Detecting Multi-Candle Black Crows and White Soldiers Patterns

Summary

This indicator identifies consecutive bullish White Soldiers or bearish Black Crows candle sequences. Its parameters let the user choose how many candles must appear in a row and optionally require each candle's real body to exceed a chosen share of its full high-low range. A bullish sequence requires each close to be above its open and the previous close; the bearish sequence applies the corresponding downward conditions. The output assigns a positive value to a detected bullish pattern, a negative value to a bearish pattern, and zero otherwise.

The material explains a pattern-detection rule rather than a complete trading system. It does not define entry or exit logic, position sizing, market or timeframe selection, or provide performance evidence. A body-to-range filter can exclude candles with relatively long shadows, but the document does not demonstrate that this threshold improves forecasts. These patterns should therefore be treated as descriptive signals whose usefulness requires separate testing.

Key ideas

• The indicator checks for consecutive bullish or bearish candle patterns.
• The required sequence length is configurable.
• An optional filter requires each candle body to occupy a minimum share of its full range.
• The signal output distinguishes bullish, bearish, and no-pattern cases.
• The document provides no trading rules or evidence of predictive performance.

Tags

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