Smart Elliot Wave

Smart Elliot Wave

Smart Elliott Wave is a sophisticated technical indicator that automatically detects Elliott Wave patterns with complete 5-wave impulse structures (1-2-3-4-5) and validates ABC corrective patterns for high-probability trading setups. This indicator eliminates manual wave counting and provides clear visual signals with confidence scoring.

Key Features

Automatic Wave Detection

• Detects complete Elliott Wave 5-wave impulse patterns automatically
• Identifies ABC corrective patterns for optimal entry points
• Real-time pattern validation using strict Elliott Wave rules
• Multi-timeframe compatibility

Advanced Analysis

• Subwave Structure Validation: Analyzes internal wave structure (3-wave or 5-wave subdivisions)
• Alternation Principle: Validates wave 2 and wave 4 alternation (sharp vs sideways)
• Pattern Quality Scoring: Ranks patterns based on multiple criteria (confidence, subwave quality, alternation)
• Overlap Detection: Automatically removes overlapping patterns, keeping only the best quality setups

ABC Pattern Classification

• ZigZag Correction
• Flat Correction
• Expanded Flat Correction
• Fibonacci ratio validation for each ABC type

Visual Tools

• Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, 78.6%, 100%, 161.8%)
• Wave connecting trendlines with color-coded bullish/bearish signals
• Wave number labels with subwave count indicators
• ABC labels with pattern type identification
• Entry signal arrows at point C completion

Intelligent Filtering

• Pattern overlap removal with quality-based selection
• Zone-based pattern limits to prevent chart clutter
• Confidence threshold filtering
• Recency weighting for current market relevance

Alert System

• Popup alerts for new pattern completions
• Configurable alert cooldown to prevent spam
• Pattern details in alert messages (confidence scores, pattern type, rank)

How It Works

1. Wave Detection Phase The indicator scans price action using fractal-based swing point detection within configurable time zones. It identifies potential 5-wave sequences that alternate between high and low swing points.

2. Pattern Validation Each detected sequence is validated against strict Elliott Wave rules:

• Wave 2 cannot retrace beyond wave 0
• Wave 3 cannot be the shortest impulse wave
• Wave 4 cannot overlap with wave 1 price territory
• Fibonacci relationships between waves must be within acceptable ranges

3. Subwave Analysis (Optional) When enabled, the indicator validates internal wave structures:

• Impulse waves (1, 3, 5) should contain 5 subdivisions
• Corrective waves (2, 4) should contain 3 subdivisions
• Quality scoring based on subdivision clarity and Fibonacci proportions

4. Alternation Analysis (Optional) Validates the principle that waves 2 and 4 should alternate in character:

• Sharp (steep, quick retracement) vs Sideways (flat, complex correction)
• Time duration differences
• Structural complexity differences
• Boosts confidence when alternation is confirmed

5. ABC Pattern Detection After wave 5 completion, the indicator looks forward to identify ABC corrective patterns:

• Point A: First correction from wave 5
• Point B: Retracement of wave A
• Point C: Final correction point (optimal entry)
• Validates Fibonacci ratios and classifies ABC type
• Generates entry signal arrow at point C

6. Pattern Ranking & Filtering Multiple patterns are scored and ranked based on:

• Base confidence (Elliott rules compliance)
• Subwave structure quality
• Alternation score
• ABC pattern confidence
• Pattern recency

Overlapping patterns are filtered, keeping only the highest quality setups per zone.