ForexIndicatorBeginner

ToolTack Candlestick Pattern Decoder

An automated candlestick pattern recognizer that identifies 15 classic reversal and continuation setups, tracks their historical win rate, and labels them directly on your chart.

Multi-Asset (Stocks, ETFs, Crypto, Forex, Futures, Indices, Commodities) A professional TradingView indicator that automatically detects and labels 15 of the most widely used Japanese candlestick patterns directly on your chart. It draws colour-coded arrows and tags for every pattern, maintains a running count of each one, and measures a real, walk-forward win rate by checking whether price actually closed in the predicted direction N bars after each signal. A clean dashboard shows every pattern, its count, and its type at a glance, while a separate Last Signal panel always tells you exactly what fired most recently, in which direction, and how many bars ago. Fifteen built-in alerts cover every individual pattern so you never miss a setup, even when you are away from the screen.

Overview

Candlestick Pattern Decoder is a TradingView pattern-recognition indicator that scans every closed candle and detects 15 key Japanese candlestick patterns. It identifies bullish, bearish, and neutral setups, including Engulfing patterns, Harami patterns, Doji, Hammer, Morning Star, Evening Star, Shooting Star, and more. Bullish signals appear as green arrows below the candle. Bearish signals appear as red arrows above the candle. Neutral signals, such as Dojis and Hammers, appear as clear symbols on or near the bar. The indicator includes customizable colors, Doji sensitivity, trend-lookback filtering, and automatic light/dark theme adjustment. An on-chart dashboard shows how many times each pattern appeared, whether it is bullish, bearish, or neutral, and the historical win rate based on price movement after the signal. A separate Last Signal table shows the most recent pattern, its direction, and how many bars ago it appeared. Each of the 15 patterns has its own TradingView alert condition, allowing popups, email alerts, mobile notifications, SMS, and webhooks. Candlestick Pattern Decoder works across stocks, forex, crypto, futures, indices, commodities, and all TradingView timeframes. It is best used on higher timeframes such as daily and weekly charts, where candlestick signals carry more weight. For stronger results, use it with support and resistance, trend direction, volume, price structure, and proper risk management.

Who It's For

Candlestick Pattern Decoder is designed for price action traders, swing traders, day traders, scalpers, position traders, and any chartist who builds entries and exits around candlestick formations. It suits beginners who are still learning to recognise patterns by eye and want an objective second opinion, intermediate traders who want to speed up chart reading across long watchlists, and advanced traders who want a measurable win-rate-based filter rather than a feel-based one. It works equally well for stock traders trading reversals at support and resistance, crypto traders trading liquidity sweeps, forex traders trading session opens, and futures traders trading exhaustion at key levels.

Why It's Useful

Candlestick patterns are one of the oldest and most widely taught forms of technical analysis, but in practice most traders miss them, misread them, or doubt them. A bar that looks like a textbook engulfing pattern in a course screenshot rarely looks that clean in a live market. Candlestick Pattern Decoder removes that friction completely — every bar is scanned against strict, code-based rules and the patterns are labelled the instant they form. The dashboard turns the chart into a measurable dataset: you can see, on the symbol and timeframe you actually trade, how often each pattern has fired and how often it has actually been followed by the move it predicts. That transforms candlesticks from a vague art into a concrete, testable edge — and lets traders concentrate on the patterns and contexts that genuinely work for them, rather than the ones that merely look impressive in a textbook.

Use Cases

• Reversal trading at support and resistance
• Trend continuation entries after pullbacks
• Exhaustion identification at swing highs and lows
• Confirmation for breakout and breakdown trades
• Swing trading on the daily and 4-hour charts
• Day trading on the 5-minute and 15-minute charts
• Scalping with Hammers, Shooting Stars, and Dojis at key intraday levels
• Stop-loss placement using the high/low of the signal candle
• Take-profit timing on exhaustion patterns into resistance
• Crypto reversal trading at liquidity sweeps and range edges
• Forex session-open reversal setups
• Futures rejection trades at value-area highs and lows
• Watchlist scanning for high-quality pattern setups
• Multi-timeframe candlestick confirmation
• Pattern-based win-rate research and backtesting
• Alert-driven setup hunting across multiple symbols
• Bot and webhook integration for automated pattern-based strategies
• Education and pattern recognition training for new traders

