CandleCode alive!

If we imagine that the same candles are black (it is enough to turn the time axis in the figure in the opposite direction), then the bearish nature A candle will be even more pronounced than with B. For black candle option A will have code 0010100 = 16 + 4 = 20, and for the black version of Candle B: 0010111 = 16 + 4 + 2 + 1 = 23.

What kind of scenario took place inside the candle, and, especially, where the market will go further - we do not know. But the market was more progress in a downward direction, the more the level of support he could break through on the road. We would expect a greater variety of scenarios in which the schedule then continues down through the course of this break of support.

Therefore, when choosing the code for the shadows, I started from the consideration that a candle with a long upper shadow is more bullish than a candle with a short upper shadow, and a candle with a long lower shadow is more bearish than the short lower shadow.

"I have not come up with anything at all!"

The same opponent expressed reproach: it invented a cumbersome method of describing the candles, using moreover artifice with three ranges feature size candles. Let's see what is artificial and cumbersome.

1. The ratio of opening and closing prices is the most important value for interpreting the meaning of the candles. This is their common understanding in stock trading (open and close - prices start and end of the session). It is also well known and traders in the foreign exchange market, for which the closing price of the hour (and even more so of the day) has a clear psychological meaning. Therefore, for the quantitative measurement of candles open and close should be considered as a major factor.

The indicator SandleCode features real body is in the high end, therefore, they have the greatest influence on the value of the weight.

2. When looking at the candle, you evaluate possible subsequent market movement, color candle is the main factor. White candle (open <close) shows held bullish market movement, so when other things being equal, it has a more pronounced sense of bullish than black candlestick (open> close). If we consider the candles separately, ignoring the nearby candle chart, any white candle is more bullish than any black, regardless of the size of their shadows. Since SandleCode performs numerical coding is isolated candles, then it satisfies this requirement: the senior category to put one white candle and 0 for black. Any white candlestick will be "over" any black: white candle code can not be less than 1000000 = 64, and the code of the black candle can not exceed 0,111,111 = 63.

3. The next most important factor is the size of the real body. The greater the distance between the opening and closing prices, the more pronounced is the mood that it points to the color of the candle (known truth stock trading: start the day, amateurs, professionals and graduate). White candle with a great body is more bullish than the white candle with a small body. Accordingly, a black candlestick with a big body looks more like a bear than a black candle with a small body.