New Trendlens Indicators & Functions

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1 New Trendlens Indicators & Functions There are 83 new indicators and functions available in TrendLens. Formation Functions Highest Value The Highest Value formation function looks back bar count number of bars to find the Highest value in that range. At the same time, the formation finds the Lowest Value that follows the Highest Value. The Range High returns that Highest Value found. The Low Since High returns the low that follows the high. The output Bars Since High returns the # of bars prior the current bar where the Highest Value was found. If the current bar is the highest point, Bars Since High returns zero. Likewise, the Bars Since Low output returns the distance to the low value. When the Bars Since High returns zero, this indicates a new high. Highest Value with Mark The Highest Value with Mark formation is the same as the Highest Value formation with the addition of one more input called Mark and the Output Mark at High. Any input series can be passed in as the Mark and the output Mark at High will return the value in the Mark data with the same position as the Highest Value. This is very useful in capturing, for example, the MACD value that corresponded to the High Point. Lowest Value The Lowest Value formation function looks back bar count number of bars to find the Lowest value in that range. At the same time, the formation finds the Highest Value that follows the Lowest Value. The Range Low returns that Lowest Value found. The High Since Low returns the High that follows the Low. The output Bars Since Low returns the # of bars prior the current bar where the Lowest Value was found. If the current bar is the Lowest point, Bars Since Low returns zero. Likewise, the Bars Since High output returns the distance to the High value. When the Bars Since Low returns zero, this indicates a new Low.

2 Lowest Value with Mark The Lowest Value with Mark formation works the same as the Lowest Value formation with the additional ability to return an additional value from the input that corresponds to the Lowest Value returned by the function. This could be used, for example, to return the volume from the bar with the Lowest Value. The Mark value takes any input array and the Mark at Low output returns the value that matches the Lowest Value. Rising Falling Pivot High Pivot Low The Rising Falling formation function looks for rising values and falling values at the same time and signals true when these conditions are found. The input term Number Rising is used to indicate the number of successive rising values that must be found to signal the Is Rising output. Likewise, the Number Falling input term is used to determine the Is Falling output value. Two input values in a row that are equal are neither rising or falling and cause the function to start counting from zero. The Pivot High formation looks for a high value that is surrounded by lower values. The input term Number Left of Peak determines the number of low values required to the left of the peak and the Number Right of the Peak specifies the number of lower values found to the right of the peak. When the values to the right of the peak are confirmed, the Peak Found becomes true. This found condition occurs X number of bars after the peak where X = Number Right of Peak. Pivot Low looks for a low point surrounded by higher values. There must be Number Left of Peak values to the left of the low that are higher and also Number Right of Low values to the right. The Low Found conditions becomes true X bars after the Low where X = Number Right of Low.

3 Filter Series Static Bar The Static Bar filter is a powerful function that takes the bars as input and captures values from a specific time range in a one day period and returns them, creating in essence a frozen bar. Set a time range in the input terms and Static Bar will calculate Open-High-Low-Close-Volume for this time period as if it was a single bar. The Finish output value will be true when the current time is outside the time range. This indicates that the bar is complete. The static bar can be used to capture yesterday s close price for use in any time frame. It can also be used to determine the morning high. The Days Back term allows the function to look back to a previous day s time range. The time range is limited to a single calendar day, so the data cannot cross days. Static Value Sustain sustain built in. The Static Value filter function returns the Open-High-Low-Close of a single value array instead of the values for a series of bar data. This means the input can be a MACD instead of just the price. Bars must also be supplied as input as these supply the time information necessary to build the values. As in Static Bar, the values are collected during the time range specified over a single calendar day. The Finish output is true when the current time is outside the time range specified by Start Time and End Time. The time range does not include a date so it cannot exceed 24hrs. The Days Back term allows the function to return the values from an earlier day. The Sustain function takes a data series as input and causes each Non- Zero or True value to repeat up to Barcount times or until another Non- Zero or True value is encountered in the series. This is very useful when looking for two or more conditions to occur at about the same time, but you don t need to have them occur at exactly the same time. Some of the other TrendLens indicators such as the Candle Patterns have a

