Price Action Candles v0.3

The Price Action Candles v0.3 indicator identifies a variety of popular candlestick patterns used in Price Action trading strategies to highlight potential reversal and continuation points.

Usage

The indicator can be used to visually spot high-probability price action setups on any timeframe. By default, patterns are disabled to allow users to focus on specific setups. Users can enable labels and bar coloring to better distinguish between different patterns.

Key setups identified include:

• Doji/Harami Patterns: These identify small-body candles following large moves, indicating potential consolidation or reversal.
• Engulfing Bars: Highlights strong directional shifts where the current bar completely covers the previous bar's range.
• Pin Bars & Hammers: Identifies rejection patterns where long wicks signify a failure to hold new highs or lows.
• Inside/Outside Bars: Tracks volatility contraction and expansion patterns.
• Dark Cloud Cover & Piercing Lines: Specific reversal patterns occurring after trending moves.

Details

The script implements logic based on the "Price Action Battle Station" methodology. A notable feature in this version is the refined Doji calculation, which acts similarly to a Harami. For a candle to be identified as a Doji/Harami, it must follow a candle with a body size larger than a user-defined minimum (pips) and possess wicks that constitute a significant portion of the total range (default 60%).

When alerts are enabled, the indicator provides a visual "alert dot" at the bottom of the chart to confirm when a selected price action bar has closed, ensuring traders can react to confirmed signals.

Settings

Patterns

• Show Dark Cloud Cover: Toggles the identification of Bearish Dark Cloud Cover patterns.
• Show Piercing Line: Toggles the identification of Bullish Piercing Line patterns.
• Show Doji: Enables the identification of Bullish and Bearish Doji/Harami setups.
• Show Bullish/Bearish Engulfing: Toggles standard engulfing candlestick patterns.
• Show Inside/Outside Bars: Enables detection of bars contained within or exceeding the previous bar's range.
• Show Pin Bars/Hammers: Toggles various rejection-style candles.

Pattern Logic

• Doji, Min % of Range of Candle for Wicks: Sets the minimum percentage of the total candle size that must be comprised of wicks for a Doji classification.
• Doji, Previous Candle Min Pip Body Size: Sets the minimum required body size of the preceding candle to validate a Doji/Harami setup.
• PinBar/Hammer, Min % of Range of Candle for Long Wick: Sets the threshold for identifying rejection wicks.

Visuals & Alerts

• Show Price Action Bar Names: Displays the name of the pattern above or below the candle.
• Colour Price Action Bars: Changes the color of the candle body based on the detected pattern.
• Generate Alert for Selected PA Candles: Activates alert conditions for any enabled patterns.

FAQ

How do I access Price Action Candles v0.3?

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

Why are no patterns appearing on my chart?

All identification settings are disabled by default. You must enter the script settings and check the boxes for the specific patterns you wish to see.

Can I use this with Heikin Ashi candles?

Yes, the modified Doji logic is specifically designed to be effective when used with Heikin Ashi candle types to find trend exhaustion.