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2015issue C0541-43

Constructing weekly body-midpoint pattern codes

Weekly construction first assigns a pattern-code from body-polarity and from where the body sits on the range-midpoint of the dominant-range-week. The same midpoint then serves as a support or resistance rail, and entry is allowed only when zigzag-close-location versus the last 7% swing is also defined.

  • Each weekly candle receives a pattern-code from body-polarity and from where its body sits relative to a range-midpoint, not from a conventional candlestick name.
  • The range-midpoint is taken from the dominant-range-week and can later reject price as resistance or hold price as support.
  • A second rule layer records zigzag-close-location versus the last peak or valley of a 7% zigzag before an entry is allowed.
  • A weekly encoding is not made valid on a daily chart merely by changing periodicity, because weekly bars largely remove gaps and similar events that daily bars retain.
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Two catalogs from body-polarity

Weekly candles are split into two eight-member catalogs. One catalog holds bars whose close is above the open. The other holds bars whose close is below the open. That split is body-polarity.

Each catalog member is identified by where the candle body sits relative to a range-midpoint, not by a conventional candlestick name. The identifier is a pattern-code from 1 to 16.

The range-midpoint and the dominant-range-week

The range-midpoint used for the comparison is the arithmetic mean of high and low on the dominant-range-week. That week is the one whose high-low span is the largest among the current bar and earlier bars, and its midpoint is the one applied to later candles.

On a weekly chart the same dominant-range midpoint can first reject price as resistance and later hold price as support.

Pattern 16 as a defining bar

Pattern 16 is the encoding in which the body covers the middle of the range. It is treated as a defining bar when both range and body are visibly larger than in preceding weeks so the midpoint runs through the body.

Weekly GM closes and the Haguro range-midpoint rail

Weekly General Motors closes traced from the MetaStock price pane, with the Haguro dominant-range midpoint drawn as a step rail. The rail rejects the winter 2013–14 decline from above, then holds the April 2014 low after a wide-range week resets it; price later falls through it in the autumn drop. Earlier points are read from the 28–42 price scale; the last close 35.59 and last midpoint 35.26 are the printed header values.
Weekly General Motors closes traced from the MetaStock price pane, with the Haguro dominant-range midpoint drawn as a step rail. The rail rejects the winter 2013–14 decline from above, then holds the April 2014 low after a wide-range week resets it; price later falls through it in the autumn drop. Earlier points are read from the 28–42 price scale; the last close 35.59 and last midpoint 35.26 are the printed header values.GM (General Motors) · Weekly · 2013-11-08T00:00:00.000Z to 2015-02-13T00:00:00.000Z

Midpoint is (high+low)/2 of the week with the largest recent range, not of the current bar. A 7% zigzag is the second-layer close filter and lives in a separate pane, so it is not plotted here. Candle-by-candle prices are approximate screenshot readings, not exchange prints.

Selected weekly encodings

Pattern 3 is treated as a frequent reversal encoding that typically appears two or three weeks before a trend change. It is treated as more significant when a range-zigzag overextension reading exceeds 7%.

Pattern 2 is classified as a long-side setup. It can appear on the bar where the midpoint flips from resistance to support.

Zigzag-close-location as the second rule layer

The second rule layer locates the week's close against the last peak or valley of a 7% zigzag, including as a percentage of the distance from that extreme. That reading is zigzag-close-location.

Editorial interpretation: this layer makes the weekly close's place versus the last 7% swing part of the same construction, rather than a separate chart judgment.

Weekly encodings stay on weekly bars

A weekly encoding is not made valid on a daily chart merely by changing periodicity, because weekly bars largely remove gaps and similar events that daily bars retain.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
43 of 54 in the Candlestick patterns track
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All readings on this track · 54 readings
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  2. 1991Constructing candlestick real bodies and multi-session patterns
  3. 1991Treat a candlestick reversal as incomplete until %D confirms it
  4. 1991Filtering candlestick signals with stochastic percent-D
  5. 1991Constructing compressed candlestick summaries
  6. 1993Intraday candlestick confirmation with oscillators
  7. 1993Candlestick hypotheses from a 1993 reading list
  8. 1994License candlestick signals with oscillators and weekly vetoes
  9. 1995Real-body support, resistance, and close-through breakouts
  10. 1997Weekly reversal as a three-part hypothesis
  11. 1998Turning fear levels into testable rules with a psychological matrix
  12. 2000Evaluating three-bar reversal reliability
  13. 2000Prior-day candles, open confirmation, and same-session stops
  14. 2000Intraday candlestick volume confirmation for daytrading
  15. 2001Count the key reversal up before coding a mechanical exit
  16. 2001Rising and falling three continuation candle construction
  17. 2002Treat a moving average as a contested fence
  18. 2003Candlestick signals need support and a risk-reward screen
  19. 2003Constructing one-day reversal tops and bottoms
  20. 2003Chart sentiment as a regime filter for hourly stochastic entries
  21. 2004Confirming index reversals with candlesticks, stochastics and averages
  22. 2004The harami inner close as a reversal barometer
  23. 2004Constructing a true-range volume power-shift filter
  24. 2005Weighing reversal clusters against moving-average support
  25. 2005Candlestick exits confirmed by overbought stochastics
  26. 2005Confirming piercing patterns with stochastics and moving averages
  27. 2006Candlestick cluster exits confirmed by overbought stochastics
  28. 2007Three black crows become a trade hypothesis only after regime, trend and nearby levels
  29. 2008Asymmetrical RSI lookbacks for divergence and candle confirmation
  30. 2008A permission checklist for the end of a trend
  31. 2010Mechanical entries still need confirmation gates
  32. 2010Crude oil as a case study in candlestick session reading
  33. 2010Gold weekly candles and the thousand resistance breakout
  34. 2010A three-layer gold chart drill from waves to candle confirmation
  35. 2011Why entry scans fail without trend filters
  36. 2011Price-zone oscillator trend-regime rules
  37. 2011A candlestick checklist before commodity entries
  38. 2013Step candle construction at price turning points
  39. 2013Two-bar step-candle construction
  40. 2014Small-range bars as a timed volume-climax hypothesis
  41. 2014Constructing volume-scaled candlestick charts
  42. 2015Weekly range midpoints as support and resistance
  43. 2015Constructing weekly body-midpoint pattern codes
  44. 2015Evaluating encoded candlestick sequence hypotheses
  45. 2015Constructing a breakout relative-strength index from two-day range candles
  46. 2016A three-gate classroom on hourly sterling
  47. 2016Fibonacci retracement as a pre-commitment stop map
  48. 2017Nine-zone filter for decade-level breakouts
  49. 2017Constructing pin-bar and inside-bar setups
  50. 2017Two-bar soldier and crow rules become a system only after filters and exits
  51. 2017Confirm a one-white-soldier or one-black-crow before entry
  52. 2018Session control from marubozu and engulfing geometry
  53. 2019Volume, acceleration, and candle filters on a completed double bottom
  54. 2019Sector-filtered candlestick scans and predrawn stops
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