CandleCode alive!


Those weights over which the code candles are ones are added and it turns CandleCode. Thus, for the candles, An image in the picture, CandleCode = 64 + 32 + 16 + 8 + 2 + = 122.

What are the objections to this method of quantitative description of candles were discussed during the debate? Encoding or weighing? It was suggested that the author makes the fundamental mistake of confusing two things - coding and weighting candles. In fact, there's no confusion, because the approach solves both problems - and the coding of candles and their weighting. Assigning each candle collection of zeros and ones, we, first of all, order the entire set of candles. Each candle gets a number that uniquely identifies it in the hierarchy. A strong bearish candle (a large black body, long lower shadow) get very small numbers, candles with a little more pronounced bullish mood gets a little more room, bullish candles are still large numbers, and the strongly bullish candle - the largest rooms. And so all the candles are arranged in order of numbers from 0 to 127.

It is important that this numbering builds all the candles in a unique way: by taking any number from 0 to 127, you know exactly what kind of candle corresponds to that number. For example, a candle 122 - large white with an average upper shadow and small bottom. And no other type of candle can not have the same number. Therefore, numbering up to its purpose.

For the very numbering care what it is the number assigned to each candle. These numbers simply create an unambiguous order of all types of candles. But for practical use in commercial systems is just very important, what it is the number (or weight) or that has a candle, since these depend entirely receive trading signals.

Weight equal to the decimal number (which is the binary representation of the code candles) - is one of the possible weighting. It is simple and convenient because it is additive: the weight of the candles is the sum of the weights of its body, the upper shadow and lower shadow. Have such a weighting and disadvantages - for example, the values of the weights placed on the upper and lower shadows are very different. Maximize their contribution to the upper shadow candle numerical weight is 12, and the contribution of the lower shadow is at most 3. For this reason I originally worked with another embodiment of the index, which is the weight of the candles and in this respect was more symmetrical. Own values of weights for the upper and lower shadows were the same for the same lengths of shadows. Color candles taken into account by the sign: white candles were positive weight, and black - negative, upper shadow had a positive weight, and lower - no.

However, the actual chart of the indicator constructed by averaging this weight, show no fundamental differences from that given CandleCode. All major levels on the charts of average indicators, trends, and the point of intersection of different moving averages are almost identical. So I am used to SandleCode. Although specific trading systems can be created and special methods of weighing.