All Candlestick Patterns Identifier

The All Candlestick Patterns Identifier indicator identifies and labels over 30 distinct candlestick formations in real-time to help traders spot potential trend reversals and continuations.

Usage

The Usage section describes how the script can be used to monitor price action through automated pattern recognition. Traders can use this tool to filter for specific market sentiment signals without manual chart inspection.

• Reversal Identification: Use patterns like the Morning Star, Evening Star, or Engulfing candles to identify potential turning points in the market.
• Volatility Monitoring: The script highlights Doji and Star variations, which often indicate periods of indecision or narrowing volatility before a breakout.
• Trend Continuation: Patterns such as Separating Lines or In-Neck formations can be used to confirm that the prevailing trend is likely to persist.

The interpretation of these patterns is based on the relationship between the body size and the total range (high/low) of the candle, as well as the relative position to the preceding price action.

Details

The script executes by calculating specific ratios between the candle body and its wicks. For example, a Doji is identified when the absolute difference between the open and close is less than 10% of the total high-low range. More complex multi-candle patterns, such as the Tower Top or Tower Bottom, require specific sequences of candle sizes and directions over a four-bar lookback period.

The indicator logic prioritizes structural accuracy, ensuring that patterns like Dark Cloud Cover or Piercing Patterns only trigger when the price penetrates a specific percentage of the prior candle's body.

Settings

• Dark Cloud Cover: Toggles the visibility and alerts for the Dark Cloud Cover bearish reversal pattern.
• Doji: Enables identification of neutral Doji candles where open and close are nearly equal.
• Engulfing Patterns: Controls the detection of Bullish and Bearish Engulfing structures.
• Star Patterns: Manages the identification of Morning and Evening Stars, including Doji Star variations.
• Hammer/Inverted Hammer: Toggles the display of these single-candle reversal signals based on wick-to-body ratios.
• Thrusting/In-Neck: Enables or disables these specific continuation and trend-testing patterns.

FAQ

How do I interpret the different colors on the chart? Green labels generally indicate bullish sentiment or potential upward reversals, red labels indicate bearish sentiment or downward reversals, and blue/neutral colors indicate indecision.

Can I set alerts for specific patterns? Yes, since each pattern is mapped to a specific plotshape, you can configure TradingView alerts to trigger whenever a specific candlestick formation is identified.

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