Chart Description
This is a typical CandlePower 6 Pro chart which displays plots of price, technical indicator, and candle signals. This particular chart shows 70 periods of data starting on 10/1/2004 and ending on 1/10/2005 for Boeing. The "Data Window" shows the prices and volume, the candle pattern name (if any), and the technical indicator and moving average values for wherever the mouse is pointed (in this case the last day).
The technical indicator is plotted at the top of the chart along with its buy and sell signals that are indicated by the arrows directly above the plot. The candle pattern signal arrows are shown between the indicator and price plots on a line titled "Candles". The prices are shown in a standard candle plot with the candle "body" determined by the Open and Close and the "shadows" (wicks) by the High and Low. Moving averages can be overlayed on all three plots and are shown here overlayed on just the price and volume plots.
The "Trading Performance" window ranks how well all of the indicators, including candles as a group, performed based on simulated testing over the displayed time frame. In this particular chart the NSI indicator, which is a composite index based on 10 component indicators, performed the best, followed by RSI, MACD, and Candles….
There are a total of 12 candle signals and 3 groups of NSI signals consisting of presignals, signified by green boxes (buy) and red boxes (sell) followed by the actual signals, indicated by the black arrows in white boxes. When a technical signal and a candle signal occur simultaneously it is called a “joint signal” which is usually more accurate. There are two joint signals shown in the chart: the sell signal the day before November 15 and the buy signal on January 5. These two signals were the major contributors to the overall performance indicated in the performance window.
What it means:
No matter whether the overall market is bullish or bearish, trading opportunities exist which can be identified and exploited using analysis techniques and tools available in CandlePower 6 Pro. Key among these is observing the occurrence and value of joint candle and technical indicator signals.