The Candlestick Power Indicators are three TradeStation ShowMe indicators that mark high-probability reversal patterns directly on your price chart with colored dots — no sub-panels, no persistent lines. Each dot appears above or below the bar when a qualifying pattern is detected, giving you an immediate, uncluttered visual signal that a potential turning point has formed. All three indicators work on any bar type: time-based, tick, and volume charts.

The three indicators cover distinct pattern families, each with its own dot color so you can distinguish them at a glance on the same chart:

• CT_J_CandleSticks — 27 classic Japanese candlestick patterns (yellow dots)
• CT_VCM_Reversal_Sign — 6 Oliver Velez-style bar structure reversal signals (cyan dots)
• CT_Gator_Signs — 4 momentum-extreme bar patterns (white dots)

The Trend Context Engine — How Signals Are Filtered

All three indicators share a critical filter: before detecting any pattern, they evaluate whether the prior short-term trend was up or down. A signal only fires when the current bar represents a genuine departure from that trend — not a random bar shape that happened to look like a reversal pattern mid-move. The trend state activates when price makes a directional move of at least 2.4× the average bar range over the prior three bars, confirmed by three consecutive rising or falling closes. This filter is what separates meaningful reversal signals from noise.

CT_J_CandleSticks — 27 Japanese Patterns (Yellow)

Identifies classic single-bar, two-bar, and three-bar Japanese candlestick formations. Each of the 27 patterns can be independently enabled or disabled. A Slow Stochastic (14-period, 3/3 smoothing) adds an additional filter for Doji patterns — the Bullish OverSold Doji only fires when the Stochastic is in oversold territory, the Bearish OverBought Doji only when overbought.

Bullish patterns (dot above bar): Hammer, Inverted Hammer, Three White Soldiers, Bullish Engulfing, Morning Star, Morning Doji Star, Piercing Line, Bullish Harami, Three Inside Up, Bullish OverSold Doji, Bullish Kicker, Reverse Bullish Engulfing (Buying Climax), Cradle

Bearish patterns (dot below bar): Hanging Man, Shooting Star, Three Black Crows, Bearish Engulfing, Evening Star, Evening Doji Star, Dark Cloud, Bearish Harami, Three Inside Down, Bearish OverBought Doji, Bearish Kicker, Reverse Bearish Engulfing (Selling Climax), Three Methods Rising

Indecision: Doji (body less than 5% of full bar range)

If your chart shows too many signals, disable the weaker single-bar patterns (Doji, Harami, Hammer, Hanging Man) and keep the higher-conviction multi-bar and engulfing patterns.

CT_VCM_Reversal_Sign — 6 Bar Structure Signals (Cyan)

Marks six Oliver Velez-inspired reversal signals defined by the relative size of price components within the bar — tail length, body size, and bar range — rather than body-to-body relationships between adjacent bars. These patterns identify moments where a sharp directional move has left a structural signature suggesting exhaustion.

Bullish signals (cyan dot above bar, after confirmed downtrend):

• Bottoming Tail — lower shadow larger than the body, body in the upper half of the range, bar at least average size, close below the 14-period EMA. Sellers pushed price down but buyers rejected the move — price closed well above the low.
• Green Bar Reversal — a long bullish bar following a bearish bar at the end of a downtrend. A clean momentum flip from red to strong green.
• Narrow Range Bar Up — bar range is 25% or less of the average bar range during a downtrend. Extreme compression after a falling move signals a pause and potential reversal.

Bearish signals (cyan dot below bar, after confirmed uptrend):

• Topping Tail — upper shadow larger than the body, body in the lower half of the range, bar at least average size, close above the 14-period EMA. Buyers pushed price up but sellers rejected the move.
• Red Bar Reversal — a long bearish bar following a bullish bar at the end of an uptrend.
• Narrow Range Bar Down — extreme compression after a rising trend signals momentum exhaustion.

The Bottoming Tail and Topping Tail are the highest-conviction VCM signals — when they appear after a fast, extended move near a fractal support or resistance level, they frequently precede a sharp snap-back. Narrow Range Bars are setup signals, not entry signals — wait for the next bar to confirm direction. CT_VCM_Reversal_Sign works on charts and RadarScreen.

CT_Gator_Signs — 4 Momentum-Extreme Patterns (White)

The most selective and highest-conviction signals in the package. These four patterns only fire when a confirmed trend context combines with very specific bar structure criteria — representing moments of maximum directional momentum that appear to be exhausting. They appear less frequently than VCM or Japanese patterns, but when they do appear, they represent the strongest single-bar reversal setups in the system.

Bullish signals (white dot above bar, after confirmed downtrend):

• Bullish Extreme — bar at least 80% of average range, both open and close in the top one-third of the bar's range, lower shadow larger than the body. Bears pushed hard intrabar but bulls closed near the top — a compressed, high-quality Bottoming Tail.
• Bullish Climber — bar at least 80% of average range, open in the bottom one-third, close in the top one-third. Price opened at the bottom and closed at the top — buyers completely overwhelmed sellers across the full bar.

Bearish signals (white dot below bar, after confirmed uptrend):

• Bearish Extreme — bar at least 80% of average range, both open and close in the bottom one-third, upper shadow larger than the body. Bulls pushed hard but bears closed near the bottom.
• Bearish Drifter — bar at least 80% of average range, open in the top one-third, close in the bottom one-third. The mirror of the Bullish Climber.

