Dark Cloud [TradingFinder] Piercing Line Reversal chart Pattern
🔵 Introduction
"Reversal candlestick patterns" are among the Japanese candlestick patterns considered as alerts for a potential change in the current price trend. It is often assumed that by identifying reversal candlestick patterns, the price trend will definitely change, either from bullish to bearish or from bearish to bullish. However, this claim is not entirely accurate, and a change in price trend does not always mean a reversal.
Nonetheless, the importance of reversal candlestick patterns remains significant. By recognizing these patterns, you can better predict changes in the trend with higher probability and make better trading decisions.
🔵 Dark Cloud
The "Dark Cloud" pattern occurs when, after an upward trend, buyers continue to drive the price up in the first candle. However, in the next candle, with sellers entering and increasing selling pressure, the price starts to decrease compared to the close of the previous candle.
This price decrease is significant enough that in the last candle, the price goes lower than the open of the previous candle, serving as a warning sign for a potential change in price trend.
The fundamental principles for the formation of the "Dark Cloud" pattern include :
1.Two candles consisting of a positive candle (first candle) and a negative candle (second candle) whose main body should be above the halfway point of the first candle's main body but does not completely cover it.
2.The color of the main body of the second candle should be opposite to the color of the main body of the first candle.
Factors affecting the strength of the "Dark Cloud" pattern include :
1.The length of the bodies of both candles, especially the second candle, which increases the strength of the pattern.
2.The gap between the two bodies can also indicate the strength of the pattern.
3.The absence of a lower shadow in the second candle also indicates the strength of the pattern.
4.If the pattern forms in a price resistance range, it has more strength.
🔵 Piercing Line
The "Piercing Line" pattern occurs when, after a downward trend, sellers decrease the price by offering their shares on the first day. However, on the next day, with buyers entering and increasing demand, the price starts to increase compared to the close of the previous day.
This increase is significant enough that in the last candle, the price goes higher than the open of the previous day, serving as a warning sign for a reversal in the price trend. Overall, this pattern is the opposite of the "Dark Cloud" pattern and occurs under a bearish trend.
The fundamental principles for the formation of the "Piercing Line" pattern include :
1.Two candles consisting of a negative candle (first candle) and a positive candle (second candle) whose main body should be above the halfway point of the first candle's main body but does not completely cover it.
2.The color of the main body of the second candle should be opposite to the color of the main body of the first candle.
Factors affecting the strength of the "Piercing Line" pattern include :
1.The length of the bodies of both candles, especially the second candle, which increases the strength of the pattern.
2.The gap between the two bodies can also indicate the strength of the pattern.
3.The absence of an upper shadow in the second candle also indicates the strength of the pattern.
4.If the pattern forms in a price support range, it has more strength.
🔵 How to Use
The "green circle" symbol corresponds to the "Strong Piercing Line" signal, the "blue triangle" symbol corresponds to the "Weak Piercing Line" signal, the "red circle" symbol corresponds to the "Strong Dark Cloud" signal, and the "red triangle" symbol corresponds to the "Weak Dark Cloud" signal.
🔵 Setting
Using the "Show Dark Cloud" and "Show Piercing Line" buttons, you can enable or disable the display of Dark Cloud and Piercing Line.
在腳本中搜尋"Candlestick"
Enhanced Candle Sticks [AlgoAlpha]🚀🌟 Introducing the Enhanced Candle Sticks by AlgoAlpha, a Pine Script tool designed to provide traders with an enhanced view of market dynamics through candlestick analysis. This script aims to visualise if price has hit the high or low of the candle first, aiding in back-testing, and to identify smaller trends using market structure.📊🔍
Key Features:
Timeframe Flexibility: Users can select their desired timeframe for analysis, offering a range of options from M15 to H12. This flexibility allows for detailed and specific timeframe analysis.
Micro Trend Identification: The script includes an option to enable 'MicroTrends', giving traders insights into smaller movements and trends within the larger market context.
Customizable Visuals: Traders can customize the colors of bullish and bearish candlesticks, enhancing visual clarity and personalizing the chart to their preferences.
State Tracking: The script tracks the 'state' of the market on lower timeframes to detect if the high or the low was formed first.
Warning System: When the selected timeframe does not match the chart timeframe, the script generates a warning, ensuring accurate analysis and preventing potential misinterpretations.
Usages:
Enhanced Back-testing: Users can now get a more accurate interpretation of the candlesticks by know if the high or the low came first (denoted with ⩚ or ⩛), especially in scenarios where the high and the low of the larger timeframe candle is touching both the take-profit and stop-loss levels.
Squeeze Analysis: Users can identify squeezes in price when the microtrend shows both an uptrend and a downtrend, possibly giving more insight into the market.
Lower Timeframe Market Structure Analysis: Microtrends form when the low of the candle is consecutively increasing and the high is consecutively falling, which means on a lower timeframe, price is forming higher lows or lower highs.
Basic Logic Explanation:
- The script starts by setting up the necessary parameters and importing the required library. Users can customize the timeframe, colors, and whether to enable micro trends and candlestick plotting.
- It then calculates the lower timeframe (1/12th of the current timeframe) for more detailed analysis. The `minutes` function helps in converting the selected timeframe into minutes.
- The script tracks new bars and calculates the highest and lowest values within an hour, using `ta.highestSince` and `ta.lowestSince`.
- It determines the market 'state' by checking if the current high is breaking the previous high and if the current low is breaking the previous low on lower timeframes to determine if the high or the low was formed first.
- The script uses the `plotchar` and `plotcandle` functions to visually represent these trends and states on the chart. This visual representation is key for quick and effective analysis.
Alerts:
Alerts can be set for microtrend formations:
This script is a valuable tool for traders looking to deepen their market analysis with enhanced candlestick visualization and micro trend tracking. 📈🔶💡
Confined Range Candle FinderThis indicator finds candlesticks which are confined within the range of a previous candlestick. This indicates volatility contraction which often leads to volatility expansion, i.e. large price movements.
While every confined range will contain at least 1 inside bar, this indicator differs from the Inside Bar Finder which only finds consecutive inside bars.
This indicator includes options such as:
- The minimum number of candlesticks confined within the range of a previous candlestick to trigger the indicator
- Labels to indicate the number of confined candles
- Signal lines to indicate the high and low of the containing candlestick
Try out this indicator with different options on different timeframes to see if confined ranges increase the probability of identifying the direction of price movements. Breaks or closes outside signal lines can be used to trigger trade signals.
Three Inside [TradingFinder] 3 Inside Up & Down Chart Patterns🔵 Introduction
"3 inside up" and "3 inside down" denote a duo of candlestick reversal patterns, each comprising three individual candles, commonly observed on candlestick charts.
These patterns manifest as a sequence of three candles, signaling a potential loss of momentum in the current trend and a potential reversal in direction.
This pattern consists of 3 consecutive candles and can be either "bullish" or "bearish".
