Three Candles Continuation Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Three Candles Continuation v1.0.0
--
-- Marks the candle that completes a run of three same-colour candles with
-- steady closes, when price is on the matching side of EMA 20. Candles must
-- have a real body so doji and tiny candles do not count. One marker per run.
--
-- HIGHER: three bullish candles in a row, each closing above the previous
--         close, with the third close above EMA 20.
-- LOWER:  three bearish candles in a row, each closing below the previous
--         close, with the third close below EMA 20.
--
-- The related article reads the same three-candle run as a counter-trend
-- idea. Switch on "Counter-trend reading" to flip the markers: a bullish run
-- is then marked LOWER and a bearish run HIGHER, and the EMA filter is off.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Three Candles Continuation",
    short_name = "IQOW 3 CANDLES",
    overlay = true
}

input_group {
    "1. Candle run",
    min_body_ratio = input (0.5, "Minimum body as share of range", input.double, 0.1, 0.95, 0.05, false),
    counter_trend = input { default = false, name = "Counter-trend reading (article)", type = input.boolean }
}

input_group {
    "2. Trend filter",
    ema_period = input (20, "EMA period", input.integer, 2, 300)
}

input_group {
    "Display and advice",
    ema_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    ema_color = input { default = "#FFB800", type = input.color },
    line_width = input { default = 1, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

ema_value = ema (close, ema_period)

local ema_now = get_value (ema_value, nil)

-- A "full" candle has a body of at least min_body_ratio of its range.
-- Zero-range candles never qualify.
full_bullish = conditional (
    get_value (high - low, 0) > 0 and
    get_value (close - open, 0) >= min_body_ratio * get_value (high - low, 0)
)

full_bearish = conditional (
    get_value (high - low, 0) > 0 and
    get_value (open - close, 0) >= min_body_ratio * get_value (high - low, 0)
)

-- Wait until the EMA has a full period of history behind it.
local data_is_ready =
    ema_now ~= nil and
    get_value (close [ema_period], nil) ~= nil and
    get_value (close [2], nil) ~= nil

local three_up =
    data_is_ready and
    get_value (full_bullish, false) and
    get_value (full_bullish [1], false) and
    get_value (full_bullish [2], false) and
    close > close [1] and close [1] > close [2]

local three_down =
    data_is_ready and
    get_value (full_bearish, false) and
    get_value (full_bearish [1], false) and
    get_value (full_bearish [2], false) and
    close < close [1] and close [1] < close [2]

local above_ema = data_is_ready and get_value (close, 0) > ema_now
local below_ema = data_is_ready and get_value (close, 0) < ema_now

-- Continuation: run in the direction of EMA 20. Counter-trend: flipped, no EMA.
higher_setup = conditional (
    iff (counter_trend, three_down, three_up and above_ema)
)

lower_setup = conditional (
    iff (counter_trend, three_up, three_down and below_ema)
)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if ema_visible then
    plot (ema_value, "EMA", ema_color, line_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "3 Candles HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "3 Candles LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end