The NinjaTrader Candlestick Patterns Indicator for NinjaTrader 8 automatically detects widely recognized Japanese candlestick patterns directly on the chart.
The NinjaTrader Candlestick Patterns Indicator helps traders analyze price charts to detect common candlestick formations.
A candlestick chart is the most common way to represent the price of an asset. Over time, traders have identified a number of recurring candlestick formations. These patterns are widely used to identify sustained directional movement or prospective structural changes, as well as to observe key support and resistance levels and potential imbalances between supply and demand. There are many candlestick patterns known and used in trading, and we have prepared an indicator that combines the most common patterns in one tool and allows you to visualize them on the chart.
The NinjaTrader Candlestick Patterns Indicator implements a classic approach to the analysis of Japanese candlesticks with maximum preservation of the principles set out in the original sources. The indicator helps identify the following candlestick patterns:
How the Indicator Detects Candlestick Patterns
The NinjaTrader Candlestick Patterns Indicator identifies candlestick formations using rule-based comparisons between candle bodies, wicks, and relative price positions within a defined sequence of bars.
Each pattern is evaluated according to the structural relationships between open, high, low, and close prices. For multi-candle patterns, the algorithm analyzes the interaction between consecutive candles to determine whether the required pattern structure is present.
Once the pattern conditions are satisfied, the indicator plots a visual marker directly on the chart, allowing traders to observe the formation in the context of the current price structure.
Each of the patterns can be turned on/off independently of other patterns, which allows you to customize the indicator completely according to your preferences. It is also possible to independently change the colors of the elements representing each of the patterns.
The Indicator can display the found patterns on the chart in their original form or filter them in accordance with the current trend. There are three possible options for setting up trend detection:
When determining a trend using one moving average, a bullish trend is considered to be the position of the closing price of the candle above the average, and a bearish trend is considered to be the position of the closing price of the candle below the average. Determining a trend using two moving averages is similar, but the position of the second average is additionally checked. For a bullish trend it should be below the first average, and for a bearish trend it should be above.
Changing moving average parameters is available in the indicator settings.
Limitations of Candlestick Patterns
Candlestick patterns represent short-term price formations and should not be interpreted as deterministic predictions of future price movement.
Their interpretation depends on broader market context, including trend structure, volatility, and surrounding price levels.
An upward arrow indicates a bullish pattern and reflects a technical condition for further market analysis in an upward direction. A downward arrow identifies a bearish formation, highlighting a technical condition for potential downward price development. For more refined analysis, it is preferable to observe patterns with trend filtering enabled.
When filtering by one moving average is enabled, this average is displayed on the chart, which provides additional visual control over the market situation. Accordingly, when filtering by two averages is enabled, two additional lines are displayed on the graph.
When a pattern is detected, the indicator can notify the user. In total, the indicator performs notification in three ways: sound, pop-up message and email. Each type of notification is turned on/off independently of other notifications.
The indicator has the following parameters:
Alerts – setting up various types of alerts.
Detect Trend Based On – setting up trend detection.
MA x type / Period / Price Type – setting up moving average parameters to determine the trend (MA type, period, price type for MA calculation).
We can customize this indicator to your needs — adding functions, modifying logic, or integrating it with other tools for your workflow.
We also convert indicators into Automated Trading Strategies with advanced functions (trailing stops, risk management, filters) tailored to your trading style strictly according to your specifications.
Request a free consultation to discuss the technical scope and timeline of your project.
We are committed to the ongoing development and refinement of our indicators. If you’ve spotted a bug, feel that something essential is missing, or have ideas that could make the indicator even better, just send us a message. Your feedback helps us improve and deliver tools that truly meet traders’ needs.
The indicator provides a set of exposed analytical plot outputs designed for structured integration with third-party strategy builders and automation tools such as BloodHound and BlackBird (SharkIndicators), as well as other algorithmic trading environments.
| Analytical Plot Name | Output Values | Description |
| Long | > 0 | Bullish directional detection condition |
| Short | > 0 | Bearish directional detection condition |
| Both | > 0 | Dual directional alignment |
| MA1 | Abs. value | |
| MA2 | Abs. value |
Plot output names and descriptions are technical identifiers intended solely for software integration purposes and do not constitute trading advice, signals, or recommendations.
Nordman Algorithms is a trade name of Nordman Algorithms OÜ (Reg. No. 14435535), registered in Tallinn, Estonia.
Software Nature & User Responsibility — Nordman Algorithms provides algorithmic software tools for technical analysis. Nordman Algorithms is not a financial advisor and is not liable for any losses. All trades conducted based on the software’s output are executed at the user’s sole discretion and risk.
Visual Markers & Signal Disclosure — This software may display visual markers (such as arrows, dots, or alerts) when predefined mathematical conditions are met. These markers are provided for educational and analytical purposes only, must not be interpreted as financial guidance, and do not constitute a recommendation to buy, sell, or hold any financial instrument. Users must independently validate all visual cues within their own trading methodology.
No Financial Advice — Nordman Algorithms does not provide discretionary trading signals, investment advice, or managed signal services. Our software represents a mathematical visualization of historical and real-time data. The appearance of a visual marker does not guarantee a profitable trade or predict future market behavior.
Trading Risk Warning — Futures, Forex, and options trading involve significant risk. Risk capital is money that can be lost without jeopardizing financial security. Only risk capital should be used for trading. Past performance is not indicative of future results. View Full Risk Disclosure: https://www.nordman-algorithms.com/risk-disclosure/
ESMA Risk Warning — Financial instruments, especially those involving leverage such as CFDs and Forex, are complex and carry a high risk of rapid financial loss. Our software provides analytical outputs and visual markers based on predefined mathematical conditions and does not mitigate or reduce inherent market risks. You should carefully consider whether you understand how leveraged financial instruments work and whether you can afford the high risk of losing your capital.
CFTC Rule 4.41 — Hypothetical or simulated performance results have inherent limitations. Unlike actual performance records, simulated results do not represent real trading. Because trades have not actually been executed, these results may under- or over-compensate for the impact of market factors such as liquidity. No representation is being made that any account will achieve profits or losses similar to those shown.
Trademark Notice — NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.
