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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I thought a new topic was the best place for these. This is in response to clipa's request here:
Use PCFs and EasyScan to find Bullish Engulfing Candlesticks
Bullish Kicker
Here are the PCFs and limits you need (you may already have some of these in your system if you've done all of the candle vidoes:
Close as % of Open Yesterday
C1/O1*100
VALUE MIN to 99.99
You need the close yesterday be be a lesser value than the open yesterday so it is a down candle. This PCF returns the close yesterday as a percent of the open yesterday. You want values less than 100 so that the close is less than 100% of the open.
Close as % of Open Today
C/O*100
VALUE 100.01 to MAX
You need the close today be be a greater value than the open today so it is an up candle. This PCF returns the close as a percent of the open . You want values greater than 100 so that the close is greater than 100% of the open.
Body as % of Candle Today
ABS(C-O)/(H-L)*100
VALUE 99 to MAX
This returns the distance from the close to the open (the body) as a percent of the distance from the high to the low (the wick). You want this to be as close to 100 as possible so today is a "full" candle.
Body as % of Candle Yesterday
ABS(C1-O1)/(H1-L1)*100
VALUE 99 to MAX
This returns the distance from the close to the open (the body) yesterday as a percent of the distance from the high to the low (the wick) yesterday. You want this to be as close to 100 as possible so yesterday is a "full" candle.
Then add GAPPERS and choose GAP UP.
Sort the resulting WatchList in ascending order by Price Percent Change 5-day or 1-month.
Dark Cloud Cover
Close as % of Open Yesterday
C1/O1*100
VALUE 100.01 to MAX
Yesterday needs to be an "up" candle meaning the close yesterday is above the open yesterday. This PCF returns the close yesterday as a percent of the open yesterday. You want the close to be greater than the open so set this to values greater than 100.
Close as % of Open Today
C/O*100
VALUE MIN to 99.99
Today needs to be an "down" candle meaning the close is below the open. This PCF returns the close as a percent of the open . You want the close to be less than the open so set this to values less than 100.
Body today as % of Yesterday
ABS(C-O)/ABS(C1-O1)*100
VALUE 100.01 to MAX
(you can make the 100 higher to tighten things up more)
This PCF returns the size of the body today as a percent of the size of the body yesterday. You want the body to day to be bigger than yesterday so set this to values greater than 100.
Open Today as % Close Yesterday
O/C1*100
VALUE 100.01 to MAX
This returns today's open as a percent of yesterday's close. You need the open to be greater than the close yesterday so set to values greater than 100.
Close today as % of Open Yesterday
C/O1*100
VALUE 100.01 to MAX
This returns the value of the close today as a percent of the value of the open yesterday. You need the close to day to be greater than the open yesterday so set to values greater than 100.
Sort the resulting WatchList in descending order by Price Percent Change 5-day or 1-month.
For a Piercing Pattern just reverse the limits set for Dark Cloud Cover and change the sort from descending to ascending.
- Craig
Here to Help!
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Registered User
Joined: 9/25/2005
Posts: 49
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I thought a new topic was the best place for these. This is in response to clipa's request here:
--------------------------
Now that was just too fast Craig.
I'll start working with these tomorrow, Thanks a lot!
Question: I thought I watched all the candlestick videos? Did I miss any?
Cliff
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here they are...
Use PCFs and EasyScan to find Bullish Engulfing Candlesticks
Scanning for Dojis followed by gaps with Candlestick PCFs
Evening Star/Morning Star
Scanning for Hammers with Candlestick PCFs
Scanning for "Spinning Top" Candlesticks
- Craig
Here to Help!
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Registered User
Joined: 9/25/2005
Posts: 49
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Hi Craig,
Boy have I been having trouble trying to get these two scans working? See my bold comments below.
Whats working currently are the following:
Gap up/dn
Hangman
Engulfing
Harami
Not working:
Dark Cloud (all over the place, some times a Dark Cloud, engulfing and even Kicker?
Bullish Kicker - getting no companies at all. However, for some strange reason I did get some companies earlier this morning and they looked good, now nothing?
After you update a changed PCF do you have to reinstall it into the EasyScan?
I asked you before is there any documentation on how to use this stuff?
---------------------------------------------------
Bullish Kicker
Here are the PCFs and limits you need (you may already have some of these in your system if you've done all of the candle vidoes:
Close as % of Open Yesterday
C1/O1*100 there are two different entries on this one. I have been using this one, see the other one below in Dark Cloud
VALUE MIN to 99.99 The closest I can get to the value is 86.9565?
Close as % of Open Today
C/O*100
VALUE 100.01 to MAX
Body as % of Candle Today
ABS(C-O)/(H-L)*100
VALUE 99 to MAX Closest I get to the value is 97.56092?
You can play with the 99 to loosen or tighten this
Body as % of Candle Yesterday
ABS(C1-O1)/(H1-L1)*100
VALUE 99 to MAX Closest I get to the value is 96.10389?
You can play with the 99 to loosen or tighten this
Then add GAPPERS and choose GAP UP.
Sort the resulting WatchList in ascending order by Price Percent Change 5-day or 1-month.
Dark Cloud Cover
Close as % of Open Yesterday
C1/O1*100
VALUE 100.01 to MAX
Close as % of Open Today
C/O*100
VALUE MIN to 99.99
Body today as % of Yesterday
ABS(C-O)/ABS(C1-O1)*100
VALUE 100.01 to MAX
(you can make the 100 higher to tighten things up more)
Open as % Close Yesterday
O/C1*100
VALUE 100.01 to MAX the closest I can get is 102.8572?