In the bullish pattern, known as "Inside Up," emerging at the conclusion of a downtrend, the final candle must exhibit bullish characteristics, while the third candle from the end must display bearish traits.
Conversely, in the bearish pattern, termed "Inside Down," occurring at the culmination of an uptrend, the last candle must demonstrate bearish behavior, with the third candle from the end reflecting bullish attributes.
🔵 How to Use
Using this indicator is very simple. Filtering "Strong 3 Inside Bar" and "Weak 3 Inside Bar" is a feature available in the settings section. You can turn the filter "On" or "Off." By default, the "Filter" is set to "On."
" Filter: On ":
" Filter: Off ":
🔵 How to Display
For better display and differentiation of "Strong 3 Inside Bar" and "Weak 3 Inside Bar," when the "Filter: On" is active, the 3 Inside Bars are displayed in green and red colors. When the "Filter: Off" is active, the 3 Inside Bars are displayed in blue and black colors.
Fair Value Gap (FVG) UnderlayBy analyzing the size and characteristics of candlestick patterns, the Fair Value Gap indicator helps traders spot potential opportunities where the price of a currency or financial asset deviates from its fair value. The FVG is represented as a percentage and displayed as columns in an underlay on the chart.
Calculation and Interpretation:
The calculation of the FVG involves evaluating the body-to-wick ratio of a candlestick. This ratio compares the size of the body (the difference between the open and close prices) to the length of the wicks (the high and low prices). A high body-to-wick ratio indicates a significant price move within the candlestick, potentially signaling a strong market sentiment. The FVG indicator compares the size of the current candlestick with the previous candlesticks over a specified lookback period, typically the last 20 to 40 candlesticks. If the current candlestick meets the criteria for a fair value gap, it is classified as either a Bearish FVG or Bullish FVG, depending on the direction of the price movement.
Interpreting the FVG is relatively straightforward. When a Bearish FVG is detected, it suggests that the price is currently lower than its fair value, indicating a potential upward price movement in the future. This could be an opportunity to consider long positions or buying opportunities. On the other hand, when a Bullish FVG is identified, it implies that the price is higher than its fair value, signaling a possible downward price correction. Traders may consider short-selling or taking profits on long positions in such scenarios.
Coloration:
The coloration of the Fair Value Gap (FVG) indicator plays a crucial role in enhancing its visual representation and aiding interpretation. When a Bearish FVG is identified, the indicator utilizes the color scheme of lime green. This color signifies the potential for an upward price movement as the current price is considered lower than its fair value. On the other hand, a Bullish FVG is represented by the vibrant color of fuchsia, indicating a potential downward price correction as the price exceeds its fair value. The coloration serves as a visual cue, making it easier for traders to quickly identify and differentiate between different types of fair value gaps on the chart. Additionally, the barcolor is aligned with the respective FVG color, providing a comprehensive view of price inefficiencies and aiding traders in their decision-making process.
Potential Applications/Strategies:
The FVG indicator can be applied in various trading strategies and situations. One possible application is in price reversion strategies. Traders can use the FVG to identify overbought or oversold conditions in the market. When a Bullish FVG occurs, it may indicate an opportunity to consider short-selling or taking profits on long positions. Similarly, a Bearish FVG can suggest a potential buying opportunity, expecting the price to revert back to its fair value.
Another application is in confirming existing trends. The FVG can act as a confirmation tool for trends identified by other indicators or analysis techniques. When a Bullish FVG aligns with an uptrend, it may strengthen the bullish bias and provide more confidence in the upward momentum. Conversely, a Bearish FVG in conjunction with a downtrend may reinforce the bearish sentiment and support the idea of further downside potential.
Parameters:
Adjusting the parameters of the FVG indicator can be beneficial based on the trader's trading style and time frame. The body-to-wick ratio threshold and lookback period can be modified to capture different types of fair value gaps and adapt to different market conditions. Shorter lookback periods may help identify more recent FVGs, which could be suitable for short-term traders, while longer periods may capture larger price inefficiencies and cater to longer-term traders.
Limitations:
However, it's important to note that the FVG indicator, like any technical analysis tool, has its limitations. It relies on historical price patterns and may not always accurately predict future price movements. The interpretation of FVGs requires careful analysis and should be used in conjunction with other indicators, technical analysis tools, and fundamental factors to make well-informed trading decisions. Traders should also exercise proper risk management and consider the overall market context when using the FVG indicator.
In conclusion, the Fair Value Gap (FVG) indicator provides traders with valuable insights into price inefficiencies and deviations from fair value. By identifying Bearish and Bullish FVGs, traders can potentially uncover trading opportunities and make more informed decisions. However, it is crucial to combine the FVG indicator with other analysis tools, conduct thorough analysis, and exercise proper risk management to achieve consistent trading success.
Piercing Line Pattern Trading Setupthis study is the first one of a series of scripts based on the candlesticks pattern which will be published over time. There are several such scripts out there that can be found on TradingView but they seem to be inaccurate with a lot of noises and messy hard to understand code. In this script, I've tried to have a clean and easy to get
of the pattern itself and the method for detecting it with enough parameters to filter out the noises.
Piercing Pattern
A piercing pattern is a technical trading signal that is formed by a closing down day with a good-sized trading range, followed by a trading gap lower the following day with a bullish candlestick that covers at least half of the upward length of the previous day's bearish candlestick body, finishing with a close higher for the day. A piercing pattern often signals the end of a small to moderate downward trend. A piercing pattern can serve as a potential indicator for a bullish reversal. This pattern is formed by two consecutive candlestick marks. The first candlestick is bearish signifying a down day and the second is bullish signifying an up day. When a trader is watching for a bullish reversal any red candlestick followed by a green candlestick could be an alert. There are a few things that set a piercing pattern apart from a general red candlestick green candlestick pattern. In a piercing pattern, a green candlestick follows a red one with a significant gap in the red candlestick close and green candlestick open. On the second-day green candlestick, the candlestick’s body must also lengthen to cover at least half of the previous day’s red candlestick . Generally, the gap down and substantial increase to the closing price are good signs for a reversal. In a piercing pattern, the second-day green candlestick will close at or above the midpoint of the previous day’s red candlestick.
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RF+ Replay for Heikin AshiRF+ Replay for Heikin Ashi
RF+ Replay for Heikin Ashi generates fully customisable Heikin Ashi candlesticks presented on a standard chart, enabling traders to utilise the Tradingview Replay feature with Heikin Ashi candlesticks when analysing and backtesting HA style strategies.
The features of this indicator include:
- Fully customisable Heikin Ashi Candles, including custom colour options for candle bodies, borders and wicks.
- Optional real-time, real-price close dots painted onto each candlestick.
- A optional set of 2 x Range Filters designed to indicate short term trend identification upon color change, ideal for low timeframe scalping.
- A optional set of 3 x fully customisable Moving Averages.
