Chapter 6 Candle Stick Pattern

In this chapter, we learn how to use R to detect the following candle stick patterns.

Learning Objectives:

• 1-day patterns:
  • doji
  • hammer
• 2-day patterns:
  • engulfing
  • harami
  • median reversal
  • two in a row (kicking)
• 3-day patterns:
  • three-in-a-row
  • star
• 5-day pattern:
  • three method

Throughout this chapter, we use Microsoft (ticker: MSFT) to do demonstration

library(quantmod)
getSymbols("MSFT")

To make our code more compact, let us define the following:

OP <- as.numeric(Op(MSFT))
LO <- as.numeric(Lo(MSFT))
HI <- as.numeric(Hi(MSFT))
CL <- as.numeric(Cl(MSFT))
N <- nrow(MSFT)

We have used as.numeric to take out the timestamp of the xts data for comparsion.