Close as & of Open Yesterday
C/O1*100 this is coded different then what you gave me before?
VALUE 100.01 to MAX
Sort the resulting WatchList in descending order by Price Percent Change 5-day or 1-month.
For a Piercing Pattern just reverse the limits set for Dark Cloud Cover and change the sort from descending to ascending.
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Registered User
Joined: 9/25/2005
Posts: 49
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Craig,
I got the Bullish Kicker working by creating another, new name, "Close as % of Open Yesterday" using the code, (C/O1)*100 rather then the previous code, which I think is used in other PCF's, of (C1/O1)*100 in the original PCF.
Cliff
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Take a step back and start all over. I think you are missing the forest through the trees.
Delete any PCFs you created from the above and start all over again.
I edited my post above and added commentary to each PCF. Close your TeleChart and get out a piece of paper for me.
Draw each of your patterns on the paper and label each candle element (C, C1, O, O1, H, etc)
Each candle should have four elements.
Now go to my PCFs above and see how they relate to your drawing. Be sure, before you do anything in TeleChart, that the IDEAS above make 100% sense to you.
You will be tempted to just jump into TeleChart and try this. Please follow my advice and start by drawing and labeling pictures of your patterns. I promise it will increase your understanding of what we are doing which will GREATLY increase your chances of getting these in right.
It is much easier to do all of this if you understand what I am doing.
Make sense?
- Craig
Here to Help!
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Registered User
Joined: 4/6/2005
Posts: 239
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Craig,
Your advice/suggestion to draw out the pattern and label all the elements is very good; and the same suggestion you gave me several months ago, which helped me immensely. I too would highly recommend this activity to anyone trying to build PCFs to find candle patterns.
I did run into problems with your technique of having reusable PCFs with different settings (> or < 100%). I could never keep it clear in my mind when to make it > or < 100% on which setting to get the pattern I was looking for. This method also requires 4 PCFs for a two candle pattern and would seem unwieldy on the 3-5 candle patterns. It also prevents putting several patterns into one scan, such as all bullish reversals or bearish reversals.
What I have done is create a single PCF for each of the 60 or so commonly recognized patterns. When I have them debugged and tuned I can put all of the bullish continuation patterns into one scan (“OR”ing the individual PCFs together) and do the same for the reversal patterns.
Below is where I am at currently with my PCF version of the Falling Three Method a bearish continuation pattern. It still needs some tuning for the middle small bodied candles but is does work at this point.
From Stephen Bigalow’s book <b>“Profitable Candlestick Trading”</b> (highly recommended) the criteria for the Falling Three Method pattern is:
1.A long black candle forms.
2.A Group of small-bodied candles follows, preferably white bodied.
3.The close of any of the uptrend days does not close higher than the open of the big black candle.
4.The final day opens up in the body of the last uptrend day and proceeds to close below the close of the first big black candle.
How I have intrepted and implemented these criteria:
4 days back was a long black candle (this format also works well for describing hammers, doji and spinning tops with minor modifications)
((O4>C4)AND((O4-C4)/(.001+H4-L4)>.6))
3 days back was a small white candle -- could be tuned more
((O3 < C3) AND (C3 < H4) AND (O3 >= C4))
2 days back body <= 4 day back open -- could be tuned more
(O2 < O4) AND (C2 < O4)
Prior day was white <= high 4 days ago -- could be tuned more
(O1 < C1) AND (O1 >C4) AND (C1< H4)
Today is black & opens in body of prior day
(O>C) And (O<C1)
Today closes < min low last 4 days
(C < MINL4.1)
The complete PCF for copying and pasting into TC
((O4>C4)AND((O4-C4)/(.001+H4-L4)>.6)) AND
((O3 < C3) AND (C3 < H4) AND (O3 >= C4)) AND
(O2 < O4) AND (C2<O4) AND
(O1 < C1) AND (O1 >C4) AND (C1< H4) AND
(O>C) And (O<C1) AND
(C < MINL4.1)
With today's data (9/30/05) there are no stocks matching the Falling Three Method pattern. I offer this PCF as an example of an alternative method for building PCFs to find candle patterns. By building the PCF one line at a time in this manner you can easily test and modify (tune) the PCF to create the pattern you are looking for.
Craig, how would you use your technique to produce this pattern? Or, any other 5 candle pattern of your choice such as a Breakaway or Ladder Bottom?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You've made me decide a comprehensive candle post is in order. I am working on it now and will post it sticky in the next week or so.
- Craig
Here to Help!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I started it
PCFs and EasyScans for Candlestick Patterns
- Craig
Here to Help!
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Registered User
Joined: 5/25/2013
Posts: 1
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Hi Craig, if I have several PCFs for candlestick patterns and would like TC2000 to search and check whether it satisfies any of the patterns, how do I go about it?
Thank you
PS
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Testing the technique described in the topic is fairly difficult. I would suggest using the formulas in the following topic instead.
Boolean PCFs for Candlestick Patterns
You can use these formulas as the Boolean Fomula in a Custom PCF % True Indicator to get spikes on the chart where the condition was true. This will allow you to tell if formulas match the patterns you are attempting to identify (they might not, there is frequently quite a bit of disagreemant as to what constitutes a particular candlestick pattern).
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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