- An option to enable Heikin Ashi calculated data for the Range Filters and Moving Averages, so they present as they would on a Heikin Ashi non-standard chart type, without having to use an actual Heikin Ashi chart. Enabled by default.
- An optional sessions indicator, to highlight your prefered trading session for the purpose of backtesting.
- An optional watermark featuring customisable text and well as symbol and timeframe information, as seen in the screenshot of this indicator.
Instructions for use:
1) Because this indicator generates candlesticks and presents them onto your chart, you will need to hide the existing candlesticks so you do not see two sets of candles. You can do this by going into your Tradingview chart settings and making the candle bodies, borders and wicks fully transparent. You can then save this as a layout template. You can access your Chart Settings by clicking on the cog icon, or by right clicking on the chart itself and selecting 'Chart Settings' from the list.
2) Ensure you have the standard chart type selected - you do not need to select a Heikin Ashi type chart.
3) You will now be able to analyise and even backtest your Heikin Ashi style strategies including the use of the Tradingview Replay feature found at the top of the chart.
Heikin Ashi means 'average bar' in Japanese, which speaks to the fact that Heikin Ashi candles are calculated differently to standard Japanese candlesticks. The general idea of Heikin Ashi candles is to 'smooth' the appearance of price movement, by the use of averages within their calculation. It is important to understand that the Open and Close values of a Heikin Ashi candlestick do not reflect real Open and Close prices. You can use the real price dots feature to clearly see the real time and real price Close of each candle.
The formula for calculating a Heikin Ashi candlestick is as follows:
High = Maximum of High, Open, or Close (whichever is highest)
Low = Minimum of Low, Open, or Close (whichever is lowest)
Open = Open (previous bar) + Close (previous bar) /2
Close = (Open + High + Low + Close) / 4
If you found this useful, be sure to leave a like, comment and subscribe to show your support.
Until next time.
TechniTrend: CandleMetrics🟦 Overview
The TechniTrend: CandleMetrics Indicator is a powerful tool designed to give traders an in-depth analysis of candlestick structures. This indicator allows users to identify potential reversal points, trend continuations, and other crucial market behaviors by examining key ratios between candle components—such as body, shadow, and overall range—alongside volume conditions. The advanced filtering options offer flexibility for both novice and experienced traders, enabling tailored setups to suit different trading strategies.
🟦 Key Features
🔸Customizable Ratios: Set thresholds for Body-to-Range, Shadow-to-Range, Upper Shadow-to-Range, and Lower Shadow-to-Range ratios.
🔸Volume-Based Filters: Integrate volume conditions to strengthen the reliability of signals.
🔸Flexible Conditions: Choose whether filters should work independently or in combination, allowing for precise pattern identification.
🔸Visual Markers: Mark potential signals with a distinct background color and symbols on the chart.
🔸Alerts: Receive notifications for each selected condition, ensuring you never miss an opportunity.
🟦 How It Works
The CandleMetrics Indicator operates by analyzing the relationship between different components of each candlestick, combined with volume data to determine the strength of signals. Here’s a detailed breakdown of each feature:
🔸 Body to Range Ratio:
This filter compares the size of the candle's body to its total range (from high to low).
Example Setting: If you’re interested in spotting candles with small bodies relative to their total range, you might set the Body-to-Range Ratio to “Less than 0.3.”
🔸 Shadow to Range Ratio:
This examines the combined size of both shadows (upper and lower) relative to the entire candle range.
Example Setting: Use a Shadow-to-Range Ratio set to “More than 0.8” to find candles with significant wick lengths, suggesting market indecision.
🔸 Upper Shadow to Range Ratio:
This filter assesses the proportion of the upper shadow (wick) in relation to the candle’s full range.
Example Setting: “Less than 0.05” can help identify situations where the upper shadow is minimal, indicating strong downward pressure.
🔸 Lower Shadow to Range Ratio:
It measures the lower shadow compared to the entire candle range.
Example Setting: “More than 0.7” is useful for detecting potential rejection patterns at lower prices, hinting at a possible bullish reversal.
🔸 Volume Filter:
Integrates volume data to verify the reliability of each candle pattern.
Example Setting: Apply a Volume Filter Length of 100 with an SMA type to smooth volume data over a longer period, filtering out short-term noise and focusing on significant volume shifts.
🟦 Combining Filters
The indicator offers an option to Combine Filters. When this setting is enabled, all selected conditions must be met simultaneously for a candle to be marked. If disabled, each condition functions independently, allowing more flexibility in detecting diverse patterns.
🟦 Examples & Use Cases
🔸Example 1: Spotting Reversal Opportunities
I used the following configuration to find potential bullish reversals:
Upper Shadow to Range Ratio: “Less than 0.05” – Looking for candles with almost no upper shadow.
Lower Shadow to Range Ratio: “More than 0.7” – Highlighting candles with a significant lower shadow.
Volume Filter Length: 100 with SMA.
This setup effectively highlights candles where price rejection is happening at lower levels, suggesting a potential trend reversal to the upside.
🔸Example 2: Detecting Market Uncertainty
If you want to focus on candles showing market hesitation, try:
Shadow to Range Ratio: “More than 0.85” – Emphasizing long-wick candles that could indicate indecision.
Disable Combine Filters to allow flexibility, marking any candle meeting the above criteria.
🟦 Detailed Explanation of Each Option
Here’s a clear and concise breakdown of each option for a better understanding:
1. Body to Range Ratio
Purpose: This ratio shows how significant the candle's body is compared to its overall range. A smaller body-to-range ratio can indicate a potential reversal if the market appears indecisive.
How to Use: Increase the ratio to filter for stronger trend candles; decrease it to identify reversal or indecision candles.
2. Shadow to Range Ratio
Purpose: This filter captures the size of both shadows relative to the candle's total range. A larger ratio often points to market hesitation, while a smaller ratio suggests a decisive move.
How to Use: Adjust this filter to focus on candles with long wicks (indecision) or short wicks (decisiveness).
3. Upper Shadow to Range Ratio
Purpose: Helps to identify candles with strong downward moves by focusing on the upper wick length. A small upper shadow can imply sellers' dominance.
How to Use: Lower the ratio to detect candles with minimal upward rejection.
4. Lower Shadow to Range Ratio
Purpose: Targets candles with strong buying pressure by analyzing the lower shadow. A larger lower shadow may indicate a bullish reversal.
How to Use: Increase the ratio to spot rejection candles with significant lower shadows.
5. Volume Filter
Purpose: Adds a volume component to verify the validity of each candlestick pattern. Higher-than-average volume often signifies the strength of a move.
How to Use: Adjust the filter length and type to smooth out volume fluctuations based on your trading timeframe.
🟦 Indicator Alerts
Each filter has its own alert configuration, enabling traders to stay updated on market conditions that meet their selected criteria. You can customize alerts to trigger whenever a condition is met, helping to manage trades even when away from the screen.
