DNS
System:
(Version 1)(These are the ideas of ejr39 adapted from the original by
Dave Evans)
Dave
Evans:
What
I tried to do with DNS is put together most of the indicators I look at
in one place so I could buy directly from the scan results. I have come
very close BUT I still look at the charts before I buy..
I want ALL the indicators to give a buy signal because I am buying momentum..
I am looking for the big move and the big move can not come unless all
these indicators are positive.
If you look at any stock and pinpoint it's break away you will see that
ALL the DNS indicators were positive within a week of the move. DNS will
not guarantee that each of it's candidates will make a big move BUT it
will guarantee that the big move will not be made without a DNS signal...
Now on to the parameters.... Parabolic SAR is a very good indicator to
tell you when a move is starting. It is not very good by itself but when
you use it as part of a system it works fine. For a stock to move parabolic
SAR must be positive or the move is false...
Dahl's Primary and On Balance Volume above it's 40 MA are two of the best
indicators around. I ALWAYS look at them before I buy. When we talk about
Parabolic SAR we are talking short term. When we talk about Dahl and OBV
above it's 40 MA we are talking longer term. I like to mix the times together
to eliminate some of the whipsaws.
ROC, MACD and the Volume indicators are there to make sure the trend is
real. I want Volume building and in my favor. The parameters for MACD
were taken out of one of the books I was reading at the time and they
seem to work.
The whole idea of DNS is twofold. Find a big move and stay away from whipsaws.
That's why I've mixed price and Volume and long term and short term. For
every big move I've looked at ALL of these indicators were positive so
why not put them together and scan for them??? The mix was the results
of a lot of chart watching and substitution until I found the 8 indicators
I liked the best. Some of them are not as reliable alone but as a unit
they work well..
Ejr39:
Use
DNS to scan your basic stock list (one that includes your personal limitations).
Put the DNS 7+ stocks into a bulleted WatchList. The stocks in the bulleted
WatchList are then scanned each day with your choice of criteria from
InSync and the StocRSI's.
AVGC5 > AVGC13
PCF 2: if (13 day simple mov avg is greater than the 40 day simple mov avg), assign value of 1 +...
AVGC13 > AVGC40
PCF 3: if (8 day simple mov avg - 17 day simple mov avg) is greater than the 9 day simple mov avg of (8 day simple mov avg - 17 day simple mov avg) assign value of 1 +...
(AVGC8 - AVGC17) > (AVG(AVGC8,9) - AVG(AVGC17,9))
PCF 4: if (55 day simple mov avg of the close - 55 day simple mov avg of the close 15 DAYS AGO is greater than 0), assign a value of 1 +...
(AVGC55 - AVGC55.15) > 0
PCF 5: if (12 period percent rate of change is greater than 0), assign a value of 1 +...
((C / C13) * 100)>0
PCF 6: if (volume is greater than the 120 day simple mov avg of volume), assign a value of 1+
V > AVGV120
PCF 7: Work with a bulleted WatchList i.e. a target list - IBD's YFR or an EasyScan that fulfills your personal criteria or use the "Smart Scan" PCF (aka Richard's BUY, BUY, BUY Scan). I have put this scan right into the EasyScan. You can use it to create a separate Watchlist if you like and then scan it with the DNS PCF's.
(AVGV126 > 1000) AND (C > (MAXC252.1) * .85) AND (V >= AVGV63) AND (C > (MINC5) * 1.05)
00: if on balance volume is greater than the 40 day simple mov avg of on balance volume, assign a value of 1 +...
07 OBV > 40 dma requires visual confirmation
Extra check if available: if parabolic sar .02,.2 is less than the close, assign a value of 1 +...
The parabolic SAR isn't available in TC2000 version 4; for those who use DNS+8, it's a look up - its available through more advanced charting software or through one of the free Internet sites. Parabolic SAR is ignored if one is using DNS+7.
EasyScan:
Tab#1:
Top:
Prices
are bar charted; color gray (your not interested in price on this Tab#)
Overlay with MACD 13.34.89 exponential (check histogram)
Overlay with MACD 13.34.89 exponential (lines)
. . . long term; use as entry signal when moves above signal line.
Middle:
MACD 13.26.9 exponential (check histogram)
MACD 13.26.9 exponential (lines)
. . . intermediate term; aggressive traders can use as an entry signal
when moves above signal line; conservative individuals can use as an exit
when moves below signal line.
Bottom:<>MACD
8.17.9 exponential (check histogram)
MACD 8.17.9 exponential (lines)
. . . short term; exit when moves below signal line
Example: (PLCM was found with above EasyScan)
Tab#2:
Top:
Prices (use whatever you're comfortable with)
...Moving Average 5 bar exponential
...Moving Average 13 bar exponential
...Moving Average 40 bar exponential
. . . Use simple or exponential moving averages whichever you prefer; be sure the moving averages stack left to right 5 > 13 > 40 (conservative individuals can add > 200); the 5 dma is a whipsaw indicator.
. . . Visually check charts for the most recent crossover of the 3 averages. If the 3 averages crossed UP together within the past 3-5 days, it's the beginning of the move. If the 5 dma is "whipping" around an 8 or 9 dma or the 13 dma, avoid the trade until the 5 dma calms and remains above the 8, 9, or 13 dma.
