Candlesticks Patterns [TradingFinder] Pin Bar Hammer Shooting

31 de jan.

🔵Introduction

Truly, the title "TradingView" doesn't do justice to this excellent website, and that's why I've written about its crucial aspect. In this indicator, the identification of all candlesticks known as "Pin bars" is explored.
These candlesticks include the following:
- Hammer: A Pin bar formed at the end of a bearish trend, with its body being either bearish or bullish.
- Shooting Star: Formed at the end of a bullish trend, with its body being either bearish or bullish.
- Hanging Man: Formed during an upward trend, characterized by a candle with a lower shadow.
- Inverted Hammer: Formed during a downward trend, characterized by a candle with an upper shadow.

🟣 Important: For ease of use, we refer to these four candlestick patterns as Pin Bars and categorize them into the main friends "Bullish" and "Bearish."

🟣 Important: In all sources, Hanging Man and Inverted Hammer are referred to as "Reversal candles." However, in reality, whenever they appear after breaking a significant area (Break Out), we expect these candles to signal a continuation of the trend and confirmation in the direction of the trend.

🟣 Important: One of the best signs of market manipulation and entry by market giants is the "Ice Berg." So, it provides one of the best trading opportunities.

🔵Reason for Creation

Many traders, especially volume traders, use Pin bars as confirmation and enter the market after their occurrence. In this indicator, all four patterns are identified and displayed in a colored candle format, using "triangle" and "circle."

When they are evident on the chart, directly or by drawing a horizontal line, they give us good alerts for reversal or continuation areas.

🔵Information Table
1. Red circle: Pin bars formed in a downtrend.
2. Blue circle: Bullish Pin bars formed in an uptrend.
3. Black triangle: Bearish Pin bar candle in an uptrend.
4. Blue triangle: Bullish Pin bar candle in a downtrend.


🔵Settings

Trend Detection Period: A special feature that considers smaller or larger fluctuations. If individual price waves need to be considered, use lower numbers; if the overall trend direction is desired, use larger numbers (e.g., 5-7 or higher). This precisely sets the Zigzag or Pivot format, not displayed but considered in the indicator calculation.

Trend Effect: By changing the Trend Effect status to "Off," all Pin bars, whether bullish or bearish, are displayed regardless of the current market trend. If the status remains "On," only Pin bars in the direction of the main market trend are shown.
🟣 Important: Black triangles "Number 3" and blue triangles "Number 4" displayed in the information table section, as explained in the "Information Table" section.

Show Bullish Pin Bar: When set to "Yes," displays bullish Pin bars; when set to "No," does not display them.

Show Bearish Pin Bar: When set to "Yes," allows the display of bearish Pin bars; when set to "No," does not display them.

Bullish Pin Bar Setting: Using the "Ratio Lower Shadow to Body" and "Ratio Lower Shadow to Higher Shadow" settings, you can customize your bullish Pin bar candles. Larger numbers impose stricter conditions for identifying bullish Pin bars.

Bearish Pin Bar Setting: Using the "Ratio Higher Shadow to Body" and "Ratio Higher Shadow to Lower Shadow" settings, you can customize your bearish Pin bar candles. Larger numbers impose stricter conditions for identifying bearish Pin bars.

Show Info Table: Allows the display or non-display of the information table (located at the bottom of the page and on the right side).


🔵How to Use

At the end of a downtrend, look for "Hammer" candles, easily identified one by one.


To identify the "Shooting Star" candle pattern at the end of an uptrend; expect a price reversal in the downtrend.


For trades in the downward direction, wait for the formation of an "Inverted Hammer" Pin bar.


And finally, in an uptrend, where a "Hanging Man" candle can form.


🔵Features
For better visualization, triangles and circles are used above the candles, but they can be easily removed. All Pin bars are displayed in color with the following meanings:
- Black-bodied candle: Inverted Hammer
- Turquoise blue candle: Hammer
- Pink candle: Hanging Man
- Red candle: Shooting Star

🟣Important: The capability to detect the powerful two-candle pattern "Tweezer Top" at the end of an uptrend emerges by forming two "Shooting Star" candles side by side.


Similarly, the two-candle pattern "Tweezer Bottom" is created at the end of a downtrend with the formation of two "Hammer" candles side by side. To identify the "Tweezer" pattern, make sure the settings in the "Trend Effect" section are set to "Off."


🟣Auxiliary Indicators
During the start of trading sessions such as Asia, London, and New York, where the highest liquidity exists, alongside this indicator, you can use the Trading Sessions indicator.
Sessions

The combination of Order Blocks "-OB" and "+OB" with candles is one of the best trading methods. The indicator that identifies order blocks, along with this indicator, can yield remarkable results in the success of Pin bar candles.
Order Blocks Finder

The trading toolset "TFlab" presents this indicator. To benefit from all indicators, we invite you to visit our page "TFlab Scripts".