Your Company Name Here
Page Title
| Navigation Bar Placeholder |
Your Company Name Here
Candlestick Pattern Recognition (CPR) follows a very rigid filtering formula. The formula is:
Each member in the formula has to be at a certain phase at a very specific clock tick in order to be recognized. The formula is not as simple as it looks for the following reasons: In a bullish market preparing for a reversal, the signal must be at its waning moment on or about to change direction. At the same moment candles are lined up to form a defined pattern. In addition, the stochastic threshold level must be higher than 80. The conditions are somewhat reversed in a bearish market ready to turn around. The signal must be at a certain phase at a very specific clock tick ready to change direction. Candle formation is one of the defined patterns. Stochastic threshold level must be below 20. Minus one or more of the conditions above, CPR will not recognize a pattern. More importantly, CPR will not recognize a pattern when the stochastic threshold level is between 20 and 80, or between the overbought and oversold conditions. |
| Synchronism in Pattern Recognition |
 |  |  |  |
Right conditions, right recognition!
Table of Contents
