Pattern

Concept

Candlestick formations have been used for centuries to interpret market psychology. Patterns such as Hammers, Morning Stars, Shooting Stars, and Evening Stars provide early signals of potential reversals.

Idea

The strategy detects these formations within a given trend context. For example, a Hammer appearing during a downtrend suggests buyers are regaining strength and a reversal may be near.

Genetic Algorithm Parameters

• Lookback window for detecting patterns
• Minimum distance to support/resistance
• Breakout pip threshold
• Trend window length

Best suited for:

Valuable in volatile markets with frequent sentiment shifts

Less reliable in very strong, one-directional trends