Chart Pattern Scans

Tom409

I notice that I have not seen scans for standard chart patterns. Things like ascending triangles or double tops, or things like that. Under P&F patterns there are some that are close. But they do not really show how for example, how the triple top breakout was scanned. Only that it occurred. Is there a way to scan for common price movement patterns.
Thanks

Tom409

The problem is that it is hard to visualize how price action patterns translate into indicator scans. Recently I have been experimenting with the following scan to find retracements.

[type is stock] and [sma(20,volume) > 1000000]
and [Close > 5.0]
and [Close < 50.9]
and [EMA(30) > Close]
and [EMA(5) < Close]
and [EMA(200) < Close]
and [Below Ichimoku Cloud is false]

A retracement is pretty easy to visualize. The stock in a trend (above 200 EMA.) It recently fell to a lower level ( below the 30 EMA). But more recently it is rising ( above 5 EMA)

This might need some tweaking, but the general idea is probably sound. Many of the results will be in a retracing pattern.

It is just hard for me to visualize how patterns like an ascending triangle ( or any of them) would be represented by any indicator. So I am not sure how you a scan for them

markd

Hi Tom, there are canned candlestick patterns, as you probably noticed, but you are correct that the conventional Edwards and Magee patterns are not canned. Some sites do it (like Finviz), but I think the results are iffy. There are a couple of problems - many patterns are in the eye of the beholder, and even the clearly defined patterns vary enormously in duration and price range. You would need some pretty intensive (and extensive) coding, and a lot of computing power to correctly and consistently identify those conventional patterns.

If you haven't already, you might find it useful to look through the "s.c.a.n. archives" section to find ideas for scanning a variety of set ups. There were quite a few of them on the old site and many have been preserved in the archive.

Tom409

Thanks for your reply. I see that you and a few other people are quite helpful here. It is very nice of you.
I think the problem is that chart patterns are a visual representation of some mathematical component, or relationship, of price movement. And that is of course true to some degree of all indicators. The approach I am taking is to try first to really understand what an indicator or pattern is saying, and maybe how it is designed mathematically. ( maybe not to deeply, but at least generally) So that my scans have more meaning. If you want to have good scans you have to understand the indicator, and also the underlying price movement. It is actually pretty complicated. Thanks again for you suggestions.

joeruz

Outside weeks... outside months and triangle patterns. Hello, I signed up for the site to be able to detect outside weeks ( positive or negative), outside months (positive or negative) and wedging or triangular patterns. I haven't been able to find any successful acceptable ways to detect these patterns on the stockcharts site. I have since canceled my subscription but would be happy to renew if somebody could explain to me how to locate wedging patterns, triangle patterns or outside weeks/months on the site. Thanks, Joe

denaliguide

how do i find the FIRST new high, after a series of 52 week lows ?

markd

If you are going to write a scan, you have to be as specific as possible. So, you have to define what you mean by "new high". I know you know what you mean, but how would you describe it to the scan engine? New since when, or what? Daily new high? Weekly? Monthly? Same thing with "series of 52 week lows". How many?