TriPatternRank.efs
File Name: TriPatternRank.efs
Description:
Based on Mechanically Recognizing Triangular Formations by Giorgos Siligardos, Ph.D. This article appeared in the March 2004 issue of Stock & Commodities.
Formula Parameters:
- Swing: # of Bars - 1
- Swing: Wave Type - %Change in Price [%Change in Price, %Retracement]
- Swing: Wave Percentage - 20%
- Swing High Price Source - Close [Open, High, Low, Close]
- Swing Low Price Source - Close [Open, High, Low, Close]
- Line Thickness - 2
- Confirmed Swing Line Color - Blue
- Developing Swing Line Color - Yellow
Notes:
The related article is copyrighted material. If you are not a subscriber of Stocks & Commodities, please visit www.traders.com.
This formula has a minor modification made to it since the publication of the article. The logic for current developing leg of the zig zag has been modified to draw B-r line from point B to current bar close (r).
Download File:
TriPatternRank.efs
EFS Code:
/*****************************************************************
Provided By : eSignal. (c) Copyright 2004
Study: Triangular Pattern Rank
Version: 1.1
1/21/2004
Formula Parameters: Default:
* Swing: # of Bars 1
This is the minimum number of bars required to define a
swing point. This number is for both sides of the swing
point (i.e. 5 bars on the left and right of the swing bar).
* Swing: Wave Type % Change in Price
(% Retracement, % Change in Price)
* Swing: Wave Percentage 20
The number 3 represents 3.0%. The number 0.03
represents 0.0003%.
* Swing High Price Source Close
* Swing Low Price Source Close
* Line Thickness 2
* Confirmed Swing Line Color Blue
* Developing Swing Line Color Yellow
Notes:
1.1 *Modified logic for current developing leg of the zig zag
to draw B-r line from B to current bar close (r).
*****************************************************************/
function preMain() {
setPriceStudy(true);
setStudyTitle("Triangular Pattern Rank ");
setShowCursorLabel(false);
setShowTitleParameters(false);
setDefaultBarFgColor(Color.cyan);
//setComputeOnClose();
var fp1 = new FunctionParameter("nNum", FunctionParameter.NUMBER);
fp1.setName("Swing: # of Bars");
fp1.setLowerLimit(1);
fp1.setDefault(1);
var fp2a = new FunctionParameter("sWaveType", FunctionParameter.STRING);
fp2a.setName("Swing: Wave Type");
fp2a.addOption("% Retracement");
fp2a.addOption("% Change in Price");
fp2a.setDefault("% Change in Price");
var fp2 = new FunctionParameter("nRet", FunctionParameter.NUMBER);
fp2.setName("Swing: Wave Percentage");
fp2.setLowerLimit(0);
fp2.setDefault(20);
var fp3 = new FunctionParameter("sHighSource", FunctionParameter.STRING);
fp3.setName("Swing High Price Source");
fp3.addOption("Open");
fp3.addOption("High");
fp3.addOption("Low");
fp3.addOption("Close");
fp3.setDefault("Close");
var fp4 = new FunctionParameter("sLowSource", FunctionParameter.STRING);
fp4.setName("Swing Low Price Source");
fp4.addOption("High");
fp4.addOption("Low");
fp4.addOption("Close");
fp4.setDefault("Close");
var fp5 = new FunctionParameter("nThickness", FunctionParameter.NUMBER);
fp5.setName("Line Thickness");
fp5.setLowerLimit(1);
fp5.setDefault(2);
var fp6 = new FunctionParameter("cColor1", FunctionParameter.COLOR);
fp6.setName("Confirmed Swing Line Color");
fp6.setDefault(Color.blue);
