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Detect 18 different candlestick patterns, and use them as trading signals.
You can use these 18 patterns the way they are set-up, or you can change their parameters and adapt them to your personal preferences.
The 18 candlestick patterns
Below an overview of the 18 candlestick patterns NanoTrader detects. Each pattern has a number. Simply choose the number in the Designer Dialog.
The signals can be used for manual and automated trading. You can choose whether you get a short sell signal or a buy signal when a pattern occurs. This allows you to trade in the commonly accepted direction, or to be a contrarian.
Changing the candlestick patterns
Five parameters allow you to change the candlestick patterns to reflect your personal preferences. As usual the parameters can be changed in the Designer Dialog.
TimeStart. Define hours and minutes from when the candle patterns will be detected.
TimeEnd. Define hours and minutes from when the candle patterns will be detected.
RelativeSize. Define the relative size of the candlestick pattern compared to the current market candles. Examples: RelativeSize 1 = pattern must be roughly the same size as the average candles. RelativeSize 2 = pattern must be roughly double the size of the average candles. Etc.
Thermostat. This parameter defines the relative size of the green candles versus the red candles. The value 4 means that both groups are about the same size. Values from 1-3.9 mean that the first group in the pattern, be it green or red, has a bigger size compared to the second group. Values from 4.1-7 mean that the second group is larger than the first group.
Long_Short.Choose if you want a short sell signal or a buy signal after the candlestick pattern appears.
Trading with candlestick patterns
This example shows pattern number 2. A large bullish candle followed by a large bearish candle, both with roughly the same size.
This example shows pattern number 15. Two bearish candles followed by two bullish candles. The bullish group is bigger that the bearish group. The thermostat value was set to 6.
This example shows pattern number 13. Three bullish candles followed by a bearish candle. The thermostat was set to 5, which means the red candle has to be only slightly bigger than the three green candles combined. The trader requested a short sell signal, as indicated by the red triangle.
- Open the chart of the instrument you wish to trade.
- Select Template Studies > WHS Patterns and choose Candlestick patterns. Alternatively select Add an Indicator and type Candlestick patterns in the search field.
More technical analysis tools: Create your own candlestick patterns and trading signals