A Pine Script v6 indicator that detects and labels key candlestick patterns on TradingView charts, providing real-time visual markers for bullish and bearish reversal signals.
Explore complementary indicator rolesHow it works
The candlestick pattern indicator automatically scans price charts to identify specific candlestick formations like bullish and bearish engulfing, hammer, shooting star, and doji patterns. It uses algorithmic detection to recognize the unique shape and relationship between consecutive candles, analyzing their body size, color, and relative positioning.
When a valid pattern is detected, the indicator plots visual labels directly on the chart, using different colors and shapes to distinguish between bullish (green), bearish (red), and indecision (blue) patterns. These labels help traders quickly identify potential trend reversals and entry/exit points without manual chart analysis.
Why it may be useful
Candlestick pattern recognition provides traders with a powerful tool for understanding market psychology and potential trend changes. By automatically detecting these formations, traders can make more informed decisions, reducing the time spent on manual chart analysis and minimizing the risk of overlooking critical market signals.
The indicator's visual approach makes complex price action more accessible, especially for newer traders who might struggle to manually identify these patterns. By offering instant, clear visual cues about potential market reversals, the tool helps traders develop a more systematic and disciplined approach to technical analysis.
When to explore it
The candlestick pattern indicator is most effective in markets with clear trending or ranging conditions, such as forex, stocks, and cryptocurrencies. It works best when used in conjunction with other technical indicators like RSI, moving averages, and MACD to confirm signals and reduce false positives.
Traders should pay special attention to these patterns during key market transition points, such as after a strong trend, near support or resistance levels, or during periods of market consolidation. The indicator is particularly useful for traders seeking to identify potential entry and exit points, manage risk, and develop more robust trading strategies across different timeframes.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
