OPEN-SOURCE SCRIPT
Noteworthy Candlesticks
This indicator identifies noteworthy candlestick formations by analyzing the proportions of a candlestick’s body, wicks, and shadows in relation to its total range. It highlights specific patterns to assist in analyzing potential market activity.
Key Features
Definitions of Wicks and Shadows
In traditional candlestick charting, the terms wick and shadow are interchangeable, referring to the thin lines extending above and below the candlestick's body. However, this indicator uses distinct definitions:
By distinguishing between wicks and shadows, the indicator provides separate insights into price extremes (wicks) and price behavior around the close (shadows).
How It Works
The indicator evaluates each candlestick against user-defined thresholds for wick and shadow length. It compares the overall range of the candlestick to the ATR (Average True Range) to ensure patterns are relevant in the context of recent volatility.
Applications
This indicator can assist traders in identifying potential areas of price reversal, rejection, or indecision. It can also provide additional context when used alongside other technical tools like volume analysis, trendlines, or support and resistance levels.
Acknowledgment
This description was written by ChatGPT to facilitate the understanding of the indicator's features and functionality.
Key Features
- Lower Wick Candles: It identifies candlesticks with long lower wicks, which may indicate price rejection at lower levels.
- Upper Wick Candles: It detects candlesticks with long upper wicks, which may indicate price rejection at higher levels.
- Doji Candles: It recognizes candlesticks with small bodies relative to their range, often associated with market indecision.
Definitions of Wicks and Shadows
In traditional candlestick charting, the terms wick and shadow are interchangeable, referring to the thin lines extending above and below the candlestick's body. However, this indicator uses distinct definitions:
- Wicks represent the distance from the edges of the candlestick body (the open and close prices) to the high or low.
- Shadows measure the distance from the closing price to the high or low of the candlestick.
By distinguishing between wicks and shadows, the indicator provides separate insights into price extremes (wicks) and price behavior around the close (shadows).
How It Works
The indicator evaluates each candlestick against user-defined thresholds for wick and shadow length. It compares the overall range of the candlestick to the ATR (Average True Range) to ensure patterns are relevant in the context of recent volatility.
- Candlesticks with noteworthy lower wicks are marked with a symbol below the bar.
- Candlesticks with noteworthy upper wicks are marked with a symbol above the bar.
- Doji candles are marked with symbols both above and below the bar.
Applications
This indicator can assist traders in identifying potential areas of price reversal, rejection, or indecision. It can also provide additional context when used alongside other technical tools like volume analysis, trendlines, or support and resistance levels.
Acknowledgment
This description was written by ChatGPT to facilitate the understanding of the indicator's features and functionality.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.