Detection and Analysis of Candlestick Patterns

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The importance of candlesticks to forex strategies cannot be overemphasized. Candlesticks are such an important tool of technical analysis that they cannot be ignored and no amount of discussion will constitute an overkill when it comes to dissecting them.

In response to several questions and requests that I receive from so many quarters about them, I have decided to do a very thorough discussion on candlestick patterns and how traders can recognize and analyze them for profitable trades.

The detection and plotting of candlestick charts as well as analysis of the various candlestick patterns that are found in forex is an area of technical analysis many traders have trouble with. But the fact is that candlesticks are a superior tool in technical analysis. One major advantage candlesticks have over other methods of technical analysis is that they represent data in a way that depicts the very actions of buyers and sellers of currencies within the price data. In addition, they are suitable for use in other markets as well.

Candlesticks give a clear picture of the trading actions of market players. You can master them quite easily, and in this article, we will also give you links to candlestick recognition indicators to help you detect and analyze these candlesticks faster.

 

1. Types of Candlesticks

 

Candlesticks were first used in the Japanese rice markets over 300 years ago, initiated by a certain individual known as Homma. Largely forgotten from this era, Steve Nison brought them back to the awareness of traders a few decades ago and they have remained popular ever since.

JPN Candles

The structure of a candlestick is depicted above. A candlestick looks just like the candles used in everyday life. There is a rectangular body, dotted on one or both sides by the shadows (the wicks). The rectangular BODY represents the difference between the open and close prices. The height of the body represents the range between the open and close prices of the trading period in view. When the closing price is higher than the opening price within a time period, then prices are deemed to be bullish. On the forex platforms, bullish candles can be represented in various colours. However, for descriptive purposes, we will say that the bullish candlestick has a body which is coloured white (“a” above). If the body of the candle is black (as in “b”), this means the closing price was below the opening price; a bearish situation.

Candlesticks can also have shadows (upper and lower), or they may have none at all. They may also have shadows on one end. The length of shadows depends on the distance between the opening and closing prices as well as the minimum and maximum prices.

Candlesticks are plotted on the chart one by one as the price action on the chart evolves, forming various distinct patterns. Certain candlestick patterns can indicate with a certain degree of probability that a trend is confirmed, or could be changing, or even show market indecisiveness. Whenever extraordinary long bodies of candlesticks form in the market, then this is indication that there is a lot of pressure from buyers or sellers (depending on the color of the candlestick). Short bodies indicate weakness in the struggle between the bulls and bears.

 

a) Long Candlesticks

 

“Long Candlesticks”. Link to long candlesticks is widespread in the literature on Japanese candlesticks. The term “long” refers to a candlestick body length, the difference between the open price and the close price.

long_candles

It is better to consider the most recent price movements to determine what is long, and what is not. Five or ten previous days – that’s quite an adequate period to arrive at a correct conclusion.

 

b) Short Candles

 

“Short Candlesticks”. The determination of short candlesticks can be based on the same methodology as in the case of long candlesticks, with similar results.

short_candles
In addition, there are a lot of candlesticks, which do not fall into any of these two categories.

 

c) Marubozu

 

“Marubozu” . In Japanese “Marubozu” means almost bold.
In any case, the meaning of the term reflects the fact that the body of the candlestick either does not have up and/or down shadows at all, or they are very small.

star
Black marubozu – a long black body without a shadow on one of the sides. It often becomes a part of the bearish continuation pattern or bull reversal pattern, especially it appears in a downtrend. A long black candlestick indicates a major victory of bears, so it often appears the first day of many reversal patterns of the bullish character.

White marubozu – a long white body without a shadow on one of the sides. This is a very strong candle. In contrast to the black marubozu it often turns out to be part of the bullish pattern of continuation or a bearish reversal pattern.

 

d) Doji

 

“Doji”. If the body of the candlestick is so small that the open and close prices are the same, it is called Doji. The requirement that the open and close prices should be exactly equal, imposes strict restrictions on the data, and Doji would appear very rarely.
doji

If the price difference between the open and close prices does not exceed a few ticks (minimum price change), this is more than enough.

 

e) Spinning Tops

 

“Spinning Tops” are short candlesticks with an upper and/or lower shadow longer than the body. Sometimes they are referred to as “white” and “black” Doji.

spinning_tops

Koma indicates indecision of bulls and bears. The color of the Koma body, as well as the length of its shadow, is not important. The small body relative to the shadows is what makes the spinning top.
 

2. Candlestick Identification: Basic Types

 
Candlestick patterns can be one single candlestick or may consist of a combination of 2,3 or even 4 candles. For the candlestick patterns, certain rules of recognition exist.
Example:
“A star” appears each time when the small body appears whenever a small body opens up or down from the previous long body, body color is unimportant. Ideally, the gap must catch also shadows, but it is not entirely necessary. The star indicates some uncertainty prevailing in the market. Stars are included in many candlestick patterns, mostly reversal.

star

Evening star (bearish pattern). The initial trend is upwards. The first and third candlesticks are long candles. Shadows of the stars are short, and the color of the star in this case is not significant. The classical pattern occurs when there is a separation of the star from the closing price of the first candlestick and within the day: Close of the first candlestick and Open of the star are at about the same horizontal point. The third candlestick is closed inside the body of the first one.

Morning Star (bullish pattern): The initial trend is downwards, with the first and third candlesticks being long. The shadows are short and again the color of the star does not matter. There is a separation of the star from the close of the first candlestick. The close of the first candle and the open of the star are about the same horizontal point. The 3rd candle closes within the body of the 1st candle.

“Hammer” and “Hanging Man”: These are essentially reversal patterns. The body is located in the upper part of the daily range and the lower shadow is much longer than the body. If there is an upper shadow, its length should also be considered: the shorter the better. The ratio between the body and the lower shadow is defined as the ratio of the body length to the length of the lower shadow.

These are candlesticks with long lower shadows and short bodies. The bodies are located at the top of the price range. These candlesticks have bullish and bearish varieties, depending on where the trend is coming from and where the candles are located relative to the trend. The appearance of these candles in a downward trend is a signal that an upward reversal is on its way, in this case the candlestick is called “the hammer”. If the candlestick appears during an uptrend, it indicates that the uptrend is possibly ending, and the candlestick is called the “hanging man”.
 

3. Candlestick Patterns and Algorithms for Their Identification

 
A candlestick pattern can be either a single candlestick, or consist of several candlesticks, usually restricted to a maximum of 4 candles.

Candlestick patterns are divided into two types – reversal and continuation candlestick patterns. We will consider the candles in order of increasing complexity, starting from single candlestick patterns and moving over to the more complex ones.

The diagrams will show the patterns with the initial trend depicted as small vertical lines to indicate the direction of the previous trend.
 

3.1. Reversal Candlestick Patterns

 

Name of Pattern: Inverted hammer (bullish)
Order Type: BUY
Image: inverted_hammer
Pattern Recognition: Initial trend is downward, with an upper shadow not less than 2 and no more than 3 times larger than the body. A lower shadow is absent or where present, it is very short (no more than 10% of the candlestick range). The color of the body in the long candle is not significant. However, the short, white hammer is much stronger than the black one. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Hanging Man (bearish)
Order Type: SELL
Image:hanging_man
Pattern Recognition: Initial trend is an uptrend. The lower shadow is not less than 2 and no more than 3 times larger than the body. There is no upper shadow, or where present, it is very short (no more than 10% of the candlestick range). The color of the body in the long game is not important, with the short, black hanging man being stronger than the white one. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Hammer (bullish)
Order Type: BUY
Image: hammer
Pattern Recognition: Initial trend is downward. The lower shadow is not less than 2 and no more than 3 times larger than the body. An upper shadow is either absent, or very short when present, being no more than 10% of the candlestick range. The color of the body in the long game is not important, with the shorter white hammer being much stronger than the black one. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Shooting Star (bearish)
Order Type: SELL
Image: shooting_star
Pattern Recognition: Initial trend is up. The upper shadow is not less than 3 times is larger than the body. A lower shadow is absent, or it is very short when present (no more than 10% of the candlestick range). A price gap exists between the star and the previous candlestick. The Close price of the previous candlestick is equal to the Open of the Star candle. The body color does not matter. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Belthold (bullish)
Order Type: BUY
Image: belthold_bullish
Pattern Recognition: The initial trend is a downward trend, with the Open of a candlestick with a large gap in the direction of the trend. The white candlestick is a long «marubozu». The body of the white candlestick is much larger than the body of the previous candlestick. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Belthold (bearish)
Order Type: SELL
Image: beltold_bearish
Pattern Recognition: The initial trend is an uptrend, with the opening of a candlestick with a large gap in the direction of the trend. The black candlestick is a long «marubozu». The body of the black candlestick is much larger than the body of the previous candlestick. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Bullish Engulfing
Order Type: BUY
Image: bull_engulfing
Pattern Recognition: The initial trend is a downward trend. The body of the second candlestick completely covers the body of the first candle. The Close of the black candlestick is equal to the Open of the white one. Shadows do not count in the analysis.
The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Bearish Engulfing
Order Type: SELL
Image: bearish_engulfing
Pattern Recognition: Initial trend is an Uptrend. The body of the second candlestick completely covers the body of the first one. Close of the white candlestick is the same as Open of the black candle. Shadows do not matter. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Bullish Harami Cross
Order Type: BUY
Image: bull_haramicross
Pattern Recognition: Downward trend. The first candlestick of the pattern is a long, black candle. Doji is within the range of the first candlestick, including the shadows, and is also on the same horizontal level as the Close of the first candlestick. If Doji shadows are short, the pattern should be considered a Doji Star. The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Bearish Harami Cross
Order Type: SELL
Image: bearish_haramicross
Pattern Recognition: Initial trend is an Uptrend. The first candlestick of the pattern is a long, white candle. Doji is within the range of the first candlestick, including the shadows. Doji is on the same level as the Close of the first candlestick. If Doji shadows are short, the pattern should be considered a Doji Star.
The candlestick pattern will need confirmation before trade entry.

Name of Pattern: Bullish Harami
Order Type: BUY
Image: bull_harami
Pattern Recognition: Downward trend. The body of the first “long” candlestick” completely engulfs the body of the second one. Shadows do not matter. Forex: Close of the black candlestick and Open of white match. Confirmation is suggested.

Name of Pattern: Bearish Harami
Order Type: SELL
Image: bear_harami
Pattern Recognition: Uptrend. The body of the first “long” candlestick” completely engulfs the body of the second one.
Shadows do not matter. Close of the white candlestick and Open of black match. Confirmation is suggested.

Name of Pattern: Bullish Doji Star
Order Type: BUY
Image: bull_dojistar
Pattern Recognition: Downward trend. The first candlestick of the pattern is long black. The second session – doji with a break in the trend direction. Shadows of doji are short. Confirmation is suggested.

Name of Pattern: Bearish Doji Star
Order Type: SELL
Image: bear_dojistar
Pattern Recognition: Uptrend. The first candlestick of the pattern is long white. The second session – doji with a break in the trend direction. Shadows of doji are short. Confirmation is suggested.

Name of Pattern: Piercing Pattern
Order Type: BUY
Image: bull_piercing
Pattern Recognition: Downward trend. Both candlesticks are long. Open of the white candlestick is below Low of the black. Close of the black candlestick and Open of white are equal. The white candlestick is closed inside the black one and covers more than 50% of the body. Confirmation is not required for the classical model, is required for Forex.

Name of Pattern: Dark Cloud Cover
Order Type: SELL
Image: darkcloud_cover
Pattern Recognition: Uptrend. Both candlesticks are long. Open of the black candlestick is above High of the white candlestick. Close of the white candlestick and Open of black are equal. The black candle closes inside white and covers more than 50% of the body. Confirmation is not required for the classical model, but is required in forex.

Name of Pattern: Bullish Abandoned Baby
Order Type: BUY
Image: Bull_abandonedbaby
Pattern Recognition: This is a rare but important reversal pattern. Downward trend. The first candlestick of the pattern is long black. The second candlestick is doji with a gap, and the gap is not only between the candlestick bodies, but also between shadows. The third candlestick is “long” white candlestick with the same gap between the shadows and Close inside the body of the first candlestick.

Name of Pattern: Bearish Abandoned Baby
Order Type: SELL
Image: Bear_abandonedbaby
Pattern Recognition: This is a rare but important reversal pattern. Uptrend. The first candlestick of the pattern is long white. The second candlestick is doji with a gap, and the gap is not only between the candlestick bodies, but also between shadows.
The third candlestick is “long” black candlestick with the same gap between the shadows and Close inside the body of the first candlestick.

Name of Pattern: Morning Star
Order Type: BUY
Image: morning_star
Pattern Recognition: Downward trend. The first and the third sessions are “long” candlesticks. Shadows of the stars are short, the color does not matter. Separation of the star from the Close of the first candlestick. Close of the first candlestick and Open of the star are equal. The third candlestick is closed inside the body of the first one.

Name of Pattern: Evening Star
Order Type: SELL
Image: evening_star
Pattern Recognition: Uptrend. The first and the third sessions are “long” candlesticks. Shadows of the stars are short, the color does not matter. Separation of the star from the Close of the first candlestick. Close of the first candlestick and Open of the star are equal. The third candlestick is closed inside the body of the first one.

Name of Pattern: Morning Doji Star
Order Type: BUY
Image: morn_dojistar
Pattern Recognition: Downward trend. The first candlestick of the pattern is long black. The second session – doji with a break in the trend direction. Forex: no break. Shadows of doji are short.
The third candlestick is closed inside the body of the first one.

Name of Pattern: Evening Doji Star
Order Type: SELL
Pattern Recognition: Uptrend. The first candlestick of the pattern is long white. The second session – doji with a break in the trend direction. Forex: no break. Shadows of doji are short. Confirmation is suggested.

Name of Pattern: Bearish Upside Gap Two Crows
Order Type: SELL
Image: bear_upsidegap2arrows
Pattern Recognition: Uptrend. The first candlestick is “long” white. A gap between white and black candlesticks. The third candlestick opens higher than the second and engulfs it. Confirmation is suggested. The meaning of the pattern: if prices could not go up during the 4th session, we should expect prices to fall.

Name of Pattern: Two Crows
Order Type: SELL
Image: 2crows
Pattern Recognition: Uptrend. The first candlestick of the pattern is long white. The gap between white and the first black candlestick. The third candlestick is black and necessarily “long”; opens inside or above the second and closes within or below the white candlestick, covering the gap. Confirmation is suggested. If the second crow (the third candle) engulfs a white candle, the confirmation is not required.

Name of Pattern: Three Stars in the South
Order Type: BUY
Image: 3stars in the south
Pattern Recognition: Downward trend. The first candlestick is a long black day with a long lower shadow. The second candlestick is shorter than the first, its Low is above the Low of the first candlestick. The third candlestick is a small black marubozu or a star, an internal day in relation to the second session. Confirmation is suggested.

Name of Pattern: Deliberation
Order Type: SELL
Image: deliberation
Pattern Recognition: The trend is an uptrend with three white candlesticks that have higher close prices. The first two candlesticks are long day candles. The open price of each candlestick is inside the body of the preceding one. Open/close prices of white candlesticks are the same. The third candlestick opens at about the close level of the second candlestick. The third candlestick is a star or a spinning top. It is suggested to seek confirmation of this pattern before making a move.

Name of Pattern: Three White Soldiers
Order Type: BUY
Image: 3whitesoldiers
Pattern Recognition: The initial trend is a downward trend. Three long white candlesticks appear one after another, and the closing prices of each of them is higher than that of the previous candlestick. Open price of each soldier is inside the body of the previous candlestick. The Close/Open of soldiers are the same. Upper shadows of the soldiers are very short. Confirmation of trade entry is not usually required.

Name of Pattern: Three Black Crows
Order Type: SELL
Image: 3blackcrows
Pattern Recognition: Uptrend. Three long black candlesticks appear one after another, close prices of each of them is lower than that of the previous. Open price of each crow is inside the body of the previous candlestick. Forex: corresponds to pattern Identical three crows. The lower shadows of the crows are short.
Confirmation is not required.

Name of Pattern: Three Outside Up
Order Type: BUY
Image: 3outsideup
Pattern Recognition: The initial trend is a downward trend.
First the pattern of a bullish engulfing setup is formed where the body of the second candlestick completely covers the body of the first one. The Close of a black candlestick and Open of the white candle are equal. The shadows do not matter in this setup. On the third day, a candle with a higher Close forms. Confirmation of this pattern is not required as it forms a confirmation to the bullish engulfing pattern.

