| SirMaelstrom |
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Member, TeleChart
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| Registered User |
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| Unsure |
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| Thursday, October 7, 2004 |
| Monday, February 21, 2005 7:47:45 PM |
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Yes, I experimented a little with Bigalow's candles. What do you want to know exactly?
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OK Craig! I found the answer that you posted elsewhere!
Thanks again
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Hi Craig.
When Telechart 2005 will be available?
Thanks
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That's a great idea! I will definitely give it a try and conduct my own study.
Many thanks.
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Thanks Craig! Your video provides excellent explanations on how to code a hammer in PCF.
As you show on your video we can setup the “Body as % of Shadow” and “Body Center as % of Shadow”. I call those adjustments “Margin”.
A popular author about candlestick pattern proposed a shadow at least three times the length of the body and the body should be located within the first 1/3 of the candle. Of course this is the theory. In practice the candle may deviate from that perfect figure and still be valid… This brings me to the concept of “Margin”.
For example the Doji is a little cross. Its PCF is:
c = o
…which means the close is equal to the open or the reverse. That’s it!
However in practice the Doji may deviate from the perfect formula and still be valid. Therefore I introduce a “Margin” of 10% in my candlestick pattern PCF:
abs(o - c) <= 0.1*(h - l)
… which mean that we accept that the open minus the close (or vice-versa) can be less or equal to 10% of the shadow length (high - low).
This bring my to my Questions:
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1) How much margin should we put for each individual candlestick reversal patterns?
2) Are you aware of any study (like back testing) that optimizes the margin for each candlestick patterns? …optimization in order to increase the yield of success of each play…
Thanks very much
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