Structured Head and Shoulder Pattern (MastersinMarkets)Overview
This proprietary indicator automates the detection of classic Head and Shoulders (H&S) and Inverse Head and Shoulders patterns using a rigorous structural approach. Designed for traders who prioritize geometric symmetry and statistical quality, it filters out "noisy" or low-probability formations that often lead to false breakouts.
Core Logic
The script utilizes a multi-stage validation engine to confirm pattern integrity:
Pivot Analysis: Identifies high-fidelity swing points using a configurable "Swing Strength" to ensure only significant market turns are considered.
Symmetry Scoring: A proprietary algorithm evaluates patterns based on price symmetry (Shoulder height similarity), time symmetry (duration between peaks), and neckline slope.
ATR Volatility Scaling: The "Min Pattern Size" filter ensures the pattern is large enough relative to current market volatility to be considered structurally significant.
Key Features
Dynamic Quality Score: Every detected pattern is assigned a score (0–100). Only those meeting your "Min Quality Threshold" are displayed, helping you focus on high-probability setups.
Flexible Necklines: Allows for both horizontal and sloping necklines with a "Max Slope" constraint to maintain structural validity.
Visual Structure Mapping: Automatically plots the connecting lines of the pattern and extends the neckline for clear breakout monitoring.
Real-time Alerts: Integrated alerts trigger the moment a validated pattern completes its Right Shoulder.
How It Works
Detection: The script looks for a sequence of five swing points (High-Low-High-Low-High for bearish setups).
Validation: It checks if the "Head" is higher than both "Shoulders" and if the distance between swings meets the minimum bar count.
Scoring: It calculates the $Price\_Symmetry$, AMEX:TIME \_Ratio$, and $Slope\_Score$.
Execution: If the cumulative score exceeds the user-defined threshold (e.g., 60), the pattern is drawn on the chart.
Disclaimer
Trading involves significant risk. This indicator is a tool for technical analysis and does not constitute financial advice. Past performance, including high-quality symmetry scores, does not guarantee future results. Always use proper risk management and consider market context before executing trades.
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