Candlestick Pattern

Candlestick patterns are price movements which can be shown on a candlestick chart. A candlestick pattern typically consists of one or several candlesticks. The different patterns can be used to predict price reversals or price continuation. The Candlestick Pattern indicator identifies 30 bullish and bearish pattern which have been adapted for intraday charts. You may register for FREE trial anytime.

Candlestick patterns for NinjaTrader 8

Indicator Description

The Candlestick Pattern indicator identifies the following pattern:

Reversal Pattern and Continuation Pattern

A bullish reversal pattern alerts to a potential change from a downtrend to an uptrend. Therefore bullish reversal patterns are only valid when they occur during a downtrend. Likewise, bearish reversal patterns precede a potential change from an uptrend to a downtrend and therefore require that the market is in an uptrend. For a bullish continuation pattern the market should already be in an uptrend, while a bearish continuation pattern requires that the market is already in a downtrend. Most of the candlestick pattern are reversal pattern. A reversal pattern is reinforced by support and resistance. The predictive power of reversal pattern increases when there are several reversal patterns in a row.

The Candlestick Pattern indicator comes with an integrated, customizable zigzag indicator which is based on the basic features of our SwingTrend indicator. All patterns may be selectively detected during uptrends or downtrends alone.

Statistical Analysis

Candlestick pattern were originally developed in Japan around 1850 for daily, weekly and monthly charts. The concept has been developed for time based charts and can be extended to intraday charts for many of the pattern. Gap pattern are not suited for intraday charts.

However, not all markets are equal. Some patterns may work on equity markets but perform worse on commodity or FOREX markets. They may work on daily charts but not be suited for faster charts. Therefore, it is important to perform a statistical evaluation of the validity of each of the pattern for the market to which it shall be applied.

The Candlestick Pattern indicator facilitates the statistical evaluation in two ways. First the indicator already performs an analysis of price moves after the pattern has been detected. The analysis is displayed in a separate data box for the last candlestick pattern visible on the chart. Second the indicator has all the pattern exposed as public data series such that they can be accessed by a strategy for performing a portfolio backtest for each of the pattern across an asset class. The indicator is compatible with the NinjaTrader strategy builder and Bloodhound / Blackbird.

Indicator Price $ 275.00