There is a quantitative treatment of candlesticks formulating the "upper shadow" and the "lower shadow" originally by T. Chande:
Upper:
mov(if(mov(c,13,e),>,mov(o,13,e),mov(h-c,13,e),mov(h-o,13,e)),13,e)
Lower:
mov(if(mov(c,13,e),>,mov(o,13,e),mov(o-l,13,e),mov(c-l,13,e)),13,e)
smoothing is up to your personal taste, take more or less than 13. You may combine the two formulae.
It works also with:
mov(mov(h-c,13,e),13,e)
and
mov(mov(c-l,13,e),13,e)
or with combinations of all 4.
I have to experiment much more with these formulae, but if at all I would approach Candlesticks I would like to do it in a quantitative way.
Wolfgang |
