Validating Candlestick Patterns - page 2

[Conor Mcnamara]

I had a look at this script made by Lorenzo and I made a modified version which includes an MA to filter the signals. Engulfed candlestick formations are not reliable for predicting the future, because once they close it's the past...and the pattern could occur at the higher highs (causing an invalid buy signal), so you could use an MA with logic to say that only signals should print when they are in a range (when they are close to the MA line), and this way you might get safer signals, and filter away unsafe ones:

I still wouldn't use this indicator in isolation.

[Conor Mcnamara]

meh here's an attempt to optimize the script and make it better, but it still glitches every once in a while when changing timeframe