I have started this thread as I have recently programmed a Harmonic Pattern Analyser (pattern recognition) indicator that paints patterns both historically and in real-time. I want to share some posts and also see who else is interested in using this software.
This is just an historical example because I wanted to get a first posting under my belt. One hourly chart on AUDUSD, a bearish Gartley pattern completed and price rolled over nicely. I will have a look over the weekend/Monday - see if the software can find some patterns for the week ahead.
You would have the pattern on your screen in advance of the D leg completing. When a pattern first appears the D leg will be projected to close on the current candle, it will then typically repaint a few bars (as more bars appear) in time, but not in price. Price is always fixed. When you have a pattern you are waiting for D leg to complete in price, this typically happens some time after the pattern stops repaints in time, the chart above competed on time, which isn't the norm. It was also drawn historically so in real time it may not of been so on the money time wise, but it would have been price wise, which is the parameter we are interested in.
See chart attached, in this one the big Cypher pattern has completed many hours after it was drawn in advance (pretending it was real time, and this would have been the case), but the pattern is still valid. Some D leg projection are not met and price drops below or jumps above the C point, then that pattern is invalid and you would not trade it.
With such a big Cypher pattern on the screen, I think it is fair to say I would disregard the small one as it completes not too far from the large one, so I could be concerned about being stopped out of the small patter should the larger decide to complete. It is also a strong moved up, and a new high at large Cypher D completing seems likely, a failed high at small D completing not so likely.