INDICATOR MANUAL CANDLESTICK PATTERN · PDF filePage | 5 3. Indicator Description The Candlestick Pattern Spotter does just what its name says, it detects the most common Candlestick

INDICATOR MANUAL

CANDLESTICK PATTERN SPOTTER INDICATOR

https://www.ninjacators.com

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CONTENTS

1. Indicator Installation ....................................................................................................... 2

2. How to add an indicator to your Chart ............................................................................. 4

3. Indicator Description ....................................................................................................... 5

4. Indicator Values ............................................................................................................. 30

5. Indicator Settings ........................................................................................................... 31

6. Disclaimer ...................................................................................................................... 37


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1. Indicator Installation

To import an indicator to your NinjaTrader, please be sure that you are saving the provided .zip

indicator file to your PC. Do NOT open or unzip the file!

You simply want to save the file in the same format as you download it, so that it stays zipped.

NinjaTrader will do the hard part for us.

Please use the following steps to install the indicator:

• Open NinjaTrader

• The Control Center will be the first window that is displayed when opening NinjaTrader

• In the Control Center go to >Tools>Import>NinjaScript… (Picture 1)

• Navigate to and choose the indicator file (starts with ‘ncat’)

• In case a Warning messages appears like seen in Picture 2– Click ‘Yes’

Also, if you would not like the message to appear every time you install an indicator, just

check the ‘Don’t show this message again’ box.

• After the successful import of the indicator you will receive a notification shown in

Picture 3 below. Just click ‘OK’ and the process is finalized

• IMPORTANT: Restart your NinjaTrader after the initial indicator import!

Picture 1:


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Picture 2:

Picture 3:

Watch a quick video on how to install an indicator


https://www.ninjacators.com/support/indicator-installation/

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2. How to add an indicator to your Chart

Here is how you add an indicator to your Chart:

1. Open a new ‘clean’ chart. For the first installation and activation of an indicator please

use a ‘clean’ chart without anything on it. No other indicators or templates, just use the

default NinjaTrader Chart template.

2. There are 3 different ways to add an indicator to a chart

a) Right Mouse Click on the chart – Click on ‘Indicators’ in window

b) Push Ctrl + I on your Keyboard at the same time

c) Click on the ‘Indicators’ Icon in the Chart main navigation

3. New Window ‘Indicators’ shows up with all available Indicators listed. Highlight the

indicator you would like to add to the chart (Remember that Ninjacators Indicators all

start with ‘ncat’) Under ‘Configured’ – click on ‘add’ to add the indicator

4. Highlight the indicator and you can start changing the Indicator Properties. Please take a

look at the next Step 4 on how to place your Order ID for instructions on the indicator

activation.


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3. Indicator Description

The Candlestick Pattern Spotter does just what its name says, it detects the most common

Candlestick Patterns directly on your chart.

No matter if you day-, swing or position trade this indicator can be a great help spotting

profitable Candlestick Pattern trade setups in any market and on any time frame.

Below you find an overview and short explanation of the 25 Candelstick Patterns the indicator

automatically detects.


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Bearish Engulfing

A bearish engulfing pattern may indicate a reversal pattern when formed in an up-trending

market. This pattern consists of two candlesticks: A small candlestick followed by a large

candlestick. Figure below displays the pattern:

Trading Pattern Reversal Trend Prediction Bearish Period Trend Bullish Number of Candlesticks 2

Trading Pattern A two day candlestick pattern, which displays an down trend in the market.


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Bullish Engulfing

A bullish engulfing pattern may indicate a reversal pattern when formed in a down-trending

market. This pattern consists of a large up body engulfing a preceding small down body, which

appears during a downtrend. The up candle does not necessarily engulf the shadows of the

down candle but totally engulfs the body itself. Figure below displays the pattern:

Trading Pattern Reversal Trend Prediction Bullish Period Trend Bearish Number of Candlesticks 2

Trading Pattern • A two candle pattern, which displays down-trend in the market.


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Bearish Harami

A Bearish Harami is a two candle Reversal candlestick pattern that occurs in up-trending market.

This pattern consists of a small body contained within a prior relatively long body. Harami is old

Japanese word for pregnant. The long green candlestick is the mother and the small candlestick

is the baby. Figure below displays the pattern:


Trading Pattern • A two candle pattern, which displays an uptrend in the market.


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Bullish Harami

A Harami is a signal, which implies an approaching potential change. The Bullish Harami is a

candlestick pattern that occurs in down trending markets. This pattern consists of a small up

body contained within a prior relatively long down body. Figure below displays the pattern:


Trading Pattern • A two candle pattern in a down-trending market.


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Bearish Harami Cross

Bearish Harami Cross Pattern is a doji preceded by a long body. The Bearish Harami Cross

Pattern is a major reversal pattern and is more significant than a regular Bearish Harami Pattern.

Figure below displays the pattern:


Trading Pattern • A two candle pattern, which displays an uptrend in the market.


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Bullish Harami Cross

Bullish Harami Cross Pattern is a doji preceded by a long down body. The Bullish Harami Cross

Pattern is a major bullish reversal pattern. It is more significant than a regular Bullish Harami

Pattern. Figure below displays the pattern:




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Dark Cloud Cover

The Dark Cloud Cover is a two-candlestick pattern signaling a top reversal after an uptrend or, at

times, at the top of a congestion band. It consists of a strong up body in the first candle. The

second candle opens strongly above the previous candle high. However, candle closes near the

low of the candle and well within the up body of prior candle. Figure below displays the pattern:


Trading Pattern • A two candle pattern in an up-trending market.


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Doji

The Doji is a neutral candlestick pattern representing indecision between bulls and bears. If a security has virtually equal opening and closing prices, this leads to a Doji. The length of the upper and lower shadows of a Doji can vary and consequently the resulting candlestick may look like a cross, inverted cross or a plus sign. A Doji with an equal open and close may be considered more robust but it is also rare in the real life. Hence, Doji is a particular signal showing indecision about the direction of the market and it represents a tug of war between buyers and sellers. Doji simply shows that prices have moved above and below the opening price during the day. It shows that neither the bulls nor the bears were able to gain control during the day. The Morning Star and the Evening Star are also doji formations.

Trading Pattern Reversal/Continuation Trend Prediction Indecision Period Trend N/A Number of Candlesticks 3

Trading Pattern • The real body is either a horizontal line or it is significantly small.


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Evening Star

Evening Star is a bearish Reversal candlestick pattern that occurs in up-trending markets.

Evening Star patterns are the opposite of Morning Star patterns. Figure below displays the

pattern:

Trading Pattern Reversal Trend Prediction Bearish Period Trend Bearish Number of Candlesticks 3

Trading Pattern • A three candle pattern in an up-trending market.


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Morning Star

A Morning Star is a bullish Reversal candlestick pattern that occurs in a bearish market. It is

composed of a long down body in the first candle, a second small real body (up or down), and

gapping lower to form a star. These two candlesticks define a basic star pattern. The third is an

up candle that closes well into the down real candlestick body of the first session. Figure below

displays the pattern:


Trading Pattern • A three candle pattern in a down-trending market.


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Falling Three Methodes

Falling Three Methods is a bearish continuation candlestick pattern that occurs in a declining

markets. Figure below displays the pattern:

Trading Pattern Continuation Trend Prediction Bearish Period Trend Bearish Number of Candlesticks 5

Trading Pattern • A five candle pattern in a declining markets.


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Rising Three Methodes

The Bullish Rising Three Methods is a continuation pattern representing a pause during a trend

without causing a reversal. This pattern consists of a long green candlestick followed by three

small bodies in three consecutive candles. The small bodies represent some resistance to

previous uptrend and they may even trace a short downtrend. These three reaction candles

usually have down candlesticks but the bodies remain within the high and low range of the up

candlestick. The pattern is an up candlestick completes the pattern on the fifth candle. The

small downtrend between the two long up candlesticks represents a break during the uptrend.

The upward trend then resumes and continues. Figure below displays the pattern:

Trading Pattern Continuation Trend Prediction Bullish Period Trend Bullish Number of Candlesticks 5

Trading Pattern • A five candle pattern in an up-trending market.


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Hammer

The hammer candlestick consists of a long lower shadow and a closing price near or at the high

of the candle. This type of candlestick is considered bullish after a significant downtrend or in

oversold market. The hammer can be very useful to predict trend reversals; from bearish to

bullish. Figure below displays the pattern:

Trading Pattern Bottom Reversal Trend Prediction Bullish Period Trend Bearish Number of Candlesticks 1

Trading Pattern • A one candle pattern in a declining markets.


