A conventional detector marks every engulfing, every doji and every hammer, and the result is a screen full of labels where none stands out. Edo Candle Context starts from the opposite idea: a pattern is worth the place where it appears and what it does afterwards. The reasoning behind it is in why context matters more than the shape of a candlestick pattern.
A pattern must earn its place
The indicator builds its own map of levels from confirmed pivots and accepts a pattern only if its extreme sits near a level with at least two touches, pierces it, reacts to the latest swing or comes after an excessive extension of price away from its 20-period average. Reversal patterns must also come from the opposite leg. What fails the filter is not drawn, or can be shown as a faded dot.
Eleven groups, one label per candle
The catalogue covers single candles such as the hammer, the shooting star and the doji, two-candle patterns such as the engulfing, the harami, the piercing line and the tweezers, three-candle formations such as the morning and evening star, and the inside bar confirmed by a breakout. When several definitions coincide on one candle, the most complete structure wins, so each candle carries a single label.
A score from 0 to 100
Each accepted pattern is scored on its size in ATR, the strength of its close, how close it is to the level that validated it and its relative volume. The score is written on the label together with the hit rate of the symbol and its n. It describes how well formed and well placed the pattern is. It is not a prediction.
Confirmed, Invalidated or Expired
After the label appears the pattern stays Pending for a few candles and then resolves once: Confirmed if a close goes beyond it in its direction, Invalidated if a close goes beyond its other extreme, Expired if neither happens in time. From those outcomes the indicator computes the hit rate of the symbol and timeframe you are viewing, always with the number of events next to it, because a rate with n=12 says far less than one with n=600.
Panel, labels and alerts
A Full or Compact panel summarises the last pattern, its score, its status, the exact context that validated it and the hit rate. Right-edge labels show the last swing high and low with their distance to the close. Fifteen alerts cover each pattern family, high scores, confirmations and invalidations, and all of them fire at the close of the candle.
