Automating Candlestick Pattern Detection and Outcome Tracking
Summary
This article describes a MetaTrader 5 tool that scans recent bars for pin bars, dojis, engulfing patterns, and marubozu candles. It outlines rule-based detection using candle bodies, shadows, ranges, and direction, with configurable lookback and shape thresholds. Detected patterns are marked on a chart, and the tool records the following bar’s movement and summarizes pattern outcomes as win-rate statistics.
The material explains how these formations are operationalized for consistent scanning, while noting contextual considerations such as trend, support or resistance, volume, and volatility. The displayed approach is a detection and measurement toolkit rather than a complete trading system: the supplied excerpt gives no sufficiently detailed results to establish that any pattern has an edge. A one-bar outcome measure also does not by itself account for execution costs, holding periods, or risk-adjusted performance, so users would need broader validation before relying on the signals.
Key ideas
- Pin bars are classified by long shadows relative to candle bodies, while dojis have small bodies relative to their full ranges.
- Engulfing patterns compare the direction and body coverage of two consecutive candles.
- Marubozu detection looks for a body occupying most of the candle’s total range.
- The EA scans a configurable history and records the price movement after each detected pattern.
- Pattern counts or win rates alone do not establish profitability without broader testing and trading costs.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.