BERLIN CandlesA problem with Heikin Ashi is that while it gives you a great overview of overall direction, it is rarely possible to use it as a replacement for normal japanese
candlesticks. The reason for this is that actual price data is lost, since the candles are more akin to a moving average than a different way to see price action. Also, with Heikin Ashi, most of the actual price action is lost, because the candles can be bigger than the high and low of the underlying japanese candlestick.
With BERLIN Candles I have tried to fix that problem. By using a smoothed out version of the previous Heikin Ashi candle close as the current BERLIN Candle open, the high and low of the actual japanese candlestick for the high and low of the BERLIN Candle, and the current Heikin Ashi close as the BERLIN Candle close, while setting hard limits for BERLIN Candle open and close values so that they can never exceed the high and low of the underlying japanese candlestick.
One problem still persists though. The actual current price data is lost. However, the BERLIN Candles have solved this by adding a fifth part to the candles. The close of the underlying japanese candlesticks are indicated with a plus-sign. This way, actual price data is never lost, while keeping all of the other benefits of this type of candles.
A few added bonuses:
The addition of the 14 period ATR at the latest candle
The baseline from Ichimoku is included as an option
The 14 period ATR value of each candle can be seen in the indicator data as
the orange value
Hourly Trading System (Zeiierman)█ Overview
The Hourly Trading System (Zeiierman) is designed to enhance your trading by highlighting critical price levels and trends on an hourly basis. This indicator plots the open prices of hourly and 4-hour candles, visualizes retests, displays average price lines, and overlays higher timeframe candlesticks. It is particularly beneficial for intraday traders seeking to capitalize on short-term price movements and volume patterns.
█ How It Works
This indicator works by plotting significant price levels and zones based on hourly and 4-hour candle opens. It also includes functionalities for identifying retests of these levels, calculating and displaying average prices, and showing high and low labels for each hour.
█ Timeframe
The Hourly Trading System is designed to be used on the 1-minute or 5-minute timeframe. This system is tailored for intraday trading, allowing traders to find optimal entries around hourly opening levels and providing an easy method to identify the hourly trend. It works effectively on any market.
█ How to Use
Trend Analysis
Quickly gauge where the current price stands relative to key hourly and 4-hour levels. The plotted lines and zones serve as potential support and resistance areas, helping traders identify crucial points for entry or exit.
Utilize the 1-hour average and higher timeframe candles to understand the overall market trend. Aligning intraday strategies with larger trends can enhance trading decisions.
Use the bar coloring to quickly gauge the 1-hour trend on a lower timeframe. The bar colors indicate whether the hourly trend is bullish (green) or bearish (red), helping traders make quicker decisions in alignment with the overall trend.
Retest Identification
Enable retest signals to see where the price retested the hourly open levels. These retest points often signal strong price reactions, offering opportunities for trades based on support/resistance flips.
One effective strategy to incorporate is looking for price flips when a new hour starts. This approach involves monitoring price action at the beginning of each hour. If the price breaks and retests the hourly open level with strong momentum, it could indicate a potential trend reversal or continuation. This strategy is effective in volatile markets where price movements are significant at the start of each new hour.
Liquidity Sweep Strategy
Another common and effective strategy is the liquidity sweep. This involves identifying key levels where liquidity is likely to accumulate, such as previous hour highs and lows, and observing how the price interacts with these price levels. When the price sweeps through these levels, triggering stop-loss orders or pending orders, it often results in a sharp price movement followed by a reversal. Traders can capitalize on these movements by entering trades in the direction of the reversal once the liquidity sweep has occurred.
Equal Highs and Lows Strategy
The Equal Highs and Lows strategy leverages the concept of identifying levels where the price forms multiple highs or lows at the same level over different hourly periods. These equal highs and lows often indicate strong support or resistance levels where liquidity is accumulated. When the price approaches these levels, it is likely to trigger stop-loss orders and lead to significant price movements. Traders can look for breakouts or reversals around these levels to enter trades with higher probability setups.
█ Settings
Zone Width: Specifies the width of the zone around the 1-Hour Open as a percentage. Adjust this to widen or narrow the zone.
Show Retests: Enables or disables the display of retest markers. Retest markers show where the price has retested the 1-Hour Open line.
Number of Retests: Sets the number of retests to display. Adjust this to see more or fewer retest markers.
Volume Filter: Enables or disables the volume filter for retests. Use this to highlight retests with significant volume.
Volume Filter Length: Sets the length of the volume filter, smoothing the volume data to reduce noise.
1-Hour Average Line: Enables or disables the 1-hour average price line. This line shows the average price over the past hour.
Hourly High & Low Labels: Enables or disables the display of hourly high and low labels, marking the highest and lowest prices within each hour.
Candlesticks: Enables or disables the display of candlesticks on the chart, providing a detailed view of price action.
Bar Color: Enables or disables bar coloring based on price direction, with up bars in green and down bars in red.
Timeframe: Sets the timeframe for higher timeframe candles. Adjust this to match the period you want to analyze.
Number of Candles: Sets the number of higher timeframe candles to display. Increase this to see more candles on the chart.
Location: Sets the location for higher timeframe candles, allowing you to position them left or right on the chart.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
MTF ChartingKey Features
Visual Settings: The script allows customization of the visual aspects of the candlesticks. Traders can select colors for the bodies, borders, and wicks of bullish (rising) and bearish (falling) candles. This customization enhances readability and personal preference alignment.
Timeframe Settings: Traders can choose up to five different timeframes (labeled as HTF 1 to HTF 5) to display on the main chart. For each selected timeframe, traders can specify the number of candlesticks (bars) to display.
Candlestick Representation: The script redraws the candlesticks from the selected timeframes onto the main chart. This redrawing includes the high, low, opening, and closing prices of the candlesticks for each timeframe, providing a multi-dimensional view of market trends.
Labeling: The script includes an option to label each set of candlesticks with their respective timeframe for easy identification.
Practical Usage for Traders
Market Analysis: By displaying candlesticks from different timeframes, traders can analyze the market more comprehensively. For instance, while the main chart might show a short-term trend, the MTF charting can reveal a different longer-term trend, aiding in more informed decision-making.
Trend Confirmation: Viewing multiple timeframes simultaneously helps in confirming trends. If multiple timeframes show a similar trend, it might indicate a stronger, more reliable trend.
Identifying Reversals: The script can be useful in spotting potential trend reversals. For example, if the lower timeframe shows a bearish trend while the higher timeframe remains bullish, it might signal a potential reversal.
Customization for Strategy Alignment: Traders can customize the timeframes and the number of bars to align with their specific trading strategies, whether they are short-term day traders or long-term position traders.
Technical Aspects
The script uses arrays to store and manipulate candlestick data for each timeframe. This approach ensures efficient handling of data and updates.
