ABCD Strategy.pine

Script Name: ABCD Strategy
Author: kerok3g
Description: One from many harmonic pattern that consists of two equivalent price legs. The ABCD pattern that helps traders predict when the price is about to change direction.

 Tracing And Calculation 

This code using pivot high and pivot low built-in method and calculate with Fibonacci Retracement.

 Limitation 

To find ABCD pattern is very difficult, just coming up a few...
PineScript code:

Pine Script™ strategy
ABCD Strategy
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// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © kerok3g
//@version=5
strategy("ABCD Strategy", shorttitle="ABCDS", overlay=true, commission_value=0.04)
calcdev(fprice, lprice, fbars, lbars) =>
    rise = lprice - fprice
    run = lbars - fbars
    avg = rise/run
    ((bar_index - lbars) * avg) + lprice
len = input(5)
ph = ta.pivothigh(len, len)
pl = ta.pivotlow(len, len)
var bool ishigh = false
ishigh := ishigh[1]
var float currph = 0.0
var int currphb = 0
currph := nz(currph)
currphb := nz(currphb)
var float oldph = 0.0
var int oldphb = 0
oldph := nz(oldph)
oldphb := nz(oldphb)
var float currpl = 0.0
var int currplb = 0
currpl := nz(currpl)
currplb := nz(currplb)
var float oldpl = 0.0
var int oldplb = 0
oldpl := nz(oldpl)
oldplb := nz(oldplb)
if (not na(ph))
    ishigh := true
    oldph := currph
    oldphb := currphb
    currph := ph
    currphb := bar_index[len]
else
    if (not na(pl))
        ishigh := false
        oldpl := currpl
        oldplb := currplb
        currpl := pl
        currplb := bar_index[len]
endHighPoint = calcdev(oldph, currph, oldphb, currphb)
endLowPoint = calcdev(oldpl, currpl, oldplb, currplb)
plotshape(ph, style=shape.triangledown, color=color.red, location=location.abovebar, offset=-len)
plotshape(pl, style=shape.triangleup, color=color.green, location=location.belowbar, offset=-len)
var line lnhigher = na
var line lnlower = na
lnhigher := line.new(oldphb, oldph, bar_index, endHighPoint)
lnlower := line.new(oldplb, oldpl, bar_index, endLowPoint)
line.delete(lnhigher[1])
line.delete(lnlower[1])
formlong = oldphb < oldplb and oldplb < currphb and currphb < currplb
longratio1 = (currph - oldpl) / (oldph - oldpl)
longratio2 = (currph - currpl) / (currph - oldpl)
formshort = oldplb < oldphb and oldphb < currplb and currplb < currphb
shortratio1 = (oldph - currpl) / (oldph - oldpl)
shortratio2 = (currph - currpl) / (oldph - currpl)
// prevent multiple entry for one pattern
var int signalid = 0
signalid := nz(signalid[1])
longCond = formlong and 
           longratio1 < 0.786 and 
           longratio1 > 0.5 and 
           longratio2 > 1 and 
           longratio2 < 1.414 and 
           close < oldph and 
           close > currpl and 
           signalid != oldplb
if (longCond)
    signalid := oldplb
    longsl = currpl - ta.tr
    longtp = ((close - longsl) * 1.5) + close
    strategy.entry("Long", strategy.long)
    strategy.exit("Exit Long", "Long", limit=math.min(longtp, oldph), stop=longsl)
shortCond = formshort and 
             shortratio1 < 0.786 and 
             shortratio1 > 0.5 and 
             shortratio2 > 1.1 and 
             shortratio2 < 1.414 and 
             close > oldpl and 
             close < currph and 
             signalid != oldphb
if (shortCond)
    signalid := oldphb
    shortsl = currph + ta.tr
    shorttp = close - ((shortsl - close) * 1.5)
    strategy.entry("Short", strategy.short)
    strategy.exit("Exit Short", "Short", limit=math.max(shorttp, oldpl), stop=shortsl)
Expand (109 lines)