var fp7 = new FunctionParameter("cColor2", FunctionParameter.COLOR);
fp7.setName("Developing Swing Line Color");
fp7.setDefault(Color.yellow);
}
var cntr = 0; // image counter for swing lines
var bInit = false; // initialization routine completion
var nNumBars = null; // number of bars for defining swings
var sWaveTypeG = null; // wave type for confirming swings
var nRetpcnt = null; // percent retracement for defining swings
var nThicknessG = null; // line thickness
var cColorCon = null; // confirmed swing color
var cColorDev = null; // developing swing color
var sHSource = null; // price source for high swings
var sLSource = null; // price source for low swings
var x1a = null; // x-coordinate for point a of developing line 1
var x1b = null; // x-coordinate for point b of developing line 1
var x2a = null; // x-coordinate for point a of developing line 2
var x2b = null; // x-coordinate for point b of developing line 2
var y1a = null; // y-coordinate for point a of developing line 1
var y1b = null; // y-coordinate for point b of developing line 1
var y2a = null; // y-coordinate for point a of developing line 2
var y2b = null; // y-coordinate for point b of developing line 2
var vLastSwing = null; // tracking swing type of last confirmed swing
var nScntr = 0; // bar counter for swing confirmation
var nSpace = null; // space between labels and bars
var A = null; // Linear Regression y = Ax + B
var B = null; // Linear Regression y = Ax + B
var r2 = 0; // Linear Regression r-squared
var MA5 = null; // 5 period MA Study
var SS = 0; // Small Swings counter
var nTPR = 0; // Triangular Pattern Rank
function main(nNum, sWaveType, nRet, sHighSource, sLowSource, nThickness, cColor1, cColor2) {
var nState = getBarState();
var nIndex = getCurrentBarIndex();
var h = getValue(sHighSource);
var l = getValue(sLowSource);
var c = close();
// record keeping
if (nState == BARSTATE_NEWBAR) {
if (cntr > 100) cntr = 0;
if (x1a != null) x1a -= 1;
if (x1b != null) x1b -= 1;
if (x2a != null) x2a -= 1;
if (x2b != null) x2b -= 1;
}
//Initialization
if (nNumBars == null) nNumBars = nNum;
if (sWaveTypeG == null) sWaveTypeG = sWaveType;
if (nRetpcnt == null) nRetpcnt = nRet/100;
if (nThicknessG == null) nThicknessG = nThickness;
if (cColorCon == null) cColorCon = cColor1;
if (cColorDev == null) cColorDev = cColor2;
if (sHSource == null) sHSource = sHighSource;
if (sLSource == null) sLSource = sLowSource;
if (x1a == null) x1a = 0;
if (y1a == null) y1a = c;
if (nSpace == null) {
nSpace = ((high() - low())*.2);
TFlabels(false, "NA");
}
if (MA5 == null) MA5 = new MAStudy(5, 0, "Close", MAStudy.SIMPLE);
if (bInit == false) {
bInit = Init(h,l,c);
}
// Swings
if (nState == BARSTATE_NEWBAR) {
nScntr += 1;
// confirm Swings
if (nScntr > nNumBars) {
confirmSwings();
if (bInit == true) {
doLine("dev1");
doLine("dev2");
}
}
}
checkSwings(h, l);
if (bInit == true) doLine("dev2");
//Linear Regression
RegTriangle();
return MA5.getValue(MAStudy.MA);
}
/***********************/
/****** Functions *****/
function Init(h,l,c) {
if (close(-(nNumBars*2)) == null) {
return false;
} else {
// Find initial line.
// The initial line will be the first high or low swing,
// which has the greater difference of the swing point to
// the close of the first bar.
