How to instantly find candlestick patterns on your chart

We created this chart of Apple to show off the updates we've made to Candlestick Patterns, a new way to automatically spot a specific candle formation. It's easy and fast. One click can detect almost any candlestick pattern from a Bearish Engulfing candle to a Shooting Star top.

To get started, open the Indicators and Strategies menu. From there, click the Candlestick Patterns tab and then select the pattern you’d like to use. If a candlestick pattern is automatically detected, a special label will appear on the chart: blue for Bullish, red for Bearish, or gray for both Bullish and Bearish signals. Hover over the label to learn more about a specific candlestick formation.

The chart we've created in this example shows Apple since early June. It also shows each Bearish Engulfing candle and Doji denoted by the red and gray label markers. Apple is up more than 50% year-to-date. However, most recently, a massive Bearish Engulfing candle occurred. We've highlight that area on the chart with an arrow. Apple is down roughly 15% since that candle formed and it was a potentially bearish sign, with sentiment and price action changing to the downside in a flash. However, it's important to note that not every Bearish Engulfing candle leads to long-term sell-off. In-fact, on three other occasions, Apple has managed to shrug these candles off. Is this time different? Time will tell.

We can also keep track of Apple and how this candle impacts it over time by creating an alert. That's right – our Candlestick Patterns work together with the alert system. So if you want to receive a notification every time a candle pattern appears on the chart, you can create an alert for that and get them delivered to your phone, desktop or email.

We've also been listening to your feedback, and starting today we've added 17 brand new indicators to the Candlestick Patterns menu:

• Dark Cloud Cover and Piercing;
• Morning Doji Star and Evening Doji Star;
• Harami Cross (Bearish and Bullish);
• Tweezer Bottom and Tweezer Top;
• Rising Three Methods and Falling Three Methods;
• Rising Window and Falling Window;
• On Neck;
• Upside Tasuki Gap and Downside Tasuki Gap;
• Doji Star (Bullish and Bearish).

All of these indicators are written in Pine, our official scripting language. If you’d like to better understand our algorithm, or even configure it yourself and customize it to match your specific preferences, head over to the indicator’s source code and modify it from there.

We hope you enjoyed this written tutorial on Candlestick Patterns. If you have any questions or comments, please leave us a message below. If you enjoyed this post, press Like.