IntroductionDue to the programming language, MQL4, embedded in the MetaTrader 4 Client Terminalit is possible to create various indicators. Some of them may be sophisticatedand others may be very simple.
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It all depends on the developer's imagination. Thearticle describes the way of developing a sophisticated program. It describes,if I may say so, an indicator platform - the ZUP. The article also gives a briefdescription of graphical tools embedded in the ZUP. ZUP is permanently updated.We describe in this article graphical tools for ZUPv63.
Pesavento Patterns ( )On the chart below, the ZigZag breaks are joint by dotted lines. A number is givenin the middle of each dotted line. These are the dotted lines with numbers nearthem that represent a tool named Pesavento Patterns.
The tool named Pesavento Patternsmust be distinguished from the market shapes named Pesavento Patterns. We willexplain below what the market shape named Pesavento Patterns represents. Let us calculate the size of rays 23 and 34 in points. The size of ray 23 = (1.3665-0.8225). The size of ray 34 = (1.3665-1.1638). Let us divide: 34/ 23 = 2027/5440=0.373. We obtain a number that differs from the Fibo 0.382 by 2.46%.You can see the value of 0.382 near the dash line between points of 2 and 4.The Fibo levels are noticed to start 'working' when the market approachesto a certain Fibo level.
The market often stops or turns near a Fibo level. Thereis a kind of an area, within which the market behavior is rather predictable. Thesize of this area is expressed in percents and equals to 2.Delta.On the chart below, you can see that a Fibo of 0.382 is near point 4. The Fibo level is below the November minimum by (1.1638-1.1557).10000=51 points. EURUSD has not reached Fibo 0.382 a little in November 2005 and turned up. Thisis how Fibo 0.382 'works'. Generally, the number shown near to the dashline is equal to the size of the subsequent ray divided by the size of the precedingray of ZigZag.
In the above example, the ratio of rays is 34/ 23. This ratio is named retracement between points 2 and 4 of ZigZag.So why is number 0.382 shown near the line, not 0.373? It was noticed that quitecertain Fibo levels 'work' on the market. It means there is a certainset of 'working' Fibo levels.
Different authors give different sets ofFibo levels.Pesavento Patterns Tool Operation AlgorithmFirst, the retracements between ZigZag's peaks and troughs. Then the calculatedvalues will be compared to the predefined set of Fibo levels. If the value obtainedis other than that from the set of Fibo levels but no more than by Delta%, thenumber from the set of Fibo levels will be shown near the dash line. The numberis colored as it is defined for numbers from the set of Fibo levels. (If the setof Fibo levels corresponds with the numerical table developed by Larry Pesavento,we will obtain the market shape named Pesavento Pattern.) If the obtained numberdiffers from that in the set of Fibo levels by more than Delta%, the former willbe displayed near the dash line and colored differently.Where the tool named Pesavento Patterns is available, there is no need to calculateretracements. If the price is covered by a Fibo level, the Pesavento pattern willdisplay the value of this Fibo level colored as predefined.
The tool named Pesaventopatterns will deliver one from retracements calculating routines.The indicator's inputs to work with Pesavento patterns:. ExtHidden0 - Pesavento patterns are not shown. But other tools can be displayed.1 - shows all lines between the ZigZag's peaks or troughs having the retracementpercentage0.1.
ExtFractalEnd - if it is 0, the joining lines go up/down to the latest, including zero bar, ZigZagbreak. The minimal value of ExtFractalEnd is 1.
ExtDelta - (tolerance or Delta) deviation in calculations. It also sets the value of a potentialpivot area.
It must be as follows: 0. If some drawings are made on the first ray or on zero (0) break, the tool will bedynamically changed together with the current price changes.
If the shapes do nottouch the first ray or zero break, the tool won't change and, correspondingly,this tool will be called static. All graphical tools in the ZUP are built on thefirst nine rays or on the first ten peaks (0-9). But Pesavento patterns can bebuilt on all breaks, not only on the first ten ones.Dynamic and Static Fibo Levels.
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Fibo ExpansionsGraphical tools embedded in the ZUP can be dynamic or static. Static graphical toolsare anchored to ZigZag breaks already formed, i.e., to the breaks that won't changeanymore. Dynamic graphical tools are anchored on the end of the ZigZag first raythat always changes its location.Dynamic graphical tools allow to make a quick decision.
If the market turns, wewill be able to see the possible trend looking at the shape of the dynamic graphicaltool. As soon as the first ray of ZigZag changes, the dynamic graphical tool willbe automatically rebuilt, too.Dynamic Fibo levels are built on the first, changing ray of ZigZag. Static Fibo levels are built on rays 2-9.Parameters to be used for working with Fibo levels:.
