Founder of the Breakout Candlestick, Breakout Relative Strength Index (BRSI), and Profit-Taking Theory
CTO, Tradesoft Corp.
FTAA / China
Howard Wang has more than 20 years of investment experience. His particular interests and expertise reside in developing proprietary technical indicators and constructing original candlestick variations. He created the “Breakout Candlestick” and “Breakout Relative Strength Index (BRSI)”, which were discussed in an IFTA 2014 newsletter (Volume21, Issue 3). Mr. Wang also has designed a software program based on his breakout signals and an automated trading system.
Mr. Wang created a proprietary theory on profit-taking, which was discussed in his new book “New Concept in Trading – Profit Taking Theory.” The theory explains certain recurring phenomena in the stock market, such as support and resistance, Elliott Wave patterns, and other patterns. Mr. Wang also designed the “Profit-Taking Candlestick”, which he believes is more accurate than Heikin Ashi.
Howard received his MD of Mathematics and Economics Statistics from Central South University, China, studying under the renowned mathematician, Professor Hou Zhenting, who created the world-famous "Hou Law."
Breakout Candlestick & Breakout Relative Strength Index (BRSI):
In 2000, when Howard was using RSI for trading U.S. stocks, the market crashed, and he made an important discovery about RSI:
RSI is based only on compared closing prices in a given period of time, so sometimes its overbought and oversold signals are incorrect. If you focus on breakout using RSI, you will have to consider: (i) volume, (ii) range and (iii) breakout average price. BRSI was created incorporating these three factors in the formula. It is designed to solve the principle defect of RSI. BRSI is discussed in an IFTA 2015 newsletter.