We have released a new indicator for cTrader — the Pattern Recognition Oscillator. This tool scans the chart for well-known candlestick formations such as engulfing bars, harami, piercing lines, dark cloud cover, pin bars, morning and evening stars, and doji. It then assigns a weighted score to each signal and normalises the result into a clear range from −100 to +100.
The oscillator plots green bars for bullish pressure, red bars for bearish pressure, and a blue signal line for smoothed momentum. You can adjust the weights to focus on the patterns most relevant to your trading style, making it versatile for trend confirmation, reversals, and divergence spotting.
Initially, these patterns come from candlestick charting developed in Japan in the 18th century, credited to rice merchant Munehisa Homma, and are still widely used today for reading market sentiment.
You can learn more, download, and share your feedback here:
