Use This New Candlestick Pattern in Your Trading

Coding a Golden Candlestick Pattern Scanner in TradingView

Candlestick patterns are a great addition to market analysis. Some may even consider them vital in research and trading. This article presents the Golden pattern and shows how to code a scanner in TradingView that detects it.

The Golden Pattern

Candlestick charts are among the most famous ways to analyze the time series visually. They contain more information than a simple line chart and have more visual interpretability than bar charts.

The Golden pattern is a three-candlestick configuration based on the golden ratio from the Fibonacci sequence. The golden ratio is 1.618 and variations of it include 0.618, 2.618, and 3.618. In this pattern, we are interested in 2.618 which seems to capture better reactions.

The bullish Golden pattern is composed of a normal bullish candlestick with any type of body, followed by a bigger bullish candlestick with a close price that is at least 2.618 times the size of the first candlestick (high to low). Finally, there must be an important condition that is a third candlestick that comes back to test the open of the second candlestick from where the entry is given. The following Figure shows a theoretical illustration of…