Among the candle signals described in the Trading Theory, the few that borrow their names from conventional markets are listed below. ∙
Doji ∙ (White/Black) Spinning Top ∙ (White/Black) Hammer ∙ White (Inverted Hammer) ∙ (White) Highwave ∙ Morning Star/Evening Star ∙ Bullish/Bearish Rickshaw Man ∙ Hanging Man ∙ Shooting Star
Aside from the candle patterns mentioned above, other common patterns such as the Engulfment, Harami, and Tasuki are not featured at all in the TIC Trading Theory. Even patterns whose names are borrowed are completely new in concept and nature. For example, the evening star is commonly known as just a bearish reversal signal. Meanwhile in the TIC Trading Theory, the pattern can be interpreted largely into three types of signals according to its characteristic. Generally, the characteristic of a candle pattern depends on 1) the size of the candles, 2) the length of the shadows, 3) its location, 4) whether or not there were preceding signals, and 5) signals following it. In addition, the location of signals is further categorized based on the high-low lines and the three main wave types, as well as what kind of candle group the signal appeared in. Therefore, the candle signals of the TIC Trading Theory should not be analyzed merely based on form as in the conventional approach. All other candle signals not mentioned here but included in the TIC Trading Theory are totally new and ingenious creations.
The 25 Candle Timing Signals
Family Tree of Candle Signals
9-17. Bullish Punch after Black Candle
When a white candle with upper shadow and a white candle with lower shadow form consecutively after a noticeably large black candle, it can be considered a buy signal.
The white candles' real bodies should be of an appropriate size and the signal is the more reliable when the last white candle’s lower shadow stretches down the lowest.
The signal is valid when it appears right below the previous/immediate low of a downtrend or in the inverted triple peak wave’s first or second section. When amid a
pullback section far below an uptrend's top, it’s valid only when preceded by a short meandering candle section.
The bullish punch after black candle turns into a sell signal when it appears at the top of an uptrend or very near it (which cannot be seen as a valid location for a buy signal).
Valid Locations
High of triple peak wave's 1st & 2nd sections <Bullish Punch after Black Candle as Buy Signal>
Chart Examples