Before you jump headlong into three months of studying and analyzing Japanese Candlesticks manually, I highly recommend you use the power of modern stock charting algorithmic software to do the job for you.
Automatic pattern recognition software uses algorithms to detect patterns in numbers. Japanese Candlestick patterns are particularly difficult to spot; our five highlighted automated pattern recognition platforms perform this task better than humans and are available to retail investors.
Japanese Candlestick charting theory attempts to predict the future price moves of assets by interpreting the supply and demand in the market. There are hundreds of candlestick patterns that are difficult to learn.
TrendSpider offers excellent automated trend and candlestick pattern recognition on multiple timeframes. TradingView has the best free candlestick stock chart recognition globally. MetaStock offers powerful Candlestick trading systems with win/loss probabilities.
You can see the patterns recognized on a weekly chart versus the daily Candlestick patterns in the image above. Of course, TrendSpider allows you to change the timeframes to 1 minute versus 1 hour or any other combination if you prefer to trade in short timeframes.
TradingView offers automated Candlestick chart recognition for 39 patterns for free. The Candlestick pattern recognition works globally on stocks, ETFs, Forex, and cryptocurrencies. TradingView also has the largest trading community and powerful backtesting, a perfect combination.
I love TradingView and use it every single day. I regularly post charts, ideas, and analyses and chat with other traders. You can have TradingView for free, and it is a review winner for our Best Free Charting Software Review. However, there are limitations. I recommend going for the PRO+ at $19 per month or the Premium at $39 per month; the benefits are extensive, including priority customer support and unlimited everything.
In the image below, you can see that pattern recognition is intelligently implemented. The Bearish Engulfing (BE) patterns are highlighted in Red, with an arrow pointing downward, suggesting that this candle is a bearish sign. You can also observe that the Doji (D) patterns are grey and pointing upwards, indicating a possible price direction change.
Technical Analysis. With over 160 different indicators, and unique specialty charts such as LineBreak Charts, Kagi Charts, Heikin Ashi Charts, Point & Figure Charts, and Renko Charts, you have everything you will need as an advanced trader. With the Premium membership, you also get Level II insight, fully integrated.
After 6 hours of working on strategies with the Finviz backtester, I was impressed. The backtester offers over 100 unique indicators and automatically detects stock chart patterns to help you build a truly unique system. The screenshot below shows a snippet of the available pattern recognition criteria to choose from. Now I am excited.
The Finviz Backtester offers over 100 unique indicators and automatically detects stock chart patterns to help build a truly unique system. After all this work, I created a system based on the Money Flow Index that beat the S&P 500 index handsomely over the last 24 years.
At the heart of Tickeron is the ability of its AI algorithms to spot 40 different stock chart patterns in real-time. You can select which pattern you want to trade, and it will filter stocks, forex, or cryptocurrencies that currently show the pattern. Patterns are split into bullish patterns for long trades or bearish patterns for those who wish to go short.
Tickeron presents users with charts that already have patterns mapped and directions predicted; this is the single biggest benefit of the service. You will be disappointed if you want to perform your own technical analysis, configure your own indicators, or make chart annotations. The use of AI in this platform means that you will rely more on the algorithms than your own creativity, which is probably a good thing for most people.
Metastock is different from other vendors because their software runs locally on your PC, and you can buy one-off licenses and avoid monthly payments. They also operate a marketplace where professional traders sell their stock trading systems and signals as add-ons to MetaStock.
Another area where MetaStock excels is what they call expert advisors. MetaStock harnesses many inbuilt systems that will help you understand and profit from technical analysis patterns and well-researched systems as a beginner or intermediate trader. This is a key area of advantage. The most significant addition to the MetaStock arsenal is the forecasting functionality, which sets it apart from the crowd.
Each software has unique benefits. TrendSpider offers robust backtesting, Candlestick analysis & interpretation on multiple timeframes. TradingView has the best free Candlestick charting & recognition for global Stock/Forex markets. Finally, MetaStock offers a powerful Candlestick trading system for professional traders with buy signals and win probabilities.
Many experts have run backtests to predict candlestick chart outcomes. Success rates vary from 50-50 to 63 percent success rates. Therefore it is important to test candlestick pattern success on specific stocks. You can perform this analysis using TradingView or TrendSpider.
