Sharing with you guys some reversal candlestick patterns for ThinkorSwim that will give buy and sell signals on your chart. Two of them were converted from TradingView and the other one were shared on the ThinkorSwim chatroom.
They look something like this.
Here are indicators that will show you reversal candlestick patterns.
Keep in mind that these reversal candlesticks aren't the holy grail. Please use them as additional confirmation or warning for a potential reversal. I recommend pairing it with other indicators to confirm your bias.
Credits:
They look something like this.


Here are indicators that will show you reversal candlestick patterns.
Reversal Candle Pattern SetUp
This was taken from TradingView and one of our members converted it to ThinkorSwim.As you look at a bullish outside reversal pattern, you will notice that the current bar's low is lower than the prior bar's low. Essentially, the market is testing the waters below recently established lows to see if a downside follow-through will occur. When no additional selling pressure enters the market, the result is a flood of buying pressure that causes a springboard effect, thereby shooting price above the prior bar's highs and creating the beginning of a bullish advance."
thinkScript Code
Rich (BB code):
#
# WalkingBallista
# Converted from: https://www.tradingview.com/script/dk2Rl4xb-Reversal-Candle-Pattern-SetUp/
#
def reversal_long = low < low[1] and close > high[1] and open < close[1];
def reversal_short = high > high[1] and close < low[1] and open >open[1];
plot signal_long = if reversal_long then low else double.nan;
plot signal_short = if reversal_short then high else double.nan;
signal_long.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
signal_long.SetLineWeight(3);
signal_long.SetDefaultColor(color.GREEN);
signal_long.HideBubble();
signal_long.HideTitle();
signal_short.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
signal_short.SetLineWeight(3);
signal_short.SetDefaultColor(color.RED);
signal_short.HideBubble();
signal_short.HideTitle();
AddLabel(yes,"Reversal",color.CYAN);
[NM] Reversal Candles
Another indicator that was converted from TradingView platform. This one has some strict conditions.BUY Signal reversal candle
SELL Signal reversal candle
- Low of current candle exceeds low of previous candle
- Low of current candle is lowest for last 7 candles
- High of current candle exceeds high of previous candle
- Close of current candle is in the upper 50% of the range of this candle
- High of current candle exceeds high of previous candle
- High of current candle is Highest for last 7 candles
- Low of current candle exceeds low of previous candle
- Close of current candle is in the lower 50% of the range of this candle
thinkScript Code
Rich (BB code):
#
# WalkingBallista
# Converted from: https://www.tradingview.com/script/sQcoF9i6-NM-Reversal-Candles-v01/
#
def reversal_long = low[0] < low[1] and high[0] > high[1] and close[0] > low[0] + (high[0] - low[0])/2 and low[0] < low[2] and low[0] < low[3] and low[0] < low[4] and low[0] < low[5] and low[0] < low[6] and low[0] < low[7];
def reversal_short = low[0] < low[1] and high[0] > high[1] and close[0] < high[0] - (high[0] - low[0])/2 and high[0] > high[2] and high[0] > high[3] and high[0] > high[4] and high[0] > high[5] and high[0] > high[6] and high[0] > high[7];
plot signal_long = if reversal_long then low else double.nan;
plot signal_short = if reversal_short then high else double.nan;
signal_long.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
signal_long.SetLineWeight(3);
signal_long.SetDefaultColor(color.Cyan);
signal_long.HideBubble();
signal_long.HideTitle();
signal_short.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
signal_short.SetLineWeight(3);
signal_short.SetDefaultColor(color.Magenta);
signal_short.HideBubble();
signal_short.HideTitle();
AddLabel(yes,"Reversal_MN",color.PLUM);
Bulkowski's Three Inside Up
Unlike the other two indicators, this one only identifies bullish reversal candlestick pattern. The Three Inside Up is a "bullish harami with a confirming candle as the third day".thinkScript Code
Rich (BB code):
# Bulkowski Three Inside Up
# Nube 3.30.19
# The three inside up acts as a bullish reversal 65% of the time and price climbs 2.61% in 10 days, on average - Thomas Bulkowski, TASC 11.2011
input label = yes;
def o = open;
def h = high;
def l = low;
def c = close;
def downTrend = Sum(h < h[1], 3) == 3 and
Sum(l < l[1], 3) == 3;
def candleOne = downtrend[1] and o > c;
def candleTwo = candleOne[1] and
c > o and
((o >= c[1] and c < o[1]) or
(o > c[1] and c <= o[1]));
def candleThree = candleTwo[1] and
c > o and
c > c[1];
plot
ThreeInsideUp = candleThree;
ThreeInsideUp.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
ThreeInsideUp.SetDefaultColor(Color.White);
Addlabel(label and ThreeInsideUp, " Three Inside Up ", Color.White);
# f/ Bulkowski Three Inside Up
AddLabel(yes,"InsideUp",color.DARK_ORANGE);
Keep in mind that these reversal candlesticks aren't the holy grail. Please use them as additional confirmation or warning for a potential reversal. I recommend pairing it with other indicators to confirm your bias.
Credits:
Last edited: