Have you ever wondered how to catch real trading setups without staring at the screen all day? What if you had a tool that could automatically spot swing points, double top/bottom patterns, and even give you a sense of risk versus reward — so your trading becomes smarter, not just busier?
That's where the EA – 3 Indicators script comes in. It’s a potent Pine Script‑based tool built for TradingView that blends zigzag pattern recognition, double chart pattern detection, and built-in risk‑reward analysis to help traders like you spot and manage high‑probability trading opportunities.
In this post, I’m going to walk you through everything: what EA – 3 Indicators is, how it works, how to use it, its advantages and drawbacks, and how to incorporate it into your trading strategy like a pro.
What Is the “EA – 3 Indicators” Script?
The EA – 3 Indicators script is a technical‑analysis tool meant for chart pattern traders. It’s designed to automatically detect:
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Zigzag patterns, by identifying pivot highs and lows, helping you understand market structure and swing points
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Double tops and double bottoms, two classic reversal patterns, with validation to make sure you're not chasing fake signals
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Risk‑reward analysis, by measuring how much you’re risking for the potential reward, filtering out setups that don’t meet your trading criteria
Beyond that, it gives you alerts, custom visuals, and dynamic labeling (like “Double Top,” “Double Bottom,” or “HH” for higher high), so you don’t miss critical moments.
By combining these three core analyses, EA – 3 Indicators empowers you with a more holistic and automated view of possible trading setups.
Key Features & How the Script Works
Let’s break down the major components of this script and how they fit together in practical trading.
Zigzag Patterns
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The script detects swing highs and swing lows based on a user-defined pivot length. You choose how sensitive it should be.
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It draws zigzag lines between those pivots, helping you track the major swings in price — giving you a visual structure of the trend or reversal.
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This makes it easier to spot impulses vs corrections, so you can tell when price is truly swinging or just choppy noise.
The script detects swing highs and swing lows based on a user-defined pivot length. You choose how sensitive it should be.
It draws zigzag lines between those pivots, helping you track the major swings in price — giving you a visual structure of the trend or reversal.
This makes it easier to spot impulses vs corrections, so you can tell when price is truly swinging or just choppy noise.
Zigzag-style structure is pretty common in pattern recognition indicators — other tools do similar things to help you clean up the noise. TradingView+1
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Double Top / Double Bottom Detection
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The script identifies double top (a bearish reversal) and double bottom (a bullish reversal) patterns by comparing pivot points.
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It doesn’t just spot the shape: it validates it by looking at how the neckline is breached (or held), so you reduce false signals.
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The pattern detection is smart: it's not just about the shape but also about structure — making sure swing points are significant enough before labeling them.
The script identifies double top (a bearish reversal) and double bottom (a bullish reversal) patterns by comparing pivot points.
It doesn’t just spot the shape: it validates it by looking at how the neckline is breached (or held), so you reduce false signals.
The pattern detection is smart: it's not just about the shape but also about structure — making sure swing points are significant enough before labeling them.
This kind of approach is similar to other TradingView double top/bottom detection tools. TradingView+1
Risk‑Reward Analysis
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One of the standout features: you set a Max Risk-to-Reward Ratio. If a pattern’s risk vs reward is worse than what you consider acceptable, it might not even show or highlight it.
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For each detected pattern, the script gives a visual representation of your potential risk vs reward — so you can internally filter “is this trade actually worth it?”
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It’s not just about spotting patterns — it’s about smart pattern trading, where risk matters as much as the signal itself.
One of the standout features: you set a Max Risk-to-Reward Ratio. If a pattern’s risk vs reward is worse than what you consider acceptable, it might not even show or highlight it.
For each detected pattern, the script gives a visual representation of your potential risk vs reward — so you can internally filter “is this trade actually worth it?”
It’s not just about spotting patterns — it’s about smart pattern trading, where risk matters as much as the signal itself.
Alerts
You don’t need to just rely on eyeballing the chart — the script supports:
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Alerts when a double top or bottom is first detected
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Alerts for pattern confirmation (for example, when the neckline breaks)
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Alerts if a pattern is invalidated (meaning the setup failed)
Alerts make sure you don’t sleep on a potentially powerful trading move.
Customizable Visualization
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You can turn on/off zigzag lines depending on how much visual clutter you like.
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Toggle pivot points display, risk–reward statistics, and more.
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You also control colors: bullish patterns, bearish ones, “trap” scenarios — you pick how they look so your chart doesn’t feel like a rainbow explosion (unless you want it to).
You can turn on/off zigzag lines depending on how much visual clutter you like.
Toggle pivot points display, risk–reward statistics, and more.
You also control colors: bullish patterns, bearish ones, “trap” scenarios — you pick how they look so your chart doesn’t feel like a rainbow explosion (unless you want it to).
Dynamic Labeling
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Every pivot is labeled (like “HH” for higher high, or “LL” for lower low) — super helpful to understand structure at a glance.
