Quantum Candle Scanner [JOAT]

Quantum Candle Scanner [JOAT] - Advanced Multi-Pattern Recognition System

Introduction and Purpose

Quantum Candle Scanner is an open-source overlay indicator that detects multiple candlestick patterns including engulfing patterns, kicker patterns, inside bar setups, momentum candles, and higher-high/lower-low sequences. The core problem this indicator solves is that traders often miss patterns because they're looking for only one type. Different patterns work better in different market conditions.

This indicator addresses that by scanning for five distinct pattern types simultaneously, giving traders a comprehensive view of price action signals.

Why These Five Pattern Types Work Together

Each pattern type identifies different market behavior:

1. Engulfing Patterns - Classic reversal signals where current candle completely engulfs the previous candle. Best for identifying potential turning points.

2. Kicker Patterns - Strong reversal signals with gap confirmation. The current candle opens beyond the previous candle's open with opposite direction. Best for identifying high-momentum reversals.

3. Inside Bar Patterns - Consolidation breakout signals where a candle's range is contained within the previous candle, followed by a breakout. Best for identifying compression before expansion.

4. Momentum Candles - Identifies the largest body candle over a lookback period. Best for spotting institutional activity.

5. HH/HL and LH/LL Sequences - Three-bar structure patterns showing trend continuation. Best for confirming trend direction.

How the Detection Works

Engulfing Pattern:

bool engulfBullBase = open <= math.min(close[1], open[1]) and 
                       close >= math.max(close[1], open[1]) and 
                       isBullish(0) and
                       getBodyPct(0) > bodyMinPct

Kicker Pattern:

bool kickerBull = isBearish(1) and isBullish(0) and 
                   open > open[1] and low > low[1] and
                   getBodyPct(0) > 40 and getBodyPct(1) > 40

Inside Bar:

bool insideBarSetup = low[2] < low[1] and high[2] > high[1]
bool insideBarBull = insideBarSetup and isBullish(0)

HH/HL Sequence:

bool hhhlSeq = high > high[1] and low > low[1] and 
                high[1] > high[2] and low[1] > low[2] and 
                close > close[2]

Optional Filters

• ATR Filter - Only shows patterns where candle body exceeds ATR (strong candles only)
  
• Body Minimum % - Requires minimum body percentage for engulfing patterns
  
• Close Beyond Prior H/L - Requires engulfing candle to close beyond prior high/low
  

Dashboard Information

• Engulfing - Total engulfing patterns detected
  
• Kicker - Kicker pattern count
  
• Inside Bar - Inside bar breakout count
  
• HH/LL Seq - Structure sequence count
  
• Total - Combined pattern count
  

How to Use This Indicator

For Reversal Trading:
1. Look for engulfing or kicker patterns at key support/resistance
2. Confirm with HH/HL or LH/LL sequence breaking
3. Enter with stop beyond the pattern

For Breakout Trading:
1. Identify inside bar setups (consolidation)
2. Enter on breakout candle in direction of break
3. Use the inside bar range for stop placement

For Trend Confirmation:
1. Use HH/HL sequences to confirm uptrend structure
2. Use LH/LL sequences to confirm downtrend structure
3. Momentum candles indicate institutional participation

Input Parameters

• Detect Engulfing/Kicker/Inside Bar/Momentum/HHLL (all true) - Toggle each pattern type
  
• Min Body % for Engulfing (0) - Minimum body percentage
  
• ATR Filter (false) - Only show strong candles
  
• Engulf Must Close Beyond Prior H/L (true) - Stricter engulfing definition
  
• Compact Mode (false) - Shorter labels for cleaner charts
  

Timeframe Recommendations

• 1H-Daily: Best for reliable pattern detection
  
• 15m-30m: More patterns but higher noise
  
• Use Compact Mode on lower timeframes
  

Limitations

• Pattern detection is mechanical and does not consider context
  
• Not all patterns lead to successful trades
  
• Kicker patterns are rare but powerful
  
• Inside bar breakouts can fail (false breakouts)
  

Open-Source and Disclaimer

This script is published as open-source under the Mozilla Public License 2.0 for educational purposes.

This indicator does not constitute financial advice. Pattern detection does not guarantee trade outcomes. Always use proper risk management.

- Made with passion by officialjackofalltrades