Candlestick Architecture Engine

The Candlestick Architecture Engine indicator is a comprehensive pattern recognition tool that identifies ten structural candlestick formations while filtering them through a composite strength scoring system. Unlike standard pattern identifiers that flag every geometric match, this tool evaluates volume, momentum context, and trend alignment to differentiate between insignificant noise and high-conviction structural shifts.

Usage

The Usage section focuses on how the composite scoring and filtering logic affect the signals on your chart.

• Pattern Filtering: The tool identifies common patterns like Engulfing, Hammers, Shooting Stars, and Dojis. Instead of showing every occurrence, it only labels those that exceed the "Minimum Strength Score."
• Trend Alignment: You can enable the "Trend-Context Filter" to ensure signals only appear when they align with the dominant market direction (e.g., Bullish Engulfing in an uptrend).
• Volume Validation: Use the "Volume Multiplier" to require that a pattern occurs with a surge in volume relative to its moving average, increasing the probability of a genuine reversal or continuation.
• Regression Channels: The engine includes Linear Regression Channels (LRC) to provide visual boundaries. Patterns occurring near these bands often carry more weight as potential exhaustion signals.

Details

The script utilizes a proprietary scoring heuristic (0–100) based on three primary pillars:

1. Geometric Precision: Evaluates body-to-wick ratios and relative candle sizes.
2. Volume Intensity: Measures the volume on the signal bar against a configurable average.
3. Momentum Position: Factors in the RSI position to determine if the pattern is appearing at an overbought or oversold extreme.

The "CHoCH Pivot" logic identifies potential Changes of Character by tracking pivot levels, helping traders visualize where market structure might be shifting alongside detected candlestick patterns.

Settings

Pattern Engine

• Max Patterns Shown: Limits the number of historical labels displayed on the chart.
• Multi-Bar Engulf Check: Defines how many previous bars are considered for engulfing logic.
• Trend SMA Period: The length used for the trend-following moving average.
• Trend-Context Filter: When active, restricts signals to those aligning with the SMA trend.

Strength Filters

• Show Strength 1-5: Toggles visibility for patterns based on their composite score (from "Indecision" to "Very Strong").

Regression Channels

• CHoCH Pivot Bars: Sets the left/right strength for pivot detection used in channel calculations.
• Band Multipliers: Adjusts the width of the outer regression channel envelopes.
• Filter Labels to LRC Scope: When enabled, only shows patterns that occur within the context of the current regression channel.

FAQ

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

Why are some obvious-looking patterns not being labeled? The script uses a "Minimum Strength Score" gate. If a pattern has low volume or poor trend alignment, it may be filtered out even if the geometry looks correct. You can lower the strength requirements in the settings to see more frequent labels.

Does this indicator repaint? No. All patterns are detected and labeled based on confirmed closed bars to ensure signal stability.