Measuring Bullish and Bearish Candle-Run Frequencies
Summary
This document describes an indicator that counts consecutive runs of bullish and bearish bars over a user-selected window. It presents the results as a chart, with two vertical-axis choices: the number of runs or the percentage of runs. A smoothed chart is also available, and the tool can save a screenshot of the output.
The user sets the bar count and can optionally print the input price series and calculated run array for verification. The document cautions that verbose verification should be limited to short windows, around 15 to 30 bars, to avoid excessive output. An example is identified as EURUSD on a five-minute chart using 1,200 bars and percentage mode. No performance test or trading rule is given, so the indicator describes candle-pattern frequency rather than demonstrating predictive value.
Key ideas
- The indicator counts sequences of bullish and bearish bars within a selected historical window.
- Results can be charted as either run counts or percentages.
- A smoothed chart and screenshot saving are available options.
- Detailed verification output is intended for short windows because it can become very large.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.