🕯️ Candle Patterns

Comprehensive candlestick pattern recognition system that automatically identifies classic reversal and continuation patterns for informed trading decisions

📚 Documentation › ⚙️ Features › Candle Patterns

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Market Type

Any Condition

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Best Timeframes

All TFs

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Difficulty

⚖️ Medium

📋 Overview

The Candle Patterns feature is an advanced pattern recognition system that automatically identifies classic candlestick formations on your charts. This powerful tool scans for both bullish and bearish patterns, providing visual signals and alerts when significant formations appear, helping traders spot potential reversal and continuation opportunities.

The system recognizes 10 major pattern types including engulfing patterns, star formations, harami patterns, and soldier/crow sequences. Each pattern is marked with clear visual indicators and text labels, making it easy to spot high-probability setups as they develop in real-time.

✨ Key Features

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10 Classic Pattern Types

Comprehensive coverage including engulfing, star, harami, and soldier formations

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Real-Time Recognition

Patterns identified as they complete with visual markers and text labels

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Bullish and Bearish Detection

Complete coverage of both reversal directions with orange arrow indicators

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Customizable Display System

Toggle individual patterns on/off with alert notifications for pattern formation

⚙️ How It Works

🔬 The Technology Behind Road Levels

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Multi-Candle Analysis Engine

Advanced pattern recognition system

└ Single, double, and triple candle formation detection
└ Real-time scanning as candles complete
└ Stochastic filtering for improved accuracy

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Visual Marking System

Clear pattern identification

└ Orange arrows above (bearish) and below (bullish) candles
└ Text abbreviations for each pattern type (BE, MS, TWS, etc.)
└ Hover tooltips showing full pattern names

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Pattern Classification Logic

Systematic pattern categorization

└ Reversal patterns for trend changes
└ Continuation patterns for trend following
└ Context-aware pattern validation

📊 Visual Representation

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Bullish Patterns (Orange Below)

Upward arrows below candles indicating bullish reversal or continuation signals

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Bearish Patterns (Orange Above)

Downward arrows above candles indicating bearish reversal or continuation signals

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Pattern Abbreviations

Text labels showing pattern codes: BE (Engulfing), MS (Morning Star), TWS (Three White Soldiers)

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Alert Notifications

Optional notifications when significant patterns complete formation

🎯 Trading Modes Explained

Reversal Pattern Trading

Trend Change Best for: Traders seeking trend reversal signals at key support/resistance levels

✓ Focus on engulfing, star, and harami patterns
✓ Best performance at key support/resistance levels
✓ Combine with oversold/overbought indicators
✓ Use tight stops for risk management

Continuation Pattern Trading

Trend Following Best for: Trend traders using patterns for entry timing in established trends

✓ Three White Soldiers and Three Black Crows focus
✓ Trade in direction of prevailing trend
✓ Use patterns for precise entry timing
✓ Trail stops with trend movement

Pattern Confirmation Trading

Signal Validation Best for: Conservative traders using patterns to confirm other indicator signals

✓ Validate support/resistance level tests
✓ Confirm trend indicator signals
✓ Time entries with pattern completion
✓ Reduce false signals through confluence

Multi-Timeframe Analysis

Comprehensive Best for: Advanced traders combining patterns across multiple timeframes

✓ Daily patterns for swing trade bias
✓ 4H patterns for day trading setups
✓ 1H patterns for intraday opportunities
✓ 15M patterns for scalping entries

💡 Best Practices

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Wait for complete pattern formation before entering trades - don't anticipate

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Focus on patterns at key support and resistance levels for higher reliability

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Look for volume confirmation with reversal patterns, especially engulfing formations

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Use multiple timeframes to confirm pattern significance and context

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Place stops beyond pattern extremes (high/low) for proper risk management

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Quality over quantity - focus on clear, well-formed patterns

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Combine patterns with trend direction for higher probability setups

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Exit quickly if patterns fail - failed patterns often lead to strong moves opposite

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Consider market conditions - trending markets favor continuation, ranging favor reversals

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Practice pattern recognition on historical charts to improve identification skills

🎛️ Settings & Configuration

Reversal Focus (All Timeframes)

Mode: Pattern Reversal

Sensitivity: High Reliability

✓ Enable star patterns and engulfing formations

✓ Stochastic filtering for overbought/oversold confirmation

✓ Alert notifications for major reversal patterns

✓ Focus on patterns at key support/resistance levels

Continuation Trading (M15-H4)

Mode: Trend Following

Sensitivity: Trend Bias

✓ Emphasize soldier and crow formations

✓ Filter patterns against overall trend direction

✓ Reduced sensitivity for cleaner signals

✓ Volume confirmation requirements enabled

Complete Pattern Suite (M1-D1)

Mode: All Patterns

Sensitivity: Comprehensive

✓ All 10 pattern types enabled

✓ Standard sensitivity settings

✓ Full visual display with abbreviations

✓ Optional alert system for pattern completion

⚡ Quick Setup Guide

Add Candle Patterns indicator to your chart with default settings
Note orange arrows: Above candles = bearish, Below candles = bullish
Learn key pattern abbreviations: BE (Engulfing), MS (Morning Star), TWS (Three White Soldiers)
Enable alerts for pattern completion notifications
Start by focusing on 2-3 pattern types before expanding to full suite