Patterns supported by CandleScanner

This section is devoted to providing descriptions and information on candlestick patterns, together with comment on their effectiveness. This will evolve over time as candlestick profiles will be continually added. Some of the description will initially draw on the book and material originally authored by JM Lempart and G Zalewski, published by Linia in 2013.

CandleScanner recognizes in total 104 patterns: 20 basic candles and 84 candlestick patterns. The following list of authors, and their books, had the biggest influence on how the CandleScanner scanning algorithms were implemented:

• Seiki Shimizu (The Japanese Chart of Charts)
• Steve Nison (Japanese Candlestick Charting Techniques)
• Thomas Bulkowski (Encyclopedia of Candlestick Charts)
• Greg Morris (Candlestick Charting Explained: Timeless Techniques for Trading Stock and Futures)

The team responsible for developing CandleScanner has spent a considerable amount of time (spanning several years) on the analysis, on comparisons and on tests between what different authors had to say on the subject of candlesticks and candlestick patterns. It so happens, that even between well-known authors, and their publications, there are differences, and even contradictions, on how to apply and interpret candlestick patterns. CandleScanner attempts to remain true to the spirit of the original Japanese formulation(s). Notwithstanding, rather than take and implement a rigid approach, the software also provides the opportunity for users to control various parameters.

In CandleScanner you can also use Patterns Dictionary panel available in the ribbon bar HOME » New Window menu as a quick reference.