is lower).
Pattern Score:
It calculates a percentage that reflects the symmetry and quality of the arcs. A higher score suggests a better-defined pattern.

Is it repainting (Replotting)? 🔄
Yes, this indicator repaints. This means its drawings and detections can change retroactively as new price data is obtained. This is because the identification of those inflection points is based on observing a certain number of bars after the formation of the potential pivot. Therefore, what seems like a confirmed arc in historical data could be adjusted or disappear when applied to live charts 📊.

It could be used as complementary aid in technical analysis.

How could it be used? 💡

📚 Backtesting Analysis:
Useful for studying historical patterns and evaluating their effectiveness on different assets or timeframes.
👁️ Visual Confirmation:
Can complement other analysis tools (like support/resistance or moving averages) to validate potential reversals.
🎓 Education:
Helps in recognizing market structures based on Bézier curves, although its use in live trading requires additional verification.

Limitations and Recommendations ⚠️

Real-Time Use:
Since it repaints, it should not be used as an independent signal for market entries or exits.
Optimization:
Adjust the "Lookback Period" according to the asset and timeframe to reduce false signals.
Market Context:
Works best in trending markets and not in sideways/ranging markets.

Important Note: 🚨
Given its reliance on future data for confirmation, it should be used primarily for analyzing already occurred events, such as post-market-open declines or educational chart exercises, rather than for predictive or live trading purposes. Although its approach is innovative, it must be used alongside other indicators and analysis to avoid false signals due to its repainting nature. It is ideal for backtesting studies or as an educational complement in trading strategies.