Beyond the Basics: Exploring a New Candlestick Pattern for Investors
Coding a Hexad Candlestick Pattern Scanner in TradingView
Candlestick patterns deserve to be studied thoroughly and even though a strategy relying solely on them will be unstable and unprofitable, they can be a valuable addition into a full trading system that uses other techniques. In this article, you will see a full presentation and code of a six-candle reversal pattern.
The Hexad Pattern
Candlestick charts are among the most famous ways to analyze the time series visually. They contain more information than a simple line chart and have more visual interpretability than bar charts.
The Hexad pattern is a six-candlestick contrarian configuration. The general shape is a few stabilizing candles.
The bullish Hexad is composed of three bullish candlesticks that follow three bearish candlesticks with the last candlestick having a close higher than the high of the first candlestick. The following Figure shows a theoretical illustration of the bullish Hexad.
The bearish Hexad is composed of three bearish candlesticks that follow three bullish candlesticks with the last candlestick having a close lower than the low of the first candlestick. The following Figure shows a theoretical illustration of the bearish Hexad.
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Coding the Scanner in TradingView
The conditions of the pattern are relatively easy to code especially in a straightforward and simple coding language such as Pine Script, TradingView’s native language.
The aim of the scanner is to detect the Hexad patterns using the following indications:
A green arrow for bullish Hexad signals.
A red arrow for bearish Hexad signals.
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © Sofien-Kaabar
//@version=5
indicator("Candlestick Pattern - Hexad", overlay = true)
bullish_hexad = close > open and close[1] > open[1] and close[2] > open[2] and close[3] < open[3] and close[4] < open[4] and close[5] < open[5] and close > high[5]
bearish_hexad = close < open and close[1] < open[1] and close[2] < open[2] and close[3] > open[3] and close[4] > open[4] and close[5] > open[5] and close < low[5]
plotshape(bullish_hexad, style = shape.triangleup, color = color.green, location = location.belowbar, size = size.small)
plotshape(bearish_hexad, style = shape.triangledown, color = color.red, location = location.abovebar, size = size.small)The following Figure shows a signal chart after the code has been applied and executed.
The following Figure shows another signal chart.
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