Beginners must decide whether to learn 147 candlestick patterns or use automated candlestick pattern recognition software. TrendSpider recognizes 147 candlestick patterns and TradingView 47. Both systems allow screening for candlestick patterns across markets and backtest the success rate.
To recognize stock patterns, you first need to memorize the many variations, then review each chart to spot the patterns. Alternatively, use automated pattern recognition using TrendSpider's Market Scanner or the Finviz Screener.
Manually recognizing candlestick patterns is laborious work, both to memorize the patterns and then examine the chart. This is why TradingView, FinViz, and TrendSpider have powerful algorithms to detect these patterns for you.
There are 20 major stock chart patterns defined by leading technical analysts like Murphy and Pring. Chart patterns range from the very predictive Head & Shoulders and Double Top reversals to the less predictive Wedges and Pennants. All 20 chart patterns are covered in this article.
The quickest and easiest way to identify stock chart patterns is to scan for patterns using the FinViz Stock Screener. 1. Click Screener -> 2. Select Technicals -> 3. Click Charts -> 4. Open Patterns Drop Down Menu -> Select Your Patterns 6 Steps to Set Up Stock Chart Pattern Scanning with Finviz
To learn stock chart patterns, you need to understand supply and demand and then memorize each pattern. We have a lesson on the 20 most predictive chart patterns here, or you can purchase the book Technical Analysis Explained by John J. Murphy.
Programmatically finding patterns in stocks is the future of technical analysis for traders. TrendSpider's Market Scanner, FinViz's Stock Screener, TradingView's Auto-Indicators, and Tickeron's Pattern Engine have already fully programmatically automated the process.
The easiest way to screen for stocks with a specific chart pattern is using the FinViz screener. 1. Select the [Technical] tab. 2. Select [Pattern]. 3. Choose the chart pattern. For more powerful pattern screening, try TrendSpider's Market Scanner.
The best software to identify stock chart trendlines is TrendSpider because it fully identifies all trendlines on all timeframes on a single chart. TrendSpider was created specifically to identify trendlines.
TrendSpider and TradingView are both excellent software for Candlestick pattern recognition. While TradingView's Candlestick recognition is more intuitive, TrendSpider enables powerful scanning and backtesting of 123 patterns.
The best software for automatic Fibonacci pattern recognition on stock charts is TrendSpider's AutoFibs function and TradingView's Auto Fib Extention and Retracement indicators. Automated Fibonacci pattern recognition is rare in charting services.
TrendSpider has by far the best stock chart pattern backtesting, covering 123 candlestick patterns and 28 stock chart patterns. TrendSpider's backtesting is powerful yet elegant, requiring no coding skills.
Our Finviz review testing reveals an effective free stock screener, fast market heatmaps, and stock chart pattern recognition. Finviz Elite includes real-time data, interactive charts, and backtesting.
The big question is, can Finviz still compete in the era of real-time financial news by Benzinga, interactive community and streaming stock charts by Tradingview, powerful backtesting software from MetaStock, and outstanding stock and ETF screening from Stock Rover.
Our Finviz review reveals effective heatmaps, fast stock screening, and excellent stock chart pattern recognition. However, Finviz Elite needs to improve its interactive charting, backtesting, and portfolio management. Finviz uniquely enables investors to visualize a vast amount of stock market data on a single screen.
The Finviz stock screener is extremely fast and allows you to filter on 67 fundamental and technical criteria. You can filter the stocks on specific chart-based signals such as new highs, lows, oversold, analyst upgrades, insider buying, or even chart patterns like double tops and head & shoulders.
Finviz also shines where the others do not because you can also screen on ten major candlestick patterns and 30 stock chart patterns. This mix of fundamental screening criteria for investors, technical charts, and candlestick pattern recognition for traders makes Finviz a good match for short-term and medium-term investors.
Looking at stock charts with Finviz is different from the other stock software products on the market. Whereas MetaStock & TradingView provide hundreds of fundamental technical analysis indicators, Finviz provides basic pattern recognition on daily charts and a small handful of overlays and indicators. 2b1af7f3a8