What is Ctabs?
Ctabs stands for Candlestick Technical Analysis Buy/Sell. The Ctabs implementation is copyrighted by StockTradersPlace.com. The development of the system was motivated by the desire to seek technical analysis methods to increase trading performance. Many different technical analysis approaches were examined and candlestick technical analysis became a focus.
Much experimentation occurred including the use of weekly, monthly and even minute historical data; the analysis of volume; gap up/down analysis; correlation of candlestick technical analysis with other technical analysis methods such as different types of Moving Averages, Moving Average Convergence Divergence, Relative Strength Index, Money Flow Indicator, Bollinger Band Indicator, Stochastic Oscillator, to name just a few. Trend following and trend reversal methods were also explored.
Within the scope of candlestick technical analysis, various candlestick patterns and various tolerances were examined to gauge their effectiveness. By tolerances, we mean things like how big does the candlestick have to be in order to be considered a Hammer. The research and experimentation led to the Feb/2007 completion of the StockTradersPlace Ctabs algorithm which is a specific interpretation of the general candlestick technical analysis method.
Traders have different risk-reward orientations. Traders have different time horizons for their trades. Traders use different kinds of tools and resources to help with their trading. Ctabs is an effective tool which contributes to trading success for all stock market traders.
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