Description:
The program has a very advanced function, highly customizable, to study the charts using the technique of the Japanese Candlesticks.
The aim of this form is to set all the rules the program needs when doing the candlestick analysis. Patterns, indicators, trends, and earlier exits.
Use:
There are several ways to access this function:
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Select the menu entry "Candlestick Rules" from the "Analysis" menu in the program main window.
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Select the entry "Candlestick Forecaster" from the menu "Analysis" or from the pop up menu which appears clicking with the right hand mouse key when the cursor is on any internal window. This will open the Analysis window. Now it is possible to choose the button "Rules" from the vertical menu on the left.
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press the button  from the top toolbar in the main program window.
Keys of left vertical menu:
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New
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Create a new set of analysis rule.
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Copy
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Copy the selected set or rules to a new one.
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Delete
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Delete the selected rule set.
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Save
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Confirm and apply all modifications done so far. Until this key is not pressed, the modification will not be effective.
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Exit
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Exit from the window.
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Table Patterns
In this form there are all Patterns (combination of candlesticks) divided in categories, which the program can recognize:
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Bullish
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These patterns indicate a possible up trend inversion
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Bearish
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These patterns indicate a possible down trend inversion
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Continuation
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These patterns indicate a possible continuation of the current trend.
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Exhaustion
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These patterns indicate a possible continuation of the current trend.
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It is possible to select which patters the program should recognize. It is also possible to put a validation rule on the pattern itself. In this way if the condition is not "True" the pattern will automatically be excluded. (as if the program does not recognize it). The validation is very useful in all cases where to take into consideration a pattern only in certain circumstances.
To activate the validation check the checkbox "Validation Formula". Otherwise even if the validation formula does exist, the program will not consider it.
Indicators Tables
In this table it is possible to add indicator so the can contribute to influence the validity or the signal which derives from the pattern recognition.
To add, copy or delete and indicator, use the keys inside the table "indicators":
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New
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Create a new indicator.
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Copy
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Copy the selected Indicator to a new one.
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Delete
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Delete selected indicator.
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It is possible to add any number of indicators even thought it is recommend to exaggerate.
For every indicator several formulas can be defined. They have to be selected to be taken into consideration by the analysis tool.
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Formula
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It is the main indicator formula.
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Positive when
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It is a formula which tells the analysis tool when the indicator should be considered positive.
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Negative when
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It is a formula which tells the analysis tool when the indicator should be considered negative.
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Overbought
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It is a formula which tells the analysis tool when the indicator should be considered overbought.
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Oversold
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It is a formula which tells the analysis tool when the indicator should be considered oversold.
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Validation formula
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It is the indicator validation formula. Similar to the one described early for the patterns. If present, with a value of "False" the indicator will not be taken into consideration.
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Trends Table
In this table it is possible to set the periods of some trends, to decide which one the program should consider, so the can concur to validate the signal generated from the pattern recognition:
The possible trend types are :
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Very Long Trend
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Long Trend
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Middle Trend
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Short Trend
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Very Short Trend
For each one of them, the user can set any number of periods. This is because for some analysts a very long trend is composed of 100 periods, for other a very long trend should have 120 periods, and so on.
You can see the validation formula which can be activated bye checking the checkbox "Validation Formula" and compiled on the required frame.
Exit Tables
In this table is possible to add the early exit rule from exit long, or short:
To add, copy or delete and indicator, use the keys inside the table "Exits":
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New
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Create a new Exit.
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Copy
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Copy the selected exit to a new one.
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Delete
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Delete Selected Exit.
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It is possible to add any number of exit even thought it is recommend to exaggerate.
For every indicator several formulas can be defined. They have to be selected to be taken into consideration by the analysis tool.
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Exit long when
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It is a formula which tells the analysis tool when to exit long.
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Exit short when
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It is a formula which tells the analysis tool when to exit short.
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Validation formula
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It is the exit validation formula. Very similar to the one described earlier. If present, with a value of "False" the exit will not be taken into consideration.
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NB It is possible to use the Code Editor for formulas creation. To that, double click on the frame containing the formula and press the "Editor" button.
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