ExtFiboType = true - Fibo levels with Pesavento numbers, false - standard Fibo levels. ExtFiboDinamic - allows to display dynamic Fibo levels. The dynamic Fibo levels will be shownon the first ray of Zig Zag. ExtFiboStatic - allows to display static Fibo levels. ExtFiboStaticNum - ZigZag ray number, from which the static Fibo levels will start to be shown.
ExtFiboS and ExtFiboD - select color for static and dynamic Fibo levelsAt that, the Fibo level value, for example, 61.8 is shown, the price for the correspondingFibo levels and the name of timeframe, on which the Fibo levels are shown. It isimportant to know the timeframe when working in the DT mode. The values of dynamicFibo levels are shown closer to the chart window border. The values of static Fibolevels are shown with an indent from the border.When static and dynamic Fibo levels are shown simultaneously, the values of Fibolevels will be partly overlapped. This may complicate information viewing. However,MetaTrader 4 does not allow showing static Fibo levels at some distance from achart window border.
Dynamic Fibo level will be automatically changed with thefirst ZigZag ray changing in size or location. ExtFiboCorrectionExpansion switches static and dynamic Fibo levels to show corrections or Fibo expansions.Fibonacci expansions will be shown as described in Robert Fisher's book of The NewFibonacci Trader 6. At that, the size of the ZigZag ray is considered as basis.Expansions are seeming to prolong the ray. Expansion numbers as by Robert Fisherare shown with prefix Fe. Andrews' Pitchfork ( )Andrews' Pitchfork and tactics used to work with this tool were described by PatrickMikula.
Note:Reaction lines are drawn using Fibo Channels. In many cases, they may be drawn witherrors. The errors are insignificant, but they can accumulate on a larger timeperiod. It is impossible to draw them without errors. Standard tool Fibonacci Channelserror-free drawing is impossible in MetaTrader 4 due to Fibo Channels' specificanchoring to candlesticks.
In my first article, I wrote about this error. This is why the Reaction Lines in the current realizationshould be used with care. Below are some quotations from versum's posts (translated into English by MetaQuotesSoftware Corp.):This can be considered both a fan, i.e., radiating lines, and a Fibo Fan since Iuse a segment that intersects these lines and is divided into parts by Fibo level(a tool being at hand and that moment). 1, you can see that segment BCis divided into parts using a Fibo level. Lines are drawn from the preceding peak/trough,point A, through the points of intersection of the Fibo level and segment BC.
Theseare the expected price levels.So what we have?. levels (which is most important) that change with the time. these are these variations, from which Gartley Patterns and other shapes and modelsdevelop, but they are visible 'after'.
expected trend development.How to use it?If the price touches or exceeds the level of the 50-% line (that passes throughthe point divided by 50-% level), so we can say (though not with a 100-% probability)that the trend keeps the same direction. If it is below 50-% line, we can say thatthe current trend may change.Notes:. I do not use the obtained levels strictly, up to 1 pip. I think this should ratherbe considered as an area.
I do not consider Fibo levels to be a panacea either. Other ratios between partsof the segment may turn to be better.Independent Fibo FansAlong with Fibo Fans that work together with Andrews' Pitchfork, it is possibleto enable independent Fibo Fans. These Fibo Fans are displayed on the first ninerays of ZigZag or on the first ten extremums of ZigZag. They are enabled by selectingcolor using parameter ExtFiboFanColor.
The Fans are arranged by parameter ExtFiboFanNum. Enhanced ModeThe market analysis is most effective when ZigZag peaks and troughs belong to thesame wave level. It frequently happens that ZigZag identifies peaks and troughsbeing 'excessive' for a wave level.
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It is undesirable to build toolsembedded in the ZUP on those 'excessive' extremums. Well, this topicneeds a special research and is open to discussions.The enhanced mode is created especially to build tools on 'right' extremums.The following tools can work in the enhanced mode:. Static Pitchfork. Static Fibo Levels. Static Fibo Expansions. Independent Fibo Fans. Versum Levels.
Micmed's ChannelsThe set of Andrews' pitchforks is everything concerning pitchforks. Lines of theset of pitchforks are anchored to certain points of the pitchforks. For example,control lines are drawn from the first, initial point of the pitchfork throughthe second and the third one. In the enhanced mode, all lines will be anchoredto the corresponding points of the pitchfork wherever those points are located.If you set parameters of all five tools that can work in the enhanced mode in thesame way as before, there will not be any differences from that what you have hadbefore.In the enhanced mode:.