Examples
- Display up to 5 timeframes on your main price chart. You are able to get a zoomed out view of the market without taking up too much screen real estate.
- Show a lower timeframe on your primary chart. In this instance maybe you primarily look at the 5 minute chart, but like to refine your entries on the 1 minute. Here you can do it with one chart.
- Look at how the daily candle is forming relative to the timeframe that you are currently on. You can more easily spot where price closed and opened on certain days.
Pattern Forecast (Expo)█ Overview
The Pattern Forecast indicator is a technical analysis tool that scans historical price data to identify common chart patterns and then analyzes the price movements that followed these patterns. It takes this information and projects it into the future to provide traders with potential price actions that may occur if the same pattern is identified in real-time market data. This projection helps traders to understand the possible outcomes based on the previous occurrences of the pattern, thereby offering a clearer perspective of the market scenario. By analyzing the historical data and understanding the subsequent price movements following the appearance of a specific pattern, the indicator can provide valuable insights into potential future market behavior.
█ Calculations
The indicator works by scanning historical price data for various candlestick patterns. It includes all in-built TradingView patterns, credit to TradingView that has coded them.
Essentially, the indicator takes the historical price moves that followed the pattern to forecast what might happen next.
█ Example
In this example, the algorithm is set to search for the Inverted Hammer Bullish candlestick pattern. If the pattern is found, the historical outcome is then projected into the future. This helps traders to understand how the past pattern evolved over time.
█ How to use
Providing traders with a comprehensive understanding of historical patterns and their implications for future price action allows them to assess the likelihood of specific market scenarios objectively. For example, suppose the pattern forecast indicator suggests that a particular pattern is likely to lead to a bullish move in the market. A trader might consider going long if the same pattern is identified in the real-time market. Similarly, a trader might consider shorting the asset if the indicator suggests a bearish move is likely, if the same pattern is identified in the real-time market.
█ Settings
Pattern
Select the pattern that the indicator should scan for. All inbuilt TradingView patterns can be selected.
Forecast Candles
Number of candles to project into the future.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Candles Based On Traded VolumeCBTV - Candlesticks Based on Traded Volume
This is the first robust implementation of volume based candlesticks (bars) on TradingView. This type of bar was describe in the book "Advances in Financial Machine Learning," written by Lopez de Prado, a well-known quant who has managed billions of dollars over the course of his career.
Volume Candlesticks (Bars) are bars that are indexed by total volume, with each set of N shares exchanged forming a separate bar.
This means that on CBTV chart a candle forms not after a specific time interval defined by the time frame of the chart, but when a determined volume was traded.
This approach to price sampling is much better than the time based one, because it does not oversample periods where nothing happens. Traditional candlestick charts show a lot of low volume bars without meaningful price changes in them.
The efficient price sampling results in better results when using volume based bars in machine learning forecasting models. They are also useful for technical analysis. Candlestick patterns on CBTV chart are more pronounced and have more predictive power.
Volume based bars can be constructed only for instruments where volume data is available. These are stocks, futures and crypto currencies.
When you run CBTV it appears in a separate window below the traditional time based chart.
CBTV will be used in pair with a helper indicator which is called Optimal Volume per Candle (OVPC).
When applied to a chart OVPC shows the optimal range for volume per candle to construct volume based candlesticks from this timeframe data. It appears in the blue box above the most recent candle of a standard time based chart.
When you set a Volume Per Candle parameter in CBTV make sure it is within the range that shows OVPC. In this case volume based chart will be easy to read and all the calculations will be performed with the high level of precision.
The most recent unfinished candle is marked with the different set of colors than historical candles. Unfinished candle is colored in orange if it is a falling candle, blue it it is a rising one.
If you leave the CBTV chart opened for a long time you can have multiple blue or orange candles on it. In this case press the “hide” icon with the eye sign twice (it’s on the left side of the indicator panel next to its input parameters). This will refresh the CBTV and remove the artifacts.
While everything comes Real-time you will see the orange or blue bars form but never update. All you need to do is REFRESH THE CHART. Hoping soon to update this with a version you wont have to refresh the chart.
Please drop a like and comment what you guys think and once again thank you Tradingview for such a great platform :)
AutoCandlesHi everyone!, this Script is the first in my series of candlesticks indicators. Currently it supports only a few, but it´s quite strict about them, contrary to most scripts I do thorough calculations to avoid false signals, if you would like to soften the indicators so it generates more signals feel free to ask.
It uses the same interface for showing as the Candlestick Scanner by Nicolas, but use different formulas.
I encourage everyone to comment what indicators they would like to add (with proper reference so I can actually add them) or to correct improper behavior in the indicator. This way I will be able to perfect the indicator and make it more useful to everyone.
If anyone reads the pine code and wonders why I compare to the average true range frequently the answer is quite simple, it's done to make the algorithm work in ANY symbol, so concepts like long bars or "visible" gaps can actually be coded.
If anyone needs to hide the 0.0000 values of the script it needs to go to the properties of the chart, then background and then uncheck indicator values.
Elephant Bars
**Elephant Bars Indicator**
This indicator identifies and highlights candlesticks that are significantly larger than the recent average candlestick size. It helps traders quickly spot strong price movements.
- **Percentage Threshold:** The candlestick must be this much larger than the average of the last 5 candles (default is 50%).
- **Body Percentage Threshold:** The candle body must be at least this percentage of the total candle size (default is 80%).
- **Border Color:** Sets the color of the highlighted candle's border.
- **Border Thickness:** Sets the thickness of the border around the highlighted candle.
**How It Works:**
1. The script calculates the size of the current candlestick and its body.
2. It computes the average size of the last 5 candlesticks.
3. The indicator highlights candles that are both significantly larger than the average size and have a body that is a substantial portion of the total candle size.
This indicator is particularly useful for identifying potential breakout or reversal points, as large candlesticks often signify strong market sentiment.
Feel free to tweak the description to better fit your needs! 🚀
HL range by durgaThe script we've been working on is an indicator designed to display the high-low range of the last candlestick on a TradingView chart. It does so by plotting two lines: one for the high and another for the low of the last completed candlestick.
Additionally, the script includes a label that shows the numerical value of the high-low range. This label is positioned between the plotted lines, showing the difference between the high and low prices of the last candlestick.
The script operates in real-time, updating dynamically as new candlesticks form. Furthermore, it automatically removes the label after the close of the candlestick, maintaining a clean and clutter-free chart.
This indicator can help traders quickly visualize and assess the range of the last completed candlestick, aiding in their analysis of price action.
Bull Bear Pivot by RawstocksThe "Bull Bear Pivot" indicator is a custom Pine Script (v5) tool designed for TradingView to assist traders in identifying key price levels and pivot points on intraday charts (up to 1-hour timeframes). It combines time-based open price markers, pivot high/low detection, and candlestick visualization to provide a comprehensive view of potential support, resistance, and trend reversal levels. Below is a detailed description of the indicator’s functionality, features, and intended use.