4 Mathematic Operations Not The Not operation takes an input series and returns a One everywhere the Input was zero and returns a Zero everywhere the input was Non- Zero. Absolute Value The Absolute Value operation takes an input series and returns the absolute value of each element in the input series. Min The Min function takes two data series and returns the lesser of the two values at each point in the input series. Max The Max function takes two data series and returns the greater of the two values at each point in the input series. Between The Between function takes an Upper and Lower series plus a Value series and looks to see if the value element is between the Upper and Lower elements. It returns the answer in two ways. First, if the value is between the upper and lower range for size # of bars in a row, the In Between output will return True. The default size of zero requires the value to be between upper and lower for the current bar only. Size of 1 would require the current bar plus one previous bar, etc. The second way this function returns the answer is via the Count output. This output does not consider the Size term; it just returns the Count of the consecutive # of bars where the value is between. This output is zero when the value is not between and count up as each bar is found to be between. The inclusive term, if non-zero will allow the value to be equal to the upper or lower bounds

5 and still be true. Otherwise, the value must be less than the upper and greater than the lower bounds for count bars. Slope The Slope function takes two X & Y coordinates and returns their slope value which is the ratio of the change in Y divided by the change in X. Proprietary Indicators Relative Value The Relative Value indicator, or JARVA, considers the price action over the specified time period and produces a base line and a relative line on a scale loosely associated with the price of the asset. The significant points occur when the relative line crosses the base line. These crosses predict a change in direction and can be used as buy or sell signals. Prevailing Sentiment The Prevailing Sentiment indicator, or JAPSEN, considers the price action over the specified time period and produces a value that moves above and below 100. A value of 100 is considered neutral. Values greater than 100 show optimistic sentiment and values below 100 are pessimistic sentiment. The greater the numerical extreme, the more intense and unsustainable the emotion behind it will be. Look for reversals in price when levels approach values of 120 or 80. Use your own testing to determine the best levels for your strategy.

6 Candle Patterns Abandoned Baby Bottom This formation consists of three candlesticks. The middle candlestick is a doji which gaps down from both the first and third candlestick. It is a signal that a bottom has formed and a trend reversal may be at hand. Abandoned Baby Top This formation consists of three candlesticks. The middle candlestick is a doji which gaps up from both the first and third candlestick. It is a signal that a top has formed and a trend reversal may be at hand. Advance Block Advance Block is a three candlestick bearish reversal pattern that occurs during an uptrend. The pattern consists of three white candlesticks that close progressively higher. The first candle is long bodied with a short wick. The second and third candles open within the body of the prior candle. They have increasing smaller bodies and long shadows relative to the first candle. This reflects the weakening uptrend. Belt Hold Line Bear This is a long black candlestick that opens at its high. In an uptrend this would be considered a bearish indicator. This formation is also called a black opening shaven head. Belt Hold Line Bull This is a long white candlestick that opens at its low. In an downtrend this would be considered a bullish indicator. Breakaway Bull This formation consists of a series of five candlesticks. The first day is a large black candle. The following three days are in the same direction (down), but with smaller bodies than the first day. The fifth day is a large white candle that closes inside the first or second day's body. It is essentially a Three Stars in the South formation with a reversal at the end. This formation indicates that a downward trend is slowing and might reverse. Counter Attack Bear A bearish counterattack line pattern is found within an upward trend, the first candlestick is a long white one followed by a black candlestick that gapped higher on the open, but closes at approximately the same level as the close of the white candlestick. Counter Attack Bull A bullish counterattack line pattern is found within a downward trend, the first candlestick is a long black one followed by a white candlestick that gapped lower on the open, but closes at approximately the same level as the open of the black candlestick.

