Candle Patterns

The Candle Patterns Block is a powerful tool in the script builder that allows you to identify specific candlestick patterns in your trading charts. These patterns can provide valuable insights into potential market reversals or continuations.

How it works:

• Selecting a Pattern: When you add a Candle Patterns Block to your strategy, you'll see a dropdown menu with a wide range of popular candlestick patterns to choose from.

Candle Patterns Block

Candle Patterns Block List of Options

• Customization: After selecting a pattern, you can customize its settings. This might include things like the timeframe to look for the pattern or specific parameters unique to that pattern.

Morning Star Candle Pattern Settings

• Pattern Detection: The Candle Patterns Block scans your chart data to identify occurrences of the selected pattern.

• Output: When a pattern is detected, the block outputs a signal that can be used by other blocks in your strategy.

Using Candle Patterns Blocks:

• Reversal Signals: Many candlestick patterns, like the Hammer or Shooting Star, can indicate potential market reversals.

• Trend Confirmation: Patterns like Three White Soldiers or Three Black Crows can help confirm the strength of a trend.

• Support and Resistance: Some patterns, such as Doji candles, can indicate indecision at key price levels.

• Entry and Exit Points: Use pattern formations to help time your entry into trades or to signal when it might be time to exit.

Some popular patterns include:

• Doji

• Hammer and Inverted Hammer

• Engulfing Patterns (Bullish and Bearish)

• Morning and Evening Stars

• Harami Patterns

• Marubozu

Remember, while candlestick patterns can be powerful indicators, they work best when used in conjunction with other forms of analysis and within the context of the overall market conditions. Experiment with different patterns and combine them with other indicators to develop a robust trading strategy.