I had some very good results backtesting in Bullcharts and Tradesim a system using Big White candlesticks. I’d like to duplicate it in Excel. Bullcharts formula must be proprietary, because I couldn’t get into the guts of it.
I couldn’t find a formula or definition of a Big White [Tower/Real Body] anywhere on the net. Everyone talks vaguely about “tall” “long” and “big” candlesticks but no-one defines precisely when is a Big White not a Big White.
I ended up defining it as:
If today’s real body length is 2 times the average real body over the last 100 periods. [arbitrary parameters of course.]
Most times this seems to match proprietary software’s candlesticks marked Big White, but not always.
Just wondering if someone has a better formula/definition.
Thank you for your help.