Pattern Detection: How Auguris Identifies Candlestick Patterns in Every Signal
Our algorithm identifies candlestick patterns like Doji, Hanging Man, Spinning Top, and more — flagged in every signal. Here is what each pattern means and why it matters for your trades.
Why Candlestick Patterns Matter
Candlestick patterns have been used by traders for centuries. They compress price action into visual shapes that reveal the battle between buyers and sellers within a given timeframe.
A single candle can tell you whether momentum is shifting, whether a trend is exhausting, or whether indecision is setting in. When our algorithm detects one of these patterns, it flags it alongside the other indicators so you get the full context without having to read the chart yourself.
Patterns We Detect
Doji
A Doji forms when the open and close prices are nearly identical, creating a candle with a very small body and wicks on both sides.
- What it means: Indecision. Neither buyers nor sellers won the session.
- How to use it: A Doji after a strong trend can signal a potential reversal. At support or resistance levels, it becomes especially meaningful. On its own in a ranging market, it is less significant.
Hanging Man
A Hanging Man appears at the top of an uptrend. It has a small body near the top and a long lower wick — at least twice the length of the body.
- What it means: Sellers pushed price down significantly during the session, but buyers managed to recover most of it. The recovery looks bullish on the surface, but the selling pressure underneath is a warning.
- How to use it: Treat it as an early reversal signal. If the next candle confirms with a bearish close, the uptrend may be losing steam.
Spinning Top
A Spinning Top has a small body with upper and lower wicks of roughly equal length. It looks similar to a Doji but with a slightly larger body.
- What it means: Indecision, but with a bit more activity than a Doji. The market moved in both directions but settled near where it started.
- How to use it: Like the Doji, a Spinning Top is most useful after a sustained move. It suggests the trend may be pausing or preparing to reverse.
Hammer
A Hammer appears at the bottom of a downtrend. It has a small body near the top and a long lower wick.
- What it means: Sellers drove price down during the session, but buyers stepped in aggressively and pushed it back up. The rejection of lower prices is a bullish signal.
- How to use it: Look for confirmation on the next candle. A bullish close after a Hammer strengthens the case for a reversal.
Engulfing Patterns
A Bullish Engulfing occurs when a small bearish candle is followed by a larger bullish candle that completely covers the previous body. A Bearish Engulfing is the opposite.
- What it means: A decisive shift in control. The second candle overwhelms the first, showing that one side has taken over.
- How to use it: Engulfing patterns are among the strongest single-session reversal signals. When flagged alongside high volume deviation, they carry extra weight.
Marubozu
A Marubozu is a candle with no wicks — or very small ones. The open equals the low (bullish) or the high (bearish), and the close equals the opposite extreme.
- What it means: Total dominance by one side. Buyers or sellers controlled the entire session without any significant pushback.
- How to use it: A Marubozu often signals the start or continuation of a strong trend. Pay attention to the ADX reading alongside it.
How Patterns Appear in Signals
When a pattern is detected, it is included directly in your Telegram signal message. You will see the pattern name alongside RSI, volume deviation, ADX, and the confidence score.
For example, a signal might include:
Pattern: Hammer RSI: 28 | Vol Dev: +72% | ADX: 31 | Confidence: 84%
This tells you at a glance: oversold conditions, strong volume, a developing trend, a bullish reversal pattern, and high confidence. All the context you need in one message.
Patterns Are Context, Not Commands
No single pattern guarantees a move. A Doji at the top of a rally is meaningful. A Doji in the middle of a choppy range is noise.
That is why Auguris never sends a pattern in isolation. Every detection is combined with RSI, volume, ADX, and confidence scoring to filter out weak setups. The pattern adds a layer of context — it is not the signal itself, but part of what makes the signal actionable.