Smart Candlestick Predictor

Of course, here is a step-by-step explanation of what this Pine Script code does, written in English.

This code is a technical analysis indicator written for the TradingView platform. Its primary purpose is to automatically detect common candlestick patterns on financial charts (e.g., for stocks, cryptocurrencies, forex, etc.), which often provide clues about future price movements.

We can break down what the code does into 4 main parts:

1. Defining Candlestick Patterns
The first and largest section of the code (// === CANDLESTICK PATTERN DEFINITIONS ===) mathematically defines 7 different candlestick patterns. There is a function (is...()) for each pattern:

isBullishEngulfing(): Detects a large bullish candle that completely "engulfs" the previous bearish candle. It is considered a bullish signal.
isBearishEngulfing(): Detects a large bearish candle that completely "engulfs" the previous bullish candle. It is considered a bearish signal.
isHammer(): A candle with a small body and a long lower shadow, usually appearing after a downtrend. It can signal a potential reversal to the upside.
isShootingStar(): A candle with a small body and a long upper shadow, usually appearing after an uptrend. It can signal a potential reversal to the downside.
isDoji(): A candle where the open and close prices are nearly the same, indicating indecision in the market.
isMorningStar(): A powerful three-candle pattern that signals a potential end to a downtrend and the beginning of an uptrend.
isEveningStar(): A powerful three-candle pattern that signals a potential end to an uptrend and the beginning of a downtrend.
2. Detecting and Interpreting Patterns
The code runs the functions defined above for each new candle that forms on the chart.

If one of these 7 patterns is detected, the code temporarily stores information related to that pattern:
patternText: The name of the pattern (e.g., "Bullish Engulfing").
directionText: The predicted direction (e.g., "LONG", "SHORT", or "NEUTRAL").
probabilityValue: A predefined percentage set by the script's author, representing the supposed success rate of the pattern (e.g., 72.0%). It is important to remember that these probabilities are based on general trading conventions, not on a rigorous statistical backtest.
3. Displaying Labels on the Chart
When a pattern is found, the script creates a visual marker to make the chart easier to read:

It places an orange label (label) just above the detected candle.
This label contains the pattern's name, its predicted direction, and the probability percentage.
Example:
Bullish Engulfing
LONG (72.00%)
4. Setting Up Alerts
The final section of the code allows the user to set up automatic alerts for these patterns.

Thanks to the alertcondition() function, you can configure TradingView to send you a notification (e.g., a sound, an email, a mobile push notification) the moment one of these patterns occurs, so you don't have to watch the charts constantly.
In Summary:
This code, named "Smart Candlestick Predictor," acts as an automated technical analysis assistant. It constantly scans a financial chart to find significant candlestick patterns, shows you what it finds by placing labels on the chart, and can alert you whenever these events happen.