Pattern Filters
Two optional "above/below" pattern filters are available in the Harmonic Patterns Indicator:
•Use A/C Filter?
•Use B/D Filter?
If either of these are set to true then, as the legs of the pattern develop, the pattern engine will internally calculate a line between the two points and will reject the pattern if the close of any price bar exceeds this line.
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Note: While the examples below focus specifically on AB=CD patterns, these above/below filters apply to ALL patterns since all harmonic patterns have an AB=CD component. |
•Here we have a Bullish AB=CD pattern. The A/C Filter option is currently set to false. The blue circle highlights the location where price has closed through the line from point A to point C.
•If the A/C Filter option were set to true then this pattern would not be drawn. |
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•Here we have a Bearish AB=CD pattern. The B/D Filter option is currently set to false. The blue circle highlights the location where price has closed through the line from point B to point D.
•If the B/D Filter option was set to true then this pattern would not be drawn. |
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See Also:
