Chapter 6 Candle Stick Pattern

In this chapter, we learn how to use R to detect the following candle stick patterns.

Learning Objectives:

  • 1-day patterns:
    • doji
    • hammer
  • 2-day patterns:
    • engulfing
    • harami
    • median reversal
    • two in a row (kicking)
  • 3-day patterns:
    • three-in-a-row
    • star
  • 5-day pattern:
    • three method

Throughout this chapter, we use Microsoft (ticker: MSFT) to do demonstration


To make our code more compact, let us define the following:

OP <- as.numeric(Op(MSFT))
LO <- as.numeric(Lo(MSFT))
HI <- as.numeric(Hi(MSFT))
CL <- as.numeric(Cl(MSFT))
N <- nrow(MSFT)

We have used as.numeric to take out the timestamp of the xts data for comparsion.