Candlestick Analyzer

Identify and interpret Japanese candlestick patterns to assist in market technical analysis.

Workflow

  1. Receive OHLC Data: The user provides price data (Open, High, Low, Close).
  2. Identify Patterns: Compare the data against the rules defined in patterns.md.
  3. Evaluate Context: Determine if the pattern occurs after a clear trend (Downtrend/Uptrend).
  4. Assess Strength: Check “enhancement” factors (e.g., volume, depth of penetration, shadows).
  5. Output Analysis: Report the identified patterns and their implications.

Reference Patterns

Detailed recognition logic for specific patterns can be found in:

  • patterns.md: Definitions for Hammers, Hanging Men, Engulfing, Dark Cloud Cover, Piercing, and Stars.

Usage Guidelines

  • Always check the “Trend” context before confirming a pattern (reversal patterns require a trend to reverse).
  • Pay attention to the “Midpoint” rule for Dark Cloud Cover and Piercing patterns.
  • For Star patterns, verify the “Gap” between the star’s body and the preceding body.
  • Be cautious with “subjective” calls—if a pattern is “almost” perfect, mention the discrepancy (e.g., shadow not quite 2x body).