For static pitchforks,you will have to specify three peaks instead of only one numberthat showed the first peak, on which the pitchfork is built. This will look, forexample, like this: ExtPitchforkStaticNum=741.Here, peak 7 corresponds with the first point of the pitchfork, trough 4 does withthe second point of the pitchfork, peak 1 - with the third point of the pitchfork.The 50-% median line, in this case, is built from the midpoint of the segment thatjoins points 1 and 2 of the pitchfork ( ZigZag extremums 7 and 4), and goes throughthe midline of the segment joining points 2 and 3 of the pitchfork (ZigZag extremums4 and 1). The reaction lines are anchored to points 2 and 3 of the pitchfork.If the last digit in parameter ExtPitchforkStaticNum is above 0, static pitchforkwill be displayed. If it is 0, the pitchfork built will be dynamic. But, as soonas a new ZigZag ray appears, the pitchfork will become static. If you change anyparameters of the indicator during its turning from dynamic to static, the dynamicpitchfork will be displayed again.Important: Digits (741) must interchange peaks and troughs. A pitchfork cannotbe built if two peaks or two troughs are specified consecutively.
It means oddand even numbers must alternate. For static Fibo levels in the enhanced mode, in the parameter should be specifiedtwo ZigZag extremums, on which the Fibo level will be built.
For example, ExtFiboStaticNum=72. Static Fibo Expansions should be built on three ZigZag extremums in the enhancedmode. Example: ExtFiboExpansion=721.In the above example, Fibo Expansions will be built as they are drawn in MetaTrader4.
But, if Fibo levels are shown (tool 2) and ExtFiboCorrectionExpansion = true,the Fibo Expansions will be shown instead of Fibo levels. In this case, however,the expansions will be built on two points and correspond with those describedin the Robert Fisher's book 6. Independent Fibo Fans are built on two extremums in the enhanced mode. Example:ExtFiboFanNum=74.
Versum Levels:. Micmed's Channels:Below is what I would like to emphasize again:For all tools, peaks and troughs must be alternated i the enhanced mode. The toolcannot be built for two consecutive peaks or troughs. Under 'consecutive'I mean two consecutive digits that define extremums in a parameter.All tools in the enhanced mode can be both static and dynamic.
If the last digitin the defined parameter is 0, the tool will change dynamically.Fibonacci ArcsIn ZUPv63, it becomes possible to build Fibonacci Arcs.
G eo eome mettry i n M and and W Patt Patterns: B ryc ryce e G ilm ilmore ore s XA B C D Tabl T ables es ’Source: Bryce Gilmore, Price Action Manual c 2007, Chapter 19 XABCD Tables: These tables are designed to immediately highlight the internal ratios between the previous 3 swings and the current swing in progress. Some combinations of GEOMETRY are extremely important in Elliott Wave Analysis and have important implications for traders who use the Elliott Wave Methodology to make trading decisions. Some XABCD combinations are more or less 'self fulfilling' for a market reversal when they come together, as the people following this methodology will act without hesitation. When you can understand the implications of the 'pure' EW sequences that work frequently it will guide your trading approach more than anything else will. Perfect EW set ups can and will OVER-RIDE most 'lagging' indicators the better part of the time. Typical swing patterns:XABCD GEOMETRY will relate between the swings in market EXPANSIONS & CORRECTIONS and also in COMPLEX patterns.The IMPORTANT XABCD combinations in order are:1. Direct Relationship Relationship of CD as a ratio of BC(BcD).
Alternate Relationship of CD as a ratio of AB (alt 1). Direct Relationship #2 of CD to XA or XC (XcD) & (XaD). Reverse Cross Relationship in EXPANSION of AD to BC (Rx).
Double Cross Relationship in COMPLEX swings of AD to XC (Dx). Alternate Relationship of X to CD in a 5 wave impulse series (alt2).XABCD GEOMETRY will relate between the swings in market EXPANSIONS & CORRECTIONS and also in COMPLEX patterns.The IMPORTANT XABCD combinations in order are:1. Direct Relationship Relationship of CD as a ratio of BC(BcD). Alternate Relationship of CD as a ratio of AB (alt 1). Direct Relationship #2 of CD to XA or XC (XcD) & (XaD).
Reverse Cross Relationship in EXPANSION of AD to BC (Rx). Double Cross Relationship in COMPLEX swings of AD to XC (Dx). Alternate Relationship of X to CD in a 5 wave impulse series (alt2).It is a very simple equation to follow. The following patterns are the common ones we will encounter.
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