The indicator for ProRealTime “Triangles Patterns” identifies the triangles automatically.
In Technical Analysis the triangular pattern is a figure that is formed when the upper trend line and the lower trend line converge and tend to intersect in the future.
There are three potential triangle variations that can develop as price action carves out a holding pattern, namely ascending, descending, and symmetrical triangles. Technicians see a breakout, or a failure, of a triangular pattern, especially on heavy volume, as being potent bullish/bearish signals of a resumption, or reversal, of the prior trend.
This indicator allow to detect any type of Triangles Patterns:
- Symmetrical or Contracting
- Expanding or Reverse
- Imperfect Rectagles or Channels
The indicator draws the triangular figures starting from the maximum points and the minimum points of the graph, which become the vertices opposite to the apex.
To detect the maximums and minimums I used the Zig Zag percentage indicator formula, because it’s a common and familiar indicator, and therefore easy to manage. Zig Zag size directly affects the size of the triangles drawn, because as the range of maximum and minimum points increases, the size of the sides of the triangles increases.
HOW THE INDICATOR WORKS:
The use of the indicator is completely customizable:
- Selection triangle size.
- Selection of the filter size of the Break Out signal
- View different size of triangles by scrolling in the past.
- View Zig Zag line points
- Selection of the direction of the segments on past candles
The research of tringles of different sizes and periods can be set by means of commands with completely customizable variables.
By setting the “PricePercent” dimensional variable, it is possible to display triangles of different sizes. The higher the percentage value set, the greater the triangle width, and consequently the time dimension for trendline formation.
By setting the “Filter” dimensional variable, you can filter the triangle breakout signals.
By enable the “PastFractalPoint” and setting “PointsBack” dimensional variable, you can move the opposite vertices to the apex of the triangle, in the backward points, from 1 to 10.