The Splash and Shelf indicator: trading on the "Splash and Shelf" pattern
Splash And Shelf indicator finds and displays the "Splash and Shelf" patterns, as well as the moments when the trading signals appear.
A pattern is registered in the presence of four alternating types of of fractals:
- bottom - top - bottom - top;
- upper - lower - upper - lower.
A downward pattern is registered when the lower and the upper fractals form a spike - an impulse price movement of sufficient height. The surge is followed again by the lower fractal forming a shelf. The fourth, upper fractal should have the maximum value below the maximum of the second fractal. The point of intersection of the shelf lines and the line drawn on the upper fractals indicates the moment of the pattern expiration. If the price has broken the shelf level before that moment, the pattern is active - a sell signal.
The upward surge pattern is formed from the upper and lower fractals, the shelf is the upper fractal, and the fourth fractal is the lower fractal.
To activate the pattern it is necessary to break the shelf in the corresponding direction. Until then, the pattern can be registered, but has not yet given a trading signal.
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