var Index = getCurrentBarIndex()
var hIndex = Index;
var lIndex = Index;
var j = nNumBars*2;
var aHigh = getValue(sHSource, 0, -j);
var aLow = getValue(sLSource, 0, -j);
var vHH = aHigh[0];
var vLL = aLow[0];
var tempIndex = Index;
var i = 0;
for (i = 0; i < j; ++i) {
if (aHigh[i] > vHH) {
vHH = aHigh[i];
hIndex = tempIndex;
}
if (aLow[i] < vLL) {
vLL = aLow[i];
lIndex = tempIndex;
}
tempIndex -= 1;
}
if (vHH - y1a > y1a - vLL) {
vLastSwing = "L";
x1b = hIndex - Index;
y1b = vHH;
doLine("dev1");
x2a = x1b;
y2a = vHH;
x2b = 0;
y2b = c;
doLine("dev2");
} else {
vLastSwing = "H";
x1b = lIndex - Index;
y1b = vLL;
doLine("dev1");
x2a = x1b;
y2a = vLL;
x2b = 0;
y2b = c;
doLine("dev2");
}
}
if (vLastSwing != null) {
return true;
} else {
return false;
}
}
function doLine(sType) {
//confirmed
if (sType == "con") {
cntr += 1;
drawLineRelative(x1a, y1a, x1b, y1b, PS_SOLID,
nThicknessG, cColorCon, sType+cntr);
x1a = x2a;
y1a = y2a;
x1b = x2b;
y1b = y2b;
x2a = x1b;
y2a = y1b;
if (vLastSwing == "H") y2b = getValue(sHSource);
if (vLastSwing == "L") y2b = getValue(sLSource);
}
// dev1
if (sType == "dev1") {
drawLineRelative(x1a, y1a, x1b, y1b, PS_SOLID,
nThicknessG, cColorDev, sType);
}
// dev2
if (sType == "dev2") {
if (x2a != 0 && x2a != x2b) {
drawLineRelative(x2a, y2a, 0, close(), PS_SOLID,
nThicknessG, cColorDev, sType);
} else {
removeLine(sType);
}
}
return;
}
function TFlabels(bTF, nSS) {
drawTextAbsolute(2, 100, "TF = "+bTF, Color.maroon, null,
Text.BOLD|Text.ONTOP|Text.LEFT|Text.BOTTOM|Text.RELATIVETOBOTTOM,
null, 14, "TF");
var nR = (Math.abs(y2a-y2b) / Math.abs(y1b-y1a));
if (nR > 0) {
nR = (100*nR).toFixed(2) + "%";
} else {
nR = "NA";
}
drawTextAbsolute(2, 80, "TPR = "+nTPR, Color.maroon, null,
Text.BOLD|Text.ONTOP|Text.LEFT|Text.BOTTOM|Text.RELATIVETOBOTTOM,
null, 14, "TPR");
drawTextAbsolute(2, 40, "%Ret = "+nR, Color.maroon, null,
Text.BOLD|Text.ONTOP|Text.LEFT|Text.BOTTOM|Text.RELATIVETOBOTTOM,
null, 14, "Ret");
drawTextAbsolute(2, 20, "SS = "+nSS, Color.maroon, null,
Text.BOLD|Text.ONTOP|Text.LEFT|Text.BOTTOM|Text.RELATIVETOBOTTOM,
null, 14, "SS");
return;
}
function confirmSwings() {
if (x1b != x2b) { // underdeveloped dev1 line
if (sWaveTypeG == "% Retracement") {
var nWave = (Math.abs(y2a-y2b) / Math.abs(y1b-y1a));
} else {
var nWave = (Math.abs(y2a-y2b) / y1b);
}
if (vLastSwing == "L" && nWave >= nRetpcnt ) {
// Swing High
nScntr = 0;
vLastSwing = "H";
doLine("con");
} else if (vLastSwing == "H" && nWave >= nRetpcnt ) {
// Swing Low
nScntr = 0;
vLastSwing = "L";
doLine("con");
}
}
return;
}
function checkSwings(h, l) {
// dev1
if (vLastSwing == "L") { // find Swing High
if (h >= y1b) { // higher high, no swing
nScntr = 0;
x1b = 0;
y1b = h;
doLine("dev1");
x2a = 0;
y2a = h;
}
} else if (vLastSwing == "H") { // find Swing Low
if (l <= y1b) { // Lower low, no swing
nScntr = 0;
x1b = 0;
y1b = l;
doLine("dev1");
x2a = 0;
y2a = l;
}
}
// dev2
if (nScntr == 0) {
x2b = 0;
if (vLastSwing == "H") y2b = h;
if (vLastSwing == "L") y2b = l;
} else {
if (vLastSwing == "H" && h >= y2b) {
