Henk8
- ago
Underlying is SPX. Period 5 years

I found 6 bullish hamers during this period based on the old calculation and 0 based on the new calculation. Why should i use the new calculation based on CandleBodyFactor, CandlerangeFactor and CandleShadow? Is the new calculation too strict.
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Glitch8
 ( 12.33% )
- ago
#1
The new methods are responsive to how the data has behaved over the recent 40 bar history. The old calculations are more rigid.

A Hammer is a Long Candle and Short Body. If you're not getting enough hits you can tune these parameters in Preferences.

Drag the CandleRange factor into a chart. Candles with a value of > 175 are considered "Long". If it's too restrictive, bring the value down.

Likewise for Body Size, use CandleBodyFactor.

But if you like the results using the old calculation you're free to use them, which is why we left them there as an option.
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Henk8
- ago
#2
Do you have testing results that the new method gives you an edge?
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Henk8
- ago
#3
Why did you use this 40 day bars?
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Henk8
- ago
#4
"Drag the CandleRange factor into a chart. Candles with a value of > 175 are considered "Long"
What do yo mean? Close higher then open?
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Glitch8
 ( 12.33% )
- ago
#5
A candle’s range is defined as its high minus its low. Let me explain in simpler steps:

1) open a chart
2) drag over the CandleRangeFactor indicator
3) observe the indicator values by moving the mouse along the chart. Values of the indicator greater than 175 are considered by the extension to have “long” candle ranges.
4) You can adjust this factor in Candle preferences.

I don’t have time to compile the results of the testing and development here, but I encourage you to test on your own and choose a method and setting that works best for your preference.
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Henk8
- ago
#6
Thanks for the reply!
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