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When a double top or bottom is spotted, it is tagged clearly ("Double Top," "Double Bottom"), so you don’t need to guess what the pattern might be.
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That clarity helps you make faster trading decisions — no more squinting and wondering “Is that a valid pattern or just noise?”
Every pivot is labeled (like “HH” for higher high, or “LL” for lower low) — super helpful to understand structure at a glance.
When a double top or bottom is spotted, it is tagged clearly ("Double Top," "Double Bottom"), so you don’t need to guess what the pattern might be.
That clarity helps you make faster trading decisions — no more squinting and wondering “Is that a valid pattern or just noise?”
Advantages — Why It’s Useful for Your Trading
Here’s what makes the EA – 3 Indicators script a serious edge if you decide to invest time in learning and applying it.
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Automated Pattern Recognition: Saves you from manually spotting double tops/bottoms — and reduces human error.
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Integrated Risk Management: Since risk-reward is built-in, trades highlighted are more likely to be worthy, filtering out setups that are too risky.
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Configurable Alerts: You don’t have to constantly watch your charts; let the script alert you when something real is happening.
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Clear Trend Context: Zigzag patterns + pivot labeling help you quickly understand market structure.
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Adaptable to Your Style: Whether you're swing trading, day trading, or just scanning charts, you can change the sensitivity, risk tolerance, and visuals.
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Better Decision Quality: With risk vs reward analysis directly on the chart, you’re less likely to fall into “signal-chasing” traps — you pick the ones that make sense.
Disadvantages / Risks — What You Should Be Careful About
No tool is perfect. Here are what could give you headaches (or losses) if you don’t use the script wisely:
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Complex Setup: If you're new to technical analysis, the combination of zigzag, double pattern detection, and risk-reward might feel overwhelming.
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False Signals in Ranging Markets: In a choppy or sideways market, double top / bottom patterns can form but fail a lot, producing low-quality signals.
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Lagged Entries: The script waits for confirmation (like neckline break), so you might enter late in very fast-moving markets.
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System Load: Drawing zigzag + risk‑reward lines + labels + alerts can get heavy on slower devices, making charts lag.
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Over‑Customization Risk: If you tweak inputs too aggressively to “optimize,” you might overfit to past price behavior and lose general reliability.
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Dependency on Logic: The strategy relies on the pattern detection logic being spot-on. If the market structure changes (e.g. a new kind of manipulation), you may suffer.
How to Use the EA – 3 Indicators Script in Your Trading
So you like what you’ve read — how do you actually make this work in real trading? Here’s how to use it like a real trader:
Setup & Configuration
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First, apply the script on your TradingView chart.
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Adjust the pivot length (zigzag parameter) to match how “swingy” or “smooth” you want your pivots.
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Set your Max Risk-to-Reward Ratio in the settings: decide what risk-to-reward is acceptable for you.
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Enable or disable various visual components: pivot points, risk-reward boxes, labels — whatever works best for your chart style and visual clarity.
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Turn on alerts for: pattern detection, confirmation, invalidation — decide what you really need to get notified about.
First, apply the script on your TradingView chart.
Adjust the pivot length (zigzag parameter) to match how “swingy” or “smooth” you want your pivots.
Set your Max Risk-to-Reward Ratio in the settings: decide what risk-to-reward is acceptable for you.
Enable or disable various visual components: pivot points, risk-reward boxes, labels — whatever works best for your chart style and visual clarity.
Turn on alerts for: pattern detection, confirmation, invalidation — decide what you really need to get notified about.
Identifying Trades
When looking for a trade, you’d use the script by:
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Waiting for a double top or double bottom label — that tells you a potential reversal is forming.
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Checking that the pattern is validated (neckline breakout or confirmation) — not just a shape.
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Looking at the risk‑reward visualization: if the ratio is good (based on your criteria), then the pattern is “worth” considering.
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Combining the pattern signal with broader market structure: use your zigzag pivot labels (HH, LL, etc.) to confirm whether you’re aligning with a bigger structure or not.
Entering Trades
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Once a pattern is confirmed and risk-reward is acceptable, you can place an entry.
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Put your stop‑loss just beyond where the pattern fails — for example, below the double bottom or above the double top neckline, depending on direction.
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Use the risk‑reward box (or just the calculated ratio) to decide how much size you can take with the entry — if the potential reward is small vs risk, maybe skip it or reduce risk.
Once a pattern is confirmed and risk-reward is acceptable, you can place an entry.
Put your stop‑loss just beyond where the pattern fails — for example, below the double bottom or above the double top neckline, depending on direction.
Use the risk‑reward box (or just the calculated ratio) to decide how much size you can take with the entry — if the potential reward is small vs risk, maybe skip it or reduce risk.
Monitoring & Exiting
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Use alerts to tell you when the trade might be in danger (pattern invalidated) or when there’s a break of the neckline.
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Decide in advance: will you scale out of the trade, or use a fixed take-profit? The script doesn’t always dictate exit, so plan it.
