ICT CBT + Elliott Wave + Candlestick Patterns

ICT CBT + Elliott Wave + Candlestick Patterns Strategy Overview
🎯 Strategy Overview
This is a multi-dimensional technical analysis trading system that integrates three major technical analysis methods: ICT core concepts, Elliott Wave analysis, and candlestick pattern recognition, providing traders with comprehensive market analysis and precise buy/sell signals.

📊 Core Components
1. ICT CBT Resistance Line System
Calculation: Average of 12-period EMA and 89-period SMA

Function: Serves as a dynamic support/resistance line; prices above indicate bullish market, below indicate bearish market

Real-time Display: Extends current CBT line position and values on the right side of the chart

2. Elliott Wave Analysis Engine
Pattern Recognition: Impulse waves (waves 1,3,5) and corrective waves (waves 2,4)

Key Trading Points:

🌊 Wave 2 Pullback: 38.2% Fibonacci retracement level

🌊 Wave 4 Pullback: 61.8% Fibonacci retracement level

🌊 Wave 3 Breakout: Confirmation of wave 3 beginning with breakout above previous high

🌊 Wave C Breakout: Signal for wave C beginning in bear markets

3. Candlestick Pattern Recognition System
Bullish Patterns (Orange indicators):

🕯 Hammer: Bottom reversal signal

🕯 Bullish Engulfing: Strong reversal pattern

🕯 Morning Star: Triple bottom reversal

Bearish Patterns (Purple indicators):

🕯 Shooting Star: Top reversal signal

🕯 Bearish Engulfing: Strong top pattern

🕯 Evening Star: Triple top reversal

4. Classic Technical Patterns
123 Pattern: Trend reversal confirmation

2B Pattern: False breakout reversal signal

Structural Breakout: Important support/resistance breakout

⚙️ Intelligent Filtering System
EMA51 Trend Filter
Function: Ensures trading direction aligns with the main trend

Rules:

Only long signals when EMA51 is rising

Only short signals when EMA51 is falling

Optional enable/disable

Risk Management Module
Stop Loss Calculation: Dynamic adjustment based on ATR (1.5x ATR)

Take Profit Target: Adjustable risk-reward ratio (default 2:1)

Minimum R/R Ratio Filter: Only shows signals meeting the risk-reward requirement

🎨 Visual Identification System
Signal Color Coding
Elliott Wave: Blue 🌊

Candlestick Buy: Orange 🕯

Candlestick Sell: Purple 🕯

Basic Technical Signals: Green ✅/Red ✅

Box Display
Stop Loss Area: Red transparent background

Take Profit Area: Green transparent background

Border Options: Choice of no borders or thin same-color borders

📈 Signal Priority
The system displays signal types in the following priority order:

Candlestick Pattern Signals (Highest priority)

Elliott Wave Signals

Basic Technical Signals (Lowest priority)

When multiple signals appear simultaneously, higher-level signal types are prioritized for display.

🔧 Parameter Configuration
Basic Parameters
Risk-Reward Ratio (1.0-5.0)

Stop Loss ATR Multiplier (0.5-3.0)

Minimum R/R Ratio Filter (1.0-3.0)

Theory Switches
Elliott Wave Mode: Enable/Disable

Candlestick Pattern Recognition: Enable/Disable

EMA51 Trend Filter: Enable/Disable

Display Control
Historical Signal Display

Stop Loss/Take Profit Box Display

Box Border Display

💡 Usage Recommendations
Best Practices
Multi-timeframe Verification: Confirm trend on daily charts, find entry points on 4H/1H charts

Confluence Trading: Wait for multiple signal types to converge at the same position

Strict Risk Management: Always maintain risk-reward ratio of 1:2 or higher

Trend Following: Prioritize signals that align with EMA51 trend direction

Suitable Markets
Major Forex currency pairs

Stock index futures

Cryptocurrencies

Stocks (high liquidity)

Timeframes
Recommended: 4-hour charts, daily charts

Also applicable to: 1-hour charts (parameter adjustment required)

⚠️ Risk Disclaimer
Technical Analysis Limitations: All technical indicators have lag

Market Risks: Black swan events may invalidate technical analysis

Money Management: Recommended single trade risk not exceeding 2% of total capital

Live Testing: Thoroughly test on demo accounts before using in live trading

🚀 Strategy Advantages
Multi-dimensional Confirmation: Three independent analysis methods mutually verify

Visual Intuitiveness: Clear color coding and identification system

Flexible Configuration: Adjustable parameters based on personal trading style

Risk Management: Built-in scientific stop loss and take profit calculations

Historical Backtesting: Supports viewing historical signal performance

This strategy system provides traders with a comprehensive, scientific technical analysis framework to help make more rational trading decisions in complex market environments.