Patterns Dictionary

CandleScanner recognizes in total 106 patterns: 20 basic candles and 86 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.