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Inverted Hammer

Inverted Hammer Pattern consists of a long upper shadow and a small real body preceded by a

long down real body. It is similar in shape to the Bearish Shooting Star. The shooting star

appears in a downtrend and thus it becomes a potentially bullish inverted hammer. Figure

below displays the pattern:




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Hanging Man

The Hanging Man pattern is a single candlestick and a top reversal pattern. It is very similar to

the Bearish Dragonfly Doji pattern. In case of the Bearish Dragonfly Doji pattern, the opening

and closing prices are identical whereas the Bearish Hanging Man pattern has a small real body.



Trading Pattern • A one candle pattern in an up-trending market.


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Piercing Line

Piercing Line is a bottom reversal pattern. A long red candlestick is followed by a gap lower

during the next candle while the market is in downtrend. The previous candle ends up as a

strong up candlestick, which closes more than halfway into the prior red candlestick real body.





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Shooting Star

The Shooting Star Pattern suggests that prices may be approaching to a top, as its name, a

shooting star. The shooting star is a small real body characterized by a long upper shadow,

which gaps away from the prior real body. Figure below displays the pattern:


Trading Pattern • A two candle pattern in an up-trending market.


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Stick Sandwich

The Bullish Stick Sandwich Pattern is characterized by consecutive higher opens for three

candles, but results in an eventual close equal to the first candles close. It may warn that prices

are now finding a support price. We may then see a reversal from this support level. Figure

below displays the pattern:


Trading Pattern • A three candle pattern in a down-trending market.


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Upside Gap Two Crows

The Upside Gap Two Crows pattern is a three-candlestick pattern and it signals a Reversal. The

first candlestick is a long green candlestick followed by a real body that gap higher. Another

down real body completes the pattern. The later one opens above the open and closes of the

second day candlestick under the second candles close. Figure below displays the pattern:




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Upside Tasuki Gap

The pattern consists of two long up candlesticks with a gap upward between them during an

uptrend. However the pattern also shows a down candlestick on the third candle partially

closing the gap between the first two. Figure below displays the pattern:




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Downside Tasuki Gap

The pattern consists of two long down candlesticks with a gap downwards between them during

a down trend. However the pattern also shows a up candlestick on the third candle partially

closing the gap between the first two. Figure below displays the pattern:


Trading Pattern • A three candle pattern in an down-trending market.


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Bearish Belt Hold

The Bearish Belt Hold Pattern is a single candlestick pattern and an opening Marubozu that

occurs in an uptrend. The pattern shows that the candle opens on its high; it then rallies against

the trend of the market, and then closes near its low. Figure below displays the pattern:


Trading Pattern • A one candlestick pattern, which displays an uptrend in the market.


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Bullish Belt Hold

The Bullish Belt Hold Pattern is a single candlestick pattern. It is basically a up Opening

Marubozu that occurs in a downtrend. Figure below displays the pattern:


Trading Pattern • A one candle pattern in a down-trending market.


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Three Black Crows

A Three Black Crows Reversal candlestick formation occurs in uptrends. It's composed of 3 large

bearish candlesticks.


Trading Pattern • A three candle pattern in an up-trending market. Note: The three black crows candle formation does not happen very frequently, but when it

does occur, swing traders should be very alert to the crow’s caw.

Three White Soldiers

A Three white Soldiers Reversal candlestick formation occurs in downtrends. It's composed of 3

large bullish candlesticks. The pattern is the opposite of the three black crow’s formation.


Trading Pattern • A three candle pattern in a down-trending and declining market. Note: The three white soldiers candle formation does not happen very frequently, but when it

does occur, swing traders should be very alert to the crow’s caw.


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4. Indicator Values

The indicator does NOT expose any values.


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5. Indicator Settings


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GLOBA L BarsType: You can choose if you like to use Normal Bars or Heiken Ashi Bars. NOTE: The Heiken Ashi Bars is a good tool to implement Candle Stick Patterns such as Doji on your Renko Charts.

ALE RTS Choose any sound file within NinjaTrader for the different alerts.

COLORS Choose any color for each candlestick pattern.

EMAILS

Send email alerts when a pattern gets triggered Important: You need to setup your Email in NinjaTrader first. Please use this link to go to Ninjatrader 8 help guide and select Configuration>Options>General>Managing Share Services>Email Service Setup

NAME S Use the default names for the different patterns or choose a name you like to have for each of the patterns.

