Story Behind The Candle - Part 3

What I meant by Strong Or Weak Candle?

It's simple. That is nothing special on how I divide the things although only a few of us do make attention on it. Compare the High and Low of the last 2 candles and what type of the current candle.

1. If the current candle is BULL and the high and low of that candle is greater than the previous candle's high low... i call it strong BULL.
2. If the current candle is BEAR and the high and low of that candle is less than the previous candle's high low... i call it strong BEAR.

I thought everybody can accept this. This is basically how I classify the candle... by comparing High and Low.... and everyone should also mention that there is not just 2 cases. And the story also different if the current candle is BULL while current High Low is less then previous. And how about if current candle... for example is BULL while current high greater than the previous but current low is less then the previous? I know that you call it as 'Engulfing'... I talk about the same thing but in the different name or story behind the candle.

From my previous post... I wrote that... by comparing the last 4 candles High Low ... I get 72 conditions at all.


Entry Point

In term of probabilities.... I guess :) .... I get 4 types of entry point.

1. Type 1 - Strong Fractal. The highest probability. In term of strong... refer my definition above. This is the strongest entry point among the others.
   
2. Type 2 - In general... known as Engulfing. In my story, I express that thing as struggling but then successfully change the situation for example from strong BULLISH to BEARISH :). We also get chance to win but sometimes the market goes sideways.
3. Type 3 - The pattern almost like fractal and it's happen very seldom but possibly this pattern will come out on chart. The pattern is... for example... let say H1 is current candle's high,L1 current candle's Low and the previous variables of candle was L2, H2, H3 and H4. The type 3 occurred like this : (H1 less then H2) and (H2 equal to H3) and (H3 greater than H4) and (L1 less then L2)
4. Type 4 - Difficult to express how it look like :D.... Refer this formula : (isBEARCandle(i=1) && isBULLCandle(i=2) And (L1 greater then L2) And (L2 greater then L3) And (H1 less or equal to H2)) where i=1 is current candle and i=2 the previous candle.

End.....

Story Behind The Candle - Part 2

Fractal Bull Bear Fighting Indicator

When my friend asked me "What the hell is that?". I said... this is not the signal but he always talk about the market situation he translate the candles condition. He express battle between BUYER and SELLER on the market. He tell the story behind the candle. But unfortunately... only me can understand him ... :)

"The meanings of every single word he said is so deeply. If only you could interpret him ... but you dont :D" I said to my friend.

By looking at him by listening to what he say... I can imagine... and I can anticipate what was really happen outside there... on 'forex'. However... as the creator of him, I didn't give him the ability to predict the future. But from the story I can summarized the consequence from the serial of events.

Ok... ok... stop joking....

As programmer, I did't create the supernatural thing. I assume that the miracle won't happen. The only thing ... my job is to make the routine more easier than usual.

Again... every word he said is not signal. For the time being... I assume that ... every prediction no matter what formula used... will sooner or latter failed.

The creation of the indicator (Brief)

1. Fractal Bull Bear fighting indicator analyze the last 4 candles base on Open, High, Low and Close for every time frame.
2. From the analysis... I get 24 x 3 = 72 conditions at all including 'extra case'.
3. The 'extra case' won't came out. However if the word come out anyway... that's mean something wrong on my calculation.
4. Why times 3? The occurance of current candle only 3... Bull candle, Bear Candle or Doji.
5. The strong signal is 'Confirm Fractal' ... the point of reversal as well as the point of entry. At this time the fractal (upper or lower fractal by Bill William's indicator) not yet appeared on chart. The Fractal Bull Bear Fighting indicator by BlueDream :D ... inform that the Bill william's fractal will come out when the next candle formed. The word 'Confirm' means strong reversal by comparing the the last 2 High... or the last 2 Low of the candles... While Bill william's fractal didn't mention about that thing.
6. The sentense 'Strong Bullish' or 'Strong Bearish' is not entry point. It indicates continuation of BULL or BEAR. And it also mean... hold your BUY or SELL positon.

To be continued......