HTF Descending Triangle

1 cze

HTF Descending Triangle aims at detecting descending triangles using higher time frame data, without repainting nor misalignment issues.

Descending triangles are defined by a falling upper trend line and an horizontal lower trend line. It is a chart pattern used in technical analysis to predict the continuation of a downtrend.

This indicator can be useful if you, like me, believe that higher time frames can offer a broader perspective and provide clearer signals, smoothing out market noise and showing longer-term trends.

You can change the indicator settings as you see fit to tighten or loosen the detection, and achieve the best results for your use case.

Features

• It draws the detected descending triangle on the chart.
  
• It supports alerting when a detection occurs.
  
• It allows for setting the higher time frame to run the detection on.
  
• It allows for setting the minimum number of consecutive valid higher time frame bars to fit the pattern criteria.
  
• It allows for setting a low factor detection criteria to apply on higher time frame bars low as a proportion of the distance between the reference bar low and open/close.
  
• It allows for turning on an adjustment of the triangle using highest/lowest values within valid higher time frame bars.
  

Settings

• Higher Time Frame dropdown: Selects higher time frame to run the detection on. It must be higher than, and a multiple of, the chart's timeframe.
  
• Valid Bars Minimum field: Sets minimum number of consecutive valid higher time frame bars to fit the pattern criteria.
  
• Low Factor checkbox: Turns on/off low factor detection criteria.
  
• Low Factor field: Sets low factor to apply on higher time frame bars low as a proportion of the distance between the reference bar low and open/close.
  
• Adjust Triangle checkbox: Turns on/off triangle adjustment using highest/lowest values within valid higher time frame bars.
  

Detection Algorithm Notes
The detection algorithm recursively selects a higher time frame bar as reference. Then it looks at the consecutive higher time frame bars (as per the requested number of minimum valid bars) as follows:

• High must be lower than previous bar.
  
• Open/close min value must be higher than reference bar low.
  
• When low factor criteria is turned on, low must be lower than reference bar open/close min value minus low factor proportion of the distance between reference bar low and open/close min value.