Price Action
Detect candlestick patterns for pattern-based strategy building.
The Price Action block detects specific candlestick patterns — visual formations that suggest potential market direction. Instead of using mathematical calculations like other indicators, it reads the actual shape and structure of individual candles.
Why It Matters
Candlestick patterns have been used by traders for centuries. Patterns like pin bars, engulfing candles, and dojis reveal the battle between buyers and sellers within a single candle or small group of candles. Combining them with other indicators creates powerful confirmation systems.
Settings Explained
Pattern — Which candlestick pattern to detect. Each pattern has its own characteristics and implications. Common patterns include pin bars (long wick rejections), engulfing candles (one candle completely covering the previous), and dojis (indecision candles).
Direction — Whether to look for bullish patterns, bearish patterns, or both.
Look Back Mode — How far back to search for patterns.
Min Wick Size — The minimum wick length required for the pattern to be valid. Larger wicks indicate stronger rejection and higher conviction.
Max Wick Imbalance — Controls how symmetrical the candle needs to be. For some patterns (like dojis), you want roughly equal wicks. This setting filters out candles that are too lopsided.
Example Use Case
You build a strategy that looks for bullish pin bars (long lower wick, small body at top) at key support levels identified by an Order Block. When a pin bar forms inside a demand zone, the strategy enters long, placing the stop loss below the wick.
Candlestick patterns are most powerful when they form at significant levels — like order blocks, fair value gaps, or key support/resistance zones. A pin bar in the middle of nowhere is much less meaningful than one at a major demand zone.