Candle reversal and continue
- Indicators
- reza rahmad
- Version: 1.1
- Activations: 5
Candle Reversal, is designed to identify and highlight key candlestick patterns that signal potential trend reversals or continuations in the market. It focuses on two primary types of patterns:
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3-Line Strike Patterns (Bullish and Bearish)
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Engulfing Patterns (Bullish and Bearish)
The indicator provides visual cues (arrows and text labels) on the chart to help traders quickly identify these patterns, making it easier to make informed trading decisions.
use with MACD or awesome oscilator to find trend
Key Features
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Bullish 3-Line Strike:
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Detects a bullish reversal pattern consisting of three consecutive bullish candles followed by a bearish candle that closes below the first candle's open.
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Marks the pattern with a yellow arrow below the bearish candle and a text label indicating "Bullish 3LS Reversal."
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Bearish 3-Line Strike:
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Detects a bearish reversal pattern consisting of three consecutive bearish candles followed by a bullish candle that closes above the first candle's open.
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Marks the pattern with a red arrow above the bullish candle and a text label indicating "Bearish 3LS Reversal."
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Bullish Engulfing:
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Detects a bullish engulfing pattern where a bearish candle is followed by a larger bullish candle that completely engulfs the previous candle's body.
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Marks the pattern with a yellow arrow below the engulfing candle and a text label indicating "Bullish Engulfing Continue."
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Bearish Engulfing:
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Detects a bearish engulfing pattern where a bullish candle is followed by a larger bearish candle that completely engulfs the previous candle's body.
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Marks the pattern with a red arrow above the engulfing candle and a text label indicating "Bearish Engulfing Continue."
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Input Parameters
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Show Bullish 3 Line Strike: Enables or disables the detection and display of the Bullish 3-Line Strike pattern.
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Show Bearish 3 Line Strike: Enables or disables the detection and display of the Bearish 3-Line Strike pattern.
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Show Bullish Engulfing: Enables or disables the detection and display of the Bullish Engulfing pattern.
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Show Bearish Engulfing: Enables or disables the detection and display of the Bearish Engulfing pattern.
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Arrow Offset: Adjusts the vertical distance of the arrow from the candle's high or low.
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Text Offset: Adjusts the vertical distance of the text label from the arrow.
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Bullish Color: Sets the color for bullish patterns (default: yellow).
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Bearish Color: Sets the color for bearish patterns (default: red).
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Arrow Size: Adjusts the size of the arrows.
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Bullish Text: Custom text for bullish patterns.
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Bearish Text: Custom text for bearish patterns.
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Bullish Engulfing Text: Custom text for bullish engulfing patterns.
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Bearish Engulfing Text: Custom text for bearish engulfing patterns.
How It Works
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Pattern Detection:
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The indicator scans the chart for the specified candlestick patterns (3-Line Strike and Engulfing).
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It evaluates the open, high, low, and close prices of consecutive candles to identify valid patterns.
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Visual Markers:
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When a pattern is detected, the indicator draws an arrow (up or down) near the relevant candle.
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A text label is also displayed to describe the pattern (e.g., "Bullish 3LS Reversal" or "Bearish Engulfing Continue").
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Timeframe Adjustment:
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The indicator automatically adjusts the arrow and text offsets based on the current timeframe to ensure proper placement on the chart.
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Cleanup:
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On deinitialization, the indicator removes all drawn objects (arrows and text labels) to keep the chart clean.
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Usage
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Trend Reversal Signals:
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Use the 3-Line Strike patterns to identify potential trend reversals.
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For example, a Bullish 3-Line Strike after a downtrend may signal a reversal to the upside.
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Trend Continuation Signals:
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Use the Engulfing patterns to confirm the continuation of an existing trend.
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For example, a Bullish Engulfing pattern during an uptrend may indicate further upward movement.
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Customization:
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Adjust the input parameters (e.g., colors, offsets, text) to suit your trading style and preferences.
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Benefits
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Visual Clarity:
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The arrows and text labels make it easy to spot patterns at a glance, even on busy charts.
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Flexibility:
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The indicator allows you to enable or disable specific patterns and customize their appearance.
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Timeframe Adaptability:
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The indicator works on all timeframes, from 1-minute to monthly charts.
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Clean Chart:
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The cleanup function ensures that old objects are removed, preventing clutter on the chart.
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Limitations
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Lagging Indicator:
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Like all candlestick pattern-based indicators, this tool is lagging and relies on historical price data.
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False Signals:
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Not all patterns will result in successful trades. Use additional confirmation (e.g., support/resistance, volume) to improve accuracy.
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Conclusion
The Candle Reversal with Engulfing Detection indicator is a powerful tool for traders who rely on candlestick patterns to identify potential reversals and continuations in the market. By providing clear visual cues, it helps traders make more informed decisions and improves their ability to spot high-probability trading opportunities.
