Candle Patterns
Candlestick charts are said to have been developed in the 18th century by legendary Japanese rice trader Homma Munehisa. The charts gave Homma and others an overview o open! high! low! and close market prices over a certain period. This style o charting is very popular due to the level o ease in reading and understanding the graphs. "ince the 1#th century! there has been a lot o e ort to relate chart patterns to the likely uture behavior o a market. This method o charting prices proved to be particularly interesting! due to the ability to display ive data points instead o one. The Japanese rice traders also ound that the resulting charts would provide a airly reliable tool to predict uture demand. $%s &uoted in
http'((en.wikipedia.org(wiki(Candlestick)chart*.
The Candle Patterns is an indicator recognising chart patterns ormed o Japanese Candlesticks. +rate ull thanks go to the authors o the ollowing works on which the indicator is based' Japanese Candlesticks! http'((www.candlesticker.com CandleCode by ,ictor -ikhovidov! http'((www. ore.school.ru %ny trade must not be solely based on a Candle Pattern! but together with the suggestions o one or more indicators! such as Moving %verages! Trend -ines! /scillators or Custom indicators. 0or instance! only place a "ell trade when the Candle Pattern con irms the 1earish trend o a M%C2 indicator! or when a reversal pattern touches a moving average line.
3nstallation
0iles placed in older' Candle Patterns.m&6 0iles placed in older' Candle Patterns.rtd usage. Candle Patterns.csv allows the display /7 or /00. "ymbols).csv 0ile placed in older' speak.dll Coders+uru o grate ull. 45e.perts5indicators4 4The indicator4. 45e.perts5 iles4 3ntroduction to Candle Patterns! in o on "pecs on candle patterns. 0irst column o each pattern to be toggled Code o symbols and te.t or audio output. 45e.perts5libraries4 Te.t to speech engine coded by www. ore.8tsd.com or which 3 am very
0iles placed in older' g"peak.m&h 0ile placed in older' candle patterns.tpl removes all Patterns4 indicator.
45e.perts5include4 9.ternal unction de inition o speak.dll. 45templates4 "ets up chart period H1 or candlesticks and previous indicators. Calls up 4Candle
Close and then re8start MetaTrader or it to ind the new iles.
Chart "et:p
;ight click on the desired chart and click on 4Template4! 4candle patterns4. This sets up the chart to display Candlesticks $i it was showing 1ars* and removes any other indicators displayed in sub8windows and the main window so as to enable the pattern labels to be positioned correctly. %lso ma.imise the main window si<e as much as possible $e.ample ma.imum two vertical charts per monitor*. The template sets up the chart to period H1 and calls up the indicator 4Candle Patterns4.
3ndicator 3nputs
Click on 43ndicators4! cursor down to 4Custom4 and select 4Candle Patterns4. :nder the 4Common4 tab ensure that 4%llow 2-- imports4 is tagged. Ma.1arsTo"can0orPatterns "et to 4=4 to display only the candle patterns detected on the visible part o the chart! this is use ull to recognise the di erent candle patterns. 3 the number o bars input is above 1 but less than the number o bars visible! then the indicator will display candle patterns detected on the visible part o the chart. 3 the input number is greater than the number o visible bars! then patterns will be scanned up to the value o Ma.1arsTo"can0orPatterns. "et to 414 to display at bar one a pattern i detected. 3 ound the pattern name is shown at the top le t hand side o the chart. /n the top right hand side o the chart are displayed si. symbols $eg' ;>* with the ollowing
meanings' Position = ? 1 8 con irmed' 3 4Con irmPattern4 is set to 4true4 then these symbols are displayed i the previous pattern is con irmed' 4Pattern con irmed down4. 4Pattern con irmed reversed down4. 4Pattern con irmed reverse up4. 4Pattern con irmed up4. Continuation or A Position @ 8 pattern type' ;eversal! $;eversal(Continuation*. Position B 8 current trend' or Position 6 8 possible new direction' or
or Iindecision.
Position C 8 con irmation>' Certain patterns suggest the con irmation o the new direction or the same direction in the ne.t bar by another pattern. 0or e.ample a con irmation o the trend reversal by a white candlestick! a large gap up or by a higher close on the ne.t trading day is suggested. 3 con irmation is suggested to be waited or by the pattern in the ne.t bar it will be indicated with the > symbol. Con irmPattern by the con irmed. "et to 4true4 or the new direction proposed previous pattern to be
MoveTe.t/ne;ow2own "et to 4true4 to move the hori<ontal label o the candle pattern $and arrow indicators* one row down so as to 4"how /H-C4 $or 9% name* at the same time i re&uired. %udio/7 pattern has Color"ingleCandle set to patterns made up "et to 4true4 or audible messages when a been detected. :sed when 4Ma.1arsTo"can0orPatterns4 is not 414 to easier read labels o contiguous o one candlestick.
%lternateColor"ingleCandle
2itto.
ColorMultiCandles :sed when 4Ma.1arsTo"can0orPatterns4 is not set to 414 to easier read labels o contiguous patterns made up o two or more candlesticks. %lternateColorMultiCandles Color%rrow2own set to 414 to direction. Color%rrow:p ColorTe.t set to 414 to the 4con irmed4 pattern. 2itto. :sed when 4Ma.1arsTo"can0orPatterns4 is display the name o the pattern and arrows or the previous 2itto. :sed when 4Ma.1arsTo"can0orPatterns4 is indicate current trend! possible new
,erticalTe.t%dDustA :sed when 4Ma.1arsTo"can0orPatterns4 is not set to 414. 3t allows movement o the vertical pattern labels when the ont si<e is changed with ,erticalTe.t0ont"i<e. Eoom 3n F ,erticalTe.t0ont"i<e F ,erticalTe.t%dDustA GB 1 G6 = GC $Ma.*F = ,erticalTe.t0ont"i<e TrendM%)Period determine the trend. TrendM%)"hi t comparison o determining the trend*. Have un! s. Ted. "ee 4,erticalTe.t%dDustA4. %veraging period or calculation to 7umber o bars back rom current bar or moving averages $used in 1= F F H F F 8 F
