Candlestick Patterns

What It Does

Candlestick Patterns runs on a single contract at a single timeframe. On every bar close it inspects the trailing window of bars and asks one question: do these bars form the chosen candlestick pattern?

If the pattern is recognized and the strategy is flat, it enters at the close in the pattern’s direction. Bullish patterns trigger long entries, bearish patterns trigger short entries.

Once in a position, the only exit is a fixed bar-count hold: after hold_bars bars have elapsed since entry, the strategy flattens unconditionally. No stops, no profit targets, no trend filters, no scaling. The pattern selection is the strategy.

Which Patterns Are Available

See the catalog below for the patterns covered. The lineup starts with the classical formations most traders learn first, the ones covered in every Japanese candlestick text, from the Hammer through Three Black Crows. Each pattern has its definition, the classical story behind it, when it tends to work, when it tends to fail, and sample backtests where available.

Timeframe Matters

Candlestick patterns are traditionally read on daily bars, and that is where the presets default. The form lets you pick any timeframe from 15 minutes up to daily. Faster timeframes fire more signals but also more noise. The pattern definitions are shape-based, not timeframe-aware, so the same shape is recognized whether you read 5-minute or daily bars.

Best In

• Liquid markets where each daily bar carries enough conviction that shape-based patterns are not pure noise. Equity index futures and large-cap commodities are the usual candidates.
• Studies that want to test classic chart-folklore claims on equal terms. Run several patterns across the same contract and date range, and the comparison is direct.
• Comparing the same pattern across instruments. Sample runs are available for NQ, ES, and GC at identical defaults, so the same pattern can be read side by side across markets.

Where It Struggles

• Strong trends. A reversal pattern inside a roaring trend often gets run over within the hold window.
• Low-signal regimes. Some patterns are strict and may not fire for months at a stretch on a quiet instrument.
• The bar-count exit is blunt. A signal that briefly works and then reverses against the position will still be held for the full hold period.

Possible Uses

• A control strategy for any candlestick-based idea that adds filters. If a fancier setup tracks the bare pattern entry, the filters are not earning their keep.
• An honest survey of the chart-folklore claims. Run several patterns across instruments and years and see which patterns hold up.
• A starting point for layered work. Combine the pattern trigger with a trend filter, a volatility regime, or a time-of-year window and see whether the conditional edge tightens.

What It Does Not Do

• No stops, no targets, no trailing exit. The bar-count hold is the only exit.
• No partial fills, no scaling, no pyramiding. One signal, one position, one contract count.
• No regime awareness. The pattern fires the same whether the market is trending hard, ranging tight, or churning.
• No awareness of the prior trade’s outcome. A losing streak does not change the next entry size or hold length.