7 Dark Cloud Cover The dark cloud cover pattern occurs in an uptrend and is comprised of two candlesticks. The first candlestick in the pattern is a long white candle. The next candlestick opens higher than the previous candle s high, but then sells off to close below the midpoint of the first candlestick, but not below the open of that candle. Deliberation Bear This formation consists of three white candlesticks. The first two have large bodies and small top shadows. The third one has a small body and gaps up from the previous candlestick. It indicates that an upward trend may be ending. Deliberation Bull This formation consists of three black candlesticks. The first two have large bodies and small bottom shadows. The third one has a small body and gaps down from the previous candlestick. It indicates that an downward trend may be ending. Dragonfly Doji A Dragonfly Doji is characterized by a doji at the upper end of the trading range on the bar. The lower shadow is at least twice as long as the real body with no (or almost no) upper shadow. Dragonfly Doji Bear The Bearish Dragonfly Doji formation consists of a Doji candlestick (open and close are approximately equal) with a long bottom shadow and no top shadow. The formation occurs in an uptrend, which can be defined as two or more white candlesticks. It is similar to the Hanging man formation, but more bearish. It indicates that a sharp reversal has occurred. Dragonfly Doji Bull The Bullish Dragonfly Doji formation consists of a Doji candlestick (open and close are approximately equal) with a long bottom shadow and no top shadow. The formation occurs in a down trend, which can be defined as two or more black candlesticks. It indicates that a sharp reversal has occurred. Engulfing Line Bear This formation consists of two candlesticks. The first candlestick is white the second is black. The second candlestick's open is higher than the first but then closes below the first's open. The real body of the second candlestick engulfs that of the first. This indicates the bulls to force the market higher but failed. Engulfing Line Bull This formation consists of two candlesticks. The first candlestick is black the second is white. The second candlestick's open is lower than the first but then closes higher than the first's open. The real body of the second candlestick engulfs that of the first. This indicates the bears tried to forced the market lower but failed.

8 Evening Doji Star The Evening Doji Star formation consists of a sequence of three candles. The first one is white and has a long body; the second candle is a Doji, whereas the third one is a long black candle. The third candle is the confirmation of the trend reversal and its real body should not touch the real body of the second candle, whereas it should close at least halfway into the real body of the first candle Evening Star The evening star formation consists of a sequence of three candles. The first one is white and has a long body, the second candle is of smaller size and short body (its color is of no importance), whereas the third one is a long black candle. The third candle is the confirmation of the trend reversal and its real body should not touch the real body of the second candle, whereas it should close at least halfway into the real body of the first candle. Falling3 Method The Falling Three Method pattern begins with a long black candle followed by a series of upward reaction candles. These candles all form within the range of the original candle, but have smaller bodies. The smaller candles are white, since the large trend candle is black. The fifth and final candle is black, but it closes at a new low and opens lower than the close of the previous day. Gravestone Doji This candlestick is a Doji in which the open and the close are at the low. This candlestick could signal a possible reversal at market tops. Hammer A Hammer candle is characterized by a small real body at the upper end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. This hammer matches the black candles. The Hanging Man is the same pattern but matches the White candles. Hanging Man A Hanging Man is a hammer that occurs after an uptrend and is a bearish signal. A Hammer candle is characterized by a small real body at the upper end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. This Hanging Man matches the white candles. The Hammer is the same pattern but matches the black candles. Harami Black The Harami Black candlestick pattern is characterized by a large black candlestick followed by a smaller white candlestick whose body is located within the range of the larger body. Harami Cross Black This formation is similar to the HaramiBlack except that the second candlestick is a Doji. Harami Cross White This formation is similar to the HaramiWhite except that the second candlestick is a Doji.

9 Harami White The Harami White candlestick pattern is characterized by a large white candlestick followed by a smaller black candlestick whose body is located within the range of the larger body. High Wave The High Wave candlestick pattern is characterized where the body of the candlestick is very narrow and has long shadows on both sides. This type of candlestick shows that the market is at an impasse between bullish and bearish. In Neck Line Bear The In Neck Line Bear is a two candlestick continuation pattern that occurs during a downtrend. The first candlestick is long bodied and Black. The second candlestick gaps lower but ends up closing above its open, approximately around the level of the bottom of the prior candlestick s body. In Neck Line Bull The In Neck Line Bull is a two candlestick continuation pattern that occurs during an uptrend. The first candlestick is long bodied and white. The second candlestick gaps higher but ends up closing below its open, approximately around the level of the top of the prior candlestick s body. Inverted Hammer An Inverted Hammer candle is characterized by a small real body at the lower end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. The Inverted Hammer is the same as a shooting star, only the inverted hammer appears at the end of a downtrend, whereas the shooting star appears at the end of an uptrend. Ladder Bottom The Ladder Bottom formation consists of five candlesticks. The first three are long and black. The fourth is black, but not necessarily long, with a long top shadow and a high above the previous close. The last candlestick is large and white with a small top shadow and a gap up from the previous close. The Ladder Bottom indicates the reversal of a downward trend. Long Legged Doji This candlestick is a Doji with a long upper and lower shadow. It can be a sign of a market reversal. Mat Hold Pattern The Mat Hold Pattern is characterized as a 5 stick continuation pattern, where a long white candlestick comes after a candlestick formation consisting of the four previous candles as follows: Meeting Lines Bear The bearish Meeting Lines formation consists of an uptrend terminating in a long white candlestick followed by a long black candlestick whose close is approximately equal to the previous close. Mathematically, that also means that there was a large gap up on the open. The Meeting Lines formation is a reversal pattern.

