| Following
the Foot-Steps of Candlesticks
Candlesticks
translates into the Japanese term Nihaba Ashi which
means Foot Prints or Foot Steps. The Japanese believe
the candlesticks follow the markets price activity and
will typically generate patterns at each turning point
of the market. Investors use these pattern to assist
in identifying the turning points of the markets and
to attempt to effectively trade these market trends.
The
previous examples have hopefully illustrated how the
candlesticks, as well as the other investment models
included within the PFP software, will attempt to automate
the process of identifying the pattern formations and
using its internal ability to judge the patterns probability,
generate a buy or sell signal. The PFP program, like
any other investment analysis program, is not 100% accurate
all of the time. At best, the PFP program will average
70 to 80% accuracy and on average will be 50 to 70%
accurate. As I continue to develop the PFP software
application, I will attempt to increase the accuracy
of the program to the point that (I hope) the system
will become one of the most accurate systems in the
world. This new release of the PFP software (code named
Vancouver) is my most recent attempt to improve the
accuracy of this software application. I hope the inclusion
of the four new investment models (the revised BLAM
system, the Fractal system, the Adjusted Stop Level
Breakout system and the BLM Indicator system), the three
new technical indicators (derived from existing technical
indicators) and the inclusion of the Vision Flags which
graphically represent where and when the investment
signals have formed on the chart, will be considered
a great improvement by the users.
Candlesticks
are a superior method of charting compared to bar charts
and provide investors with a much greater ability to
see the markets characteristics within the chart. I
believe that any investor, after learning a thing or
two about candlesticks, will understandably choose to
continue using candlestick charts. The examples included
herein should have provided enough evidence of the abilities
and benefits of the candlesticks, and should have also
provided enough insight into the basic investment technique
used by professional investors that anyone using this
software for the first time will be able to quickly
learn and understand these techniques for investing.
Spend
some time applying the techniques discussed herein and
using the PFP software application. The PFP software
application is an excellent teaching tool that will
quickly teach anyone to recognize, understand and trade
using Japanese Candlesticks and the other investment
libraries. Investors should also investigate the Trending
Candle / Body Reversal investment system because it
embodies many of the same principles used in the analysis
of Japanese Candlesticks. As well, investors should
continue to investigate the other investment analysis
models and the breakout models because they help to
overcome the short-term nature of Japanese Candlesticks.
As
you continue your endeavors to learn and invest using
candlesticks and the other techniques included within
the PFP software application, remember this phrase…
One
man can not move a mountain, yet one man can create
a path so that others can travel across the mountain
- create you own unique path with the information contained
herein.
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