The Doppelgänger Pattern Recognition in TradingView
Coding an Doppelgänger Candlestick Pattern Scanner in TradingView
Candlestick patterns are a great addition to market analysis. Some may even consider them vital in research and trading. This article presents the Doppelgänger pattern and shows how to code a scanner in TradingView that detects it.
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The Doppelgänger 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 Doppelgänger pattern is a three-candlestick contrarian configuration. The general shape is a candlestick followed by two similar candlesticks.
The bullish Doppelgänger is composed of a bearish candlestick followed by two exactly similar candlesticks. The following Figure shows a theoretical illustration of the bullish Doppelgänger.
The bearish Doppelgänger is composed of a bullish candlestick followed by two exactly similar candlesticks. The following Figure shows a theoretical illustration of the bearish Doppelgänger.
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 Doppelgänger patterns using the following indications:
A green arrow for bullish Doppelgänger signals.
A red arrow for bearish Doppelgänger 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("Doppelgänger Finder", overlay = true) bullish_doppelganger = close < open and high == high and low == low and math.max(close, open) == math.max(close, open) and math.min(close, open) == math.min(close, open) bearish_doppelganger = close > open and high == high and low == low and math.max(close, open) == math.max(close, open) and math.min(close, open) == math.min(close, open) plotshape(bullish_doppelganger, style = shape.triangleup, color = color.green, location = location.belowbar, size = size.small) plotshape(bearish_doppelganger, 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. Bear in mind that this pattern is quite rare.
The following Figure shows another signal chart.
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To sum up, what I am trying to do is to simply contribute to the world of objective technical analysis which is promoting more transparent techniques and strategies that need to be back-tested before being implemented. This way, technical analysis will get rid of the bad reputation of being subjective and scientifically unfounded.
I recommend you always follow the the below steps whenever you come across a trading technique or strategy:
Have a critical mindset and get rid of any emotions.
Back-test it using real life simulation and conditions.
If you find potential, try optimizing it and running a forward test.
Always include transaction costs and any slippage simulation in your tests.
Always include risk management and position sizing in your tests.
Finally, even after making sure of the above, stay careful and monitor the strategy because market dynamics may shift and make the strategy unprofitable.