Candlestick Pattern Breakout Entries with Risk-Based Targets
Summary
This Pine Script strategy uses bullish and bearish engulfing patterns and morning or evening stars to define potential trades. Its comments describe entering when price breaks the relevant pattern candle’s high or low, placing a stop beyond the pattern, and targeting 1.5R to 2R. Inputs allow traders to enable pattern types and adjust engulfing body requirements, star candle proportions, penetration, entry buffers, stop buffers, and pending-order validity.
The excerpt also describes two entry modes: resting stop orders and market entry after a break, along with an option to cancel a pending entry if the stop level breaks first. However, the provided document ends partway through the inputs, so the complete signal logic, order handling, and exits cannot be assessed. It contains no backtest results or evidence that the patterns are profitable; the described rules are a strategy specification rather than demonstrated performance.
Key ideas
- The strategy looks for engulfing patterns and morning or evening stars as trade setups.
- Entries are described as breaks of the pattern high or low, with stops beyond the pattern.
- Targets are specified as multiples of the initial risk, in the range of 1.5R to 2R.
- Inputs control pattern definitions, entry buffers, stop buffers, and how long pending entries remain valid.
- The excerpt is incomplete and provides no evidence of strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.