STWP Candlestick Patterns Reversal Engine

🕯 STWP Candlestick Patterns Reversal Engine

Educational Multi-Timeframe Pattern Interpretation Tool

Author: simpletradewithpatience (STWP)
Markets: Equities, Indices, Futures
Built With: Pine Script v5

📌 Overview

The STWP Candlestick Reversal Framework is a structured analytical tool designed to identify classical bullish and bearish candlestick formations within a defined trend context.

Unlike traditional pattern scripts that mark signals in isolation, this framework evaluates:

• Market trend alignment
• Pattern structure strength
• Volume participation
• RSI shift behaviour
• MACD momentum transition
• Multi-timeframe adaptive EMA structure

The objective is not prediction — but structured interpretation.

📸 Chart Preview (Educational Examples)
1️⃣ Bullish Reversal Context

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Illustrates a bullish candlestick formation forming within a structured downtrend, followed by improving momentum alignment and volume participation.

2️⃣ Bearish Reversal Context

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Displays a bearish formation appearing after extended upward movement, with weakening slope and momentum shift.

⚠ Snapshots are shared strictly for educational illustration. They are not trade recommendations.

📊 What This Framework Helps You Understand

✅ Whether a pattern is forming with or against prevailing trend
✅ If volume supports the move
✅ Whether momentum is strengthening or weakening
✅ How structure changes across Intraday, Swing, and Positional timeframes
✅ A contextual reliability score based on confluence factors

This promotes clarity over impulse.

🔁 Adaptive Timeframe Logic

The framework automatically adjusts its EMA structure based on chart timeframe:

• Intraday: 9 & 21 EMA
• Swing: 20 & 50 EMA
• Positional: 50 & 200 EMA

This allows pattern interpretation to remain relevant across different trading horizons.

💡 Educational Use Case

Ideal for traders who want to:

• Study classical candlestick behavior
• Understand reversal strength in context
• Avoid reacting to isolated patterns
• Develop confluence-based thinking
• Build structured decision discipline

This tool is intentionally analytical — not predictive.

⚠ Important Notes

• No buy/sell signals are generated
• No automated trade logic included
• No performance claims made
• Designed purely for structured observation

Use it as a study framework, not a trigger.

⚠ Disclaimer

This indicator is provided strictly for educational and informational purposes.
It does not constitute investment advice, research recommendation, or trading guidance.
Market participation involves risk. Please consult a SEBI-registered financial advisor before making financial decisions.
The author is not responsible for financial losses arising from use or interpretation of this tool.