Fuzzy Logic Candlestick Trading System Part I

27 February 2017, 08:25
Ahmad Hassam
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I use candlestick patterns a lot in my trading.

Candlestick patterns work.

But not in the conventional sense.

If you want to trade conventional candlestick patterns like engulfing pattern or harami, then you will lose a lot.

I have written this blog post in which I explain how I combine fuzzy logic with candlestick patterns.

Fuzzy logic is a powerful tool that many developers ignore. Fuzzy logic is being used extensively in industrial applications.

In traditional logic we have TRUE or FALSE. But we try to code candlestick patterns with traditional logic we get false signals.

Fuzzy logic gives us the capability to model vague and imprecise things in real life.

For example when we say it is somewhat likely he will come. Fuzzy logic gives us the power to model these type of vague beliefs in life.

Candlestick patterns are also vague and imprecise. We can use fuzzy logic to model candlestick patterns.
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