Investor/RT Tour - Candle Codes

MASTER INDEX
SEARCH
CHARTS
MAIN TOOLBAR
SETTING PREFERENCES
TECHNICAL INDICATORS
WHAT'S NEW
ALARMS
BACKTESTING
CONFIRMING TRADES
CUSTOM COLUMNS
CUSTOM INDICATORS
CUSTOM INSTRUMENTS
CUSTOM PRICES
DATA FEEDS
DATABASE
DOWNLOADING DATA
FEED STATUS
HEARTBEAT
HELP
MULTI-LINKING
MULTI-PERIODICITY
INSTRUMENT SETUP
NASDAQ LEVEL II
NEWS TICKER
NEWS BROWSER
OPTIMIZATION
OPTIONS ANALYTICS
PLACING TRADES
PORTFOLIOS
PRESETS
PRINTING
QUICK QUOTES
QUOTE PAGES
REALIZATION
RTL LANGUAGE
SCANS
SCHEDULES
SCOPE
SYSTEM STATUS
TICKER TAPE
TIME AND SALES
TRADING NOTES
USER VARIABLES
VERTICAL SCALE
MASTER INDEX
DICTIONARY
FEEDBACK

Investor/RT Tour ( more on Technical Indicators )
Candle Codes

The Formula . . .	. . .more on Formulas
CandleCode = BodyColor + BodySize + UpperShadow - LowerShadow + Gap where... if(ABS(CL - OP) >= AvgBodySize * 2) BodySize = BodySizeWeight else BodySize = BodySizeWeight * ABS(CL - OP) / (AvgBodySize * 2) if(HI - MAX(CL,OP) >= AvgShadow * 2) UpperShadow = UpperShadowWeight else UpperShadow = UpperShadowWeight * (HI - MAX(CL,OP)) / (AvgShadow * 2) if(MIN(CL,OP) - LO >= AvgShadow * 2) LowerShadow = LowerShadowWeight else LowerShadow = LowerShadowWeight * (MIN(CL,OP) - LO) / (AvgShadow * 2) *Gap = GapWeight (OP - CL.1) / AvgGap if(CL > OP) BodyColor = BodyColorWeight else if(CL < OP) BodyColor = -1 * BodyColorWeight else (CL = OP) BodyColor = 0** AvgBodySize = Average Body Size over entire data series AvgShadow = Average Shadow over entire data series AvgGap= Average Gape over entire data series SingleSmooth = MA(CandleCode, SingleType, SinglePeriod) DoubleSmooth = MA(SingleSmooth, DoubleType, DoublePeriod) Oscillator = SingleSmooth - DoubleSmooth

The Presentation . . .	. . . more on Charts
Above is a 3-Minute Candlestick Chart of Cisco Systems (CSCO) . The 2nd pane shows the raw candle code data. The 3rd pane shows a single and double smoothing of the data. The 4th pane shows an oscillator representing the difference between the single and double-smoothed lines.

The Preferences . . .	. . . more on Preferences

Raw Codes - If this checkbox is check, the raw candle code line will be drawn. Single Smoothed Line - If this checkbox is check, the single-smoothed candle code line will be drawn. Double Smoothed Line - If this checkbox is check, the double-smoothed candle code line will be drawn. Oscillator - If this checkbox is check, the oscillator representing the difference between the single and double-smoothed lines will be drawn. Weighting - Here, the weights are assigned to 5 different characteristics of the candlestick. The weights can be any number greater than or equal to zero. Single-Smoothing - Defines the type and period of the moving average used to smooth the raw candle code data. Double-Smoothing - Defines the type and period of the moving average used to smooth the single-smoothed candle code data.

The Description . . .
The Candle Code indicator is used to assign a numerical value to each candle based on five candlestick characteristics, including Body Color, Body Size, Upper Shadow, Lower Shadow, and Gap. Positive candle code values represent bullish candles while negative candle code values represent bearish candles. The more positive the code, the more bullish the candle. The more negative the code, the more bearish the candle. Each of the five candle characteristics can be weighted according to the user's preferences. A higher weight will make that characteristic have a greater influence on the codes value. A weight of zero will cause that characteristic to have no influence on the code. The raw candle code values are very noisy when charted, and may be both single and double-smoothed. An oscillator may also be draw which represents the difference between the single and double-smoothed values. Signals are produced when the single smoothed line crosses over the double-smoothed line, or when the double smoothed line changed direction of slope in extreme positive or negative territory.