Edward PriceAction

The Edward PriceAction indicator is a comprehensive price action analysis tool designed to automatically identify and label high-probability candlestick patterns on your chart. It helps traders detect key reversal and continuation signals such as Pin Bars, Engulfing candles, and Stars, providing a structured approach to Price Action (PA) trading.

Usage

The tool serves as a visual aid for identifying classical candlestick patterns. By default, most pattern identifications are disabled to allow traders to customize the script to their specific strategy. Users can toggle on various signals including:

• Reversal Patterns: Pin Bars (PB), Hammers (HM), Shooting Stars (SS), Morning/Evening Stars, Dark Cloud Cover (DCC), and Piercing Lines (PL).
• Continuation & Momentum: Engulfing candles (EN), Inside Bars (IB), Outside Bars (OB), and Shaved Bars (SB).
• Volatility Identification: Oversize Bars (OV) highlight candles that significantly exceed the recent Average True Range (ATR).

To use the indicator effectively, enable the desired patterns in the settings menu. Patterns are labeled with abbreviated text to maintain a clean chart interface. For example, a "PB" label indicates a Reject Pin Bar, while "OB" denotes an Outside Bar.

Details

This script utilizes Average True Range (ATR) percentages rather than fixed pip/point values to define candle sizes. This makes the pattern detection adaptive to different timeframes and asset classes, including Forex, Stocks, and Commodities.

A significant refinement in this version is the treatment of Hammers and Shooting Stars as specialized Pin Bars that require preceding trend context and succeeding confirmation bars. This reduces noise by ensuring these patterns only trigger during potential structural shifts. The indicator also implements precedence logic to prevent multiple overlapping labels on a single candle.

Settings

General Settings

• ATR Length: The period used to calculate the Average True Range for size-based filtering.
• Maximum %ATR for Small Body: Defines the upper limit for "small" bodies (e.g., Dojis).
• Minimum %ATR for Large Body: Defines the lower limit for "large" bodies (e.g., Engulfing).

Pattern Toggles

• Show Dark Cloud Cover / Piercing Line: Toggles identifying these two-candle reversal patterns.
• Show Doji: Highlights Doji candles based on the specified wick-to-body ratio.
• Show Engulfing Candles: Identifies engulfing patterns. Includes a "Strict" mode where the candle must also be an Outside Bar.
• Show Oversize Bars: Highlights candles that are a specific multiple (default 5x) of the current ATR.
• Show Inside/Outside Bars: Identifies bars based on their relationship to the previous candle's range.
• Show Reject Pin Bars: Highlights classic Pin Bars based on a minimum wick percentage.
• Show Hammers: Toggles Hammers and Shooting Stars, with an option to select 1 or 2 confirmation bars.

Visuals

• Show Price Action Bar Names: Toggles the text labels (e.g., PB, OB, EN) above/below bars.
• Colour Price Action Bars: Changes the color of the candle based on the detected pattern.

FAQ

How do I see the patterns on my chart?

By default, the pattern detection is disabled. You must open the indicator settings and check the boxes for the specific patterns you wish to identify (e.g., "Show Engulfing Candles").

Why are some patterns like Hammers not appearing frequently?

This script requires specific confirmation bars for Hammers and Shooting Stars to ensure they represent valid reversals. You can adjust the "Number of Confirm Bars" in the settings to change this behavior.

How can I access Edward PriceAction?

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