This indicator will be very useful to anyone who works with candlestick patterns.
This indicator is designed for identifying the average figure of the two adjacent candles (current and previous), with output of the "averaged pattern" right on the chart. Previously, traders often doubted their decision on buying/selling by looking at candlestick patterns! This indicator forms an "average pattern" from candlesticks - it helps to make an accurate decision on opening a trade, but does not guarantee 100% accuracy, as the market itself is unpredictable (!)
The indicator also considers the Doji pattern (when the candlestick body contains about 1-3 pips) and includes the Doji candle in calculation.
For example: one of the Doji patterns appears on the chart - "Morning Star", "Evening Star", "Shooting Star", "Long-Legged Doji". For an experienced trader, such a pattern is a signal for entering the market. But the decision may also be wrong?! The indicator is designed for such cases. It clarifies what the Doji pattern turned into, and displays the new figure:
For example, "Evening Doji Star" turned into "Hammer" or "Ice Cream on a Stick" or "Hanging Man" - this helps the trader to make a more accurate decision on opening a deal!
There are 3 options for plotting the mixed candles (Tipe Visible parameter):
- all - for all candles;
- ZZ - only at the ZigZag peaks;
- opposing - for the current and previous with consideration of the minimum body of the previous candle, and IF they are different (bullish and bearish. Same candles are ignored)
(very useful, when a chart candle forms a Doji pattern with a minimum body of 203 pips. In this case, the indicator takes the data of three candles (current and two previous)).
Description of the indicator settings
- Min points candles - minimum candle body in pips to calculate the Doji pattern (recommended values are from 1 to 4)
- Type Visible (all, ZZ, opposing)- conditions for displaying mixed patterns (all, by ZigZag indicator, on with consideration of Doji).
- ZZ Depth, ZZ Deviation, ZZ Backstep - settings for the ZigZag indicator, the mixed patterns will be displayed at the peaks of the ZigZag
Graphic options for mixed patterns:
- Width candlestick shadow - candle wick width (1 to 7 is recommended)
- Width candlestick body - candle body width (arbitrary, 10-15 is recommended)
- Shift - shift patterns above/below the main candles
IMPORTANT- to correctly display the pattern widths - set all parameters in the "INPUT PARAMETERS" tab