Indicator Overview:
The "Bull Bear Pivot" indicator is tailored for intraday trading, focusing on specific times of the day to mark significant price levels (open prices) and detect pivot points. It plots horizontal lines at the open prices of user-defined sessions, identifies pivot highs and lows on the current chart timeframe, and overlays custom candlesticks to highlight price action. The indicator is designed to work on timeframes of 1 hour or less (e.g., 1-minute, 3-minute, 5-minute, 15-minute, 30-minute, 60-minute) and includes a warning mechanism for invalid timeframes.
Key Features:
Time-Based Open Price Markers:
The indicator allows users to define up to five time-based sessions (e.g., 4:00 AM, 8:30 AM, 9:30 AM, 10:00 AM, and a custom time) to capture the open price at the start of each session.
For each session, it plots a horizontal line at the 1-minute open price, extending from the session start to the market close at 4:00 PM EST.
Each line is accompanied by a label positioned 5 bars to the right of the market close (4:00 PM EST), with the text right-aligned and vertically centered on the line.
Users can enable/disable each marker, customize the session time, label text, line color, and text color via the indicator’s settings.
Pivot Highs and Lows:
The indicator calculates pivot highs and lows on the current chart timeframe using the ta.pivothigh and ta.pivotlow functions.
Pivot highs are marked with green triangles above the bars, and pivot lows are marked with red triangles below the bars.
The pivot period (lookback/lookforward) is user-configurable, allowing flexibility in detecting short-term or longer-term reversals.
Custom Candlesticks:
The indicator overlays custom candlesticks on the chart, colored green for bullish candles (close > open) and red for bearish candles (close < open).
This feature helps visualize price action alongside the open price markers and pivot points.
Timeframe Restriction:
The indicator is designed to work on timeframes of 1 hour or less. If the chart timeframe exceeds 1 hour (e.g., 4-hour, daily), a warning label ("Timeframe > 1H\nIndicator Disabled") is displayed, and no elements are plotted.
Customizable Appearance:
Users can customize the appearance of the open price marker lines, including the line style (solid, dashed, dotted) and line width.
Labels for the open price markers have no background (transparent) and use customizable text colors.
Volume Delta [hapharmonic]Volume Delta: Volume Delta is an indicator that simplifies how you analyze trading volumes and the percentage of buy-sell activities effortlessly.
As a trader or market analyst, understanding underlying volume and trade flows is critical. The Volume Delta indicator provides thorough insight into both the total volume and the percentage of buying versus selling within the current candlestick. This information is pivotal for those looking to gauge market momentum and sentiment more effectively.
Additionally, the Volume Delta indicator can plot the candlestick colors based on the percentage of the dominant buying or selling volume. The area between the open and close prices of the candlestick is considered 100% and fills with colors corresponding to the predominant volume at that percentage.
Volume Delta also integrates the concept of Net volume. This component is crucial as it reveals the real market sentiment by calculating the difference between the volume of trades executed at an uptick and those at a downtick.
🟠 Overview
This indicator now displays in two layouts. Recently, Tradingview introduced the "force_overlay=true" function in Pine Script , allowing plots to be moved to the main chart. Thus, all displays are from the same indicator.
🟠 USAGE
From the data displayed in 'plot.style_columns' , the peak area represents the entire volume, accounting for 100%. Within this area, there are two color levels indicating volume. If one type of volume, whether buying or selling, exceeds the other, the larger volume will be positioned behind and the smaller in front. This arrangement prevents the scenario where a higher buying volume obscures the smaller selling volume. Therefore, the two colors can be switched between the front and the back as needed.
As you can see, the 12 and 26-day Exponential Moving Averages (EMAs) are used, with the Volume Confirmation Length set at 6. Therefore, the crossing of the EMAs proceeds normally, but it is highlighted with three triangular arrows to indicate a high likelihood of a valid crossover. However, if the volume is insufficient, these markers won't be displayed, although the EMA crossover will still occur as usual. This can be useful for using volume to verify the significance of the EMA crossover.
🟠 Setting
If you enable the label, please be aware that the chart size will shrink, causing the candlestick display to become unclear. Therefore, you might need to select "Logarithmic" at the bottom right of your screen, or for mobile applications, press and hold on the price scale and choose "Logarithmic" to adjust the scale appropriately.
Enjoy!
Fair Value Gap - FVG - HistogramThis indicator uses a histogram to represent "fair value gaps" ("FVG"). FVG is a popular pattern among modern traders.
This document describes the purpose of the script and discusses the conceptual meaning of "fair value," as well as the connotations attached to it.
█🚀 Based on the previous script - improved clarity
This indicator is a modified version of the "Three Bar Gap (Simple Price Action - with 1 line plot)" indicator, which is also available as open source and can be applied to a chart as a complementary tool along with this indicator.
Differences:
The previous version introduced a "Threshold filter" to reduce the number of lines plotted on charts. This filter introduced two additional parameters for users to consider (ATR length and multiplier). These parameters made the indicator more complicated than intended.
To address this issue of having too many lines in the former version, I proposed a spin-off on this version: It's to consider plotting the magnitude of the FVGs on a histogram instead of using lines on a price chart. In my opinion, a histogram is more suitable for decision-making because it lays out data points side-by-side as bins, which makes comparisons much clearer.
Minor FVGs are expected to have smaller bins compared to their neighboring bins, and in extreme cases, the bins will become seemingly invisible due to the auto-adjusted scale of the y-axis. Therefore, there is no need to filter out any data, and all FVGs can be included in this spin-off version.
█🚀 Candlestick patterns - revisited
This script calculates the displacement of highs and lows over three consecutive bars.
A) Down move: When the high of the recent-confirmed bar is lower than the low of the previous-previous candle.
B) Up move: When the low of the recently-confirmed bar is higher than the high of the previous-previous candle.
█🚀 Parameters
Core Functionality
The purpose of this indicator is to generate bins representing the magnitude of FVGs in the form of a histogram to facilitate the visualization of price movements.
The act of "finding FVGs" does not require any inputs, but users can still customize the colors of the bins to indicate the direction of movement.
Auxiliary functionality: “Key level finder” by searching for large FVGs
The following inputs are optional, in fact, the entire feature can be toggled on/off.
In this example, setting the lookback at 20 means the script will generate a signal if the current histogram bin is taller than all previous bins over the past 20 bars.
█🚀 Applications
Tall histogram bins = key levels .
Traders should observe key levels for entry or exit opportunities.
It is important to note that this indicator was designed for standard time-based charts.
On a separate note, FVGs will not appear in Renko charts with fixed-size bricks. This is because the bricks align with their neighboring bricks. When the bricks are fixed, any displacement between highs and lows within less than or equal to three bars will be zero.
The concept of a "gap" is used to illustrate that price follows a jump-diffusion process, and time intervals can be assigned arbitrarily on the x-axis without needing fixed intervals. This idea was briefly discussed in the previous script's write-up.
