Candlestick patterns are among the most powerful tools for technical analysis, offering insights into market sentiment and potential price movements. This guide explores top TradingView indicators and strategies designed to identify key patterns like engulfing structures, Doji, Hammer, and Fair Value Gaps (FVG), optimized for intraday trading.
Top Candlestick Pattern Indicators
1. Ultimate Price Action Tool for INTRADAY
Best for: Scalpers and breakout traders
Key Features:
- Detects support/resistance zones based on engulfing candles and 2-bar breakouts.
- Dynamic line width adjusts with zone strength.
- Session-based resets to avoid clutter.
- Customizable buffers and visual styles.
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2. FVG Trailing Stop by LuxAlgo
Best for: Trend identification
How It Works:
- Tracks unmitigated Fair Value Gaps to plot trailing stops.
- Bullish/Bearish signals based on price position relative to the stop.
- Includes "Reset on Cross" feature to avoid false reversals.
3. Auto Price Action SR Levels
Best for: Session-based trading
Unique Logic:
- Clusters frequent price hits (open/high/low/close) to form static levels.
- Levels reset daily at session open (e.g., NSE 09:15).
Advanced Pattern Recognition
Candle Breakout Oscillator
- Measures bullish, bearish, and choppy market states via breakout frequency.
- Thresholds: Values >80 indicate trend strength; <20 signal weakness.
Long Wick Detector
- Flags candles with no upper/lower wicks (Vortex Candles).
- Highlights potential retracement zones using Power of Three (PO3) logic.
Sentiment-Based Strategies
Candle Emotion Index (CEI) Strategy
- Combines Indecision, Fear, and Greed oscillators into a single metric.
Entry Rules:
- Long: CEI >0.1 + volume confirmation.
- Short: CEI >0.2 + volume spike.
Naive Bayes Candlestick Classifier
Machine-learning tool calculating reversal probabilities for patterns like:
- Engulfing, Harami, Three White Soldiers.
- Customizable lookback periods and success-rate displays.
FAQ: Candlestick Pattern Trading
Q1: Which timeframe is best for candlestick patterns?
A: Intraday traders often use 1-minute to 15-minute charts for scalping, while swing traders prefer hourly/daily timeframes.
Q2: How reliable are engulfing patterns?
A: Bullish/Bearish engulfing shows ~60-70% accuracy when combined with volume spikes and key S/R levels.
Q3: Can AI improve pattern detection?
A: Yes! Tools like the Naive Bayes Classifier automate probability analysis, reducing manual backtesting.
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Key Takeaways
- Combine candlestick patterns with volume confirmation and trend filters.
- Use session-based indicators for intraday consistency.
- Leverage sentiment oscillators to gauge market psychology.
Note: Always validate patterns with risk management rules.