Candlestick Patterns are the most direct method of technical analysis. Candlestick patterns do not need any kind of sophisticated data or further statistics, since they merely use the 4 main price point in order to measure the market sentiment and forecasting the forthcoming market movement.
Candlestick Recognizer Explained
Candlestick Pattern Indicator is a technical tool intended to recognize developing candlestick patterns on the chart. This indicator provides comments about the recent patterns encountered as well as a effective check, displaying you the latest pattern on each timeframe and how several candles in the past that pattern had been identified.
Traders use it to forecast potential price level actions. The picture below shows how it works over market rates, using different colors to demonstrate when the patterns are positive, negative, or even neutral.
This pattern indicator set recognizes 25 different patterns and is divided between 15 main candlestick patterns (i.e. doji and hammer) and 10 complex formations (i.e. 3 white soldiers or tasuki gap).
When a new pattern is detected, an alarm window will pop up like below:
Candlestick pattern indicator, like any other technical tool, will not anticipate market behaviour accurately always. So, never open positions exclusively according to these patterns.