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Candlestick Structure

By LuxAlgoJul 2, 2024

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Candlestick Structure detects sixteen classic candlestick formations and filters them through the prevailing swing structure, surfacing only the patterns that agree with the major trend. Four selectable trend engines (Supertrend, EMAs, ChoCh, and Donchian Channel) define that trend, while an alignment dashboard tracks how consistently each formation has matched it.

How to Trade the Candlestick Structure?

  • Trend-aligned pattern: a formation printing in the major trend's direction marks a candidate end to a retracement, an entry location inside an ongoing move.
  • Minor trend coloring: color candles by the minor trend to watch pullbacks develop against the larger structure before a pattern completes them.
  • Alignment dashboard: shows the percentage of each pattern's appearances that matched the trend direction: a congruence read, deliberately not a confidence score.

Coverage spans eight bullish formations (Hammer, Inverted Hammer, Bullish Engulfing, Rising 3, 3 White Soldiers, Morning Star, Bullish Harami, Tweezer Bottom) and their eight bearish counterparts (Hanging Man, Shooting Star, Bearish Engulfing, Falling 3, 3 Black Crows, Evening Star, Bearish Harami, Tweezer Top), so most of the classical repertoire is on watch at once.

Candlestick Structure Settings

  • Candlestick Patterns: choose which of the sixteen formations to detect.
  • Minor Trend Length: Donchian Channel length used for the minor trend.
  • Major Trend Method: Supertrend, EMAs, ChoCh, or Donchian Channel.
  • Major Trend Parameters: inputs for whichever method is selected.
  • Color Candles: paints bars by the minor trend.
  • Dashboard: size and position of the alignment table.

Frequently Asked Questions

Free on Vela

Run it on Vela. Go further with a paid plan.

  • Up to 500 strategy alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • More Quant usage to customize it, plus extra usage when you need it
  • Futures data alongside crypto, stocks, forex and commodities
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Also works on

TradingView
Original indicatorBuilt in-house by LuxAlgo

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