10 Meeting Lines Bull The bullish Meeting Lines formation consists of a down trend terminating in a long black candlestick followed by a long white candlestick whose close is approximately equal to the previous close. Mathematically, that also means that there was a large gap down on the open. The Meeting Lines formation is a reversal pattern. Morning Doji Star The Morning Doji Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the body s display a gap, but the shadows may still overlap) and close as a Doji. The next candlestick has a long white body which closes in the top half of the body of the first candlestick. Morning Star The Morning Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the bodies display a gap, but the shadows may still overlap) and is more bullish if white but is not a requirement. The next candlestick has a long white body which closes in the top half of the body of the first candlestick. On Neck The On Neck formation is a long black candlestick followed by a white candlestick which opens below the previous low and closes approximately at the previous low. It is a bearish formation which occurs in a down trend. Piercing Line The Piercing Line Pattern is a bullish pattern and the opposite of the Dark Cloud Cover pattern. This formation appears during a downtrend, with the first candle long bodied and black. The following trading day prices open at a new low, but trade higher and close at a level where the candle reaches above the midpoint of the prior day s body. Rising3 Method The Rising Three Method pattern begins with a long white candle followed by a series of downward reaction candles. These candles all form within the range of the original candle, but have smaller bodies. The smaller candles are black, since the large trend candle is white. The fifth and final candle is white, but it closes at a new high and opens higher than the close of the previous day. Separating Line Bear This formation consists of two candlesticks. A white candlestick is followed by a black candlestick. Both candlesticks have the same open. When this formation appears in a downtrend it is a signal that the downtrend should continue.

11 Separating Line Bull This formation consists of two candlesticks. A black candlestick is followed by a white candlestick. Both candlesticks have the same open. When this formation appears in an uptrend it is a signal that the uptrend should continue. Shooting Star A Shooting Star candle is characterized by a small real body at the lower end of the bars trading range. The candle can be white or black with its lower shadow at least twice as long as the real body. The Shooting Star is the same as an Inverted Hammer, only the Shooting Star appears at the end of an uptrend, whereas the Inverted Hammer appears at the end of a downtrend. Side By Side White Gap Down The Side By Side White Gap Down consists of three individual candlesticks and is a bearish pattern. It consists of a black candlestick, followed by a white candlestick that opens below the close of the first candlestick, followed by another white candlestick that opens below the close of the second candlestick. The gap down between the first and second candlesticks is not closed by either the second or third candlesticks. Side By Side White Gap Up The Side By Side White Gap Up consists of three candlesticks and is a bullish pattern. It consists of a white candlestick, followed by a white candlestick that opens above the open of the first candlestick, followed by third white candlestick that opens below the close of the second candlestick. The gap up between the first and second candlesticks is not closed by either the second or third candlesticks. Stalled Bear Pattern This formation consists of three black candlesticks. The first two are long, and the third is small. Each candle progressively makes a lower low. The first two candles close near their lows. The second candle opens within the body of the first candle. The last candle opens near the close of the second candle. When this pattern is spotted during a downtrend, it usually signals a stalling out of the downtrend. Stalled Bull Pattern This formation consists of three white candlesticks. The first two are long, and the third is small. Each candle progressively makes a higher high. The first two candles close near their highs. The second candle opens within the body of the first candle. The last candle opens near the close of the second candle. When this pattern is spotted during an uptrend, it usually signals a stalling out of the uptrend. Tasuki Downside Gap This formation consists of three candlesticks. The first two are black, and the third is white. The second and third are small. The second candle gaps down from the first one and does not close the gap. The third candle opens within the body of the second, closes within the gap between the first two candles, and does not close that gap during its formation. This suggests a continuation of the downward trend because the gap down on the second day is not filled on the third day.

