Underworlds
30 posts
msg #90944
- Ignore Underworlds |
4/8/2010 11:39:53 PM
I've been trying to come up with a filter that detects Bullish Three White Soldiers where the minimum length of the body is relative to the open. Everything that I've found about the Three White Soldiers suggests that the bodies of the candlesticks should be "long", but I have not been able to find a definitive definition of what "long" should be.
What I have decided to assume is that a change from open to close of 4% or more will be considered a "long" candlestick. Please check out my filter below and make any suggestions that you can think of to help me improve upon it.
Note also that I wanted to place the Three White Soldiers at the foot of a definite downward trend. To do that, I simply looked for the pattern where the MACD Fast Line was below 0.
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Underworlds
30 posts
msg #90948
- Ignore Underworlds |
4/9/2010 2:45:20 AM
The following approach to the Three White Soldiers takes into consideration the requirements outlined at streetauthority.com as follows...
The pattern appears (a) after an extended decline and (b) a period of subsequent consolidation. The pattern is valid as long as (c) the candle of day 2 opens in the upper half of day one's range. On day 2 the stock should (d) close near its high, leaving a very small or non-existent upper shadow. (e) The same pattern is then repeated on day 3.
Additional signals to look for, according to that referenced site, is that (f) the ADX(14) should begin to trend upward from a very low level (less than 25) and (g) +DI should cross above -DI during the formation of the Three White Soldiers pattern.
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chetron
2,817 posts
msg #90953
- Ignore chetron
modified |
4/9/2010 6:51:23 AM
MAYBE...
thanx for the heads up, all better now....
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Underworlds
30 posts
msg #90988
- Ignore Underworlds |
4/9/2010 4:41:16 PM
CHETRON - I tried your filter and received the following message: "Your StockFetcher filter exceeds filter performance restrictions"
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Mactheriverrat
3,153 posts
msg #91003
- Ignore Mactheriverrat |
4/10/2010 12:58:36 AM
worked on mine- I have the basic plan
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Underworlds
30 posts
msg #91010
- Ignore Underworlds |
4/10/2010 10:34:49 AM
Odd. I just tried again this morning and it worked this time. Must have been a glitch. Thanx.
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Underworlds
30 posts
msg #91011
- Ignore Underworlds |
4/10/2010 10:52:36 AM
chetron - Nice filter, but it does not conform to the rules that I am finding everywhere for the Three White Soldiers pattern...
a) Most of the results returned were in an uptrend (this is easy enough to fix).
b) The open of day 2 is supposed to occur within the top half of the real body for day 1.
c) The open of day 3 is supposed to occur within the top half of the real boody for day 2.
d) Candlesticks on day 2 and day 3 are supposed to have very small or non-existent upper shadows.
I will try to build upon your example and see what I can come up with. Thanx for the filter.
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chetron
2,817 posts
msg #91013
- Ignore chetron |
4/10/2010 11:22:37 AM
THE MAIN POINT OF THE FILTER WAS TO GIVE YOU A LONG BODY, I LOOK FORWARD TO SEE YOUR IMPROVEMENTS.
THANX
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Underworlds
30 posts
msg #91019
- Ignore Underworlds |
4/10/2010 12:46:26 PM
I see. It most definitely does get me the long body that I was looking for. Great work there!!!
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Underworlds
30 posts
msg #91022
- Ignore Underworlds |
4/10/2010 1:08:25 PM
Here's the solution that I came up with to the placement of the candlesticks, using chetron's method for finding long candlesticks. This solution does not, however, search for the pattern in a downtrend or take into consideration the length of the shadows...
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