PA RA METE RS

Font: Change the Style of the Font Label Distance: Choose the label distance Label Height: Choose the height of the label MatchCandleAndOutlineColor: When set true true the candle outline will have the same color as the pattern color. TextBrush: Choose any color you like for the text Trend Strength: Choose the strength of the trend.

SEA RCH FOR Choose the Pattern you like the indicator to search for. If set to ‘True’ the indicator will search for the pattern, if set to ‘False’ the indicator stops searching for that particular pattern.

DATA SE RIES Input Series: This default should Not be changed.

SET UP Calculate: On Bar Close will update this indicator with every bar close. On Each


http://ninjatrader.com/support/helpGuides/nt8/en-us/

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Tick will update this indicator with every incoming tick. We recommend you choose On Bar Close for this indicator. Label: Indicator Name Maximum bars look back: 256 : Do Not Change

V I SUA L

Auto scale: True Displacement: 0 Display in Data Box: The Indicator cannot be displayed in the Data Box. Label: Indicator Name Panel: Same as input series. Price marker(s): True or False Scale justification: Right


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6. Disclaimer

ALL SOFTWARE IS PROVIDED TO YOU AS IS AND THERE ARE NO WARRANTIES, CLAIMS OR REPRESENTATIONS MADE

BY Ninjacators.com OR ITS SUPPLIERS, EITHER EXPRESS, IMPLIED, OR STATUTORY, WITH RESPECT TO THE

SOFTWARE, INCLUDING WARRANTIES OR CONDITIONS OF TITLE, QUALITY, PERFORMANCE, NONINFRINGEMENT,

MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE ANY WARRANTIES CREATED BY

COURSE OF DEALING, COURSE OF PERFORMANCE, OR TRADE USAGE. NINJACATORS.COM AND ITS SUPPLIERS DO

NOT WARRANT THAT THE SOFTWARE WILL MEET YOUR NEEDS OR BE FREE FROM ERRORS, OR THAT THE

OPERATIONS OF THE SOFTWARE WILL BE UNINTERRUPTED. NINJACATORS.COM AND ITS SUPPLIERS DO NOT

WARRANT THE ACCURACY OF THE REPORTS GENERATED. THE FOREGOING EXCLUSIONS AND DISCLAIMERS ARE AN

ESSENTIAL PART OF THIS AGREEMENT AND FORMED THE BASIS FOR DETERMINING THE PRICE CHARGED FOR THE

PRODUCTS. SOME STATES DO NOT ALLOW EXCLUSION OF AN IMPLIED WARRANTY, SO THIS DISCLAIMER MAY NOT

APPLY TO YOU.

NINJACATORS.COM AND ITS SUPPLIERS WILL NOT BE LIABLE TO YOU OR ANY THIRD-PARTY CLAIMANT FOR ANY

INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, WHETHER BASED ON CONTRACT,

NEGLIGENCE, STRICT LIABILITY, OR OTHER TORT, BREACH OF ANY STATUTORY DUTY, INDEMNITY OR

CONTRIBUTION, OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SOME STATES DO NOT

ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE

LIMITATIONS OR EXCLUSIONS IN THIS PARAGRAPH MAY NOT APPLY TO YOU.

Ninjacators.com and its suppliers shall not be liable in any respect for failures to perform hereunder due wholly or

substantially to the elements, acts of God, labor disputes, acts of terrorism, acts of civil or military authority, fires,

floods, epidemics, quarantine restrictions, armed hostilities, riots and other unavoidable events beyond the control

of Ninjacators.com or its suppliers, and the time for performance of obligations hereunder by Ninjacators.com or

its suppliers subject to such event shall be extended for the duration of such event.

Ninjacators.com a property of Ninjacators LLC did not summon and/or recommend ANY kind of trading, trading

decisions, investment and investment decisions.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN

ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE

TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT,

IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL

ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO

REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR

TO THOSE SHOWN.

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE

WORKED IN THE PAST, PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A

POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING

FUTURES, STOCKS, FOREX, OPTIONS OR ANY KIND OF OTHER TRADING PRODUCTS CAN BE SIGNIFICANT. YOU

SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR

FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE

UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL.


Documents

INDICATOR MANUAL CANDLESTICK PATTERN · PDF filePage | 5 3. Indicator Description The Candlestick Pattern Spotter does just what its name says, it detects the most common Candlestick