CandlePower 6 Pro 2 represents the latest update to the CandlePower series of programs that was first introduced in the December
1990  Stocks & Commodities article titled "East Meets West".  That article described a method for charting candlesticks where the width
of the candle body is proportional to volume.  We called that technique CandlePower and it has since become commonly known as
candle volume. The value of that technique is that all of the quote information is presented in a single graphic icon.  And, in the January 1995
issue of S&C, we authored the feature article titled "The Insync Index" that described our NSI composite  indicator consisting of 10
popular indicators. It is based on the "pre-signal" concept that indicators are committed to fire a signal when they cross a  buy line
or sell line (i.e. a designated threshold or moving average).  The pre-signal status of all indicators can be shown on a single plot
(click ALL). We also introduced the Signal On Reverse (SOR) concept where the premature firing of technical indicator signals has been
shown to increase trading performance.  These proven features plus the new features described below form the core of our program.

Now, with this new revision you can chart and scan using two different modes of operation, the standard  mode used in this and
all previous CandlePower programs and the new Heikin-Ashi (HA) mode (click HA) which modifies the price data that results in
accentuated visual trend characteristics. Charts illustrating both modes are presented below. Also shown below is a composite of both
modes using a new technique we call "XRAY" (click HA twice) charting (a term suggested by one of our early beta users which we feel is
an apt description).


Heikin-Ashi (HA) Charting

The chart below is an example of a typical Heikin-Ashi (HA) chart. The primary difference, relative to a standard chart, is accomplished by
making the HA Close equal to the average value of the actual Open, High, Low , and Close values for each period. In addition, the HA Open
is set equal to the mid-point of the previous candle's body (HA Open - HA Close average). As a consequence, all HA candles are
connected - there are no gaps!  This is the primary reason why HA charts accentuate the appearance of trends.

To see the traditional chart on which it is based, place your mouse cursor on the chart and it will be replaced with the normal standard  
chart.  Move the cursor on and off to see how the two charts differ.  Both charts cover the same stock and time periods,  Note:  Candle
signals are shown on the "Candles" line by Up and Down arrows.  On the HA Chart the signals are in HA colored boxes and are
Heikin-Ashi based patterns created for CP6 Pro 2. The traditional candle signals are in white boxes.



























Reading the Heikin-Ashi Chart

The power of the Heikin-Ashi Charting Technique is its ability to clearly show when a security is trending and when it is in a consolidation
phase. Here is how to read the above HA chart:

Security is in an Uptrend. You will know a security is in an uptrend when you see light green candlesticks with long bodies and little or no
lower shadows. A series of light green candlesticks with long bodies and no lower shadows means the security is in a strong uptrend.

Security is in a Downtrend. You will know a security is in a downtrend when you see light red candlesticks with long bodies and little or
no upper shadows. A series of long bodies and no upper shadows means the security is in a strong downtrend.

Security is in a Consolidation phase. You will know a security is in a consolidation phase when you see candlesticks with small bodies
and long upper and lower shadows. The color of the small bodies will be a mix of light green and light red.


Putting It Together - XRAY - A New Charting Technique

To see exactly how the two charting techniques appear together, the chart below presents the HA chart overlaid with the candles, including
the candle pattern signals, of the original standard chart.  We call this charting technique  XRAY charting  and it is currently only used in
the CP6 Pro 2 program.  The lighter color shades are used to plot the HA candles to distinguish between the two modes.



























The above XRAY chart is a composite of an HA chart with superimposed candles based on actual data, both HA candle signals (light red
and green colored boxes) and traditional candle signals (white boxes), and the NSI technical indicator based on HA modified data. The
XRAY chart lets you see how the two modes interact on a candle to candle basis. You don't need to go back and forth between two charts -
all of the information and action of both modes is readily seen.  One very important aspect of this composite chart is that it clearly
shows instances where an HA candle color and the standard (overlaid) candle color differ (where one is green(ish) and the
other red or pink. That  is, one is bullish and the other bearish, as seen in 3 of the 4 bottoms.

To remove the overlaid original data, place your mouse cursor on the above chart.    The overlay will be removed leaving the original HA
chart.  Move the cursor on and off the chart to remove and restore the overlaid original data.  Note how the actual candles occupy
the lower part of the HA candle in a downtrend and the upper part in an uptrend.


Heikin-Ashi Candle Signals

When you right-click a candle pattern signal arrow, that is displayed on the chart screen, the chart is replotted on the Examples and
Definitions Screen  as shown below.  This chart identifies the candles that make up the pattern.  A text window is opened with a detailed
definition of the pattern requirements including the number, color, size, and relative positions of the candles, and the characteristics of the
shadows. In this case the chart shows 2 HA patterns, a bullish HA Buy + (in a light green box) which was the right-clicked pattern and a
bearish HA Sell - (in a light red box). These are the two HA patterns (that have been constructed for this program) which are based on the
HA trend characteristics described above.
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HA Candle Signal Performance

To display the performance values for the HA candle signals and all the technical indicator signals, place your mouse cursor on the
above chart.  The performance values displayed represent the results of back testing which is conducted whenever the Perf button is
highlighted.  In this case, the simulated candle trades were conducted using only the HA Buy+ and HA Sell- signals.
                                                                  



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CP6 Pro 2 New Release and Current Features
Features
CandlePower 6 Pro 2
The Complete Candlestick Program

North Systems, Inc.  
Features
Heikin-Ashi XRAY Charting