Introduction

Candlestick screeners are specialized tools that help traders quickly identify significant candlestick patterns. These patterns reveal market psychology, showing potential reversals, continuations, or shifts in market sentiment. By highlighting these visual cues, traders can make timely and strategic trading decisions.

What are Candlestick Screeners

Candlestick screeners detect specific patterns formed by candlesticks on price charts, providing visual insights into market behavior. These patterns indicate whether buyers or sellers dominate and help forecast potential changes in price direction, enabling traders to anticipate market moves more effectively.

Key Metrics Tracked

- Engulfing Patterns
- Reversal Patterns
- Trend Confirmation Patterns
- Strong bullish or bearish sentiments

List of Sub Screener

Bearish Engulfing
Highlights situations where a larger bearish candle completely engulfs the preceding smaller bullish candle, signaling that sellers have taken control. This powerful pattern often hints at a strong potential reversal from bullish to bearish trends.

Bullish Engulfing
Identifies cases where a larger bullish candle fully engulfs the prior smaller bearish candle. It indicates buyers are dominating the market, possibly reversing a bearish trend and pointing towards upcoming positive momentum.

Dark Cloud Cover
Detects a bearish reversal pattern where a dark candle opens higher but closes significantly into the body of the preceding bullish candle. It suggests weakening bullish momentum and a possible shift to a bearish market trend.

Hammer
Tracks candlesticks characterized by a small real body near the top and a long lower shadow. This pattern indicates strong buying pressure overcoming initial selling momentum, often signaling a potential bullish reversal after a downward trend.

Piercing
Identifies bullish reversal patterns where a bullish candle opens below the previous bearish candle's close and closes deeply into its real body. This shows significant bullish strength and possible reversal from bearish sentiment to bullish recovery.

Shooting Star
Highlights candlesticks with a small real body near the bottom and a long upper shadow, signaling that buying pressure was initially strong but eventually overwhelmed by sellers. This often marks the potential reversal from an uptrend to a downtrend.

Three Black Crows
Finds a pattern of three consecutive long-bodied bearish candles, each closing near their lows, reflecting strong and sustained selling pressure. This is usually viewed as a clear indication of bearish momentum likely continuing.

Three White Soldiers
Identifies three consecutive bullish candles with long bodies, each opening within the previous candle's real body and closing near its high. This pattern signals strong buying momentum, often confirming the strength of an ongoing bullish trend.

When to Use Candlestick Screeners

- To quickly identify potential trend reversals or confirmations.
- When visualizing shifts in market sentiment through easy-to-interpret candlestick patterns.
- To enhance timing and accuracy of trading entry and exit points based on clear visual signals.

How to Use ScanX's Candlestick Screeners

- Select specific candlestick patterns you wish to monitor, like Engulfing, Hammer, or Three Black Crows.
- Apply ScanX filters to pinpoint these patterns accurately within your desired timeframe or specific market conditions.
- Analyze results closely to make informed decisions about market trends and anticipate potential reversals or continuations.

User Segments

Pattern Traders: Traders who focus primarily on visual patterns to determine market entry and exit points.

Technical Analysts: Professionals who incorporate candlestick analysis into their broader technical evaluation strategy.

Market Sentiment Analysts: Individuals using candlestick signals to interpret immediate market sentiment and anticipate short-term trend shifts.

How reliable are candlestick pattern screeners?

Candlestick patterns have been used by traders since the 18th century. A doji at resistance might suggest indecision, and a hammer near support could signal a reversal. You can use candlestick screeners as your first alert system for potential opportunities. However, these patterns work best when confirmed by other factors.