Candle type identifier VPThe Candle type identifier is designed to identify the top 5 types of candle it formed on a 5 mins chart specifically, it can't be used for trading but it can be used additionally to confirm your trade before trading it.
It identifies the top 5 patterns:
-Engulfing
-Hammer
-Morning Star
-Piercing Line
-Three White Soldiers
Tips for Using These Patterns in Day Trading
Confirm with Volume
Look for higher volume on the reversal candle (engulfing candle, the third candle in a three-candle pattern, etc.). Strong volume increases the validity of the signal.
Combine with Other Indicators
Use moving averages, RSI, or support/resistance levels to confirm the strength of a pattern. Candlestick patterns alone can produce false signals in fast-moving markets.
Practice Risk Management
Always define your stop loss before entering a trade based on your strategy (e.g., below the wick of a hammer or above the wick of a shooting star). This helps manage risk if the market moves against you.
Look for Clear Context
Patterns that form near key support/resistance or pivot areas are typically more meaningful than those that appear in “no man’s land.”
Evaluate Multiple Time Frames
Although our focus on the 5-minute chart, briefly check higher time frames (e.g., 15-minute, hourly) to see if the overall trend supports the direction of your trade.
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Candlestick Patterns Identified (updated 3/11/15)I decided to republish this one without the trend filter and with all the major symbols active. This will allow for all the patterns to show up.
Due to 15 different candlestick formations in this one script, it will be difficult to turn off the last few due to screen size. You can turn off individual patterns on the settings screen.
I have everything spelled out except the hammer and inverted hammer. They are "H" and "IH" respectively on the charts. They show up so often that they cluttered the charts.
The default script has: Doji, Evening Star, Morning Star, Shooting Star, Hammer, Inverted Hammer, Bearish Harami, Bullish Harami, Bearish Engulfing, Bullish Engulfing, Piercing Line, Bullish Belt, Bullish Kicker, Bearish Kicker, Hanging man, and Dark Cloud Cover. You can turn off what you don't like. The Piercing Line, Bullish Belt, and the Kickers will usually show up better in the daily charts.
I recommend watching videos with Stephen Bigalow to get a feel for how to trade these. You will want to add an 8 EMA to your chart with his setups. Enjoy.
If you want the old version: Take a look at the related ideas below.
