Hammer and Shooting Star This indicator identifies Hammer and Shooting Star candles and marks them with a respective label. It uses a set of predefined fibonacci levels to measure the size of the body in comparison to the overall size of the candle. You can change the fibonacci level according to your preferences.
You can enable a confirmation of the Hammer or Shooting Star candle by a following green or red candle.
Settings
Fibonacci Level - Select on of the predefined fibonacci levels as a threshold for the maximum size of the body compared to the overall size of the candle.
Confirm by next candle - by default turned off. If turned on, this will check the subsequent candle and only mark a Hammer followed by a green candle or a Shooting Star followed by a red candle.
Show labels on chart - by default turned on. If turned off, the indicator will hide the labels on the chart.
Alerts You can create alerts for Hammer and Shooting Star candles. The indicator provides the respective conditions.
Linking with Backtesting Strategy I also added a feature to combine this indicator with a backtesting strategy. It provides a plot Connector [C] which can be selected in a backtesting strategy supporting this linking feature.
Signals:
Signal: 2 - Hammer candle (long entry)
Signal: -2 - Shooting Start candle (short entry)
You can see the signal values in the status line of the indicator. This is based on the External Signal Protocol defined by PineCoders.
I guess it detects bearish hammer too but missing an example in this chart.
Kaspricci
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@Stralker, yes, it detects also red hammer candles. just the part from the high to the lower end of body must not be bigger than the defined fib level. doesn't matter whether this is a green or red candle.
ShirishF2
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This is brilliant. Is there a way I can get an alert each time it triggers and a hammer or shooting star candlestick pattern is formed?
Kaspricci
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@ShirishF2, Hi, sorry for my late response. Yes, the script provides two alert conditions. One for Hammer and one for Shooting Star. Just create a new alert and select the respective condition.