Name of Pattern: Three Outside Down
Order Type: SELL
Image: 3outsidedown
Pattern Recognition: The initial trend is an uptrend. First the bearish engulfing pattern is formed, with the body of the second candlestick completely covers the body of the first one. The Close of the white candlestick and Open of the first black one match. Shadows do not matter. One the third day there is a candle with a lower close. Confirmation is not usually required as the pattern itself is a confirmation to the bearish engulfing.

Name of Pattern: Three Inside Up
Order Type: BUY
Image: 3insideup
Pattern Recognition: Downward trend. In the first two sessions the Harami (bull) pattern is formed: a small white body is engulfed by a large black one. Close in the third session is higher than High of the first two candlesticks. Confirmation is not required: the pattern itself is a confirmation to the bull Harami.

Name of Pattern: Three Inside Down
Order Type: SELL
Image: 3insidedown
Pattern Recognition: Uptrend. In the first two sessions the Harami (bear) pattern is formed: a small black body is engulfed by a large white one. Close in the third session is lower than Low of the first two candlesticks. Confirmation is not required: the pattern itself is a confirmation to the bear Harami.

Name of Pattern: Three Stars (bullish)
Order Type: BUY
Image: 3stars_bull
Pattern Recognition: Downward trend. The gap between the first doji and previous candlesticks is not required. All the three candlesticks are doji. The middle doji has a gap up or down.
Forex: all the three doji are on one level. Confirmation is suggested.

Name of Pattern: Three Stars (bearish)
Order Type: SELL
Image: 3stars_bear
Pattern Recognition: Uptrend. The gap between the first doji and previous candlesticks is not required. All the three candlesticks are doji. The middle doji has a gap up or down. All the three doji are on one level. Confirmation is suggested.

Name of Pattern: Identical Three Crows
Order Type: SELL
Image: identical3crows
Pattern Recognition: Uptrend. Three long black candlesticks appear one after another, close prices of each of them is lower than that of the previous. The open price of each crow is approximately equal to Close of the preceding candlestick. The lower shadows of the crows are short. Confirmation is not required.

Name of Pattern: Unique Three River Bottom
Order Type: BUY
Image: Unique3river_bottom
Pattern Recognition: Downward trend. The first candlestick of the model is a long black with short shadows. On the second day Harami appears, but with a black body. The lower shadow of the second day gives a new Low. The third day is a short white day lower than the middle day. Confirmation is not necessary but desirable.
 

3.2. CONTINUATION PATTERNS

 
Continuation patterns are the time when the market is resting.
Whatever the model, you need to make a decision about your current position, even if it is to change nothing.

3.2.1. Patterns consisting of a single candlestick

The following patterns are made up of a single candlestick.

Name of Pattern: Kicking (bullish)
Order Type: BUY
Image: kicking_bull
Pattern Recognition: The black “marubozu” is followed by the white “marubozu”. There is a gap between the bodies. Confirmation is not required for this pattern.

Name of Pattern: Kicking (bearish)
Order Type: SELL
Image: kicking_bearish
Pattern Recognition: The white “marubozu” is followed by the black “marubozu”. There is a gap between the bodies. Confirmation is not required.
 

3.2.2. Patterns consisting of two candlesticks

 
We also have continuation patterns that are made up of 2 candlesticks:

Name of Pattern: Bearish on Neck Line
Order Type: SELL
Image: bearishon_neckline
Pattern Recognition: The initial trend is a downward trend.
The first candlestick of the pattern is long black. The white candlestick closes below Low of the black one and closes at about Low of the black candlestick. The white candlestick is not necessarily a long day. Confirmation of the trade entry is suggested.

Name of Pattern: In Neck Line
Order Type: SELL
Image: inneckline
Pattern Recognition: Downward trend.
The first candlestick of the pattern is long black. The white candlestick opens below Low of the black one and closes a little higher than Close of the black candlestick. The white candlestick is not necessarily a long day. The body of the white candlestick is smaller than the body of the black candlestick. The upper shadow of the white candlestick is very small. Confirmation of this setup for trade entry is suggested.

Name of Pattern: Thrusting Line
Order Type: SELL
Image: thrusting_line
Pattern Recognition: Downward trend.
The first candlestick of the pattern is long and black. The white candlestick opens below Low of the black one and closes a higher than Close of the black candlestick, but the close price is still below the middle of the black candlestick. The white candlestick is not necessarily a long day. Confirmation is suggested.

