High Wave Candlestick Pattern for ThinkorSwim

BenTen

Administrative
Staff member
Staff
VIP
Lifetime
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)

2KyHrjx.png


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

thinkScript Code

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:
 

horserider

Well-known member
VIP
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.
 

Similar threads

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Top