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Auto Chart Patterns
📊 WHAT IS IT?
The Auto Chart Patterns indicator is an advanced geometric formation scanner that automatically detects and visualizes classical chart patterns using multi-timeframe swing point analysis. It identifies 14 different geometric formations including channels, wedges, and triangles by connecting swing highs and lows with trend lines, creating a comprehensive pattern recognition system.
🎯 WHAT IS IT FOR?
This indicator helps traders to:
- Automatically detect 14 classic chart patterns (channels, wedges, triangles) 📐
- Identify potential breakout zones before they occur ⚡
- Visualize market structure through geometric price relationships 🔍
- Trade continuation and reversal patterns with visual confirmation ✅
- Filter patterns by trend direction and final pivot type 🎛️
- Analyze multiple swing timeframes simultaneously for confluence 🌊
🔍 HOW DOES IT WORK?
Swing Point Detection System 📍
The indicator uses up to four independent swing detectors running simultaneously, each with configurable sensitivity:
- Detection Logic:
- Monitors price highs and lows over a rolling window (Period).
- Identifies local peaks (swing highs) and troughs (swing lows).
- Confirms swings only after a minimum depth requirement is met (prevents noise).
- Swing High: Price makes the highest high in the Period, then falls for
MinDepthbars. - Swing Low: Price makes the lowest low in the Period, then rises for
MinDepthbars.
- Four Swing Layers:
- Primary Swing (Default: Length 8, Depth 55) - Long-term structure 🔵
- Secondary Swing (Default: Length 13, Depth 34) - Medium-term structure 🟢
- Tertiary Swing (Default: Length 21, Depth 21) - Short-term structure 🟡
- Quaternary Swing (Default: Disabled) - Custom timeframe 🟣
Each detector can be enabled/disabled independently to focus on specific market structures.
Pattern Formation Process 🎨
STEP 1 - PIVOT COLLECTION:
- The system collects the 5 or 6 most recent swing points from any active detector.
- Points must alternate between highs and lows (zigzag structure).
- Example 5-point: High → Low → High → Low → High.
STEP 2 - TREND LINE CONSTRUCTION:
- Separates pivots into upper points (swing highs) and lower points (swing lows).
- Draws two trend lines: upper boundary and lower boundary.
- For 3-point boundaries: Tests 3 combinations (0-2, 0-1, 1-2) and selects the best fit ⭐
- Validates that trend lines don't penetrate candle bodies (only wicks allowed).
- Calculates a fit score: lines must touch < 20% of bars between pivots.
STEP 3 - GEOMETRIC ANALYSIS:
- Measures the angle relationship between the upper and lower boundaries.
- Determines if the formation is Expanding (widening), Contracting (narrowing), or Parallel (constant width).
- Identifies trend direction: Upward, Downward, or Neutral (horizontal).
- Classifies into one of the 14 formation types based on geometry.
STEP 4 - VALIDATION & FILTERING:
- Bar Proportion Check: Ensures swing spacing is proportional (prevents distorted patterns) ✅
- Overlap Prevention: Blocks new patterns that conflict with existing ones 🚫
- Duplicate Check: Prevents redrawing the same pattern.
- Final Pivot Filter: Only shows patterns ending with a specified pivot direction (Up/Down/Both).
- Formation Type Filter: Enables/disables specific pattern categories.
STEP 5 - VISUALIZATION:
- Draws upper and lower boundary lines in vibrant colors from a 12-color palette 🎨
- Optionally displays zigzag swing lines connecting pivots (dotted blue).
- Shows pivot numbers (1, 2, 3, 4, 5) at each swing point.
- Labels the formation with the pattern name at the final pivot.
- Color-codes the background behind the label for clarity.
📐 THE 14 DETECTED FORMATIONS
CHANNELS (Parallel Formations) 📦
- Ascending Channel (Upward Parallel) 📈
- Both boundaries slope upward at a similar angle.
- Indicates a bullish continuation trend.
- Trade: Buy at the lower boundary, sell at the upper boundary.
- Descending Channel (Downward Parallel) 📉
- Both boundaries slope downward at a similar angle.
- Indicates a bearish continuation trend.
- Trade: Sell at the upper boundary, buy at the lower boundary.
- Ranging Channel (Lateral/Horizontal) ↔️
- Both boundaries are nearly horizontal.
- Indicates consolidation or indecision.
- Trade: Range-bound strategy, buy support/sell resistance.
EXPANDING WEDGES (Broadening Formations) 📣
4. Rising Wedge (Expanding) ⚠️
* Both boundaries slope upward, with a widening gap.
* Bearish reversal pattern - price losing upward momentum.
* Trade: Wait for lower boundary break, enter short.
5. Falling Wedge (Expanding) ⚠️
* Both boundaries slope downward, with a widening gap.
* Bullish reversal pattern - price losing downward momentum.
* Trade: Wait for upper boundary break, enter long.
6. Diverging Triangle (Broadening Triangle) 🔺
* Upper boundary slopes up, lower boundary slopes down.
* High volatility expansion pattern.
* Trade: Extremely risky, wait for a clear directional break.
7. Ascending Triangle (Expanding) 📊
* Upper boundary horizontal, lower boundary slopes up.
* Bullish continuation with an expanding range.
* Trade: Buy upper boundary breakout.
8. Descending Triangle (Expanding) 📊
* Lower boundary horizontal, upper boundary slopes down.
* Bearish continuation with an expanding range.
* Trade: Sell lower boundary breakdown.
CONTRACTING WEDGES (Converging Formations) 🔻
9. Rising Wedge (Contracting) 🔺
* Both boundaries slope upward, with a narrowing gap.
* Bearish reversal pattern - bullish exhaustion ⚠️
* Trade: Short on lower boundary break.
10. Falling Wedge (Contracting) 🔻
* Both boundaries slope downward, with a narrowing gap.
* Bullish reversal pattern - bearish exhaustion ⚠️
* Trade: Long on upper boundary break.
CONTRACTING TRIANGLES (Consolidation Formations) △
11. Converging Triangle (Symmetric Triangle) ⚖️
* Upper boundary slopes down, lower boundary slopes up at a similar rate.
* Neutral consolidation - continuation pattern.
* Trade: Wait for breakout direction, trade accordingly.
12. Descending Triangle (Contracting) 📐
* Lower boundary horizontal (support), upper boundary slopes down.
* Bearish continuation pattern 🔴
* Trade: Short on support break with volume.
13. Ascending Triangle (Contracting) 📐
* Upper boundary horizontal (resistance), lower boundary slopes up.
* Bullish continuation pattern 🟢
* Trade: Long on resistance break with volume.
14. Invalid/Unknown ❌
* Patterns that don't meet geometric criteria.
* Filtered out automatically.
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