Harmonic abcd bear setup event
Flags the close returning to its 100-bar high after a high-then-low touch sequence.
The indicator measures the close against its own rolling 100-bar closing high and low, the same channel the Donchian trend indicator draws. A touch means the close sits within 0.3% of one of those bands. It moves through a four-step loop: high touch, low touch, high touch (the event), then low touch to reset. The name suggests Fibonacci-style ABCD ratios and a bearish shape, but the code checks neither; it only checks that the touches arrive in that order.
How to read it
- Markers sit on the candles, not in a pane below; there is no line to read.
- A marker means the close has come back to within 0.3% of the top of its last 100 bars (100 minutes on a one-minute chart), after touching the bottom of that range in between.
- The marker prints at the moment of the return, not as a confirmed turn: price can keep rising after it.
What it outputs
- Bear setup event
- A marker on each bar where the close completes a high, low, high touch sequence. One bar per completion.
When it fires
The bar where the close first returns to within 0.3% of its 100-bar high, after touching the 100-bar low since the previous high touch. One marker per entry, so a close hugging the high prints once. It marks a retest of the top of the range after a dip, not a confirmed reversal.
Settings
- tol
- No effect. The function accepts tol but never reads it, so raising or lowering it leaves every marker where it is. The touch band stays fixed at 0.3% of price.
Pitfalls
- The tol setting does nothing: the 0.3% touch band is hard-coded, so changing tol never moves a marker.
- Fires on about one bar in five in the one-month SPY sample (3,973 markers in 20,160 bars), so it is far from rare and needs a filter before it means anything.
- Touches out of sequence are ignored rather than resetting the loop, so an old high can complete a marker much later.