Name of Pattern: Upside Gap Three Methods (bullish)
Order Type: BUY
Image: upsidegap3_bull
Pattern Recognition: Uptrend. The first two candlesticks are two “long” white candlesticks with a gap. The third candlestick opens inside the body of the second and fills in the gap. Confirmation is suggested.

Name of Pattern: Upside Gap Three Methods (Bearish)
Order Type: SELL
Image: Upsidegap_3methods
Pattern Recognition: Downward trend. The first two candlesticks are two “long” black candlesticks with a gap. The third candlestick opens inside the body of the second and fills in the gap. Confirmation is suggested.

Name of Pattern: Upside Tasuki Gap
Order Type:
Image: UpsideTasuki_gap
Pattern Recognition: Uptrend. The gap between two neighboring white candles. White candlesticks are not necessarily “long”.
The third session opens within the body of the second candlestick.
The third session closes inside the gap, but the gap is partially unfilled. Confirmation is suggested.

Name of Pattern: Downside Tasuki Gap
Order Type: SELL
Image: DowsideTasuki_gap
Pattern Recognition: Uptrend.
The gap between two neighboring white candles. White candlesticks are not necessarily “long”. The third session opens within the body of the second candlestick. The third session closes inside the gap, but the gap is partially unfilled. Confirmation is suggested.
 

3.2.3. Patterns consisting of four candlesticks

 
Finally, we have some continuation candlestick patterns which have up to four candlesticks.

Name of Pattern: Bullish Three Line Strike
Order Type: BUY
Image: 3linestrike_bull
Pattern Recognition: The bullish trend is continuing with three candlesticks, similar to the Three white soldiers pattern: long white candlesticks with short shadows.Open/close prices of white candlesticks are the same. The fourth candlestick opens with a gap up and closes below open of the first white candlestick. Close of 3rd and open of 4tha candlesticks are equal.
Confirmation is suggested.

Name of Pattern: Bearish Three Line Strike
Order Type: SELL
Image: 3linestrike_bear
Pattern Recognition: The bearish trend is continuing with three candlesticks, similar to the Three black crows pattern: long black candlesticks with short shadows. Open/close prices of black candlesticks are the same (similar to Identical three crows).
The fourth candlestick opens with a gap down and closes above open of the first black candlestick. Close of 3rd and open of 4th candlesticks are equal. Confirmation is suggested.
 

The Candlestick Recognition Indicator: Implementation

 
To make the job of the trader a lot easier, we have decided to include an indicator which is built to recognize all these candlesticks as they occur on the charts. Let’s choose and implement the required input parameters.

input_candlesticks indicator
 

Input parameters of the Candlestick Patterns indicator

 
The first parameter is the “Averaging period” – we need it for determining trend direction, defining “long” and “short” candlesticks.

The next parameter is “Enable signal” – responsible for enabling/disabling the signal. The signal notifies that anew pattern has appeared.

candlestic indicator signals
Signals generated by the Candlestick Patterns indicator

Parameter “Number of bars for calculation” is designed to facilitate the work of the indicator. If its value is less or equal to 0 candlestick patterns are searched through the entire available history, otherwise a set number of bars is used for search, which considerably facilitates the work of the indicator.

Everything now pops up clearly with identifying colors…
“Enable comments” means enable/disable names of candlestick patterns.
“Font size” sets the font size for comments.

The implementation of the indicator is very simple. Expect the appearance of a new bar, after which we can calculate the initial value of the counter to start the cycle. In the loop we check the combinations of candlesticks and display them as shown.

  • Combination with one candlestick: an arrow with the pattern name above or below it.
  • Combination with two candlesticks: a thin rectangle with the pattern name above or below the first candlestick.
  • Combination with three or more candlesticks: a thick rectangle with the pattern name above or below the last candlestick.

 

CONCLUSION

 
Now that we have reviewed most of the candlestick patterns and methods of detecting them, it is now pertinent to attach the candlestick indicators that will make the entire process a lot easier for you.

The attachments include two indicators and an include file. To use them, place indicators in the \Indicators folder and include file in \Include folder, then compile them.

Download candlestick indicators

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About Author

Dankra is a forex trader who has played the markets for 7 years. He also trades binary options and spends his free time developing strategies that traders can use to beat the markets. He also codes indicators and EAs for the MT4 platform.