CandleStick Pattern Detection & Labeling FFD{1,3}(U|J){3}

A custom indicator created by TrendSpider Team on TrendSpider. You can import this custom indicator into your TrendSpider account. Don't have TrendSpider? Create an account first, then import the custom indicator.

This TrendSpider indicator identifies candlestick patterns on a chart by labeling candles based on their price movement relative to the previous close and the 14-period ATR, using a custom alphabet (e.g., 'J' for a big jump up, 'F' for a big drop down, 'U' for an up candle, 'D' for a down candle, 'G' for a green candle, 'R' for a red candle), and matches sequences like 'FFD{1,3}(U|J){3}' (two big drops, 1-3 down candles, then three up or big jump candles). It paints labels above each candle to show its type, highlights the pattern with blue borders around the price range, and fills the area between the highest and lowest points of the pattern, helping traders spot specific candlestick sequences visually.

Source code

This indicator had been implemented by TrendSpider Team in JavaScript on TrendSpider. Check out the developer documentation to learn more about JS on TrendSpider.

/*
This script identifies candlestick patterns defined by sequence of candle colors.
The sequence should be defined as a Regular Expression.

The script defins its own tiny alphabet, where each character marks a particular case:

J: candle which closes more than ATR above prev close
U: candle which closes above the prev close
F: candle which closes more than ATR below prev close
D: candle which closes below prev close
G: green candle which is none of the above 
R: red candle which is none of the above 

I.e., GGRG means "green candle, then green candle, then red candle,
then yet another green candle". G..R means "green, then any, then any, then red".
G{3,}R means "at least 3 green in a row and then 1 red".

FF.{,3}JJJ means "2 drops down, then up to 3 <whatever> candles, then 3 jumps up"
*/
const MY_PATTERN = 'FFD{1,3}(U|J){3}';
describe_indicator(`CandleStick Pattern Detection & Labeling ${MY_PATTERN}`);

const PATTERN_COLOR = 'violet';

const atrSeries = atr(14);

const candleLabel = candleIndex => {
	if (close[candleIndex] > close[candleIndex - 1] + atrSeries[candleIndex - 1]) {
		return 'J';
	}
	
	if (close[candleIndex] > close[candleIndex - 1]) {
		return 'U';
	}


	if (close[candleIndex] < close[candleIndex - 1] - atrSeries[candleIndex - 1]) {
		return 'F';
	}

	if (close[candleIndex] < close[candleIndex - 1]) {
		return 'D';
	}

	
	return close[candleIndex] > open[candleIndex]
		? 'G'
		: 'R';
};



const codesOfCandles = close.map((dummy, index) => candleLabel(index))
const codesAsString = codesOfCandles.join('');

const borderUp = series_of(null);
const borderDown = series_of(null);

for (const occurence of codesAsString.matchAll(MY_PATTERN)) {
	const thisPattern = occurence[0];
	
	const patternEndIndex = occurence.index + thisPattern.length;
	
	const hh = Math.max(...high.slice(occurence.index, patternEndIndex));
	borderUp.splice(occurence.index - 1, thisPattern.length + 2, ...[...Array(thisPattern.length + 2)].map(() => hh));

	const ll = Math.min(...low.slice(occurence.index, patternEndIndex));
	borderDown.splice(occurence.index - 1, thisPattern.length + 2, ...[...Array(thisPattern.length + 2)].map(() => ll));
}

paint(codesOfCandles, { style: 'labels_above' });

fill(
	paint(borderUp, { name: 'Up', color: 'blue' }),
	paint(borderDown, { name: 'Down', color: 'blue' }),
	'blue'
);