CheckMark Pattern for Predicting the Next Candle Direction

Summary

The CheckMark pattern is presented as a way to classify the next candle as bullish or bearish. It compares the shape formed by the closing prices of the latest three bars with the shape of the corresponding three oscillator values. The pattern is identified when the two shapes have opposite vertical orientations, so an oscillator is needed alongside the price chart; the text says various oscillators can serve this purpose.

The oscillator’s local minimum marks the bullish version, while its local maximum marks the bearish version. The document characterizes the pattern as a prediction signal only and does not describe further trading rules, such as entry timing, exits, or risk controls. It also supplies no performance results or evidence of predictive accuracy, so the pattern’s practical value is not established here. A later version added the option to use CCI as the underlying indicator, but the document gives no comparison of oscillator choices.

Key ideas

• The pattern compares the last three closing prices with three corresponding oscillator values.
• A valid CheckMark occurs when the price and oscillator shapes point in opposite vertical directions.
• An oscillator is required because the price chart alone cannot show the full pattern.
• An oscillator local minimum denotes a bullish signal, while a local maximum denotes a bearish signal.
• The document provides no measured evidence of predictive accuracy or trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.