y2b = h; x2b = 0;
} else if (vLastSwing == "L" && l <= y2b) {
y2b = l; x2b = 0;
}
}
return;
}
function RegTriangle() {
var nState = getBarState();
var nIndex = getCurrentBarIndex();
var i = 0;
// y = Ax + B;
// A = SUM( (x-xAVG)*(y-yAVG) ) / SUM( (x-xAVG)^2 )
// B = yAVG - (A*xAVG)
// Slope = -1 * A
if (nScntr < 10 || nScntr > 60) {
//removeLine("reg");
removeLine("Up");
removeLine("Dn");
nTPR = 0;
TFlabels(false, 0);
} else {
var aReg = close(0, -nScntr);
var vClose = aReg[0];
if (aReg[nScntr-1] != null) {
LinReg(aReg, aReg.length, true);
// Reg
//drawLineRelative(0, B, -(nScntr-1), (A*(nScntr-1)) + B, PS_SOLID, 1, Color.blue, "reg");
//Up and Down indicators
var aUp = new Array(nScntr);
var aDn = new Array(nScntr);
var RegValue = B; // Reg indicator values
SS = 0; // Small Swings
i = 0;
for (i = 0; i < nScntr; ++i) {
if (aReg[i] > RegValue) {
aUp[i] = aReg[i];
}
if (aReg[i] < RegValue) {
aDn[i] = aReg[i];
}
if (i < nScntr-1) {
var vMA0 = MA5.getValue(MAStudy.MA, -i);
var vMA1 = MA5.getValue(MAStudy.MA, (-i-1));
if (vMA0 > RegValue && vMA1 <= RegValue + A) SS += 1;
if (vMA0 < RegValue && vMA1 >= RegValue + A) SS += 1;
}
RegValue += A;
}
i = 0;
var j = 0;
for (i = 0; i < nScntr; ++i) {
if (aUp[i] == null) {
j = 0;
for (j = i+1; j < nScntr; ++j) {
if (aUp[j] != null) {
aUp[i] = aUp[j];
j = nScntr;
}
}
}
if (aDn[i] == null) {
j = 0;
for (j = i+1; j < nScntr; ++j) {
if (aDn[j] != null) {
aDn[i] = aDn[j];
j = nScntr;
}
}
}
}
LinReg(aUp, aUp.length, false);
var UpSlope = -A;
drawLineRelative(0, B, -(nScntr-1), (A*(nScntr-1)) + B, PS_SOLID, 2, Color.red, "Up");
LinReg(aDn, aDn.length, false);
var DnSlope = -A;
drawLineRelative(0, B, -(nScntr-1), (A*(nScntr-1)) + B, PS_SOLID, 2, Color.red, "Dn");
}
/*** Triangular Formation (TF) ***/
var bTF = true;
var pcntRetracement = (Math.abs(y2a-y2b) / Math.abs(y1b-y1a));
if (SS < 3) bTF = false;
if (UpSlope >= 0 || DnSlope <= 0) bTF = false;
if (pcntRetracement > 0.50) bTF = false;
if (bTF == false) nTPR = 0;
/*** Triangular Pattern Rank (TPR) ***/
if (bTF == true) {
nTPR = 1;
//rule 1
if (nScntr >= 15 && nScntr <= 30) nTPR += 2;
if (nScntr > 30 && nScntr <= 55) nTPR += 1;
//rule 2
if (r2 <= 0.2) nTPR += 2;
if (r2 > 0.2 && r2 <= 0.5) nTPR += 1;
//rule 3
if (pcntRetracement <= 0.20) nTPR += 4;
if (pcntRetracement > 0.20 && pcntRetracement <= 0.38) nTPR += 3;
//rule 4
var aVol = volume(0, -nScntr);
LinReg(aVol, aVol.length, false);
if (-A < 0) nTPR += 4;
}
TFlabels(bTF, SS);
}
return;
}
function LinReg(vArray, nLength, bR2) {
var Len = nLength;
var xSum = 0;
var ySum = 0;
var i = 0;
for (i = 0; i < nLength; ++i) {
if (vArray[i] == null) Len -= 1;
}
for (i = 0; i < Len; ++i) {
xSum += i;
ySum += vArray[i];
}
var xAvg = xSum/Len;
var yAvg = ySum/Len;
var aSum1 = 0;
var aSum2 = 0;
var aSum3 = 0;
i = 0;
for (i = 0; i < Len; ++i) {
aSum1 += (i-xAvg) * (vArray[i]-yAvg);
aSum2 += (i-xAvg)*(i-xAvg);
aSum3 += (vArray[i]-yAvg)*(vArray[i]-yAvg);
}
A = (aSum1 / aSum2);
B = yAvg - (A*xAvg);
// r-squared
if (bR2 == true) r2 = (aSum1*aSum1) / (aSum2*aSum3);
return;
}