EdgeXplorer - Smart Candle Patterns + Swings

EdgeXplorer – Smart Candle Patterns & Swings

Smart Candle Patterns & Swings by EdgeXplorer is a dual-function visual analysis tool that intelligently detects major swing points and overlays them with recognized candle reversal patterns. This tool brings together classical candlestick analysis and market structure theory, helping traders identify high-probability zones where price action may shift.

The script not only marks swing highs/lows as HH, LH, HL, or LL, but also labels key candlestick patterns—from Hammers to Engulfings to Three Black Crows—providing real-time context for possible trend continuation or reversal setups.

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🔍 What Does This Tool Do?



This indicator performs two primary functions:
1. Swing Structure Labeling – Marks each new pivot as a higher high (HH), lower high (LH), higher low (HL), or lower low (LL)
2. Smart Candle Pattern Detection – Identifies 14 of the most widely studied candlestick reversal patterns and displays them alongside the swing label

It’s a lightweight, unobtrusive way to bring structure and pattern recognition to your chart—no repainting, no noise, and no signal promises.

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⚙️ How It Works – Technical Breakdown

1. Swing Highs and Lows
• The script uses a pivot detection window (Pivot Length) to find local swing highs and lows
• When a new pivot forms:
• It is classified as one of:
• HH – Higher High
• LH – Lower High
• HL – Higher Low
• LL – Lower Low
• These swing points act as visual guides for traders tracking structure

2. Candlestick Pattern Logic

At each confirmed pivot, the script evaluates the candle and its neighbors for a match from a built-in library of 14 classical reversal patterns:

Pattern Description
Hammer Small body, long lower wick – bullish signal after a downtrend
Inverted Hammer Long upper wick, signals failed bearish push
Bullish Engulfing Green candle fully engulfs red one
Bearish Engulfing Red candle fully engulfs green one
Hanging Man Long lower wick after uptrend, often bearish
Shooting Star Long upper wick after uptrend, bearish signal
Doji Small or zero body, signals indecision
Morning Star Three-candle bullish reversal pattern
Evening Star Three-candle bearish reversal pattern
Spinning Top Small body with upper/lower wicks, signals indecision
Bullish Marubozu Large green candle with no wicks
Bearish Marubozu Large red candle with no wicks
Three White Soldiers Three large bullish candles in a row
Three Black Crows Three large bearish candles in a row

Each pattern is detected using precise criteria based on body size, wick ratios, and relative position to previous candles.

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📈 What You See on the Chart

Visual Meaning
Swing Label (e.g., HH, LL) Identifies structural pivot and its type
Pattern Name (e.g., Doji, Bullish Engulfing) Displayed alongside swing label if pattern is detected
Label Tooltip Shows a short description of the pattern’s meaning
Color
 • Swing High = red (customizable)
 • Swing Low = green (customizable)




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📊 Inputs & Customization

Input Description
Pivot Length Number of bars to the left/right used to confirm swing highs/lows
Swing High Label Color Customize color of HH/LH labels
Swing Low Label Color Customize color of HL/LL labels

All labels are plotted using small visual markers to avoid cluttering the chart.

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🧠 How to Interpret It in Live Markets

This indicator provides context, not confirmation. Use it to:
• Validate your manual swing structure tracking with automatic HH/LL labels
• Identify when a key candle pattern forms at a major swing (e.g., Shooting Star at a HH)
• Spot potential reversal zones or breakout failures
• Add confluence to Smart Money Concepts, price action setups, or other technical strategies

Example:
• A new LL forms with a Hammer → Potential reversal from bearish exhaustion
• A HH forms with a Shooting Star → Possible trap or overextension

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🧪 Use Case Ideas
• 🔄 Reversal Confirmation – Combine swing structure with pattern match for early reversal entries
• 🧭 Structure Validation – Let the HH/LL labels validate your trend bias
• 📉 Exhaustion Signals – Watch for Doji/Spinning Top patterns at mature moves
• ⚠️ Avoid Choppy Conditions – Use absence of patterns to avoid entering low-conviction zones

This tool works across all asset classes: crypto, forex, stocks, indices, and even futures.