No-Shadow Candles: Candlestick Pattern Backtest Rules

Summary

This script defines bullish and bearish candles with no shadows: the full candle range lies between its open and close, while the close moves in the same direction as the previous close. It also identifies sequences of two such candles in the same direction. A configurable bar count determines when a close trigger appears after a pattern.

The script offers a date-bounded backtest and a switch between single-candle and two-candle entry signals. However, the strategy orders shown are long-only and use the bullish signals; bearish conditions are marked and included in trigger calculations but do not generate short entries. The two-candle mode also closes on the single-pattern trigger, rather than the separately calculated two-pattern trigger. No performance report or market specification is included, so the script illustrates a pattern test setup, not evidence that the pattern has predictive value. Its order behavior and signal-to-exit wiring should be checked before interpreting results.

Key ideas

• A bullish no-shadow candle has its low at or above the open and its high at or below the close, with a rising close.
• The bearish counterpart requires a falling close and a candle range between close and open.
• The script can test single patterns or consecutive same-direction patterns within a selected date range.
• The implemented entries are long-only, and the two-pattern option uses the single-pattern close trigger.
• No performance results are supplied.

Tags

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