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Use your own risk management: don’t just rely on the script to bail you out. If the market is acting funky, you might need to tighten stops or take profits early.
Use alerts to tell you when the trade might be in danger (pattern invalidated) or when there’s a break of the neckline.
Decide in advance: will you scale out of the trade, or use a fixed take-profit? The script doesn’t always dictate exit, so plan it.
Use your own risk management: don’t just rely on the script to bail you out. If the market is acting funky, you might need to tighten stops or take profits early.
Tips for Maximizing the Strategy
Here are some practical tips to help you squeeze as much value as possible out of this tool in your trading life:
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Backtest Thoroughly: Load the script on historical data in TradingView. See how it would have handled past moves — that will give you confidence (or show you its flaws).
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Optimize Wisely: Change pivot length and risk-reward ratio carefully. Don’t over-optimize just to match the past — focus on what makes sense for your risk appetite.
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Use Higher Timeframes for Context: Use daily or 4H charts to identify major patterns, but maybe take entries on lower timeframes if you want more precision.
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Combine with Other Tools: Add oscillators (like RSI, MACD) or volume tools to validate the signals. More confirmations = better trade quality.
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Practice Alert Discipline: Don’t set every single alert if you don’t need to. Too many notifications = noise. Focus on key pattern-confirmation alerts.
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Paper Trade First: If you’re new to this kind of pattern-based trading, try it out on a demo / paper account. Build your muscle memory before risking real capital.
Frequently Asked Questions (FAQ)
Q: Is the EA – 3 Indicators script free or paid?
It depends on where you get it. Some versions might be shared publicly, but others could be private or paid. Always check the source before applying it, especially if it's from someone’s custom Pine Script library.
Q: What timeframe should I use?
You can use multiple timeframes. For swing trading, daily or 4‑hour makes sense. For more active trading, you might try 1‑hour or lower, but be careful: patterns take longer to confirm on fast charts.
Q: Will it repaint or give false signals?
Because it uses confirmed pivots (zigzag) and pattern confirmation (e.g. neckline), it’s less prone to repainting than naive pattern tools — but no script is perfect. In very volatile or “noisy” markets, you may still see false or weak setups.
Q: How do I set risk‑reward ratio sensibly?
Decide how much you’re willing to risk for a given profit target. If the script’s suggested ratio is too aggressive or too conservative, tweak the Max Risk-to-Reward Ratio. Use your account size and risk tolerance to guide this.
Q: Can I use it for automated trading (bots)?
Yes. If the script gives alerts, you could hook those into a bot or trade execution system via TradingView webhooks. But: test thoroughly first, because automated trading magnifies mistakes.
Q: Is this script good for beginners?
It can be useful, but beginners might feel overwhelmed. Understanding zigzag, pivot logic, risk-reward, and pattern structure is key. If you’re new, start slow, backtest, learn, then trade.
Comparison Table: EA – 3 Indicators vs Basic Tools
Here’s a quick comparison showing how this script stacks up against more basic TA tools in a trading context:
| Feature | EA – 3 Indicators | Basic Tools (e.g. just Zigzag or Moving Averages) |
|---|---|---|
| Pattern Detection | ✅ Double Top & Double Bottom recognition | ❌ Often none or manual drawing required |
| Risk‑Reward Analysis | ✅ Built-in risk-to-reward filtering & visualization | ❌ Usually separate tool or manual calc |
| Alerts | ✅ Alerts on detection, confirmation, invalidation | ✅ Basic alerts possible, but limited |
| Visual Clarity | ✅ Pivot labels + risk zones + patterns | ✅ Depends on indicator, often simpler visuals |
| Complexity | ⚠️ High — many settings, requires understanding | ✅ Low to medium — simpler to use but less powerful |
| Use Case | Pattern-based trading, swing, structure-oriented | Trend following, structure visualization, general purpose |
Conclusion — Is the EA – 3 Indicators Tool Right for You?
If you're into serious trading where patterns matter, and you don’t want to manually scan for every double top or double bottom, the EA – 3 Indicators script could be a game-changer for you. It automates pattern detection, gives you a real feel for risk vs reward, and lets you set alerts so you don’t miss opportunities.
That said, it’s not some magic “set and forget” tool. You’ll need to:
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Understand how pivot detection and zigzag work
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Be comfortable tweaking risk-reward settings
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Backtest and validate on historical data
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Use it in conjunction with other analysis tools and good risk management
If you do those things, this script can become a core part of your trading strategy, helping you identify cleaner entries, smarter exits, and better risk control. It’s especially useful when combined with trend context and other confirmations.
Contact us via the web if you want help customizing the settings, interpreting the visual pattern labels, or building alerts for this script — I got you.
Sources / References
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Double Top/Bottom — Ultimate indicator (zigzag based) — TradingView TradingView
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ZigZag indicator, pivot detection — TradingView TradingView
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Risk-Reward Optimizer script as a related concept on TradingView TradingView