TrendSpider can automatically detect the Raindrop Patterns on the Raindrop chart for a timeframe equal to or more than 10 minutes and up to a month. In this documentation, we will explore how to navigate to access the Raindrop Patterns setting and the four types of Raindrop Patterns that you can detect:
- Raindrop/Blue Doji
- Raindrop/Double Flip
Let’s get started
Navigate to Raindrop Patterns
Select the Raindrop chart from the top-left corner of the interface and navigate to the Raindrop patterns by following the steps illustrated below.
Step 1: Click on the vertical ellipsis (⋮) adjoining the Patterns button from the top toolbar.
You will be provided with the option to select the Candlestick pattern from the list of more than 100 available patterns.
Step 2: You can scroll down from the list of the available patterns to check the Raindrop Pattern or simply enter the keyword- “Raindrop” in the search field and the complete list of all 4 Raindrop patterns will become available for you to choose from.
Step 3: You can select a single Raindrop pattern, all Raindrop patterns, or any other combination of your choice and click on the APPLY button to execute your preferences on the Raindrop chart. Each of these Raindrop patterns has been explained in the subsequent sections below:
A Raindrop/Balloon is detected when the following two conditions are met:
- Left and right VWAP are higher than 60% of the body
- At least 80% of the volume of the candle resides above 60% of the Raindrop’s body.
A Raindrop/Blue Doji is detected when the VWAP prices are the same on both sides of the bar. In the example below, you can observe a Blue Doji formation where the volume on the right is slightly lower than the volume on the left, indicating indecision and tight trading.
Raindrop/Double Flip is detected when more than 33% of the candle’s body is between the left and right prices.
Bearish double flips occur when there’s a green flip and then a red flip where the red flip has a right price lower than the green flip’s low.
Bullish double flips occur when there’s a red flip and then a green flip where the green flip has a right price higher than the red flip’s high.
Raindrop/Flip is detected when the Left price stands apart from the Right by at least 50% of a drop’s body. In the example below, you can observe Raindrop/Flip Downside (in red) and Raindrop/Flip Upside (in green).
Raindrops are backward compatible with most Japanese candlestick formations or patterns like Hammer, Harami, Doji, Engulfing, etc. In the example below, you can observe the Engulfing Bearish candlestick pattern formation on a Raindrop chart.