Alternate AB=CD Harmonic Pattern Indicator in MetaTrader 5

 The Alternate AB=CD Harmonic Pattern indicator is considered a powerful technical analysis tool in the MetaTrader 5 platform, designed with the goal of identifying the structure of harmonic patterns.

This indicator detects the structure of the Alternate AB=CD pattern on the chart by focusing on four key pivot points (A, B, C, D) and displays it to analysts by drawing precise lines between pivot points.  

Using this indicator alongside other technical analysis methods like support and resistance levels, allows traders to identify price reversal areas (PRZ) and analyze bullish or bearish trends.  

Table of the Alternate AB=CD Harmonic Pattern Indicator

The general specifications of the Alternate AB=CD Harmonic Pattern indicator are listed in the section below.

Bullish Pattern

In the 5-minute timeframe of the GBPUSD currency pair, a bullish Alternate AB=CD harmonic pattern has been observed, which can be considered as a warning for the start of a bullish price movement.

By using the Alternate AB=CD Harmonic Pattern indicator, traders can recognize this pattern on the chart and by identifying point D, which is considered the price reversal area (PRZ), proceed to enter a buy position.

Bearish Pattern

On the 1-hour chart of the EURUSD currency pair, the Alternate AB=CD Harmonic Pattern indicator has succeeded in identifying a bearish Alternate AB=CD structure and has drawn it on the chart.

This type of harmonic pattern usually forms when the price is on the verge of changing trend from bullish to bearish and can be an early warning of the start of a bearish trend.

By focusing on point D as the price reversal area (PRZ), traders can identify a suitable opportunity to enter sell trades.

Using this indicator allows traders to make decisions with more confidence regarding market direction changes and have more suitable trading positions.

Settings of the Alternate AB=CD Harmonic Pattern Indicator

The settings for the Alternate AB=CD Harmonic Pattern indicator are provided in the section below.

• Minimum Length Of Wave: Adjust the minimum length of a wave;
• Num Of Previous Pivot: Adjust the number of previous candles to examine the market;
• Show Lines: Adjust whether to display pattern lines;
• Break Pivot: Adjust whether to check for pivot breakouts;
• Original pivot to broken pivot (Pipet): Adjust the distance (in pipettes) between the original pivot and the broken pivot;
• Shift: Adjust the horizontal shift of the lines;
• Bullish Pattern: Adjust whether to display bullish patterns;
• Bearish Pattern: Adjust whether to display bearish patterns;
• Custom Color Lines (Bearish Harmonic): Adjust the color for bearish harmonic pattern lines;
• Custom Color Lines (Bullish Harmonic): Adjust the color for bullish harmonic pattern lines;
• Custom Color Of Text: Adjust the color for the explanatory text on the chart.

Summary

The Alternate AB=CD Harmonic Pattern indicator is considered one of the advanced and specialized tools in Forex market trading strategies that plays an important role in determining professional trading strategies.

By identifying and drawing the Alternate AB=CD harmonic pattern on the price chart, this indicator enables traders to better analyze the market structure and predict the probable path of price movement.

By specifying the potential price reversal areas (PRZ), this tool provides suitable conditions for identifying critical moments to enter buy or sell trades. Using this indicator allows traders to identify price turning points with a deeper understanding and provide more specialized analyses.