Hi Capablanca, I have +15 years as a trader with the early years being a part time trader. Only the basic (generic) candlestick patterns can be coded. However, codes aren't going to resolve the issue that the price action must be understood prior to the appearance of any pattern signal. This is how I approach Japanese Candlesticks via understanding the price action prior to the appearance of any pattern signals. That's something coding cannot do. Also, all I did was break down my favorite generic patterns into sub-groups. For example, the Bullish White Hammer pattern has over a dozen different sub-groups and most aren't reliable for trading via my particular methodology although may be reliable for someone else that has a different approach to Japanese Candlesticks. Therefore, I only trade just a few sub-groups of the Bullish White Hammer pattern and leave the other ones alone. To answer your question directly, the sub-groups are via years of research on my own and I do not know of any sources outside of my own knowledge that has categorized the sub-groups beyond the generic parent of each pattern. However, I strongly believe I can't be the only trader on this planet that has broken down many well known candlestick patterns into sub-groups. As for the generic parent Japanese Candlestick patterns, any book about Japanese Candlesticks will do for basic knowlege and definitions. Regardless to the pattern, they can be rule based and that means if one rule is not valid for a particular pattern... It's not valid. Thus, I really haven't experience any wrong or right to Japanese Candlestick Analysis as if there's subjectivity involved. It's a very rule based approach and too many traders don't realize that. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
NihabaAshi What other candles do you like other than hammers?. Sometimes I find it hard to tell the difference between a hammer and a hanging man (if the candle appears to be in the middle of a chart) even though color doesn't matter. I have a stock chart here, that maybe someone who trades stocks can comment on. This is WMT on a daily chart, is the lower shadow on the hammer supposed to mark strong support? Also NihabaAshi: "I prefer to use them as confirmation signals to what I already understand about the price action as a price action only trader (no indicators). " A single hammer candle alone gives you a buy/sell signal?... is the candle, or first few candles after the hammer important to you?. I'd like to understand more about price action like you without the use of indicators. Other than re-reading (but i probably will anyway) nison's book, is there a more effective way of doing so?. I know you dont like giving analysis on hammers for stocks, but on my WMT chart, I circle some WRB's.. I was wondering if I could see where you'd mark support/ resistance, and talk to you more about wrb's. CM
H cm, Here's my currently list of favorites that's different from a year ago. Hammers, Engulfing, Harami and Long Legged Dojis. Also, I don't analyze single candlestick lines (not reliable). Yes, the intervals before and after are extremely important in any type of pattern signal regardless if your using Japanes Candlesticks or anything else. In addition, the most effective way of learing price action only trading is to study how price reacts to FED commentary, key economic reports and other regular schedule market events. As to those WRB's on your chart...the s/r zones are their bodies (price area between Close and Open of each WRB). Your goal is to find out what caused those WRB's to give yourself an understanding about WMT price action. If you don't know the reason (its not related to TA) behind the formation of those WRB's...your trading at a higher risk. Mark (a.k.a. NihabaAshi) Japanese Candlestick term