What are the formula for coding Candesticks

Owenda

Newbie
5 0
Hi, Does anyone know the formula's used for determining candlestick formations ?

Only website i can find either want to sell systems with candlestick recognition software or just provide some basic pictures showing the formations. Have not found one with formula which suprises me since they have been around for years.

Can anybody tell me of a good site that has the formula's or are able to provide them ?

Im looking to program this into my IG index probacktest charting package. So would be good to not have to reinvent the wheel.

I imagine a lot of the users on this forum would find this useful as well.

Main ones im after for now are...(if others are available then thats great too)

Doji
Hammer
Piercing
Morning/Evening Star
Engulfing

Have worked out a few but am hoping that someone on here can suggest a more complete source of knowledge.

Hammer = close>open AND high=close AND (open-low)>=3*(close-open)
If downtrend & Hammer = Bullish
If uptrend & Hammer = Bearish (Hanging Man)

BearishEngulfing = close[1]>open[1] AND open>close[1] AND close<open[1] AND close<open

Thanks in advance
Dave
 

Victor90

Well-known member
251 5
i think Doji should just be:
Doji= If open=close
:)


Oh, and I dont know how familiar you are with candelsticks but many of the patterns are not very profitable (source: studies by Caginalp and Laurent (1998) and by Schwager(1996).
I am not saying that candelsticks are worthless, but i wouldnt base my whole system on them. :)
 
Last edited:

hyzelinho

Junior member
12 1
Buy this Book.Japanese Candlestick Charting Techniques(JCCT) by Steve Nison. He's the pioneer of JCCT.He is the guy who influence JCCT over to the US market.He knows the ins and outs of JCCT.
But like Victor90 said,don't base your methodology solely on JCCT.It should be a part of your arsenal.

[email protected]
 

Owenda

Newbie
5 0
Victor/Hysel - thanks for your feedback. I'll do some more research before getting bogged down in detail that may not actually help me much in the long term....tks again
 

tomorton

Legendary member
8,418 1,342
Hi Owenda - Gamma makes a key point - candlesticks are a pictorial representation of the prevailing psychology of the market as a community. This fequently shows that the market does not have a unanimous opinion on price and in a graphical manner depicts a debate over a given period. Some traders would like to see candlesticks and other patterns as dependable and objective triggers for certain actions but this is not the correct approach.

You could look on candlesticks etc. as a weather forecast - useful to know that rain is predicted for tomorrow and you can get your umbrella out ready. But you probably would not actually put the umbrella up before going out the door, no matter how much faith you had in the forecasters.

I can recommend Nison's bookwas the first on candlesticks and probably still the best.
 

rols

Experienced member
1,621 336
Hi, Does anyone know the formula's used for determining candlestick formations ?

Only website i can find either want to sell systems with candlestick recognition software or just provide some basic pictures showing the formations. Have not found one with formula which suprises me since they have been around for years.

Can anybody tell me of a good site that has the formula's or are able to provide them ?

Im looking to program this into my IG index probacktest charting package. So would be good to not have to reinvent the wheel.

I imagine a lot of the users on this forum would find this useful as well.

Main ones im after for now are...(if others are available then thats great too)

Doji
Hammer
Piercing
Morning/Evening Star
Engulfing

Have worked out a few but am hoping that someone on here can suggest a more complete source of knowledge.

Hammer = close>open AND high=close AND (open-low)>=3*(close-open)
If downtrend & Hammer = Bullish
If uptrend & Hammer = Bearish (Hanging Man)

BearishEngulfing = close[1]>open[1] AND open>close[1] AND close<open[1] AND close<open

Thanks in advance
Dave

Hi Dave

Attached codes for 36 candlestick patterns in AFL (Amibroker language)

Good trading....
 

Attachments

  • CandleCodes.txt
    7 KB · Views: 1,679

Owenda

Newbie
5 0
Hi Rols, thanks for this - this is perfect.

Saves me reinventing the wheel which has obviously been productionised in many applications.

Thanks again

GammarJammer/tomorton - thanks for your comments. I'll look into getting this book. Totally understand your points about rote learning, psychology and not to base entry points purely of these indicators.

The thought process was to code certain patterns into a screener along with a couple of other indicators to screen for general changes in sentiment.

Thanks all
 

rols

Experienced member
1,621 336
Hi Rols, thanks for this - this is perfect.

Saves me reinventing the wheel which has obviously been productionised in many applications.

Thanks again

GammarJammer/tomorton - thanks for your comments. I'll look into getting this book. Totally understand your points about rote learning, psychology and not to base entry points purely of these indicators.

The thought process was to code certain patterns into a screener along with a couple of other indicators to screen for general changes in sentiment.

Thanks all

Take a look at this if you are into patterns

PatternExplorer - Home
 
 
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