To get started, open the Indicators and Strategies menu. From there, click the Patterns tab and then select the pattern you’d like to use. If a pattern is automatically detected, a special label will appear on the chart: blue for , red for , or gray for both and signals. Hover over the label to learn more about a specific formation.
The chart we've created in this example shows Apple since early June. It also shows each candle and denoted by the red and gray label markers. Apple is up more than 50% year-to-date. However, most recently, a massive 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 sign, with sentiment and price action changing to the downside in a flash. However, it's important to note that not every 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 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 Patterns menu:
• Dark Cloud Cover and Piercing;
• Morning Star and Evening Star;
• Harami Cross ( and );
• and ;
• Rising Three Methods and Falling Three Methods;
• Rising Window and Falling Window;
• On Neck;
• Upside Tasuki Gap and Downside Tasuki Gap;
• Star ( and ).
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 Patterns. If you have any questions or comments, please leave us a message below. If you enjoyed this post, press Like.
"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"