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Trading with candlestick patterns

Trade with 18 candlestick patterns that NanoTrader can automatically find in your charts. A number of easily adjustable parameters allow you to adjust the candle patterns to your liking.

Chart patterns and technical analysis

Choose your candlestick patterns

Candles and candlestick patterns are an important domain in technical analysis. They reflect volume and sentiment in the market. A candlestick without a body, i.e. a candlestick with the same closing price as opening price, means that the market has no direction or, if it comes after a decline, that the market has found support.

NanoTrader can detect 18 candlestick patterns in real-time for your chart. Apart from these 18 standard patterns, it is also possible in NanoTrader to define a totally customised chart pattern of your own.

Trade with known chart patterns.

Customise your chart patterns

Traders can use the chart patterns as they are available in NanoTrader. However, it is also possible to customise the patterns to your own preference. For example, the following settings are possible:

  • Setting the time between which NanoTrader automatically searches for candlestick patterns.
  • The relative size of the green groups of candles compared to the red groups of candles. Take, for example, the pattern number 13. You could set it so that the red candle is twice the size of the group of green candles In other words, the drop after the rise is very pronounced.

Test your candlestick patterns

NanoTrader is very strong in analysing, testing and improving trading strategies. Unlike other trading platforms, in NanoTrader you can simply change one parameter and immediately see the impact on your profit or loss. Let's analyse some chart patterns and see what results they give.

This example is a chart of the gold price with 60-minute candlestick patterns. NanoTrader automatically detects pattern number 14.

Automatically finding patterns in charts.

This is a backtest of candlestick pattern number 14 over the last 5 years. To test, we used a stop loss and a price target of 3x the ATR (this is the volatility). For a trader in gold, this candlestick pattern was clearly profitable under these conditions.

Chart patterns that work.

This example is a chart of the DAX stock market index with 30-minute candles. NanoTrader automatically detects pattern number 3.

Candles trading explanation.

This is a backtest of candle pattern number 3 over the last 5 years. To test, we used a stop loss and a price target of 3x the ATR (this is the volatility). For a DAX trader, this candlestick pattern was clearly profitable under these conditions.

Chart patterns on the DAX.

Use your candle pattern as a trading signal

You can use the candle patterns as a trading signal. NanoTrader can alert you when a pattern appears. NanoTrader can also go further, automatically opening a position. The choice is yours. Once the position is open, NanoTrader can also automatically manage the open position by placing your stop loss and price target orders. If the price target is reached, the stop loss order is then automatically cancelled once more.

Interestingly, you can set what signal you want after a particular chart pattern. Do you want a buy signal or a sell signal? In this way, you can also trade in a counter-trend manner.

In this example, we see the chart of the S&P 500 stock market index with 10-minute candles. NanoTrader looks for candle pattern number 15.

Which candlestick patterns can you make profits with?

This is a backtest of candlestick pattern number 15 over the last year. We decided to trade contrarian earlier, asking for short sell signals.

Testing a trading strategy.


Detecting candlestick patterns in charts is very easy with NanoTrader. The patterns can also be used as trading signals. As usual, you don't have to do it overnight, but you can test and improve everything. With the backtest function, this is child's play. All this is free in NanoTrader.

Also read...

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