CT_Gator_Signs is particularly effective on 5-minute through 60-minute charts for intraday trading. A Bullish Climber or Bearish Drifter at a structural fractal level after a sustained move is one of the strongest single-bar reversal signals available. Works on charts and RadarScreen.

Using All Three Together

All three indicators can be applied to the same chart simultaneously — yellow, cyan, and white dots coexist without overlap confusion. A bar that triggers signals from two or three indicators simultaneously is a particularly strong candidate. For example, a bar that fires a Bullish Engulfing (yellow), a Green Bar Reversal (cyan), and a Bullish Climber (white) at the same fractal support level represents near-maximum confirmation across all three pattern families.

Who Is This Indicator For

The Candlestick Power Indicators are for TradeStation traders who use price action as part of their analysis and want systematic pattern recognition to confirm reversal setups. Specifically:

• Price action traders who want automated identification to confirm or challenge their manual chart reading — and never miss a pattern on a fast-moving chart
• Traders who combine candlestick signals with the Fractal Channel or MTF Price Action indicators — use the candlestick signals to confirm reversals at structural levels
• Swing traders who rely on multi-bar reversal patterns like engulfing bars, morning stars, and harami for entry timing — use CT_J_CandleSticks
• Traders who want the most selective, highest-conviction reversal signals only — use CT_Gator_Signs alone for the Bullish Climber and Bearish Drifter
• Day traders on tick and volume charts who need rapid pattern identification as bars form — all three indicators work on any bar type

What Is Included in the Download

• CT_J_CandleSticks ShowMe indicator — 27 Japanese candlestick patterns with individual on/off inputs; yellow dots; Stochastic filter on Doji patterns
• CT_VCM_Reversal_Sign ShowMe indicator — 6 Oliver Velez bar structure reversal signals; cyan dots; chart and RadarScreen
• CT_Gator_Signs ShowMe indicator — 4 momentum-extreme reversal patterns; white dots; chart and RadarScreen
• Step-by-step installation guide (PDF)
• Pattern reference guide covering all 37 patterns with descriptions
• Access to our Learning Center video walkthrough
• Email support from our team

System Requirements

• TradeStation 10 or later (including TradeStation Web Trading)
• Compatible with TradeStation Global
• Works on any symbol and any bar type: time-based, tick, and volume charts
• Set Chart24Hrs_On = 1 for futures and forex (24-hour sessions); set to 0 for stocks on standard market hours
• No additional data subscriptions required beyond your standard TradeStation data plan

Frequently Asked Questions

What is the difference between the three indicators?
CT_J_CandleSticks covers 27 traditional Japanese candlestick formations — the classic pattern library most traders learn first. CT_VCM_Reversal_Sign covers 6 bar structure signals focused on tail size, body placement, and bar range to identify institutional reversal pressure. CT_Gator_Signs covers 4 momentum-extreme patterns that require a specific bar structure plus a confirmed prior trend — the most selective and highest-conviction signals in the set. Each uses a different dot color (yellow, cyan, white) so all three can be applied to the same chart simultaneously.

Why does a pattern require a prior trend to fire?
All three indicators include a trend context engine that verifies the prior short-term trend before marking a signal. A candlestick pattern that looks like a reversal in isolation has very different implications depending on whether it appears at the end of a confirmed directional move or in the middle of a choppy range. The trend filter ensures signals only fire when the bar represents a genuine departure from a confirmed prior move — reducing false signals from patterns that appear mid-trend or in ranging conditions.

Which patterns are the most reliable?
In CT_J_CandleSticks: Bullish Kicker and Bearish Kicker are among the strongest single-signal patterns. Bullish Engulfing and Bearish Engulfing are reliable for swing entries. For CT_VCM_Reversal_Sign: the Bottoming Tail and Topping Tail are the highest-conviction signals — particularly effective after fast, extended moves near fractal support and resistance levels. For CT_Gator_Signs: the Bullish Climber and Bearish Drifter are the strongest single-bar signals in the entire package — full-range bars that open at one extreme and close at the other.

Can I use CT_Gator_Signs in RadarScreen?
Yes — CT_VCM_Reversal_Sign and CT_Gator_Signs both work in RadarScreen with colored cell backgrounds indicating signal direction. CT_J_CandleSticks is chart-only.

How does this complement the Fractal Channel and MTF Price Action indicators?
The recommended approach is to use the Fractal Channel or MTF Price Action Indicator to identify key structural levels and trend direction, then use the Candlestick Power Indicators to confirm a reversal signal at those levels. A Bullish Climber appearing at a fractal support level while the MTF price action line is green is a significantly stronger signal than either analysis in isolation. The CT_Oscillator from the MTF Trend Trading System adds a third layer of confirmation — an oscillator reading at an oversold extreme at the same moment locks in a high-probability setup.

How do I install it in TradeStation?
After purchase you will receive three EasyLanguage (.eld) files, one for each ShowMe indicator. Import them via File > Import/Export > Import EasyLanguage. Full setup instructions are included. Most traders are up and running in under 10 minutes.

What is your refund policy?
All sales are final. We encourage you to review our product videos and chart examples in the Learning Center before purchasing. If you have a technical issue after purchase, our support team is here to help.