Usually, candlestick charting is used in concert with other indicators to gauge market activity, but as a quantitative approach, technical analysis would be best served with quantitative rules for reading candlestick charts. Here s a simple method by which to assign digital codes to candlesticks. You ll see that the codes agree with the basic principles of technical analysis and may be used to construct a class of new indicators. My coding scheme is built on the common interpretation of candlestick charts.
White candles are bullish and black candles are bearish.
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