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Statistic Patterns

Posted: Mon May 25, 2009 12:13 am
by jemm0021
Hi, I'm a big fan from TRO, and I love your webpage for a lot of indicators that you provide and your sense of humor.
Well, I've done an indicator that takes statistics and I want to share with you.


This indicator shows you the probability that the current candlestick will be bearish or bullish, or a doji.
Lets looks an image to explain it more easy.

Image

If an candlestick closed lower than the close of the earlier candlestick, then I put it an "minus" character "-".
If a candlestick closed higher than the close of the earlier candlestick, then I put a "plus" character "+".
If it closed at the open then I put a "=" signal.



If you look, the pattern for the last three candlestick will be ++-.
The pattern for the last two candlestich is +-.
and the pattern for the last candlestick is -.
NOTE.
IM NOT CONSIDERING THE LAST CANDLESTISCK THAT IS BEING FORMED.

and the indicator give you the number of cases that this pattern closed the current candlestick in bearish or bullish.

the same with the pattern +-, and the same with -.
LClose means to Bearish, HClose means to Bullish, and Eclose means to neutral or a doji.

You can use this information as you want, I personally only consider this information seriously, when the probability of a pattern is more than 60%.
And I take in consideration the number of cases too (Total).

By the way, you can choose the number of candlestick to be taken in consideration to search the pattern that is being formed.
The default value is 500 candlesticks.

Im going to make more statistic indicators, and I'll upload them soon.
By the way this indicator is inspired in Toby Crabel.

Ciao!

PD. Feel free to modify it!

Mora.

Posted: Mon May 25, 2009 5:14 am
by TheRumpledOne
Thanks for sharing.

Posted: Mon May 25, 2009 5:16 am
by TheRumpledOne
Close[1] may be faster to type but close1 = iClose(NULL,0,1) lends itself to easier modifications in the future.

Posted: Mon May 25, 2009 9:18 am
by vladv
Thanks for sharing!

Posted: Mon May 25, 2009 2:33 pm
by jemm0021
Hi, here is a newer version, I update it, It gives you the percent of probability it close in bearish or bullish, and I added a 4 pattern.

Ciao!

Posted: Mon Apr 05, 2010 5:01 pm
by blackda14
Can anybody put this into ELD form for tradestation?