OPEN-SOURCE SCRIPT
Candle type identifier VP
The Candle type identifier is designed to identify the top 5 types of candle it formed on a 5 mins chart specifically, it can't be used for trading but it can be used additionally to confirm your trade before trading it.
It identifies the top 5 patterns:
-Engulfing
-Hammer
-Morning Star
-Piercing Line
-Three White Soldiers
Tips for Using These Patterns in Day Trading
Confirm with Volume
Look for higher volume on the reversal candle (engulfing candle, the third candle in a three-candle pattern, etc.). Strong volume increases the validity of the signal.
Combine with Other Indicators
Use moving averages, RSI, or support/resistance levels to confirm the strength of a pattern. Candlestick patterns alone can produce false signals in fast-moving markets.
Practice Risk Management
Always define your stop loss before entering a trade based on your strategy (e.g., below the wick of a hammer or above the wick of a shooting star). This helps manage risk if the market moves against you.
Look for Clear Context
Patterns that form near key support/resistance or pivot areas are typically more meaningful than those that appear in “no man’s land.”
Evaluate Multiple Time Frames
Although our focus on the 5-minute chart, briefly check higher time frames (e.g., 15-minute, hourly) to see if the overall trend supports the direction of your trade.
It identifies the top 5 patterns:
-Engulfing
-Hammer
-Morning Star
-Piercing Line
-Three White Soldiers
Tips for Using These Patterns in Day Trading
Confirm with Volume
Look for higher volume on the reversal candle (engulfing candle, the third candle in a three-candle pattern, etc.). Strong volume increases the validity of the signal.
Combine with Other Indicators
Use moving averages, RSI, or support/resistance levels to confirm the strength of a pattern. Candlestick patterns alone can produce false signals in fast-moving markets.
Practice Risk Management
Always define your stop loss before entering a trade based on your strategy (e.g., below the wick of a hammer or above the wick of a shooting star). This helps manage risk if the market moves against you.
Look for Clear Context
Patterns that form near key support/resistance or pivot areas are typically more meaningful than those that appear in “no man’s land.”
Evaluate Multiple Time Frames
Although our focus on the 5-minute chart, briefly check higher time frames (e.g., 15-minute, hourly) to see if the overall trend supports the direction of your trade.
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