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Harmonic Pattern Collection for eSignal

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HPCBox2As mentioned in the introduction the Harmonic Pattern Collection is comprised of several indicators which can be grouped into two categories or components (i.e., the "patterns" themselves are one component, and all of the other supporting indicators are the second component). Based on this structure, the Harmonic Pattern Collection is available for licensing in 3 different Tiers:


HPC Pro (Tier 1)

HPC Patterns Only (Tier 2) (the eSignal Add-On is in this tier)

HPC Indicators Only (Tier 3)


The table below illustrates which components are available with each Tier.




Tier 1

Tier 2

Tier 3

Harmonic Patterns Indicator


The pattern engine, responsible for identifying and displaying all of the harmonic patterns. Operates in a chart and in a watchlist/scanner.





Harmonic Strength Index (HSI)

Amplified RSI

RSI Bamm

Pi Phi Bands

Volume Spike


Collectively known as the "harmonic indicators". While these indicators are used primarily to isolate patterns that are suitable for trading, they can be used on their own (i.e., without patterns) to identify trading opportunities.





The assumption is that most traders will opt for Tier 1 (HPC Pro) so that they have access to all of the indicators and the benefits they provide. However, for  those traders who only want the patterns or only want the harmonic indicators...the other tiers are available for consideration. For more information on the tiers as well as license pricing, please review the Subscriptions topic, or visit the Harmonic Pattern Collection product page.



Note: If you subscribe to the Harmonic Pattern Collection via the eSignal Add-On then you are in the Patterns Only tier (Tier 2). The only way to subscribe to the HT Pro tier (Tier 1) level is to purchase a license directly from Divergence Software, Inc. on our product page.


The majority of this User Guide focuses on the Harmonic Patterns Indicator since it is the most complex component with the most options. All of the other indicators are covered under the Harmonic Indicators topic. If you have questions, please check the FAQ section first as we are posting common questions and answers to that section as they come in.


Harmonic Patterns Indicator


The Harmonic Patterns Indicator will track a total of 10 harmonic patterns simultaneously (7 standard pattern types and 3 variations) and it will operate under any security and bar interval available in eSignal. The same indicator will operate in a eSignal chart as well as in a eSignal watchlist. It will also operate in the eSignal Market Screener Plus.



Individual patterns can be toggled on or off via the parameters dialog, and settings are provided that will allow you to adjust the pattern requirements, apply filtering, and adjust the cosmetic properties. Alerts (audible, pop-up, and email) are generated when the indicator is running in either a chart or a watchlist, and the alerts can be filtered. See the Settings section for detailed information on all of the parameter options.


The patterns that comprise the indicator are:


ABCD® Pattern

Bat® Pattern and Alternate Bat® Pattern

Gartley® Pattern and Gartley886® Pattern

Butterfly® Pattern

Crab® Pattern and Deep Crab® Pattern

Shark® Pattern

5-0® Pattern


When loaded into a chart, the Harmonic Patterns Indicator will perform the following tasks:


Confirmed Patterns


Identify and draw all completed patterns that may have formed in the historical data. We refer to these as Confirmed patterns. Now, in general, unless the pattern was confirmed within the last few bars or so it is probably not actionable from a trading standpoint. However, reviewing historical Confirmed patterns can be extremely useful in terms of building a list of securities (and bar intervals) where specific patterns are more prevalent and profitable. By default, the Confirmed patterns are drawn in green (bullish) and red (bearish) but the colors can be adjusted via Settings.

Bullish Confirmed

Bullish Confirmed Pattern (Bat)

Bearish Confirmed

Bearish Confirmed Pattern (Gartley)


Pending Patterns


Identify and draw all patterns that are occurring right now, in realtime (i.e., all rule and ratio requirements for the particular harmonic pattern are met as of the current, developing bar). Depending upon price action in the current bar, as well as the next bar, the pattern may or may not become a Confirmed pattern. We refer to these as Pending patterns. Being aware of Pending patterns is critical since it gives you the option of taking a position before the pattern is confirmed. By default, all Pending patterns are drawn in blue but the color can be adjusted via Settings.


Pending pattern (Shark)


Potential Patterns


Identify and draw patterns that have completed all but their final leg. These patterns may or may not reach the Pending or Confirmed pattern stage but we can plot the portion of the pattern that has completed and make projections in both price and time as to where price would have to travel in order to complete the pattern. We refer to these as Potential patterns. Depending upon the specific harmonic pattern, as well as the settings being used, several Potential patterns may be available at any given time so the pattern nearest (in price and time) to potential completion will be displayed. The completion zone, which consists of a time component and a price component, is displayed for each Potential pattern.

This Potential pattern feature gives you an important heads-up on patterns that are likely to develop in the near future and can help you plan your trading day. Note that Potential patterns will not be displayed if a Pending pattern has currently formed. By default all Potential patterns are drawn in grey but the color can be adjusted via Settings.

Bullish Potential

Bullish Potential Pattern (Bat)

Bearish Potential

Bearish Potential Pattern (Deep Crab)




As mentioned above, the new Harmonic Patterns Indicator will operate in a watchlist (or the eSignal Market Scanner Plus) which, in turn, is linked to a chart. This powerful feature gives you the ability to monitor baskets of securities for pattern activity on any bar interval without having a large number of charts open. When run in a watchlist or scanner the indicator will track Pending, Potential, and Confirmed patterns and generate alerts in the watchlist when new patterns are found. You can then click on the row in the watchlist/scanner and the pattern information will be pulled up in the chart for that symbol/interval combination.


You can utilize one watchlist linked to a chart, as in our example below, or you can set up multiple watchlists with each one monitoring a different bar is entirely up to you. See the Watchlist Operation section for more information.


Watchlist running the Harmonic Patterns Indicator linked to a chart.

Watchlist running the Harmonic Patterns Indicator linked to a chart.


To get started, go to the Quick Start section, follow the instructions, and you will be up and running in no time.


See Also:


Quick Start


Chart Operation

Watchlist Operation

Pattern Highlighting

Zone Lines

© 2018 & Divergence Software, Inc.