Reversal Candlestick Structure
By LuxAlgoMay 21, 2024
Reversal Candlestick Structure detects sixteen classic candlestick patterns and filters them through a stochastic-based algorithm, highlighting patterns when conditions actually favor a trend reversal rather than everywhere they appear. A dashboard reports what percentage of detected patterns coincided with reversals, turning pattern-watching into something measurable.
How to Trade the Reversal Candlestick Structure?
- Bullish pattern labels: hammer, inverted hammer, bullish engulfing, morning star, three white soldiers, bullish harami, tweezer bottom, and the rising three formation.
- Bearish pattern labels: hanging man, shooting star, bearish engulfing, evening star, three black crows, bearish harami, tweezer top, and the falling three formation.
- Candle coloring: colored candles (with an optional gradient) give visual cues of potential reversals as they develop.
- Reversal % dashboard: the share of each pattern's detections flagged as potential reversals; hovering the column reveals the total number detected.
The filtering layer sets it apart from a plain pattern scanner: stochastic-oscillator-based detection highlights patterns only when the trend context supports a turn.
Reversal Candlestick Structure Settings
- Patterns: individual toggles for each of the sixteen supported candlestick patterns.
- Trend Length: sensitivity to longer trends. Increasing it can reveal more patterns, at the risk of information overload.
- Threshold: ranges 0–100; higher values prevent early trend-extremity detection.
- Warmup Length: the establishment period a trend needs before reversals are considered.
- Style & dashboard: candle coloring, gradient mode, label size, plus dashboard visibility, location, and size.
Frequently Asked Questions
Free indicator
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Original indicatorBuilt in-house by LuxAlgo
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