October Candles

[Guest]

I put together a simple efs to recognize 4 candle types based on a candlestick link that Fibbgann posted a while back.




Included are Hanging Man (HM), Hammer (H), Inverted Hammer(IH), and Shooting Star (SS) candlestick patterns as defined in the referenced link.

Here is the efs

[Doji3333]

not bad at all..

A few things you might consider...

all of these pattern types fall under the "umbrella" group. The definition of a hammer/hangman/shooting star/inverted hammer are conditional based on the following..

previous trend
location
shape

Also, some of these patterns will be identified as DOJIs as well as potential "umbrella" patterns. So, the trick here is to better defined the "conditionals" prior to the pattern formation and then remove bars that can clearly be considered DOJIs.

I have been working on developing a better form of finding the "umbrella" groups and have run into these issues as well. I do have a way to overcome most of these though. Now, the trick is to be able to identify them clearly and predict future movement.

Remember, all of these patterns are "early warning signs" of a potential reversal/top/bottom. These are not ACTION signals - they are like big yellow signs warning of a potential change in trend.

B

[Guest]

Thanks for the feedback.

I went ahead and followed the link I used as a reference, this is a more direct route to the reference ==> candlesticks. Interestingly, after review, I noted the conditionals used did not reference previous price action, which indicates further work is necessary.

Additional comments are welcome, further, if anyone wants to try and refine the definitions contained in the efs, that is fine as well, please either re-post or send me a note. I'll try and re-define or validate any changes made to continue the dialog.

[FibbGann]

I had one in the works, but decide to just drop it into a web based screener to identify almost all off the common patterns.
It saves a boat load of time and searching and is more practical.

Nice work there Steve.



Fibbgann