SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Candlestick Charting--The unknown indicator
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Gault who wrote (1028)12/23/1997 8:27:00 PM
From: ftth  Read Replies (1) of 1589
 
Hi John, in your reply <<it would be easy enough to write the software>>.

That's what I used to think. Sit down sometime and flowchart out the pattern scan process for any multi-candle pattern. Lots of relative parameters like body size, shadow size (upper and lower), skew of body within range, candle-to-candle variation, and prior trends and technical parameters that go into any multi-candle scan. Certainly not impossible, but if you do attempt it I'll bet you find you need to make the parameters "fuzzy" so that you don't reject perfectly valid patterns. Rigid rules don't work well because each stock has it's own "personality" where certain sizes, skews, and ranges are proper for one but not another. The rigid set of base rules for a given pattern need to be scaled for their allowable range based on the chart being analyzed (in other words, you need to run a characterization of each individual security and then use the results to scale the basic pattern being scanned for). No you don't HAVE to do that but the results are pretty poor if you don't. Coming up with a characterization routine is a major effort in and of itself.

dh

P.S. I download from Quotes-plus ($13/month for internet download)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News