The requisite volume for the pattern is configurable; formations will not be distinguished when volume is less than the defined lower threshold.
For example, setting the volume threshold to 10% forces the script to identify candlestick patterns in which volume for the session (candle) is 10% greater than the volume moving average. All candlestick patterns with volume less than (1.10 * volume MA) are discounted.
The script counts the frequency of each pattern - the number of times the pattern occurred - in addition to the next candle's outcome. Pertinent statistics are displayed in the table, which can be hidden.
I plan on working on the script quite a bit more; please comment a suggestion if you have one! What else should be included?
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Capitalization Fixes
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Added an option for the script to distinguish candlestick patterns that form near the outer Bollinger Bands. The x-session price performance following the patterns is tracked.
Setting the "Data Type" to "Frequency" calculates the raw number of candlestick patterns that have formed, in addition to the next candle close - whether higher or lower. Setting the "Data Type" to "Mean Reversions" calculates candlestick patterns that form near the outer Bollinger Bands. Bearish patterns must form when the high price of the candle, or the previous candle, extends above the upper band to be distinguished by the indicator. Bullish patterns must form when the low price of the candle, or the previous candle, extends below the lower band to be distinguished by the indicator.
The x-session performance is displayed in the table; a blue/red box is plotted where the performance calculation ceases.
For instance, if you configure the indicator to track the 5-session performance of an asset following a bullish/bearish candlestick pattern, a blue (bullish) or red (bearish) box will plot on the 5th session. This feature allows the user to see where the script performed calculations.
I plan to continue working on the script! Would like to add an option to remove patterns that have not formed from the table - greatly reducing the table's size!
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Changed the default plot type
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Added signature
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Fixed small calculation error for Bullish Engulfing