Candlestick Pattern Decoder — User Manual

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Setup Guide

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FAQ

What does this tool do?+

Candlestick Pattern Decoder automatically detects and labels 15 classic Japanese candlestick patterns on your chart in real time. It draws colour-coded arrows on every triggering bar, maintains a running count of how many times each pattern has fired, calculates a real walk-forward win rate for the bullish and bearish groups based on whether price actually closed in the predicted direction N bars later, and displays a Last Signal panel showing the most recent pattern, its direction, and how many bars ago it occurred.

Which 15 patterns does it detect?+

Bullish: Bullish Harami, Bullish Engulfing, Piercing Line, Bullish Belt, Bullish Kicker, Morning Star. Bearish: Bearish Harami, Bearish Engulfing, Bearish Kicker, Hanging Man, Evening Star, Shooting Star. Neutral: Doji, Hammer, Inverted Hammer. Every detection is based on a strict, code-defined ruleset rather than visual approximation.

How is the win rate calculated?+

For every bullish signal, the indicator checks whether price closed higher N bars after the signal fired. For every bearish signal, it checks whether price closed lower N bars after the signal. The N-bar lookback is configurable from 1 to 20 bars in the inputs. The dashboard then displays the running win rate as a percentage in the Summary section. This is a real, measurable historical statistic on the symbol and timeframe you are currently viewing, not a generic textbook claim.

Which markets does this tool support?+

It works on any market TradingView supports — stocks, ETFs, crypto, forex, futures, indices, and commodities. Because the rules are purely candle-based, the same logic applies identically across every asset class.

Which timeframes can I use it on?+

All timeframes are supported. Daily and weekly charts tend to produce the cleanest, most reliable patterns because each candle reflects a longer balance between buyers and sellers. Intraday traders can still use it on 1m–60m for short-term reversal and exhaustion setups, with the trend-lookback and win-check-bars inputs adjusted accordingly.

Is this tool beginner-friendly?+

Yes. Visually, it is one of the easiest indicators to read — green arrows mean a bullish pattern just formed, red arrows mean a bearish one, and the dashboard explains the rest. Beginners can use it as a learning aid to see exactly what each pattern looks like in a live market. Intermediate and advanced traders use it as a fast scanning and confirmation filter.

How should I use this tool?+

Add the indicator to your chart and let it label the patterns. Mark your key support and resistance levels first, then look for signals that fire near those levels in line with the higher-timeframe trend. Use the dashboard to see which patterns are most common on the symbol and timeframe you trade, and check the Summary win rates to see whether the bullish or bearish side has historically followed through better. Use the Last Signal table for a quick read of what just happened on any chart you open.

Can I use this tool as a standalone trading system?+

No. Candlestick patterns are context tools, not full trading systems. They tell you that buyers or sellers just made a stand, but they do not tell you where the stop or target should go, how much to risk, or whether the broader trend supports the trade. Always combine it with proper risk management, market structure analysis, and at least one confirmation tool such as a trend indicator, volume, or a relative-strength filter.

What strategies can I apply with this tool?+

It fits reversal trading at support and resistance, trend continuation on pullbacks, exhaustion fades into prior swing highs and lows, breakout confirmation, scalping intraday reversals, swing trading daily setups, crypto liquidity-sweep entries, forex session-open reversals, and any portfolio screening workflow that prioritises high-quality pattern confluence.

Which other tools should I combine with it?+

Pair Candlestick Pattern Decoder with a trend indicator like TrendArc, a relative-strength filter like Relative Strength Radar, volume tools, volatility tools such as ATR, support and resistance indicators, and risk calculators. Together these form a complete “pattern + trend + relative strength + risk” workflow.

Does this tool guarantee profits?+

No. No trading tool can guarantee profits. Candlestick Pattern Decoder is a decision-support indicator; outcomes depend on the trader’s overall strategy, risk management, market conditions, and discipline.