Try to ask for a technical analyst to do identify the head and shoulders pattern in a stock price movement chart. The analyst will quickly show you a formation or even a few formations that he considers the head and shoulders pattern.
Now try to ask him again what mathematical formula is used to find these formations?
Now the answers will begin to be complicated and difficult.
Asking which are the head and shoulders formation to a technical analyst is an easy thing, but ask to answer what is criteria of trend nail that precedes the appearance of the head and shoulders formation, how much the relative height of a head to shoulders, how much the relative distance between the left shoulder and right shoulder, will become more difficult, why? It is because the technical analyst more often use of subjectivity rather than logical or formulation in identifying formations.
The same thing also will happen when you ask an analyst to show you what formations of candlestick contained in the graph.
Therefore, so in candlestick analysis the need of software and computer hardware becomes very important. Why? Just simple, because of the computer is very objective and not have subjective judgment at all.
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