12 Tasuki Upside Gap This formation consists of three candlesticks. The first two are white, and the third is black. The second and third are small. The second candle gaps up from the first one and does not close the gap. The third candle opens within the body of the second, closes within the gap between the first two candles, and does not close that gap during its formation. This suggests a continuation of the upward trend because the gap up on the second day is not filled on the third day. Three Black Crows This formation consists of three black candlesticks. Each of the candlesticks opens and closes progressively lower. Also, the close of each is near the low. This formation signals a powerful downward price pattern. Three Gaps Down This formation consists of three candlesticks, each gaps progressively lower. When formation appears in an downtrend it is a sign that selling power may be diminishing. Three Gaps Up This formation consists of three candlesticks, each gaps progressively higher. When formation appears in an uptrend it is a sign that buying power may be diminishing. Three Line Strike Bear The bearish Three Line Strike formation consists of three long black candlesticks followed by a white candlestick which opens lower and closes above the open of the first black candlestick. The fourth candlestick resets the price to the beginning of the formation, but this is not a reversal formation. It is considered an indicator of a bearish continuation, especially if followed by a black candlestick gapping down. Three Line Strike Bull The bullish Three Line Strike formation consists of three long white candlesticks followed by a black candlestick which opens higher and closes below the open of the first black candlestick. The fourth candlestick resets the price to the beginning of the formation, but this is not a reversal formation. It is considered an indicator of a bullish continuation, especially if followed by a white candlestick gapping down. Three Outside Down The Three Outside Down formation a white candlestick in an uptrend followed by a black candlestick that engulfs it (opens higher than the high and closes lower than the low), which is then followed by a black candlestick with a lower close than the previous close. It is a bearish reversal pattern. The Three Outside Down formation is a bearish Engulfing formation followed by a confirming candlestick, so it is sometimes called the Confirmed Bearish Engulfing formation.

13 Three Outside Up The Three Outside Up formation a black candlestick in a down trend followed by a white candlestick that engulfs it (opens lower than the low and closes higher than the high), which is then followed by a white candlestick with a lower close than the previous close. It is a bullish reversal pattern. The Three Outside Down formation is a bullish Engulfing formation followed by a confirming candlestick, so it is sometimes called the Confirmed Bullish Engulfing formation. Three Stars In The South The Three Stars in the South formation consists of a three black candlesticks. The first is large with a short top shadow and long bottom shadow. The second is engulfed by the first. The third is engulfed by the second, and has no shadows (a Black Marubozu). The Three Stars in the South formation is a bullish reversal signal when it appears at the end of a down trend. Three White Soldiers This formation consists of three white candlesticks. Each of the candlesticks opens and closes progressively higher. Also, the close of each is near the high. This formation signals a powerful upward price pattern. Thrusting Bear Line This formation consists of two candlesticks. The first one is black and the second is white. The white candlestick closes in the black candlestick's body. However, the white candlestick closes below the midpoint of the black candlestick. This shows that the bulls are weak because the second day is unable to close above the midpoint of the first day s body. Thrusting Bull Line This formation consists of two candlesticks. The first one is white and the second is black. The black candlestick closes in the white candlestick's body. However, the black candlestick closes above the midpoint of the white candlestick. This shows that the bears are weak because the second day is unable to close below the midpoint of the first day s body. Tri Star Bear The Tri-Star formation consists of a three consecutive Doji candlesticks. The second should close above the first and third. The formation signals the end of an uptrend. Tri Star Bull The Tri-Star formation consists of a three consecutive Doji candlesticks. The second should close below the first and third. The formation signals the end of a down trend.

14 Tweezer Bottoms The Tweezer Bottoms formation consists of two consecutive candlesticks with equal lows. The formation takes on added significance if it occurs within the context of another formation. A web search will turn up many different definitions for Tweezer Tops and Bottoms. In some definitions the color, size or shadows of the candlesticks is said to matter. The definition above is the one given by Steve Nison in his definitive "Japanese Candlestick Charting Techniques." Tweezer Tops The Tweezer Tops formation consists of two consecutive candlesticks with equal highs. The formation takes on added significance if it occurs within the context of another formation. A web search will turn up many different definitions for Tweezer Tops and Bottoms. In some definitions the color, size or shadows of the candlesticks is said to matter. The definition above is the one given by Steve Nison in his definitive "Japanese Candlestick Charting Techniques." Upside Gap2 Crows This formation consists of three candlesticks. The first is long and white. The second is black, gaps up above the first, and its low is higher than the first s close. The third is black, opens higher than the second, closes lower than the second, and its low is higher than the first s close. The gap that was created between the first and second days is being tested on the third day. The two consecutive lower closes shows that the bears are gaining strength.