█🚀 FAQ: Does it repaint?
No. And please continue reading.
Bins are plotted with a one-bar delay. It only takes one bar for the FVG to become confirmed. Lag is beneficial because it clarifies the need for traders to wait for the bar to close and for the signals to become confirmed before entering or exiting a trade. Experienced traders know that prices tend to retrace, so there is no need to chase. An added bar of delay proves to be useful.
█🚀 Opinion: The term “fair value” can be misleading
Those who come from traditional finance may find the term "fair value gap" somewhat insulting. When encountering the phrase, it can feel like a group of aliens from "Planet Technical Analysis" have intrusively landed on your planet and assertively redefined what "fair value" is supposed to mean.
So, what does "fair value" mean in the realm of technical analysis?
In the world of corporate finance, "fair value" is a subjective estimate of what buyers and sellers are hypothetically willing to pay or accept. Buy-side and sell-side analysts use their own methodologies to determine what constitutes "fair value". These approaches may be based on income, asset, or market comparables. Regardless of the approach used, subjectivity is inherent, and results depend on fundamental data provided by the numbers on financial statements. Valuations are unrelated to candlestick patterns .
When dealing with financial statements, finance professionals who are non-market-participants, such as those working in group reporting practices for reporting issuers, or those hired as external auditors, as required by regulators, may also question what constitutes "fair value". The main concerns always revolve around the assumptions used in valuation models; these are inputs that ultimately require management's judgment, and if not critically questioned, valuations as reported in the statements could end up becoming materially bogus. Both IFRS and U.S. GAAP define "fair value" with the same intended meaning in terms of definitions. We will not delve into the details here. The main point is that "fair value" from a financial reporting perspective has nothing to do with candlesticks .
If a price is already quoted in an actively traded market, you can refer to it to obtain what is known as "mark-to-market". This involves simply referring to the bid or ask price on the reporting date, and you're done - there's no need to read candlesticks !
"Fair value" is a neutral term used by finance professionals in all domains. It is not meant to imply that something is actually "fair." Paying the "fair value" for an asset can still result in overpaying or underpaying for what the asset is worth, depending on different model assumptions. The point is, candlesticks are irrelevant to the analysis of what is considered "fair value" in the realm of traditional finance.
That being said, there is no definitive answer as to why people refer to this pattern as a "fair value gap". It's like one of those oddball interview questions asking you to explain why tennis balls are fuzzy. Whatever answer you give, it's important to note that the subject itself is trivial.
Emphasis of matter on why "fair value" can be misleading
The previous paragraphs were not intended to attack ideas from the realm of technical analysis, nor to assert the true meaning, or lack of meaning, of the term "fair value". Words are constantly evolving. If the term "fair value gap" becomes more widely used to describe the displacement of highs and lows over three bars, then let's call it a "fair value gap".
To be clear, I argue that the term "fair value gap" should not be given a positive connotation. Traders should interpret the word "fair" neutrally. Although these signals occur frequently, if you trade every time there is a signal, you will overtrade and incur astronomical transaction costs over the long run, which can lead to losses.
█🚀 Conclusion:
In the end, what matters is how you apply FVG to trading. As mentioned in the "Applications" section above, traders should look for large FVGs - indicated by tall histogram bins - to identify key levels.
Price Action in action
What?
Price Action in Action is an indicator to help Price Action learners and practitioners to get everything related for Price Action in one place.
Price Action is:
Price + Volume = Action
In this indicator, we have the following features available:
Support/Resistance
Using the RSI with different periods in a multiple of 7 (7, 14, 21, 28), we first determine the overbought (above 70, customizable) and oversold (below 30, customizable) regions. Then we pick up the highest point and lowest point in the RSI values in the overbought and oversold regions, respectively. These are the point, historically supply/demand emerged for surety to push down/up the RSI indicator and the corresponding price. So, these are the most accurate way, we believe, to draw support/resistance (or demand/supply) in the chart. By default, the Support is green color and Resistance is red color. To give a visual representation, we differentiate the different shades of green and red. For example, for Level-1 (i.e. 7 by default) we use the darkest shade (0 transparency) and Level-4 (i.e. 28 by default) we use lighter shade (60 transparency). Note please: you can customize the color of support and resistance lines (say if you want resistance as green and support as red). The respective shades (transparency) will be automatically adjusted accordingly. But those shade (transparency) levels are not customizable, they are fixed (please bear with it for version-1 at least).
Strength of Support/Resistance
In the chart above/below the Resistance / Support lines you can see the tiny labels with some numbers like 1, 2.
We found out how many times a particular support/resistance is appearing across multiple RSI periods. E.g. if price P1 appears 2 times among 4 different RSI periods, the number will be 2 for that calculation, and so on.
There can be multiple presence of these numbers in a support/resistance line (i.e. multiple tiny labels). Something like: 1, 1, 2 (into different candles). This means the same support/resistance is tested so many times in different occasion (means there is a RSI max/min coincides in this level over multiple occasions) at different candles.
This will help you to intuitionally gauge the “strength” of a support/resistance line.
The more the marrier, unworthy to mention.
Candle Stick Patterns
Well: we don’t need to tell anything about the Candlestick. All of you know it better than us. And it’s a time proven, zero-lag mechanism to judge the Price-Action is unfolding in the market. We do not know if there is anything better possible than this time tested patterns to judge the prevailing sentiments of market.
Price-Action does not complete without finding out the Candlestick Patterns correctly.
And in this indicator your will get all of these: Single Candle such as Doji (default off), Marubozu, Spinner, hammers, inverted-hammer etc. ; 2 candles like Tweezer, Inside Candle, Engulfing; 3 candles like morning star/evening star.
In the multi candle patterns (2/3 candles), we are grouping the candles with a dotted rectangle such that it is clear which 2/3 candles are part of the pattern. E.g. Morning Star: 3 candles are grouped in a dotted rectangle and the Morning Star label will come to the latest candle (3rd most – as the pattern is detected reliably only on the completion of the 3rd final candle).
Of course, any program can not eliminate your trained eyes and brain to capture the patterns. But we have provided sufficient knobs to adjust various parameters to tweak the candle-pattern detection. Such as Strict Inside Candle(Harami) Boolean knob where the whole current candle including wicks will be inside the body part of the previous big candle. For non-strict mode, the current candle just inside the previous candle, possibly by wicks.
To make it better usable, for every such knobs (which are not obvious) we have added user-friendly tooltip (just mouse hover the question mark (?) besides the control/switch). There are plenty of it.
Volume
Here we have a rudimentary (yet effective) way to judge the volumes.
We find out the Volume Weighted Moving Average (VMWA) of the 20-period (default, but customizable) and the latest volume. If the latest volume is more than the 20 period vwma, we just add a grey diamond on the top of the candle to denote it’s attracting volumes. Of course, we provide a Weight coefficient (default is set to 1). So if the current bar’s volume on bar’s completion is more than the 20 period volume vmwa times the weigh-cofficient, we mark it with a tiny grey diamond.
