/**
* The MIT License (MIT)
*
* Copyright (c) 2014-2017 Marc de Verdelhan & respective authors (see AUTHORS)
*
* Permission is hereby granted, free of charge, to any person obtaining a copy of
* this software and associated documentation files (the "Software"), to deal in
* the Software without restriction, including without limitation the rights to
* use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of
* the Software, and to permit persons to whom the Software is furnished to do so,
* subject to the following conditions:
*
* The above copyright notice and this permission notice shall be included in all
* copies or substantial portions of the Software.
*
* THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
* IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS
* FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR
* COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER
* IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN
* CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
*/
package eu.verdelhan.ta4j.indicators.candles;
import eu.verdelhan.ta4j.Decimal;
import eu.verdelhan.ta4j.Tick;
import eu.verdelhan.ta4j.TimeSeries;
import eu.verdelhan.ta4j.indicators.CachedIndicator;
import eu.verdelhan.ta4j.indicators.trackers.SMAIndicator;
/**
* Three white soldiers indicator.
* <p>
* @see http://www.investopedia.com/terms/t/three_white_soldiers.asp
*/
public class ThreeWhiteSoldiersIndicator extends CachedIndicator<Boolean> {
private final TimeSeries series;
/** Upper shadow */
private final UpperShadowIndicator upperShadowInd;
/** Average upper shadow */
private final SMAIndicator averageUpperShadowInd;
/** Factor used when checking if a candle has a very short upper shadow */
private final Decimal factor;
private int blackCandleIndex = -1;
/**
* Constructor.
* @param series a time series
* @param timeFrame the number of ticks used to calculate the average upper shadow
* @param factor the factor used when checking if a candle has a very short upper shadow
*/
public ThreeWhiteSoldiersIndicator(TimeSeries series, int timeFrame, Decimal factor) {
super(series);
this.series = series;
upperShadowInd = new UpperShadowIndicator(series);
averageUpperShadowInd = new SMAIndicator(upperShadowInd, timeFrame);
this.factor = factor;
}
@Override
protected Boolean calculate(int index) {
if (index < 3) {
// We need 4 candles: 1 black, 3 white
return false;
}
blackCandleIndex = index - 3;
return series.getTick(blackCandleIndex).isBearish()
&& isWhiteSoldier(index - 2)
&& isWhiteSoldier(index - 1)
&& isWhiteSoldier(index);
}
/**
* @param index the tick/candle index
* @return true if the tick/candle has a very short upper shadow, false otherwise
*/
private boolean hasVeryShortUpperShadow(int index) {
Decimal currentUpperShadow = upperShadowInd.getValue(index);
// We use the black candle index to remove to bias of the previous soldiers
Decimal averageUpperShadow = averageUpperShadowInd.getValue(blackCandleIndex);
return currentUpperShadow.isLessThan(averageUpperShadow.multipliedBy(factor));
}
/**
* @param index the current tick/candle index
* @return true if the current tick/candle is growing, false otherwise
*/
private boolean isGrowing(int index) {
Tick prevTick = series.getTick(index-1);
Tick currTick = series.getTick(index);
final Decimal prevOpenPrice = prevTick.getOpenPrice();
final Decimal prevClosePrice = prevTick.getClosePrice();
final Decimal currOpenPrice = currTick.getOpenPrice();
final Decimal currClosePrice = currTick.getClosePrice();
// Opens within the body of the previous candle
return currOpenPrice.isGreaterThan(prevOpenPrice) && currOpenPrice.isLessThan(prevClosePrice)
// Closes above the previous close price
&& currClosePrice.isGreaterThan(prevClosePrice);
}
/**
* @param index the current tick/candle index
* @return true if the current tick/candle is a white soldier, false otherwise
*/
private boolean isWhiteSoldier(int index) {
Tick prevTick = series.getTick(index-1);
Tick currTick = series.getTick(index);
if (currTick.isBullish()) {
if (prevTick.isBearish()) {
// First soldier case
return hasVeryShortUpperShadow(index)
&& currTick.getOpenPrice().isGreaterThan(prevTick.getMinPrice());
} else {
return hasVeryShortUpperShadow(index) && isGrowing(index);
}
}
return false;
}
}