Pattern indicator is a powerful multipurpose VertexFX client-side script indicator that identifies and displays various candlestick patterns.
Candlestick patterns are a powerful ancient Japanese method of identifying interesting occurrences in the price behavior. When the price exhibits certain characteristics, there is a high probability that the market will exhibit certain predictable behavior. For example, a Doji pattern occurs when the opening and the closing prices are very close, and the candle is short in height. It implies that the market is trading in a close range and is undecided about the future course, or has exhausted the current course. For example, a Doji pattern after a long bear market can imply change in direction and a bullish trade can be initiated.
This indicator identifies 13 patterns. It is recommended to refer to the candlestick patterns for more details on trading opportunities.
The candlestick patterns detected by this indicator are :
1) Hanging Man.
3) Inverse Hammer.
4) Lower Marubozu.
5) Higher Marubozu.
6) Evening Star.
10) Three White Soldiers.
11) Southern Star.
12) Abandoned Baby.
BUY - BUY trades should be taken if the recent candlestick pattern displayed is a BULLISH pattern.
SELL - SELL trades should be taken if the recent candlestick pattern displayed is a BEARISH pattern.