Hi: Would anyone like to recommend a good program that automatically recognizes the candlestick patterns while daytrading and alerts the trader of that specific pattern. I would at least like the program to be able to recognize the most popular ones. If the program can allow the trader to add his own patterns, that would be super. thanks, Paul
Problem with candle patterns is, they're too subjective for a computer algorithm. What one trader may identify as a descending triangle, another may see a head/shoulders pattern, and the computer may see yet something else. I have Metastock with Murphy's Candlestick Patterns Recognition module and it absolutely sucks. It misses many pattens, it finds ones that you'd never see staring at the chart yourself, etc.
Hey buffer, I have been looking for such software myself. For example, I would like to find software that could detect a doji on a 5 min or 15 min chart. Doji's especially at/near the top of a daily trading range are very valuable and are high probability plays/scalps. I hope someone posts some software that can perform that task. Happy trading.
John Murphy's plug-in for Metastock isn't candle patterns. It is for regular Chart Patterns but, yes, it is an awful example of a pattern search program. However, Metastock does come with a candle patterns expert. You can turn on or off any of the 30 or so candle patterns as you please or even re-write the formulas to add your own parameters. Attached is a 5 min chart of the Dow with the standard candle patterns identified.
What are your opinions of candlestick pattern usefulness when the timeframes are changed? For example, observing a 15 minute chart versus a 3 minute chart would give you totally different indications or perspective with totally different conclusions. How does the observer balance the conflicting results?
I do the finding and you do the review http://www.traderguard.com/software.htm hotcandlestick.com also claim doing intraday charting but they don't sound so sure.