Hollow Candlestick proposal

Questions about MultiCharts and user contributed studies.
User avatar
danilo
Posts: 170
Joined: 02 Jan 2007
Location: Italy
Has thanked: 4 times
Been thanked: 8 times

Hollow Candlestick proposal

Postby danilo » 17 Oct 2008

In the new MC 4 beta has been introduced the Hollow CandleStick, as described the rules for Hollow Candlestick coloring and filling are as follows:

The color of bars depends on the relation of Close for the previous bar (c1) and the current bar (c2):

If c1<c2, the lines are colored ‘up’ (e.g. green)
If c1=c2, the lines are colored ‘neutral’ (e.g. grey)
If c1>c2, the lines are colored ‘down’ (e.g. red)

Whether the bars are filled or remain hollow depends on the relation of Open and Close of the current bar:

If Open < Close, the candlesticks will be hollow
If Open > Close, the candlesticks are colored ‘up’, ‘down’, or ‘neutral’
If Open = Close, the candlesticks look like a horizontal line

While I do agree on the bars coloring rules, I don't agree for the filling rules. For me the filling color should confirm the trend as following:

If Open<Close Then begin
If line=green then fill green, I'm confirming the up move
If line=red then don't fill, I'm not confirming the down move
end

If Open>Close Then begin
If line=green then don't fill, I'm not confirming the up move
If line=red then fill red, I'm confirming the down move
end

Kind Regards,
Danilo

User avatar
Marina Pashkova
Posts: 2758
Joined: 27 Jul 2007

Postby Marina Pashkova » 22 Oct 2008

Hi Danilo,

We are using the traditional approach to candlesticks filling. What are your rules based on?

Regards.

User avatar
danilo
Posts: 170
Joined: 02 Jan 2007
Location: Italy
Has thanked: 4 times
Been thanked: 8 times

Postby danilo » 22 Oct 2008

Hi Marina,

I live in Milan, Italy, in the center of the city there is a beautiful gallery, on the gallery's floor there is a mosaic with the drawing of a bull. The tradition say that bring good luck crushing the balls of the bull, and so every year thousands of tourists are photographing while crushing the balls of the bull, it does makes sense? No but is the tradition. Now instead of balls of the bull there is a large hole that had become increasingly profound...

Regards,
Danilo

fs

Postby fs » 22 Oct 2008

Implementing something in MC in a way that would be inconsistent with any other charting application that have solid/hollow candles, just because you don't want to touch the bull doesn't make much sense either.

brodnicki steven
Posts: 407
Joined: 01 Jan 2008
Been thanked: 3 times

Postby brodnicki steven » 23 Oct 2008

I think what Danilo wants, is the ability make custom rules about how the candlesticks are colored. It's kind of an interesting idea actually.

User avatar
TJ
Posts: 6518
Joined: 29 Aug 2006
Location: Global Citizen
Has thanked: 957 times
Been thanked: 1883 times

Postby TJ » 23 Oct 2008

i don't use candles....

but if the new feature is user-configurable, i am all for it.

i mean it is not a fixed "danilo-method", but user assignable color/solid/hollow parameters so that when a "NEW" coloring method is invented, the user can paint the bars to his content.

because a more flexible MC is a more powerful MC... is a more attractive MC
in the end, more people will user MC, and our MC will have more support.

if the MC code is structured properly from the onset... i don't think this is difficult to add.

thank you MC for considering..

brodnicki steven
Posts: 407
Joined: 01 Jan 2008
Been thanked: 3 times

Postby brodnicki steven » 23 Oct 2008

Yes, TJ, I agree, the Default colors should be the traditional ones but with the ability to customize them with our own formula, would be nice.
The more user custom ability in MC, the better.

User avatar
danilo
Posts: 170
Joined: 02 Jan 2007
Location: Italy
Has thanked: 4 times
Been thanked: 8 times

Postby danilo » 23 Oct 2008

Marina,

In the book: "Candlestick and pivot point trading triggers", by John L. Person. Published by John Wiley & Sons, Inc., 2007.

