Thursday, 14 November 2013

Candle sticks cycle - 5 Sakata Methods

5 Sakata Methods:


Five Sakata methods is a part of Sokyu Honma's method, it's the way to explain the structures or phase of the market like elliott wave method.

This theory explains the market base on five elements:
1. San Zan means three mountains and is the tripple tops
2. San Zen means three rivers and is the tripple bottoms
3. San Ku means the tripple gaps and refer to the empty intervals between the prices
4. San pei means three lines and refer to a countinuously ascending trend that is compose of three time/price units
5. San poh means three rest and refer to corrective movement within a trend that is made up of three time/price units.

These elements can be showed as a circle in this image below :

Source: refering willey's candlesticks book. you can find more information in his book.

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