Pattern recognition: W Bottoms, M Tops

Author: traderc

Creation Date: 12/5/2009 7:09 PM

Wealth Lab » Trading Strategies » Pattern recognition: W Bottoms, M Tops

traderc

12/5/2009 7:09 PM

Hi, I'd like to create a pattern recognition system in Wealth-Lab but am far from a capable coder.

If anyone has ever seen a program called Ramp written by a man named Andy from Nebadawn I'd like to create a system that does something similar to his stand-alone system so it can be automated to place trades automatically instead of just providing a report/list of charts as Ramp does.

The main patterns I'm wanting Wealth-Lab to automatically create and scan for are:

W Bottoms and M Tops
Head and Shoulders
Cup and Handle
High Pullbacks

Additionally the other thing I'd like to do is learn how to plot support and resistance lines that display line touches (or near line touches) to find potential breakouts.

I'm not much of a coder and after searching the net for many years there doesn't seem to be much code for any program that I could find to assist me with writing this stuff.

Hopefully someone can help me.

I look forward to hearing from you.

Regards,

Christian
P.S.: I'll do you a deal if you can help me program this and you can come and stay at my resort in Fiji for a 5 nights for free as a reward! (www.waisalima.com)

Cone

12/7/2009 6:36 AM

Here's a shot a the first (easily-definable) one. Head & Shoulders and Cup & Handle are more subjective, but if you can define their parameters, it wouldn't be hard to program it.

Notes:
1. Trades are created on the bar of detection only so that you can double click on them in the Trades list to quickly find the detections in the chart.

2. The enumerations have 3 values: None (no detection), Detected (occurs only on the bar of detection for a trigger conditoin), and PreviousDetection. The latter state let's you use the detection as a "set up" for other entry/exit conditions.

CODE:
Please log in to see this code.

I guess that's good for 1 night in Fiji! :)

Size:

Color:

Here's a shot a the first (easily-definable) one.   Head & Shoulders and Cup & Handle are more subjective, but if you can define their parameters, it wouldn't be hard to program it.

Notes: 
1. Trades are created on the bar of detection only so that you can double click on them in the Trades list to quickly find the detections in the chart.

2. The enumerations have 3 values: None (no detection), Detected (occurs only on the bar of detection for a trigger conditoin), and PreviousDetection.  The latter state let's you use the detection as a "set up" for other entry/exit conditions.

[CODE]using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;

namespace WealthLab.Strategies
{
	public class Patterns2 : WealthScript
	{
		public enum WBottom {None, Detected, PreviousDetection};
		public enum MTop {None, Detected, PreviousDetection};
				
		public MTop CheckTop(int bar, DataSeries ds, int lookback, double pctRetrace, double threshold)
		{
			/* bar - function returns true if MTop is detected on bar
			 * ds - High, Close, etc.
	         * lookback - the top must be a peak in the lookback period.
			 * pctRetrace - the percentage retrace used to detect 
			 * threshold - max percentage difference between the two peaks */
						
			// 1. Find the last two pctRetrace peaks
			int pb1 = (int)PeakBar.Series(ds, pctRetrace, PeakTroughMode.Percent)[bar];
			if (pb1 < lookback) return MTop.None;
			int pb2 = (int)PeakBar.Series(ds, pctRetrace, PeakTroughMode.Percent)[pb1 - 1];
			if (pb2 <= 0) return MTop.None;
			
			// 2. Are their values within the threshold?
			double th = 100 * ( ds[pb1] / ds[pb2] - 1d );
			if (Math.Abs(th) > threshold) return MTop.None;
			
			// 3. Was the earlier peak a lookback high?
			if ( ds[pb2] == Highest.Series(ds, lookback)[pb2] )
			{
				// First detection?
				if (pb1 != PeakBar.Series(ds, pctRetrace, PeakTroughMode.Percent)[bar-1])
				{
					DrawLine(PricePane, pb1, ds[pb1], pb2, ds[pb2], Color.Red, LineStyle.Dashed, 2);
					SetPaneBackgroundColor(PricePane, bar, Color.LightPink);
					return MTop.Detected;
				}
				else
					return MTop.PreviousDetection;				
			}
			else
				return MTop.None;
		}		
				
		public WBottom CheckBottom(int bar, DataSeries ds, int lookback, double pctRetrace, double threshold)
		{
			// 1. Find the last two pctRetrace troughs
			int tb1 = (int)TroughBar.Series(ds, pctRetrace, PeakTroughMode.Percent)[bar];
			if (tb1 < lookback) return WBottom.None;
			int tb2 = (int)TroughBar.Series(ds, pctRetrace, PeakTroughMode.Percent)[tb1 - 1];
			if (tb2 <= 0) return WBottom.None;
			
			// 2. Are their values within the threshold?
			double th = 100 * ( ds[tb1] / ds[tb2] - 1d );
			if (Math.Abs(th) > threshold) return WBottom.None;
			
			// 3. Was the earlier trough a lookback low?
			if ( ds[tb2] == Lowest.Series(ds, lookback)[tb2] )
			{
				// First detection?
				if (tb1 != TroughBar.Series(ds, pctRetrace, PeakTroughMode.Percent)[bar-1])
				{
					DrawLine(PricePane, tb1, ds[tb1], tb2, ds[tb2], Color.Red, LineStyle.Dashed, 2);
					SetPaneBackgroundColor(PricePane, bar, Color.LightPink);
					return WBottom.Detected;
				}
				else
					return WBottom.PreviousDetection;				
			}
			else
				return WBottom.None;
		}
			
		protected override void Execute()
		{
			int lookback = 200;
			
			for(int bar = lookback; bar < Bars.Count; bar++)
			{
				WBottom cb = CheckBottom(bar, Low, lookback, 8, 1.5);
				MTop ct = CheckTop(bar, High, lookback, 8, 1.5);
				
				if ( cb == WBottom.Detected )
				{					
					BuyAtClose(bar);
					ExitAtMarket(bar + 1, LastPosition);
				}				
				else if ( ct == MTop.Detected )
				{					
					ShortAtClose(bar);
					ExitAtMarket(bar + 1, LastPosition);
				}
				
				
				if ( cb == WBottom.PreviousDetection )
					SetBackgroundColor(bar, Color.LightBlue);
				if ( ct == MTop.PreviousDetection )
					SetBackgroundColor(bar, Color.LightBlue);				
			}
			
		}
	}
}[/CODE]

I guess that's good for 1 night in Fiji! :)

WEALTHPRO25

2/5/2016 3:08 PM

hi, i noticed think or swim has pattern recognition capability, i was wondering if we can do this in wealth lab pro, i am also far from capable coder, however if anyone can code for the following it would be a great asset for us at wealth lab pro, the chart patterns are as follows:

ascending triangle, descending triangle, channel down, channel up, double bottom, double top, falling wedge, flag, head and shoulders, inverse head and shoulders, pennant, rectangle, rising wedge, triangle, triple top, triple bottom

thanks

Eugene

2/5/2016 3:17 PM

How capable are you in searching the forum? ;)

Classic Trading Patterns - triangle, H&S, Cups, rectangles, double top/bottom

There may be more if you search across downloadable strategies and the Wiki.