High Wave Candlestick Pattern for ThinkorSwim

[BenTen]

The high wave candlestick has a very small real body, and it typifies a stock or index plagued by uncertainty. High wave candlesticks portray situations where the market is having difficulty coming to a consensus on a security's value. They are indicative of a market in which uncertainty and indecision prevail.

High Wave: Important Results (according to Tom Bulkowski)

Theoretical performance: Indecision
Tested performance: Reversal 51% of the time
Frequency rank: 17
Overall performance rank: 67
Best percentage meeting price target: 77% (bull market, up breakout)
Best average move in 10 days: -3.38% (bear market, down breakout)
Best 10-day performance rank: 60 (bear market, up breakout)

This version includes paint bars and arrows (for scanning purposes). The arrow does not indicate the trend or direction.

thinkScript Code

# High Wave Candlestick Pattern
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/zZOCuaJN-Custom-Candle-color-Inside-Outside-candles-Highwave-Star-Patt/

def Day = (high - low);
def Day_1 = (high[1] - low[1]);
def Day_2 = (high[2] - low[2]);
def Day_3 = (high[3] - low[3]);
def Day_4 = (high[4] - low[4]);
def Day_5 = (high[5] - low[5]);
def Avg = ((Day_1 + Day_2 + Day_3 + Day_4 + Day_5) / 5);
input Highwave_Wick_Multiplier = 3.0;
input Range_Multiplier = 1.0;
def Highwave = (((high - low) - (AbsValue(open - close))) > ((AbsValue(open - close)) * Highwave_Wick_Multiplier)) and((Day > (Avg* Range_Multiplier)));

assignPriceColor(if Highwave then Color.CYAN else Color.Current);

# Plot Arrow
plot arrow = Highwave;
arrow.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
arrow.SetDefaultColor(Color.MAGENTA);
arrow.SetLineWeight(1);

Resources to learn more about the High Wave candle:

• https://investinganswers.com/dictionary/h/high-wave-candlestick
• http://thepatternsite.com/HighWave.html

 

[kelvin]

Looks cool

 

[horserider]

From Bulkowski;
"Testing the high wave candle shows that it acts as a reversal 51% of the time, which is about random, and that agrees with theory (indecision). The high wave candle appears often, giving it a frequency rank of 17 (a rank of 1 means most often, 103 means almost invisible).

Overall performance is well behind the leaders, ranking 67."

Random in showing reversal and low performance and appears often making it more troublesome. Hmmm think I might skip this one.

 

[Playstation]

any candle can be a 50-50 reversal candle come to think of it