Flags and Pennants

// Triangle search Extended

/*This scan/exploration extends the triangle search by Graham Kavanagh
The original scans for triangles using Highest High AND Lowest Low over a 20 bar period,
then next High over a chosen period after these HHV AND LLV. He requires the order of the
highs AND lows are to be in alternate order and his test will pick up ascending, descending
AND equal triangles. His 'variable' d1 (set to 20)is the number of days to lookback and search
for the last Highest High, AND d2 is the gap after this HH to start searching for the next HH
after the first. Similarly for the Lowest lows
The variables z? represent the highs, AND w? the lows.

This extended program adds a number of options,as follows:-
a. It automatically searches over different lookback periods between d1max and d1min, set to
60 and 20 (but easily changed) and records all succeses. Because of the nature of triangles,a
single value for d1 can miss many valid cases.
b. Where the triangle criteria are satisfied on successive days, only the last of these is retained
in order to reduce the amount of output.
c. The user can toggle between searches based on the data H and L, or the highs and lows of the candle body.
d. The lengthy test to yield a "buy" in the original has been broken down into 7 separate conditions,
allowing the user to easily change the conditions. Thus, Condition 3 tests for the triangle shape. This can
use a more liberal test via the parameter toggle that has been added. Similarly, Cond5 is a volume test which
can now be left in or excluded.
Finally, the user should note that conds 6 and 7 test that the general price trend is up. If interested in
potential downward moves, a user might want to delete these from the "buying" test.
*/

d1max = 60;
d1min = 20;
Buy = 0;


for (d1=d1min;d1<d1max;d1++)
{
d2=4;
Hi = H;
Lo = L;
Body = ParamToggle("Use candle body rather than H & L","No|Yes", 0);
if(Body == 1)
{
Hi = Max(O,C);
Lo = Min(O,C);
}
z1=HHV(Hi,d1);
za1=HHVBars(Hi,d1);
zb1=za1-d2;
z2=HHV(Hi,zb1);
za2=HHVBars(Hi,zb1);
w1=LLV(Lo,d1);
wa1=LLVBars(Lo,d1);
wb1=wa1-d2;
w2=LLV(Lo,wb1);
wa2=LLVBars(Lo,wb1);

aa1=LastValue(Hi);
aa2=LastValue(Lo);

C3 = ParamToggle("Use a more liberal triangle shape test?", "No|Yes",0);
ExVol = ParamToggle("Exclude volume test?","No|Yes",0);

Cond1 = ((z1>=z2 AND w2>w1) OR(z1>z2 AND w2>=w1));//Allows for horizontal top or bottom
Cond2 = za1>za2 AND wa1>wa2;//Automatically satisfied if za1,za2,wa1 and wa2 all exist
//Cond3 ensures triangle shape
Cond3 =((za1>wa1 AND wa1>za2 AND za2>wa2) OR (wa1>za1 AND za1>wa2 AND wa2>za2)) ;//Original
if(C3 == 1)
Cond3 =((za1>wa1 AND wa1>za2) OR (wa1>za1 AND za1>wa2)) ;//a more liberal test

Cond4 = aa1<z2 AND aa2>w2 ;// Triangle shape continues to last Value

Cond5 = Ref(Volume,-za1) > MA(Volume,d2);
if(ExVol == 1) Cond5 =1;
//Conditions 6 & 7 require close price trend to be up
Cond6 = Ref(MA(Close,d1),-za1) > Ref(MA(Close,d1),-2*za1) ;
Cond7= MA(Close,d1) > Ref(MA(Close,d1),-2*za1);
Buying = Cond1 AND Cond2 AND Cond3 AND Cond4 AND Cond5 AND Cond6 AND Cond7;
Buy = Buy + Buying;
}
for(i=1;i<BarCount;i++)
if(Buy>=1)
{
Buy[i-1]=0;
Buy = 1;
}
//Retain only the last of consecutive buy signals

Filter=Buy;
/*
NumColumns = 8;

Column0 = z1;
Column1 = z2;
Column2 = w1;
Column3 = w2;
Column4 = za1;
Column5 = za2;
Column6 = wa1;
Column7 = wa2;
*/

NumColumns = 8;
Column0 = Cond1;
Column1 = Cond2;
Column2 = Cond3;
Column3 = Cond4;
Column4 = Cond5;
Column5 = Cond6;
Column6 = Cond7;
Column7 = Buy;

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CanOz said:

For those with Amibroker here is a nice little "Pennant" scan....Enjoy

CanOz

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jrobbo said:

I'm a newbie at this. but how about this one of Macquarie Comms Group:
View attachment 29501

John

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saiter said:

Some stuff on flags and pennants for newbies.

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skc said:

Thanks Saiter. What's the book?

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