Basically I want the computer to be able to tell me if price forms a good shaped V or bad shaped V within a preset number of bars. It is fairly easy to see what a good shaped V looks like visually, but I have found it extremely difficult to define it and get a function/method to do this for me automatically because it is a bit subjective.
My plan is to make it so that the method will only pick out really good looking (not perfect) V's. I'm not sure how to do this, so any suggestions (no matter how whacky) or solutions at all would be very helpful.
I've attached a few examples of good and bad looking V's to give you an idea of what I mean.
Below is description of why each one is a Good or Bad V formation.
Good V1 - it runs up without too many reds and doesn't have too many bits poking out. And the bits don't poke out too far for most bars. The V is also fairly even on both sides with a similar number of bars, and similar slope. Good V's also have plenty of 'white space' in the middle.
Good V2 - majority red on run down and majority green on run up. most bars don't jut out too much from the 'line of best fit' (line of best fit has not been drawn on, I've only drawn on measurements). Nice gradient down and nice similar gradient up.
Good V3 - mostly green up, with a small hiccup in the middle, which is ok. and mostly red down. This V is not as perfect as the others but may still be acceptable. If it is easier to define a V without these 'OK' V's then I'm happy to leave this ones out.
Bad V1 - not enough green bars up on the left side of the V and not much white space on the move up and the bars are a bit congested and about not really moving up, just long red and long green bar.
Bad V2 - left side is justed completely congested. most bars are going sideways. They are long and aren't moving upwards, especially the bodies aren't going anywhere. Move up is made up of only a few long greens up. There is almost no white space at all in the middle.
a few extra notes: I've included a scale on all of them to make it easier. All screenshots have been directly from Esignal chart of the emini S&P500.
I have extra lines and indicators on the charts which I haven't completely removed, those can just be ignored. Some have price rulers to help in seeing the size of the moves.
Anyway, I would greatly appreciate any help at all. Thanks!
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