Metastock Formulas: Candle Shadow Support

These formulas have been picked up from various sources:

Candle Shadow Support
This is a custom - made Formula based on Candlesticks called CANDLE SHADOW SUPPORT - RESISTANCE (by John D. Kontessis) Based on extensive study of the following books "Japanese Candlestick Charting Techniques", S.Nison, 1991 "Beyond Candlesticks" S.Nison, 1994 "Tehcical Analysis" X.E. Kourouklis, METAPUBLICATIONS (in greek language only) As we all know, one of the most important components of a candlestick is its shadow. A candle's shadow tends to get longer as prices get closer to support-resistance levels, as well as when they reach points of change in Trend (e.g. pullbacks or entry in ranging periods). As prices reach a Support level (or when building a support) the candles' lower shadows get longer. Consequently, as prices reach a Resistance Level (or when building a resistance) the candles' upper shadows get longer. The obvious problem that an analyst faces is that such subtle changes are difficult to discern and evaluate by naked eye only.
This problem can be easily solved by using the following two Formulas in Metastock's Indicator Builder. After Opening the "Indicator Builder", choose "New" and name the Formula : "CandleShadow Resistance ", enter the following :

ShadowResistance:=If(OPENOPEN,(OPEN-LOW),(CLOSE-LOW)); Mov(ShadowSupport,3,S); {for not so short-term results, use: Mov(ShadowSupport,10,w)} and press "ok".
So far we have built two Formulas, who, after measuring the shadows of the candles in our chart, they "draw" a 3-Day Mov.Average of the size of the shadows (or alternatively a 10day weighted Mov.Average). The first Formula "CandleShadow Resistance" measures the upper shadow and the second Formula "CandleShadow Support" measures the lower shadow. You can always experiment with the type of Mov.Averages (simple, weighted, exponential etc) and the periods used so as to achieve the best "optical" results. Now let's see these Formulas at work. In an UPTREND : Higher Tops in "CandleShadow Resistance " and simultaneously lower tops in "CandleShadow Support" , state a weakness of the uptrend.(bearish signal). Lower Tops in "CandleShadow Resistance " and simultaneously higher tops in "CandleShadow Support" , state a strength of the uptrend. (bullish signal). In a DOWNTREND : Higher Tops in "CandleShadow Resistance " and simultaneously lower tops in "CandleShadow Support" , state a strength of the downtrend. (bearish signal). Lower Tops in "CandleShadow Resistance " and simultaneously higher tops in "CandleShadow Support" , state a weakness of the downtrend. (bullish signal).