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Obscure Institutional Candle Patterns
The "Obscure Institutional Candle Patterns" indicator is a specialized tool designed to identify subtle and unconventional candlestick patterns that may signal institutional activity, liquidity grabs, and sophisticated traps. Unlike common patterns like dojis or engulfing candles, this script focuses on nuanced relationships between price, wicks, and volume that often go unnoticed by the average retail trader.
The core idea is that institutional players leave footprints in the market that don't conform to standard textbook patterns. This indicator decodes these footprints, providing traders with potential early warnings or confirmations of significant market moves. Each pattern is plotted with a unique label and color for easy identification, and alerts are available for each signal.
Identified Patterns
Here is a breakdown of the specific patterns this indicator detects:
1. Liquidity Leech
What it is: A candle with an exceptionally long upper or lower wick (more than 3.618 times the body size) that forms on significantly low volume (less than the 20-period average).
Interpretation: This pattern suggests a probe into key price levels. A large institution may be "leeching" liquidity by testing for stop-loss orders without committing significant volume. It can be a precursor to a reversal, as it indicates where liquidity rests.
Plotted as: A small green triangle (Leech).
2. Echo Rejection
What it is: Two consecutive candles that both dip below the midpoint of the previous day's trading range but manage to close above it.
Interpretation: The previous day's midpoint acts as a critical support or resistance level. A single rejection is significant, but a second consecutive rejection—an "echo"—powerfully reinforces the level's strength. This pattern suggests a robust defense of a price level by buyers and can signal the start of a bullish move.
Plotted as: A small orange triangle (Echo).
3. Bleeding Wick Trap
What it is: A series of three consecutive candles, each with a very long lower wick (more than 6.618 times its body size), culminating in a bullish close on the third candle.
Interpretation: This pattern illustrates a sustained battle where sellers repeatedly try to push the price down, but buyers aggressively step in, creating long "bleeding" wicks. The final bullish close suggests the sellers have been exhausted or "trapped," and the buyers have won control, indicating strong accumulation.
Plotted as: A small blue triangle (WickTrap).
4. Time-Shifted Shadow Box
What it is: A bullish reversal candle that occurs after the price retraces into the middle of a bullish candle from two periods ago. This reversal must be accompanied by a massive surge in volume (at least 5 times the 20-period average).
Interpretation: This complex pattern identifies when the market returns to a "shadow" of a previous key level (the midpoint of the candle from two bars back). The aggressive, high-volume reversal from this time-shifted level suggests a powerful institution has stepped in to reverse the short-term retracement with conviction.
Plotted as: A fuchsia label (TS Box).
5. False Containment Body
What it is: A candle that looks like a bullish Harami (body is contained within the prior candle's body) but with two key differences: its entire range (high and low) is also contained, and its body is exceptionally tiny (less than 1/18th the size of the prior candle's body).
Interpretation: While a standard Harami signals indecision or a potential reversal, this pattern suggests a "false" signal designed to deceive. The extremely low volatility and tight range indicate a temporary pause or consolidation with hidden intent, often before a powerful continuation of the previous trend. It traps traders who misinterpret it as a simple reversal signal.
Plotted as: A yellow label (False).
How to Use
Confirmation Tool: Use these signals as a confirmation layer alongside your existing trading strategy. They are not meant to be standalone entry signals.
Context is Key: The effectiveness of these patterns increases significantly when they appear near key support/resistance levels, supply/demand zones, or major moving averages.
Alerts: Enable alerts to be notified in real-time when one of these obscure patterns forms, allowing you to pay closer attention to the price action that follows.
The core idea is that institutional players leave footprints in the market that don't conform to standard textbook patterns. This indicator decodes these footprints, providing traders with potential early warnings or confirmations of significant market moves. Each pattern is plotted with a unique label and color for easy identification, and alerts are available for each signal.
Identified Patterns
Here is a breakdown of the specific patterns this indicator detects:
1. Liquidity Leech
What it is: A candle with an exceptionally long upper or lower wick (more than 3.618 times the body size) that forms on significantly low volume (less than the 20-period average).
Interpretation: This pattern suggests a probe into key price levels. A large institution may be "leeching" liquidity by testing for stop-loss orders without committing significant volume. It can be a precursor to a reversal, as it indicates where liquidity rests.
Plotted as: A small green triangle (Leech).
2. Echo Rejection
What it is: Two consecutive candles that both dip below the midpoint of the previous day's trading range but manage to close above it.
Interpretation: The previous day's midpoint acts as a critical support or resistance level. A single rejection is significant, but a second consecutive rejection—an "echo"—powerfully reinforces the level's strength. This pattern suggests a robust defense of a price level by buyers and can signal the start of a bullish move.
Plotted as: A small orange triangle (Echo).
3. Bleeding Wick Trap
What it is: A series of three consecutive candles, each with a very long lower wick (more than 6.618 times its body size), culminating in a bullish close on the third candle.
Interpretation: This pattern illustrates a sustained battle where sellers repeatedly try to push the price down, but buyers aggressively step in, creating long "bleeding" wicks. The final bullish close suggests the sellers have been exhausted or "trapped," and the buyers have won control, indicating strong accumulation.
Plotted as: A small blue triangle (WickTrap).
4. Time-Shifted Shadow Box
What it is: A bullish reversal candle that occurs after the price retraces into the middle of a bullish candle from two periods ago. This reversal must be accompanied by a massive surge in volume (at least 5 times the 20-period average).
Interpretation: This complex pattern identifies when the market returns to a "shadow" of a previous key level (the midpoint of the candle from two bars back). The aggressive, high-volume reversal from this time-shifted level suggests a powerful institution has stepped in to reverse the short-term retracement with conviction.
Plotted as: A fuchsia label (TS Box).
5. False Containment Body
What it is: A candle that looks like a bullish Harami (body is contained within the prior candle's body) but with two key differences: its entire range (high and low) is also contained, and its body is exceptionally tiny (less than 1/18th the size of the prior candle's body).
Interpretation: While a standard Harami signals indecision or a potential reversal, this pattern suggests a "false" signal designed to deceive. The extremely low volatility and tight range indicate a temporary pause or consolidation with hidden intent, often before a powerful continuation of the previous trend. It traps traders who misinterpret it as a simple reversal signal.
Plotted as: A yellow label (False).
How to Use
Confirmation Tool: Use these signals as a confirmation layer alongside your existing trading strategy. They are not meant to be standalone entry signals.
Context is Key: The effectiveness of these patterns increases significantly when they appear near key support/resistance levels, supply/demand zones, or major moving averages.
Alerts: Enable alerts to be notified in real-time when one of these obscure patterns forms, allowing you to pay closer attention to the price action that follows.
Skrip dilindungi
Skrip ini diterbitkan sebagai sumber tertutup. Akan tetapi, anda boleh menggunakannya dengan percuma dan tanpa had – ketahui lebih lanjut di sini.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Skrip dilindungi
Skrip ini diterbitkan sebagai sumber tertutup. Akan tetapi, anda boleh menggunakannya dengan percuma dan tanpa had – ketahui lebih lanjut di sini.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.