CSPThreeMethods: Rising/Falling Three Methods Candlestick Pattern

Description Usage Arguments Details Value Note Author(s) References Examples

Description

Look for Rising/Falling Three Methods Pattern in a OHLC price series

Usage

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CSPThreeMethods(TS, n=20, threshold=1.5)

Arguments

TS

xts Time Series containing OHLC prices

n

number of preceding candles to calculate median candle body length

threshold

minimum/maximum candle body length in relation to the median candle length of n preceding candle bodies

Details

Number of candle lines: 5

Rising Three Methods:
Prior trend: up
The formation starts with a long white candle body. The following three bars are smaller candles that open/close within the high/low span of the first candle. The last candle is a again a long white candle that closes above the close price of the first candle.

Falling Three Methods:
Prior trend: down
The formation starts with a long black candle body. The following three bars are smaller candles that open/close within the high/low span of the first candle. The last candle is a again a long black candle that closes below the close price of the first candle.

Value

A xts object containing the columns:

RisingThreeMethods

TRUE if Rising Three Methods pattern detected

FallingThreeMethods

TRUE if Falling Three Methods pattern detected

Note

The function filters patterns that look like three methods, without considering the current trend direction. If only pattern in uptrends should be filtered, a external trend detection function must be used. See examples.

Author(s)

Andreas Voellenklee

References

The following site(s) were used to code/document this candlestick pattern:
http://www.investopedia.com/terms/r/rising-three-methods.asp
http://www.investopedia.com/terms/f/falling-three-methods.asp
http://www.candlesticker.com/Bullish.asp
http://www.candlesticker.com/Bearish.asp

Examples

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## Not run: 
  getSymbols('URZ',adjust=TRUE)
  CSPThreeMethods(URZ)
  
  # filter rising three methods in uptrends
  CSPThreeMethods(URZ)[,"RisingThreeMethods"] & TrendDetectionChannel(lag(URZ,k=5))[,"UpTrend"]

## End(Not run)

candlesticks documentation built on Feb. 2, 2020, 3:01 a.m.