Automated Candle Pattern Recognition

TrendSpider automatically detects the candlestick formations on any chart and timeframe, including single candlesticks and multi-candlestick patterns. In this documentation, we will explore the following:

  • Adding Automated Candle Pattern Recognition
  • Manage Automated Candle Pattern Recognition Preferences
  • How Automated Candle Pattern Recognition Works
  • MTFA & Automated Candle Pattern Recognition
  • Requesting the New Candle Pattern

Let’s get started 🚀

Adding Automated Candle Pattern Recognition

You can easily add the automated candle pattern recognition to the chart by simply clicking on the Patterns button from the top toolbar.

Click on the Patterns button

As a result of this action, TrendSpider will automatically identify the candlestick formations on the chart (based on the selected preferences) without involving any manual efforts.

In the illustration below, you can observe a Doji Star candlestick pattern formation:

Doji Star candlestick pattern formation

Manage Automated Candle Pattern Recognition Preferences

You can manage the preference settings to control which candle pattern(s) should be automatically detected by the system.

Step 1: Click on the vertical ellipsis (⋮) adjoining the Patterns button from the top toolbar.

Vertical ellipsis \(⋮\) adjoining the Patterns button

You will be provided with the option to select the Candlestick pattern from the list of more than 100 available patterns.

select the Candlestick pattern from the list

Step 2: You can scroll down from the list of the available patterns and check the pattern you want the system to identify on the chart.

check the pattern you want the system to identify

Alternatively, you can also use the search field, enter the candlestick pattern name in the field,  and check the pattern from the list.

use the search field to find candlestick pattern

You can further narrow your search by using the filter dropdown menu to populate the candlestick patterns in the list based on different categories.

using the filter dropdown menu to populate the candlestick patterns

The effect of selecting a particular category has been illustrated in the table below:

Categories Effect
All Patterns No filter will be applied and all the candlestick patterns will appear in the list to choose from. 
The Strat Select the third-party candlestick patterns from Rob Smith. Please check TheSTRAT Patterns for more information. 
The Pattern Site Select the third-party candlestick patterns based on the definitions ThePatternSite.com, created by Thomas N. Bulkowski. 
Newsome Candles Select the third-party candlestick patterns from Jerremy Newsome, CEO of Real Life Trading. 

You can also remove all the candlestick patterns selected from the list by clicking on the clear selection.

remove all the candlestick patterns selected from the list

Tip: To know more about a specific candlestick pattern, you can click on the corresponding documentation link 💡

corresponding documentation link

Step 3: Click on the Apply to execute your changes for candlestick preferences.

Click on the Apply to execute your changes

How Automated Candle Pattern Recognition Works

Each candlestick pattern includes a count of how many candlesticks are required next to it. For example, "3cdl" means that three candlesticks are required for the pattern. Candlestick patterns that require more candlesticks are rarer than those that only require one candlestick.

TrendSpider instantly identifies and highlights any relevant candlestick patterns on the chart, highlights them, and adds a label. You can hover over any label to expand it and reveal the full name of the candlestick pattern.

Identification of candlestick patterns on the chart

MTFA & Automated Candle Pattern Recognition

With MTFA enabled, TrendSpider can automatically detect and plot candlestick formations on the chart belonging to different time frames while also highlighting them and adding a label. For example, you can plot weekly “Hammer'' candlestick patterns on the Daily chart.

The candlestick pattern belonging to the secondary timeframe (Monthly in this example) will be enclosed in the box made of dashed lines whereas the candlestick pattern on the current timeframe (Weekly in this example) will be enclosed in the box made of solid lines.

candlestick pattern belonging to the current and secondary timeframe

Requesting the New Candle Pattern

You can submit the request to the TrendSpider team for adding a new candlestick pattern in the technical analysis.

Step 1: Click on the vertical ellipsis (⋮) adjoining the Patterns button from the top toolbar and select REQUEST NEW.

Requesting the New Candle Pattern

Step 2: Fill out the details requested in the form and hit the Submit button.

Our development team will look into the suggestion and if it fits the requirements of the traders in our ecosystem, then the same shall be added to the list and the support documentation for it will also be developed.

Fill out the details requested in the form

Jun 24, 2022

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