Swing Highs/Lows & Candle Patterns

https://www.tradingview.com/script/yxEJ4Dxw-Swing-Highs-Lows-Candle-Patterns/

This script labels swing highs and swing lows as well as the candle pattern that occurred at that precise point. The script can detect the following 6 candle patterns: hammer , inverse hammer , bullish engulfing , hanging man , shooting star , and bearish engulfing . The notations HH, HL, LH, and LL you can see on the labels are defined as follows:

  • HH : Higher high

  • HL : Higher low

  • LH : Lower high

  • LL : Lower low

Setting

Length: Sensitivity of the swing high/low detection, with lower values returning the maximum/minimum of shorter-term price variations.

Usage & Details

It can be interesting to see if a top or bottom is associated with a specific candle pattern, this allows us to study the potential of such a pattern to indicate a reversal. You can hover on a label with a specific pattern to see more details about it. Note that the labels are offset, and will appear later in real-time, as such this indicator is not intended to detect tops/bottoms in real-time.

Higher values of length might return errors.

Code

// This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License https://creativecommons.org/licenses/by-sa/4.0/
// © alexgrover & LuxAlgo
//@version=4
study("Swing Highs/Lows & Candle Patterns",overlay=true)
length = input(50)
//------------------------------------------------------------------------------
o = open[length],h = high[length]
l = low[length],c = close[length]
//------------------------------------------------------------------------------
ph = pivothigh(close,length,length)
pl = pivotlow(open,length,length)
valH = valuewhen(ph,c,0)
valL = valuewhen(pl,c,0)
valpH = valuewhen(ph,c,1)
valpL = valuewhen(pl,c,1)
//------------------------------------------------------------------------------
d = abs(c - o)
hammer = pl and min(o,c) - l > d and h - max(c,o) < d
ihammer = pl and h - max(c,o) > d and min(c,o) - l < d
bulleng = c > o and c[1] < o[1] and c > o[1] and o < c[1]
hanging = ph and min(c,o) - l > d and h - max(o,c) < d
shooting = ph and h - max(o,c) > d and min(c,o) - l < d
beareng = c > o and c[1] < o[1] and c > o[1] and o < c[1]
//------------------------------------------------------------------------------
//Descriptions
//------------------------------------------------------------------------------
hammer_ = "The hammer candlestick pattern is formed of a short body with a long lower wick, and is found at the bottom of a downward trend."
+ "\n" + "\n A hammer shows that although there were selling pressures during the day, ultimately a strong buying pressure drove the price back up."
ihammer_ = "The inverted hammer is a similar pattern than the hammer pattern. The only difference being that the upper wick is long, while the lower wick is short."
+ "\n" + "\n It indicates a buying pressure, followed by a selling pressure that was not strong enough to drive the market price down. The inverse hammer suggests that buyers will soon have control of the market."
bulleng_ = "The bullish engulfing pattern is formed of two candlesticks. The first candle is a short red body that is completely engulfed by a larger green candle"
+ "\n" + "\n Though the second day opens lower than the first, the bullish market pushes the price up, culminating in an obvious win for buyers"
hanging_ = "The hanging man is the bearish equivalent of a hammer; it has the same shape but forms at the end of an uptrend."
+ "\n" + "It indicates that there was a significant sell-off during the day, but that buyers were able to push the price up again. The large sell-off is often seen as an indication that the bulls are losing control of the market."
shotting_ = "The shooting star is the same shape as the inverted hammer, but is formed in an uptrend: it has a small lower body, and a long upper wick."
+ "\n" + "Usually, the market will gap slightly higher on opening and rally to an intra-day high before closing at a price just above the open – like a star falling to the ground."
beareng_ = "A bearish engulfing pattern occurs at the end of an uptrend. The first candle has a small green body that is engulfed by a subsequent long red candle."
+ "\n" + "It signifies a peak or slowdown of price movement, and is a sign of an impending market downturn. The lower the second candle goes, the more significant the trend is likely to be."
//------------------------------------------------------------------------------
n = bar_index
label lbl = na
H = valH > valpH ? "HH" : valH < valpH ? "LH" : na
L = valL < valpL ? "LL" : valL > valpL ? "HL" : na
txt = hammer ? "Hammer" : ihammer ? "Inverse Hammer" :
bulleng ? "Bullish Engulfing" : hanging ? "Hanging Man" :
shooting ? "Shooting Star" : beareng ? "Bearish Engulfing" : "None"
des = hammer ? hammer_ : ihammer ? ihammer_ :
bulleng ? bulleng_ : hanging ? hanging_ :
shooting ? shotting_ : beareng ? beareng_ : ""
if ph
lbl := label.new(n[length],max(c,o),H + "\n" + txt,color=#ff1100,
style=label.style_label_down,textcolor=color.white,tooltip=des)
label.delete(lbl[1])
else if pl
lbl := label.new(n[length],min(c,o),L + "\n" + txt,color=#2157f3,
style=label.style_label_up,textcolor=color.white,tooltip=des)
label.delete(lbl[1])
//------------------------------------------------------------------------------