Morning Star rules not respected

Bard · Tue, 19 Mar 2019 17:28:44 +0000

Hi I can’t find a good Morning Star candlestick pattern on here that respects Charles Bulkowski’s definition. He is regarded as the master on candlestick studies publishing % return tables for candlestick patterns. See http://thepatternsite.com/MorningStar.html Eg: MorningStar, Bullish Reversal, Accuracy = 78% in a Bull Market/65% Bear Market with a very low occurrence. I have amalgamated different code from prorealcode to obtain the closest to Bulkowski’s definition for this pattern. In the first screenshot the last green candle (with a white arrow after the Morning Star) doesn’t respect the rule that it should climb up to over half the opening candles body length (first long white long candle), probably because maybe I haven’t coded it correctly? I think adding a bullish pinbar code (on this forum) for extending the Morning Star candle shadow may also help to respect the rules further. (First screen Morning Star pattern from XAGUSD Daily 9th Feb 2000) if range>0 then ratio=body/range else ratio=0 endif longcandle= (ratio>0.7) body=close-open abody=abs(body) MorningStar = 0 signal = 0 if MorningStar then signal = 5 endif //text color // white = 255,255,255 ; black = 0,0,0 r = 255 g = 51 b = 51 //Orig //e1 = close[2] < open[2] // red candle //e2 = open[1] < close[2] and close[1] < close[2] and low[1] < close[2] // candle entirely below predecessor's body //e3 = close[0] > open[0] and open[0] > open[1] and high[0] > low[1] // green candle with a gap //e4 = range[1] > (range[2] / 2 ) and close[0] > (open[2] - close[2]/2) // morning star's range is small compared to preceding candle e1 = body[2]<0 and body>0 and longcandle[2] // red candle e2 = open[1]<close[2] and low[1]<low[2] and low[1]<low[0] and high[1]<open[2] and high[1]<close [0] and abody[1]<abody[2] and abody[1]<abody[0] // small candle entirely below predecessor's body e3 = open[0]>close[1] and ratio[1]<0.3 and close[0] > (open[2] - close[2]/1.5)//green candle with a gap if e1 and e2 and e3 then MorningStar = 1 endif if MorningStar = 1 then signal = 1 endif if e1 and e2 and e3 then DRAWTEXT("Morning Star", barindex, high, Dialog, Standard, 20) COLOURED(R,G,B) DRAWARROWUP(barindex,low) COLOURED(0,155,10) endif Return signal > 0

This topic has 20 replies, 3 voices, and was last updated 5 years ago by Bard.

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03/23/2019 at 2:05 PM #94495

Bard

Agreed! The simpler the better. It was an idea though to improve the win rate of Bulkowski’s pattern stats. I’ve seen these spikes a thousand times in Forex, I’ve even seen the next candle retrace all the way back up these very long spikes, but the majority of times this is a great signal that declines are more likely to follow.

Bard
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03/23/2019 at 2:12 PM #94496

Bard

Ah, but did you see DEIO’s system and it’s 100% win rates @robertogozzi?
https://www.prorealcode.com/prorealtime-trading-strategies/indexbond-strategy-based-on-slow-accumulation-of-contrarian-orders/

Caveat: Oct 2019 was “fun” but the end of Feb 2019 brought the system back to break even (before the Dow declined again) but not after some “disconcerting” drawdowns!

Bard
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03/23/2019 at 2:14 PM #94497

Bard

and so unable to open an account with a broker due to silly age restrictions.

There was always Panama, the Caymans or Liechtenstein?

Bard
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03/23/2019 at 4:55 PM #94506

Vonasi

Bard wrote:

There was always Panama, the Caymans or Liechtenstein?

Unfortunately at three months old I hadn’t started geography lessons yet let alone economics so I wasn’t even aware that these countries existed. The stupidity of youth!

On the subject of candle patterns – I studied it for a while but decided that in the old days when every trader drew their own daily charts with pencil and paper and so all spotted the same patterns they may have had some use but in this modern day and age when we are all staring at charts in multiple time frames they don’t seem very powerful.

Vonasi
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03/23/2019 at 6:18 PM #94511

Bard

Updated Bulkowski Code here:

https://www.prorealcode.com/topic/8-high-probability-bulkowski-candlestick-patterns/

Bard
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03/27/2019 at 8:26 PM #94824

Bard

The stupidity of youth!

Hilarious.

Wait for the “joys” of senility!

Bard
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