Light Up Your Trading System With CandleCode Trading by Viktor Likhovidov
Market sentiment has traditionally been associated with subjectivity. Here’s a method that not only adds a quantitative bent to measuring market sentiment, but can also be applied to your trading.
When I first devised CandleCodes, I designed them to quantitatively measure the market by ranking the
CandleCodes according to typical interpretations. To put it simply, the CandleCode assigns a rank to each candlestick. A strongly bearish candle will have a very low rank, whereas one with less bearish sentiment will get a slightly higher rank. A bullish candle will get a high rank and a strongly bullish candle will occupy the highest place in this hierarchy. This scheme has worked well and has introduced order to the world of candlestick charting.