Where to find candlestick equations?

Discussion in 'Trading' started by bcheary, Jul 6, 2007.

  1. bcheary


    Anyone out there know where I can find the actual equations for the basic candlestick indicators?

    Thanks in advance.

    Blake Cheary
  2. there are no such equations
  3. Go to Pier1, Crate & Barrel, Linen's & Things or Pottery Barn for that candlestick info.
  4. You still believe in the tooth fairy and easter bunny right? :D
  5. I know Tradestation, TC2000, Candlepower and a few other programs showed the actual equation (simple math stuff) in their codes.

    You may want to give them a call to see if they had it in text form.

    Even better, join any existing discussion forum those software programs have to see if any one will give you the codes in text form.

    I know many years ago, Tradestation had it in text form when Tradestation was formerly known as Omega Research.

    That's when I learned about unreliability of the codes after testing such.

    Last of all, there was an article in Stocks & Commodities many many years ago that publish some codes for a few basic patterns.

    Advice: Make up your own codes via your own personal trading style instead of using the codes that represent someone's else personal trading style because most of those codes don't produce any reliable results.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  6. (C-O)/(H-L)

    is about as close as you're going to get to quantifying. But, you can weight "it" by volume for the period. In turn, cumulative figure if you so choose.

    When O > C implies a black body. High made first.

    The real question is predicitive capabilities. Other than a doji, candles are dubious.. But quiet leads to eventual range expansion (and vice versa).
  7. Without having a better idea of what you are talking about you can try this site:


    If you want to actually learn how to read candlesticks, there are number of good books on the market by Nison, Bigelow, etc.

    Just query Amazon, then you can come back here and ask other traders their opinion.

    Good luck,

  8. Actually, I strongly disagree.

    The codes can be much more complex than (C-O)/(H-L) to the point where the current interval can be compared to the prior interval all the way back to as many intervals you want it to go.

    You can also weight it by volume unless your talking about something completely different even though I'm not sure why someone would want to weight it by volume.

    Also, there have been articles that explain the color coding of each individual candlestick line to show the volume distribution in each interval.

    Like I said, this stuff has been done before.

    If someone is really interested in that type of stuff they will have to dig deep or contact the people that designed many of those original programs.


  9. HEY, let's miss the forest for the trees and dwell on some piddleshit, shall we? Sounds like fun. Particularly for those more interested in being "right" than making money.

    No dispute on "it" being done before.

    Not being a rocket scientist nor planning my vacation itineries in 15 minute increments, wasn't trying to suggest precise code for candle bodies and wicks. More like simple quanitfying buying (or selling) pressure with basic arithmetic of (4) basic price variables. And .....in that context, weighting the bars with volume would be an added variable (emotional toward either confirmation or divergences) for a grand total of (5) variables per period. These of course can be counted on one hand. Not to be confused with one finger, the middle one.
  10. Be careful because EliteTrader.com provides no medical care nor financial compensation for those that have lost their middle finger while at ET.


    #10     Jul 6, 2007