What criteria are considered when calculating the strength of a candlestick pattern? And, how do I interpret the strength value?
HotCandlestick.com considers the recent trend of the stock price, number of candlesticks in the pattern and 14-day average volume. To avoid displaying less meaningful signals that are generated by thinly traded securities, only securities averaging at least 120,000 shares / day and have an average close of at least $1 / share for the previous 14 days are considered by HotCandlestick.com in scans for candlestick patterns. If you are looking for a number to tell you how successful a particular candlestick pattern has been, then you must subscribe to HotCandlestick. The measure of past success of the candlestick patterns tracked at HotCandlestick.com is called the SCORE, not the STRENGTH. You should think of the strength as a measure of correlation between the definition of the candlestick pattern and the actual pattern formed. The strength value can be any value. However, it will tend to gravitate toward zero. A positive value means there is a positive correlation between the candlestick
