Solved

Does anyone know of a pattern recognition or candlestick formation software for FOREX?

Posted on 2008-06-11
1
669 Views
Last Modified: 2012-05-05
I would like to find a software where it can detect candlestick formations and alert me on them. Does anyone have any experience in this? Ideas?

Examples of the candlestick formations are:
-Morning Star
-Evening Star
-Tweezer
-Engulfing
0
Comment
Question by:rortiz77
1 Comment
 
LVL 31

Accepted Solution

by:
moorhouselondon earned 125 total points
ID: 21766749
The Holy Grail to some people.  Similar to posting a question: Where can I find buried treasure?

Anyone who is capable of writing such software would have to put a massive disclaimer on their product which would mean that you were accepting a big risk.  Let's suppose that someone has written some software to do this.  If it were good enough, people would buy it, but then, if enough people bought it and acted upon it, you would see a distortion in the "pay-off" section of the candlestick where those who did act upon it took their profits - it would be a victim of its own success.  The writers would have to build some kind of randomising function into the package, or insist that you define certain parameters between limits before you could use it.  One of the problems of using the price "envelope" to analyse the market is that the prices you see are arguably artificial, they are set at a value which might not reflect the truth - it is like looking at estate agent prices in an area and saying that a house in that area is worth that much.  The truth is that deals are being struck which will distort that price.  In both cases the prices are fixed at a level to stimulate the market into "churning".

Having said all this: If you are going to go down this route, your best bet would be to write your own software, or commission someone to do it.  The question then becomes: "Where can I get historical data from to test my program?"
0

Featured Post

Maximize Your Threat Intelligence Reporting

Reporting is one of the most important and least talked about aspects of a world-class threat intelligence program. Here’s how to do it right.

Join & Write a Comment

Suggested Solutions

If your app took Google’s lash recently, here are the 5 most likely reasons.
Today, still in the boom of Apple, PC's and products, nearly 50% of the computer users use Windows as graphical operating systems. If you are among those users who love windows, but are grappling to keep the system's hard drive optimized, then you s…
This video demonstrates basic masking and how to edit the mask to reveal the desired image.
In this seventh video of the Xpdf series, we discuss and demonstrate the PDFfonts utility, which lists all the fonts used in a PDF file. It does this via a command line interface, making it suitable for use in programs, scripts, batch files — any pl…

760 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question

Need Help in Real-Time?

Connect with top rated Experts

19 Experts available now in Live!

Get 1:1 Help Now