BCA Candlestick Pattern Condition BuilderThe "Candlestick Pattern Condition Builder" is an indicator developed for traders who want to create and customize their own trading strategies based on candlestick patterns. It allows users to set specific conditions for entering and exiting trades, both long and short. By enabling traders to define up to five conditions based on various price points (Open, High, Low and Close) and logical operators, it provides a flexible framework for building complex trading strategies tailored to individual preferences and market behavior.
Now traders can easily configure their favorite candlestick patterns like Doji, three white soldiers, three black crows or any other pattern using this indicator.
Here are the settings to customize the indicator:
Intraday Setting:
The indicator supports time-based trading by allowing users to define specific intraday sessions. Traders can set the start and end times for trading activities, ensuring that the strategy only executes trades within the defined market hours. This feature is particularly useful for intraday traders who want to avoid overnight positions and focus on capturing intraday price movements. Users can toggle the time-based entry and exit settings on or off, providing additional flexibility in managing their trading sessions.
Long and Short Candle Configuration:
"Condition Builder" enables users to configure conditions for both long and short trades using historical candle data. Traders can select different price points (open, high, low, close) from the past five bars to create their conditions. Each condition can be set with logical operators such as greater than, less than, greater than or equal to, less than or equal to, and equal to. This allows for detailed and precise condition-building, enabling traders to tailor their strategies to specific market patterns and behaviors. Note that between any two candlestick conditions "AND" operator is used.
Candle number representation as follows:
0 - N candle (current candle)
1 - N-1 candle (previous candle)
2 - N-2 candle
3 - N-3 candle
4 - N-4 candle
Stoploss and Target Options:
The indicator allows users to set stop-loss and target levels based on various criteria. Traders can choose to set these levels as a percentage, a fixed number of points, or based on the highest or lowest prices of selected candles. Additionally, the indicator supports risk
targets, providing a method to calculate targets in relation to the stop-loss distance. These features help traders manage their risk effectively and ensure that their strategies have well-defined exit points.
Stoploss Options:
1. Percentage Stoploss:
This option allows traders to set a stop-loss level as a percentage of the entry price. For example, if the stop-loss is set at 2%, the trade will close if the price moves 2% against the entry price. This dynamic approach adjusts the stop-loss level based on the trade's entry price, providing flexibility and proportional risk management.
2. Points Stoploss:
With this option, traders specify a fixed number of points for the stop-loss. For instance, if the stop-loss is set to 50 points, the trade will close if the price moves 50 points against the entry price. This fixed approach is straightforward and easy to implement, offering a clear and consistent risk threshold.
3. Highest/Lowest of Selected Candles:
This stop-loss method uses the highest or lowest prices of selected historical candles to determine the stop-loss level. Traders can select specific past bars, and the stop-loss will be set at the highest high (for short trades) or the lowest low (for long trades) of those bars. This method is useful for incorporating recent price action into risk management.
Target Options:
1. Percentage Target:
Similar to the percentage stop-loss, this option sets the target level as a percentage of the entry price. If the target is set at 5%, the trade will aim to close when the price moves 5% in favor of the entry price. This approach ensures that the target is proportionally related to the entry price, aligning with the trader’s desired profit margin.
2. Points Target :
This target option allows traders to set a specific number of points as the target. For example, if the target is set to 100 points, the trade will aim to close when the price moves 100 points in favor of the entry price. This method provides a clear and fixed profit goal, making it easy to implement and understand.
3. Risk:Reward :
The Risk:Reward sets the target level based on a multiple of the stop-loss distance. For example, with a risk ratio of 1:2 and a stop-loss distance of 50 points, the target will be set at 100 points (2 times the stop-loss distance). This approach helps traders maintain a consistent risk profile, aiming for higher profits relative to the risk taken on each trade.
Best practice: Use it with other price action concepts or indicators to make it effective.
