Hammer and Star Candles with ATR, EMA, and Risk Filters

Summary

The document presents a configurable candlestick strategy that uses hammer and shooting-star style patterns to identify potential entries. Its visible settings include minimum and maximum candle size relative to ATR, an ATR-based stop distance, a risk-to-reward setting, and a candle-level threshold that controls where the candle must close. An optional EMA filter can restrict long and short trades by price position, while date and external-source filters provide additional trade selection controls.

The script also includes fixed-fractional position sizing and a built-in statistics display. However, the supplied source ends partway through the ATR filter logic, so the precise pattern definitions, entry and exit rules, and implementation of the sizing and reporting cannot be confirmed from this document. No performance results or market-specific evidence are provided. The settings describe possible controls, not proof that the strategy is profitable; testing would need to account for costs and market conditions.

Key ideas

• The strategy uses hammer and shooting-star candle patterns as potential trade setups.
• ATR settings can filter candle size and determine stop distance.
• An optional EMA filter can constrain long and short signals by price position.
• The source is truncated, so its complete entry, exit, and sizing rules are unavailable.

Tags

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