Pesavento Patterns
The Pesavento Patterns study automatically determines the swing lines, and
connects peaks with a line and labels the line with the retracement
percentage. The study can also do the Fibonacci levels as a forecast
for key retracement levels for the current trend.
The following property settings were used to create the
Pesavento Patterns shown in the example chart.
Adjust the Min Size and Min Bars parameters until your chart shows just the
main swings you want marked. A smaller value for the Minimum Size
of the swing will allow minor swings to be marked and may clutter the chart
with too many swings being shown. For the ES symbol the parameters
of 5.00 for Min Size and 3 for Min Bars yield good results.
Check the Forecast 1 and Forecast 2 check boxes if you want to have the
Fibonacci levels for recent swings automatically shown on the chart.
When Forecast 1 is checked, the Fibonacci levels are calculated for the prior
swing and give price objectives for the current swing in progress. The
example shows the current swing is nearing the 1.618 percent level where this
measurement is 162% of the size of the prior swing.
When Forecast 2 is checked, two additional Fibonacci levels may be shown using
the ranges of prior swings. The 100% level is a good indicator of the
top or bottom of the prior swing that is being used for the calculation.
The Pesavento Patterns tool is totally automatic. The swings,
triangles and their percentage labels, and the Fibonacci levels are drawn
automatically and update in real time as bars are added to the chart and
create new swings.
If you want to exclude from the images a particular Fibonacci level and swing
percentage, simply change the Draw Line style for a level to be the first
entry in the Style drop down list. The first entry is a blank.
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