The Candle Hunter Candlestick Pattern - by Karoshi Trading

7. Feb. 2023

The Candle Hunter Indicator - by Karoshi Trading

The Candle Hunter Indicator is based on specific Candlesticks and Patterns.
Activating this indicator will mark all specific Bullish & Bearish Candles on the Chart.
Depending on your settings, not all candles will be displayed on the chart.

The goal of this indicator is, to highlight all the important trending candles and ignore all ranging candles.
This can be helpful for rejecting/bouncing zones or S&R Levels. Or even if you like to trade reversals, you do not want to trade it on low volume ranging candles.
This indicator should only be used as a supplementary tool while trading, not as a stand alone.

Which Candles & Pattern will be marked on the chart?
1# Pinbar / Hammer (multiple Variations)
2# Marubozu Candles (multiple Variations)
3# Engulfing Candles (Multiple Variations)



How does this indicator works?
First of all, the indicator has to calculate 3 different parameters, before marking one of the given candle. To do so, we will need the average volume, average candle size and the specific candles.

1st Parameter: Defining the needed Candles
First of all, the indicator will calculate, based on the opening & closing price and also the wick (range of each candle). If one of the calculation is a match, for the mentioned candles above, we come to step 2.

2nd Parameter: Average Candle Size
The next one is the size of each candle, compared to the average candle on the chart.
You can customize the settings, but in this example, we want the specific candle be at least 1.5 times the size of the average last 14 candles.

3rd Parameter: Average Volume
The indicator will now calculate the average volume of the last selected candles period (default settings = 14) and compare it to the current candle. In this example, the current candle should be at least 1.5 times the average volume.

The indicator provides two possibilities to calculate the average volume:

1# Volume MA = Volume Moving Average
2# Volume SA = Volume Simple Average

Result: Colorizing the given Candle
After all parameters were met, the indicator will colorize and mark with a label + name all the candles on the chart.

Special Settings:
1st The Engulfing Candles, have 3 different options:

1# Classic = Only the body of the previous candle has to be engulfed by the current candle
2# Reinforced = The full candle + wick of the previous candle has to be engulfed
3# Multiple Candles = Minimum 3 previous candles has to be engulfed to be marked on the chart

The numbers of candles are changeable and you can have all 3 options simultaneously active.
That means, that the code will check all 3 options to see if there is a match.

2nd Marubozu Candle
You can set the ratio between body compared to wick in the settings. Depends if you want full marubozu candles or also the variations of it.

3rd Hammer Wick
You can decide how much bigger the wick should be, compared to the body of the candle. The default settings are set on 1.5 times.
You can also set the position of the body. As example if the settings are set on 30%, the body of the hammer should be on the upper half of a bullish hammer or the lower 30% of the candle if bearish.