Candlestick Pattern Statistics by Price Partition and Breakout Direction

Summary

This indicator recognizes a broad collection of candlestick formations ranging from one to five bars. Users can adjust detection settings and enable or disable patterns individually. When a smaller pattern is fully contained within a larger one, the default handling absorbs it so its return is not counted separately. Results are grouped by partitions of an asset’s price action, allowing pattern statistics to be viewed in context.

The indicator offers classic analysis and breakout analysis. In breakout mode, a pattern qualifies when a later close moves beyond its high or low within a user-set number of bars; results are then grouped by partition and breakout direction, while patterns without a breakout are excluded. A target mode can retain selected patterns even when they are absorbed, which may create duplicate returns. The document describes collected return summaries, including averages, medians, dispersion, and positive, neutral, or negative counts, but the supplied excerpt gives no empirical findings or validation. Pattern definitions and settings are adjustable, so measured performance depends on those choices and the chosen asset and timeframe.

Key ideas

• The indicator detects configurable candlestick patterns spanning one to five bars.
• Classic statistics group pattern returns by the price-action partition where each pattern appeared.
• Breakout mode requires a close beyond the pattern range within a chosen confirmation window.
• Target mode may count patterns that overlap larger formations, creating duplicate return observations.
• The excerpt describes analytical features but reports no results validating pattern performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.