I have found the following description (pages 188-189):

"The components of a candlestick are derived from the open, the high, the low, and the close. In [...] we see a dark candle (in a color charting software package, it would be a red candle). This signifies that this particular time period’s close is below the open. It does not indicate whether the market closed higher or lower than the previous time period did. The computer code for this sequence would be C < O, the close is less than the open. We can also assign a negative (-) value or reading to help determine the relative strength of a trend.
In [...], the white, or hollow, candle signifies that the concluded time period shows that the close is above the open (in a charting software package, you would universally see this as a green candle). Keep in mind that you can adjust almost any parameter in any software package to your liking. Therefore, you may want the candle to be white. The point is that the color of a 'lower close than open' candle should be different from the color of the 'higher close than open' candle. The computer code for this sequence would be C > O, the close is greater than the open. We can also assign a positive (+) value or reading to help determine the relative strength of a trend by how many more positive, or 'higher close than open', candles exist".


I have blue colored the main sentences:

1) "It does not indicate whether the market closed higher or lower than the previous time period did". There isn't a standard the define a color sequence depending on the previous close, and I'm happy that MC made a step forward to try to define such dependence.

2) "Keep in mind that you can adjust almost any parameter in any software package to your liking". For me ad example: hollow, white and green have all the same meaning, my proposal was an attempt to implement the new dependence concept (c1 <=> c2) with the standard candlestick coloring (fill green/red to confirm a bullish/bearish candle), anyway as already asked by others should be better give the option to adjust almost any candlestick parameter.

Regards,
Danilo

P.S:
Consider that once the candles was hand-drawn on a paper's sheet and for drawing a white candle was enough to draw a hollow rectangle, but what happens if the paper's background is black or blue ?

User avatar
danilo
Posts: 170
Joined: 02 Jan 2007
Location: Italy
Has thanked: 4 times
Been thanked: 8 times

Postby danilo » 27 Oct 2008

Marina,

I reflected on this issue and I would propose to use a single type of candles having the opportunity to set the following parameters:

1) If (c1 < c2) & (Open <= Close) the lines are colored "up" (eg. green) and the candle "up"
2) If (c1 < c2) & (Open >= Close) the lines are colored "up" (eg. green) and the candle "weak-down" (eg. light-red)

3) If (c1 > c2) & (Open >= Close) the lines are colored "down" (eg. red) and the candle "down"
4) If (c1 > c2) & (Open <= Close) the lines are colored "down" (eg. red) and the candle "weak-up" (eg. light-green)

5) If (c1 = c2) the lines are colored "neutral" (eg. grey)

Given the above ruels it's possible define the standard candle in the following way:

1) If (c1 < c2) & (Open <= Close) the lines are colored "grey" and the candle "green"
2) If (c1 < c2) & (Open >= Close) the lines are colored "grey" and the candle "red"

3) If (c1 > c2) & (Open >= Close) the lines are colored "grey" and the candle "red"
4) If (c1 > c2) & (Open <= Close) the lines are colored "grey" and the candle "green"

5) If (c1 = c2) the lines are colored "grey"

Given the above ruels it's also possible define the hollow candle in the following way:

1) If (c1 < c2) & (Open <= Close) the lines are colored "green" and the candle "hollow"
2) If (c1 < c2) & (Open >= Close) the lines are colored "green" and the candle "green"

3) If (c1 > c2) & (Open >= Close) the lines are colored "red" and the candle "red"
4) If (c1 > c2) & (Open <= Close) the lines are colored "red" and the candle "hollow"

5) If (c1 = c2) the lines are colored "grey"


Kind Regards,
Danilo

P.S.:

(*) when Open=Close the candle's color is not visible since will be drawn a cross
(**) the "hollow" color as the meaning of window's background color


Return to “MultiCharts”