Middle:
OBV (On Balance Volume)
...Moving Average 40 bar (simple or exponential, whichever fits your style)
. . . This is the last step and is VISUAL; the OBV MUST be above the 40 dma.
Bottom:
. . . Any indicators you prefer.
Tip:
Using
the bulleted Watchlist, use the Slide Show from the Tools drop down menu;
(F)lag and remove stocks with an OBV less than it's 40 dma, utilities,
or any other stocks that you dislike).
Yes, now for the MACD's. You are looking for the crossovers i.e. in the
histogram, the bars cross upward over the mid or -0- line; in the two
line MACD look for the "MACD Color" to cross upward through the "Avg Color".
(This isn't rocket science so don't try to optimize the crossover points.)
If you like, remove EITHER the two line MACD OR the MACD histogram; both
the MACDs are giving you the same crossover points - use whichever provides
you with the clearest image of the crossover. Try enlarging the crossover
by increasing the Zoom to 7 or 8.
The MACD13.34.89 (Top Window) is long term - conservative; use the upward
crossover as the buy signal.
The MACD13.26.9 (Middle Window) is intermediate term; aggressive individuals
might use the upward crossover as the buy signal; conservative individuals
might use the downward crossover as the sell signal.
The MACD8.17.9 (Lower Window) is short term; the downward crossover is
the sell signal.
Look at any chart; look for the crossovers - both up and down.
01 parabolic SAR helps you identify exit points. Especially useful for
setting DAILY stops.
Example: (SNE is a little more aggressive buy, also found with above EasyScan)
DNS System: (Version
2)(By ejr39)
This scan is looking for stocks in a "knock your socks" off
up trend.
((AVGC34 > AVGC55) AND (AVGC55 > AVGC89))
PCF 2 StackEm2:
(L > AVGC34)
PCF 3 AVGC13>AVGC34:
(AVGC13 > AVGC34)
PCF 4 AVGC5>AVGC13:
(AVGC5 > AVGC13)
PCF 5 Dahl(13):
(AVGC13 - AVGC13.5 > 0)
PCF 6 Dahl(55):
((AVGC55 - AVGC55.15) > 0)
PCF 7 Dahl(89):
((AVGC89 - AVGC89.27) > 0)
PCF 8 DNS ROC(10):
((C / C10) * 100) > 100
PCF 9 DNS Vol:
(V > AVGV120) AND (V > 9000)
EasyScan:
Example: (CSCO,
a little aggressive, top window MACD has not crossed up yet)
Example:
(RFMD,
MACD in top window has just crossed up)
Useful DNS additions and modifications:
(ejr39)
Chan's DNS Partner (is NOT a modifier, but a companion formula to go along
with DNS)
(AVGC5-AVGC13)
- (AVG(AVGC5,34) - AVG(AVGC13,34))
DNS:
MACD12,24 before crossing zero:(mcsteiny)
Playing around with my DNS, and I took out the item MACD8,17, and replaced
it with a "MACD12,24 just before crossing zero" scan. I got one hit...
CETV. I haven't checked the SAR yet, but it passed the OBV with flying
colors. But... it is just a little early, and it is supposed to be, which
is O.K., I don't mind watching it for 2 or 3 days. Then I used the "Combined"
DNS written by I believe Norf, and got 465 hits with my Sales Price criteria
(8-14). I then sorted those with the MACD12,24 before zero, and got about
18-20 True hits. Next, I want to re-write Norfs combined DNS, and drop
the MACD8,17, and replace it with the new MACD12,24 before zero, and see
what happens.
Here is the PCF I used:
((AVGC12-AVGC24)>(-((AVGC12-AVGC24)-(AVGC12.1-AVGC24.1))/1)AND(AVGC12.1-AVGC24.1)<(-((AVGC12-AVGC24)-(AVGC12.1-AVGC24.1))/1))
StochRSI
and DNS:(ejr39)
PCF's used to screen bulleted WatchLists containing DNS or Dahl only stocks.
StochRSI14:
((RSI14
- MIN(RSI14,14)) /((MAX(RSI14,14) - MIN(RSI14,14))+.001) * 100) > 30
StochRSI14.2:
((RSI14.2
- MIN(RSI14.2,14)) / ((MAX(RSI14.2,14) - MIN(RSI14.2,14))+.001) * 100)
< 30
StochRSI8.5:
((RSI8
- MIN(RSI8,5)) / ((MAX(RSI8,5) - MIN(RSI8,5))+.001) * 100) > 20
StochRSI(14) should be crossing UP THROUGH 30
StochRSI(8.5) should be crossing UP THROUGH 20 and may even be crossing
up through 80
Additional
Conditions:
(your preferences)
Optionable
Capitalization...value > 149(000,000)
Volume 1-Day-H.......................Value > 1000(00)
Volume 90-Day...rank > 74
Price Per Share - H....................Value < 30.00
Volume (Dollars) 5-Day-H............Rank > 74
WatchList to Scan...All Items In System
Save. Scan.