Pattern

Concept

Candlestick formations have long been used to interpret market psychology. In darwintIQ this logic is not just a naked candle-pattern detector. It combines reversal candles with trend context, recent range structure, and breakout confirmation.

Idea

The strategy looks for bullish reversal patterns such as Hammer, Morning Star, or bullish Engulfing after a downtrend and close to the lower edge of the recent range. For shorts it looks for Shooting Star, Evening Star, or bearish Engulfing after an uptrend and close to the upper range edge. A setup only becomes actionable once price confirms it with a breakout.

Genetic Algorithm Parameters

• Lookback window for recent range structure
• Minimum distance to support/resistance edge
• Minimum distance from the range midpoint
• Breakout pip threshold
• Trend window length
• Trend EMA period

Best suited for:

Valuable in volatile markets with frequent sentiment shifts

Less reliable in very strong, one-directional trends