Points to be noted:
In all places we mark the indication only on the completion of the bar (technically speaking we have checks, as far as possible, with barstate.isconfirmed). However, if you wish, you can turn it off for Candlestick (as some experts may want to check candlestick on the real time, even before the closing of bars).
In case if you see the chart looks cluttered (because of many information, specially in smaller timeframes like 5 min), there are controls given in the settings to toggle each and every features.
By default, we turn off Doji candles (all 3 types of Doji’s – normal, Gravestone & Dragonfly) as they are mainly indecision. However, you can toggle it to turn it on.
It does not give you any Buy/Sell call. The interpretation it does not have.
Why?
What’s unique in it?
As we already mentioned our intention is to include Price (in forms of Support / Resistance), Volume and Action (sentiments in terms of Candlestick patterns) into a single place. And so far, to the best of our knowledge, we could not come across a single indicator provides all of these.
There were works available to determine the RSI based support / resistance zones. Those are great piece works at that time (lets say 3 years back when PineScript was in earlier versions). To the best of our knowledge those does not cover up finding out the lowest / highest point of RSI and the corresponding price to get the simplistic and distinct support/resistance lines.
We have the intuitive support/resistance strength included which we could not found out in current set of available indicators.
To the best of our knowledge, there seems no indicator can detect 3-candle patterns which are extremely popular to detect trend reversals (such as Morning Star or Evening Star). Moreover for the multi-candle patterns we are grouping the candles part of the pattens (2-candles or 3-candles) using a dotted rectangle such that it’s visually clearly (and a well educative material for Price-Action learners also).
Mentions:
There are many works which inspire us along the way. Honestly: we sometimes forgot which all indicators we experimented with. We are sincerely apologetic in case we forgot to mention. A few note-worthy:
There is an indicator from user “repo32” named as “Candlestick Patterns Identified (updated 3/11/15)”. (We could not be able to contact “repo32”). We are inspired from his work that it’s feasible to detect Candlestick patterns.
There is an awesome work done by “RSI Based Automatic Demand and Supply” by user “shtcoinr”. The idea of consulting multiple RSI levels to find out the demand/supply zone we inspired from him. (We did contact “shtcoinr” and got his kind permission to use the concept.)
We are greatly thankful to these abovementioned wizards for their pioneering a-prior work in this front.
And of course, this TradingView platform to provide this abstraction, facilitates and felicitates collaborative contributions.
Ultimately, what’s for you?
That’s the main question. What’s for you?
Price-action comprises of following 3 tasks (at least):
Draw support/resistance lines in the chart.
Once price reaches at the support/resistance line, you fervently look out the candles’ formation to mentally map to the candle patterns. Your aim is divine: You want to judge if the price-action will continue or take a rejection/reversal.
Then you double-confirm with the volume (in a non-overlaid chart below).
Finally take a trade.
For a price-action newbie or seasoned, expert practitioner, you must be doing all the above tasks regularly and manually, in a mechanical, mundane way. There come the humanly subjectivity & the inevitable emotions . This indicator, being a piece of program/code in PineScript latest version v5 , eliminates (or at least, reduces to a great extend) that subjectivity & emotions out of the way of decision making . Thus resulting better yield.
Of course, you can argue that you draw slanted trend lines also. We recommend an already existing indicator by user LuxAlgo named as “Trendlines with Breaks ”, if you wish so.
Disclaimer:
This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.
Happy trading.
Dark Cloud Cover Pattern Trading Setupthis study is another script based on the candlestick pattern . there are a few filters implemented to be applied to the output result to clear out noises. it sounds like finding real Dark Cloud Cover instances are too rare (interesting though!).
Dark Cloud Cover
it is a bearish reversal candlestick pattern where a down candle (typically bearish) opens above the close of the prior up candle (typically bullish) and then closes below the midpoint of the up candle. The five criteria for the Dark Cloud Cover pattern are:
An existing bullish uptrend.
An up (bullish) candle within that uptrend.
A gap up on the following day.
The gap up turns into a down (bearish) candle.
The bearish candle closes below the midpoint of the previous bullish candle.
all these criteria are implemented in code to produce a more accurate result.
please provide me with your valuable comments,
thanks for your attention,
Dark Cloud Backtest This is a bearish reversal pattern formed by two candlesticks within a uptrend.
Consists of an up candlestick followed by a down candlestick which opens lower
than the prior candlestick and closes below the midrange of the prior candlestick.
It is the reverse of the Piercing Line.
WARNING:
- For purpose educate only
- This script to change bars colors.
Flat Combo DetectorFlat Combo Detector (FCD)
Introduction:
The Flat Combo Detector is a unique tool crafted to aid traders in identifying potential trend reversals. Unlike standard indicators that primarily focus on moving averages or oscillators, the FCD bases its signals on specific candlestick patterns that manifest at crucial trend pivot points.
I use it mostly on OANDA:XAUUSD Gold
How It Works:
The logic of the Flat Combo Detector revolves around the formation of consecutive bearish and bullish candles with particular attributes:
Bearish to Bullish Transition:
Primary Candle : A bearish candle where the close is lower than the open and its close is equal to its low.
Following Candle: A bullish candle where the close is higher than the open, and the open approximates its low (within a user-defined tolerance).
Signal : A green triangle plotted below the price bar, indicating a potential shift from a bearish to bullish trend.
Bullish to Bearish Transition:
Primary Candle: A bullish candle where the close is higher than the open and equals its high.
Following Candle : A bearish candle where the close is lower than the open, and the open approximates its high (within a user-defined tolerance).
Signal : A red triangle plotted above the price bar, indicating a potential transition from a bullish to bearish trend.
Usage Guidance:
For traders unfamiliar with Pine Script, using this indicator is straightforward. Once added to the chart, look for the green and red triangle signals. A green triangle below a price bar suggests a possible bullish reversal, while a red triangle above a price bar hints at a potential bearish reversal. Always consider these signals in conjunction with other technical analysis tools and the broader market context to optimize decision-making.
Associated Strategy:
I've also developed a trading strategy that utilizes these specific entry points identified by the FCD. If you find the signals from this indicator helpful, you might also be interested in exploring the strategy for a comprehensive trading approach. Always remember to backtest and validate any strategy before live trading.
Chart Presentation:
The published chart associated with this script has been kept clean to ensure clarity. Users will only observe the main price bars/candles along with the green and red triangle signals generated by the FCD.
Conclusion:
The Flat Combo Detector provides traders with a fresh perspective on trend reversal points. Its focus on specific candlestick patterns makes it a valuable tool, especially when used in combination with other technical indicators. Always ensure to practice prudent risk management and consult multiple analysis methods before making trading decisions.
