Elliott Wave - Wave 3 Entry Engine

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This indicator is a Wave 3 entry engine built on top of an Elliott Wave–style 1-2-3 structure. It automatically finds potential Wave 3 trades, manages a simple R-multiple target/stop model, and marks outcomes directly on the chart.

What the indicator does

At a high level, the script:

• Detects swing points on three “degrees”
  
• Small (S) – fast, local swings
  
• Medium (M) – broader swings
  
• Large (L) – higher-timeframe context only
  
• Looks for a 3-pivot pattern (W0 → W1 → W2)
  
• Bullish setup: Low → High → Higher Low (L-H-L)
  
• Bearish setup: High → Low → Lower High (H-L-H)
  
• Checks whether that pattern is a valid Wave 1–2 structure
  

Using multiple rules:

• Wave 2 retraces Wave 1 by a configurable fraction
  
• Wave 1 is strong enough (percentage move + slope)
  
• Wave 2 doesn’t overshoot Wave 0 too far
  
• Trend direction and swing “consensus” across S/M/L degrees line up
  
• Scores the setup (Pre-W3 Score)
  

The script calculates a 0–1 score based on:

• How “nice” the Wave 2 retracement is vs the ideal level
  
• How much stronger Wave 1’s slope is vs Wave 2’s pullback
  
• How much consensus there is across the swing engine (S/M/L)
  
• Only setups above your chosen minimum Pre-W3 score and that pass alignment checks become Wave 3 candidates.
  
• Waits for breakout → creates a Wave 3 “entry”
  
• For longs: price breaks above the Wave 1 high (plus an optional tick buffer)
  
• For shorts: price breaks below the Wave 1 low (minus buffer)
  

When triggered, the indicator:

• Stores entry price (close at breakout)
  
• Sets a stop beyond Wave 2 (with optional extra ticks)
  
• Calculates a target based on a fixed R multiple (e.g., 2R)
  
• Tracks the trade until exit or timeout
  

For each open W3 trade, it monitors:

• Target hit → marks “W3 ✅”
  
• Stop hit → marks “W3 ❌”
  
• Bar where both could have hit → conservative loss “W3 ?/❌”
  
• Time-based expiry (too many bars in trade) → “W3 ⏰”
  
• Candidates that never get a breakout within your chosen max bars from W2 can also be marked as timeout (⏰).
  

Visual elements on the chart


The script can plot several helpful visuals:

• Swing connector lines (Small/Medium/Large)
  
• Small = blue
  
• Medium = purple
  
• Large = orange
  
• These show the detected swings at each degree
  
• Pre-W3 labels at Wave 2 (optional)
  

Signals :

• "Pre-W3 Long XX%" or"Pre-W3 Short XX%"
  
• Placed at the Wave 2 pivot
  
• Colored yellow, with the % score rounded to an integer
  
• W3 Entry labels (optional)
  
• "W3 Long Entry" below the bar for longs (green)
  
• "W3 Short Entry" above the bar for shorts (red)
  
• Outcome labels (optional)
  
• W3 ✅ – target hit
  
• W3 ❌ – stop hit
  
• W3 ?/❌ – both hit on same bar, treated as loss
  
• W3 ⏰ – candidate or trade timed out
  

All these can be toggled in the “Wave 3 Engine (Pre-W3 + Entries + Outcomes)” group.

Input groups & how to use them

• Swing Detection (Small / Medium / Large)
  
• These groups control how the script finds swing highs/lows using a multi-parameter pivot scan:
  
• Left Min / Left Max / Right Min / Right Max
  
• Define the pivot “strength” ranges (how many bars to the left/right the high/low must dominate).
  
• Minimum swing % (post-aggregation)
  
• Ensures that, once swings are merged and cleaned up, each swing is at least this % move from the prior opposite swing.
  
• Loop Filters (Small/Medium/Large loop min % change)
  
• Extra gating inside the pivot-search loop, so small noise pivots can be ignored even before final swing construction.
  

Practical use:

• Tighten % thresholds or increase left/right bars to reduce noise.
  
• Loosen them to get more swings and more potential W3 setups.
  
• Wave 3 Logic
  
• Wave 2 depth
  
• W2 min / max retracement of W1 (fraction)
  
• Example: 0.30–0.80 means W2 must retrace 30–80% of W1.
  
• Ideal W2 retracement (for scoring)
  
• Often set around 0.618 (classic fib). The closer W2 is to this, the higher the retracement part of the score.
  
• Max W2 beyond W0 (%)
  
• How far W2 may push past W0 (in %) before the setup is invalid. Set to 0 to disable this filter.
  
• Wave 1 strength
  
• Min W1 move (%)
  
• Ensures Wave 1 itself is meaningful.
  
• Min |W1 slope| / |W2 slope|
  
• Wave 1 must be “steeper” than Wave 2’s correction.
  
• Slope ratio for max score
  
• Above this, extra slope advantage doesn’t improve the score further.
  

Scoring & Trend Alignment

• Min Pre-W3 score (0..1)
  
• Hard gate: anything below this won’t become a W3 candidate.
  
• Trend alignment (S/M/L)
  

Options:

• None – ignore swing directions, purely pattern/score based
  
• Majority – at least 2 of S/M/L must point in the W3 direction
  
• AllThree, S+M, S+L, M+L – stricter alignment variants
  
• Alignment uses the latest swing direction (up or down) for each degree.
  

Max W3 candidates to track
Limits how many candidates + trades are stored. Old, already-closed items are pruned first; open trades are never pruned.


This is an indicator, not an order engine**:** it doesn’t place trades; it only marks hypothetical Wave 3 entries and outcomes based on your settings. Always validate on historical data and combine with your own analysis and risk management before using it in live trading.

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Informacje o Wersji

Updated settings and removed the Zigzag lines plotting by default