Contrarian
Candle
The Candle column shows the current and most recent found candle pattern as labelled in market oracle. The screener further takes an innovative approach using the lookback setting. If a pattern is found within the lookback setting number of candles (default 5) it’ll be displayed in the screener. This gives a higher frequency of detected patterns and hence makes the screener more actionable. If a trader wanted to only screen for patterns on the current bar; they can change this value to 1.
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| The lookback setting detecting a hammer pattern |
As described on the candlestick patterns page:
“Candlestick structures analyze candlestick formation putting a spin on classical candlestick patterns and provide the most relevant formations on the chart. These are not classical and are filtered by further analyzing market activity. A trader's classic with a spin. These are superb at reversal identification and are commonly used in confluence with other reversal techniques such as SR confluence. E.g. If price is in resistance + bearish candlestick pattern.”
The list of patterns being screened for are:
EG - Engulfing Patterns. This is where the body of the candle totally eclipses the body of the previous.
Hammer - A hammer is a reversal candle stick with a long wick producing a hammer shape.
RTM - The rising three method is a candlestick pattern that arises during an upward trend and returns to the same path in the following days. It's a bullish continuation pattern, which means the market is amidst a strong buy-side period, and the trend will likely continue in the foreseeable future.
FTM - A falling three methods pattern is characterized by two long candlesticks in the direction of the trend, one at the beginning and end, with three shorter counter-trend candlesticks in the middle. The falling three methods pattern shows traders that the bulls still don't have sufficient conviction to reverse the trend. Bullish Soldier & Bearish Solider - A reversal pattern that consists of three consecutive long bodied candlesticks that open within the previous candle's real body and a close that exceeds the previous candle's high.
Evening Star & Morning Star - A reversal pattern consisting of three candles: a large bullish candlestick, a small-bodied candle, and a bearish candle.
Looking for scalping settings via candle patterns can be beneficial. For example; a sell signal, a bearish reactor with a new bearish candlestick pattern can provide an opportunity for an excellent short scalp. Candlestick patterns can also indicate profit opportunities. If a trader is in a short position and bullish candlestick patterns are being detected; this could suggest it's a good chance to take profits off the table.
Reversal
The Reversal column is a key feature of The Prime Screener that helps traders spot potential reversal signals in the market. This tool is like an alert to possible changes in market direction.
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| Reversal signals being scanned for |
- Default Setting: By default, the screener checks the last five candles on the chart for these reversal signals. If it finds something noteworthy within these five candles, it displays this information on the screener. If a trader wants to scan for signals over a larger range they can increase this value.
- Adjusting for Immediate Signals: For traders interested in the most current market activities, the settings can be altered to focus on just the current candle. This adjustment provides the most up-to-date information on potential market shifts.
Why It's Useful
For Quick Trading Strategies (Scalping):
- If a trader sees a sell signal, a downward trend (bearish reactor), and a new pattern that suggests the trend might continue downward, this could be an ideal opportunity for a quick, profitable trade.
Deciding When to Take Profits:
- Suppose a trader is in a short position and starts noticing bullish reversal signals. These signals might indicate a good time to take profits before the market trend reverses.
The Reversal Column in The Prime Screener offers traders a valuable tool for identifying potential market turns. Its customizable lookback period caters to various trading needs, from immediate action to more calculated strategies. This feature ensures that traders can stay informed and make timely decisions based on the latest market trends.