Enhanced Candlestick Patterns (Beta)

About:
(Zoom in if you can't see the signals. You can increase the size in the settings.) 

Identifies 10 classic candlestick reversal/continuation patterns with configurable sensitivity and trend confirmation. (More will be added in next versions). 


Configuration:

You can adjust the preferences:

• The Doji Body/Range Ratio (0.05, range: 0.01-0.2) sets the maximum body-to-total-range ratio for Doji detection. Think of it as the minimum size of the "hole" in a Doji.
• The Shadow/Body Ratio (2.0, range: 1.0-5.0) determines the minimum shadow-to-body ratio for Hammers and Shooting Stars. This ratio helps you understand the size of the "tail" in relation to the body.
• The Minimum Body/ATR Ratio (0.3, range: 0.1-1.0) ensures the body of a candlestick must be at least this size in relation to the Average True Range (14) to qualify as "significant." That's your threshold for what counts as a meaningful move.
• The Gap/ATR Ratio (0.1, range: 0.0-0.5) sets the minimum gap size (relative to ATR) for Morning and Evening Stars. This parameter helps you gauge the size of the gap between the two candles.
• The Volume Increase Ratio (1.2, range: 1.0-3.0) is the minimum volume spike required for Engulfing patterns. Think of it as the minimum "surge" in volume you need to see for an Engulfing pattern to be valid.
• Fast EMA Length (20, range: 5-50) and Slow EMA Length (50, range: 20-200) determine the length of your short-term and long-term trend EMAs. These parameters help you understand the short-term and long-term trends in the market.

Pattern Labels & Meanings

These are the patterns you'll be looking out for:

Bullish Patterns (Marked Below Price)

• BE (Bullish Engulfing): A current candle fully engulfs the prior bearish candle—and there's a volume spike. That's a green flag.
• MORN (Morning Star): A bearish candle is followed by a Doji and then a bullish candle with gaps. That's a sign of a reversal.
• H (Hammer): A long lower shadow in a downtrend with a small body. That's a sign of a potential reversal.
• P (Piercing): A bullish candle closes above the midpoint of the prior bearish candle. That's a sign of a reversal.
• TWS (Three White Soldiers): Three consecutive strong bullish candles in a downtrend. That's a strong sign of a reversal.

Bearish Patterns (Marked Above Price)

• SE (Bearish Engulfing): A current candle fully engulfs the prior bullish candle—and there's a volume spike. That's a red flag.
• EVE (Evening Star): A bullish candle is followed by a Doji and then a bearish candle with gaps. That's a sign of a reversal.
• SS (Shooting Star): A long upper shadow in an uptrend with a small body. That's a sign of a potential reversal.
• DCC (Dark Cloud Cover): A bearish candle closes below the midpoint of the prior bullish candle. That's a sign of a reversal.
• TBC (Three Black Crows): Three consecutive strong bearish candles in an uptrend. That's a strong sign of a reversal.

Key Features

• Trend Filter: Patterns only trigger in the context of EMA-defined trends. The crossover of Fast EMA (20) and Slow EMA (50) to confirm the trend.
• Volatility Scaling: Using ATR(14) to adapt to market conditions.
• Volume Confirmation: Engulfing patterns require a volume increase.
• Customizable Sensitivity: You can adjust the ratios to prioritize reliability or frequency.

Notes

• Beta Status: Currently includes the top 10 most actionable patterns. Additional patterns are under development. You can request your custom list: All ~100 patterns will work quite slowly in one script, it is better to choose 10-20 optimal ones for optimal performance and productivity.