CandleStick - All Reversal & Trend Patterns

The CandleStick - All Reversal & Trend Patterns indicator provides an automated solution for identifying five high-probability candlestick formations used to predict price reversals and trend continuations with high precision.

Usage

This tool automatically scans price action for specific candlestick formations and labels them on the chart for quick interpretation.

• Pin Bar (BuPB / BePB): Identified by a small body and a long shadow. A bullish pin bar (BuPB) at support suggests an upward move, while a bearish pin bar (BePB) at resistance suggests a downward move. This category includes variations like Hammers and Shooting Stars.
• Dark Cloud (SDC / WDC): A two-candle bearish reversal pattern occurring at the end of an uptrend. It consists of a bullish candle followed by a bearish candle that opens higher but closes below the 50% midpoint of the first candle. The indicator distinguishes between Strong (SDC) and Weak (WDC) setups based on price penetration.
• Piercing Line (SPL / WPL): A two-candle bullish reversal pattern where a bearish candle is followed by a bullish candle that opens below the previous close and penetrates at least 50% into the first candle's body.
• 3 Inside Bar (Bu3IB / Be3IB): A three-candle reversal pattern. For a bullish setup, the sequence ends with a bullish candle closing above the 50% level of the first bearish candle in the set.
• Engulfing (BuE / BeE): Occurs when a candle's body completely covers the previous candle's body. Bullish engulfing (BuE) at the end of a downtrend indicates buying pressure, while Bearish engulfing (BeE) at an uptrend's peak indicates selling pressure.

Details

The script uses specific mathematical conditions to filter for "Strong" vs "Weak" patterns, primarily based on the depth of candle penetration and body-to-range ratios. It incorporates an ATR-based filter for the Engulfing patterns to ensure the signal occurs during significant volatility or established trends. Labels are placed above or below bars to prevent chart clutter, and bar coloring is applied to highlight the specific candles forming the patterns.

Settings

• Show Pin Bar: Enables or disables the detection and labeling of Pin Bar patterns.
• Show Dark Cloud: Enables or disables the detection and labeling of Dark Cloud patterns.
• Show Piercing Line: Enables or disables the detection and labeling of Piercing Line patterns.
• Show 3 Inside Bar: Enables or disables the detection and labeling of Three Inside Bar patterns.
• Show Engulfing: Enables or disables the detection and labeling of Engulfing patterns.

FAQ

How do I interpret the "Strong" vs "Weak" labels?

Strong labels (like SDC or SPL) indicate that the price penetration exceeded strict mathematical thresholds, often representing a more significant shift in momentum than the "Weak" variants.

Can I use this for automated alerts?

Yes, the script includes optimized alert conditions that trigger upon the detection of any bullish or bearish pattern once the bar closes.

How can I access CandleStick - All Reversal & Trend Patterns?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.