NinjaTrader Candlestick Patterns Indicator

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 follows the classic approach to the analysis of Japanese candlesticks as described in the original sources. The indicator helps identify the following candlestick patterns:

• Morning Star – Bullish;
• Evening Star – Bearish;
• Engulfing – Bullish;
• Engulfing – Bearish;
• Shooting Star – Bearish;
• Hammer – Bullish;
• Inverted Hammer – Bullish;
• Doji;
• Doji Star – Bearish;
• Doji Star – Bullish;
• Dark Cloud – Bearish;
• Three White Soldiers – Bullish;
• Three Black Crows – Bearish;
• Piercing – Bullish;
• Gravestone Doji – Bearish;
• Dragonfly Doji – Bullish;
• Hanging Man – Bearish;
• Tweezer Top – Bearish;
• Tweezer Bottom – Bullish.

Morning Star – Bullish

Evening Star – Bearish

Engulfing – Bullish

Engulfing – Bearish

Shooting Star – Bearish

Hammer – Bullish

Inverted Hammer – Bullish

Doji

Doji Star – Bullish

Doji Star – Bearish

Dragonfly Doji – Bullish

Gravestone Doji – Bearish

Piercing – Bullish

Dark Cloud – Bearish

Three White Soldiers – Bullish

Three Black Crows – Bearish

Tweezer Bottom – Bullish

Tweezer Top – Bearish

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:

• No_detection – the trend is not detected, all found patterns are displayed.
• MA1 – the trend is determined by one moving average.
• MA1 & MA2 – the trend is determined by two moving averages.

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.