|
PCFs:
GBS
Volume:
(AVGV42.1 >=
1000) AND (V >= (1.5 * AVGV42.1))
Long
or buy Candidates:
Identifies
stocks that are oversold AND HOOKING up
(STOC13.3 >=
25) AND (STOC13.3.1 < 25)
Short
Candidates:
Short
or sell Candidates:(ejr39)
Identifies stocks
that are overbought AND HOOKING down - Adjust the Stocahstic to
fit your style;
I'm comfortable with a 5-8 day trading range (5 + 8 = 13).
(STOC13.3.1 >
75) AND (STOC13.3 < 75)
I use a variety
of candlestick patterns and Jeff Cooper PCFs to mechanically narrow
the search.
The rest is a mixture of identifying the trend, luck, and common
sense for an average of 3 trades per week (2 up, 1 down)
- I keep the account small using the profits for longer term investments.
KISS - Keep It Simple (and) Succinct. Many of the "theories" are
in the eye of the beholder
- if one looks hard enough one is bound to find one stock that fits
the theory; but what a waste of time.
Add those ideas and theories (as PCFs to your TC2000) that you understand,
test the rest in your "spare time"
.Short Formula:(Based on
Gary Smith tactics)
C >= 25 AND
C < AVGC42.1 AND (C1 - C) > 1 AND V > (1.5 * AVGV42.1)AND
AVGV42.1 > 1000
The closing price
is greater than or equal to $25; you may wish to remove that part
of the formula
and make price adjustments in an EasyScan.
Translated
from Quotes Plus:(ejr39)
(C >= MAXC40.1
* .95) AND (C <= MAXC40.1) AND (MINC40.1 >= MAXC40.1 * .8)
AND
(C >= 12) AND (AVGC150 <= AVGC150.9) AND (RSI13 >= 60)
AND (V > 1000)
BBB
Scan:(Richard
Estes)
(C>(C5*1.05))AND(V>(AVGV63))AND(C>.85*(MAXC250))
The BBB is a
scan for potential Long candidates - it is NOT AN INDICATOR! After
running BBB,
run your favorite INDICATORs and OSCILLATORs for the stocks that
fit your investing style.
Smart
Scan:(ejr39)(aka
Richard's BUY, BUY, BUY Scan)
(AVGV126 >
1000) AND (C > (MAXC252.1) * .85) AND (V >= AVGV63) AND (C
> (MINC5) * 1.05)
Keep your $$$
safe and on the sidelines until Smart Scan and the InSync give decent
signals.
BOP
Turns Green Today:
(BOP1>30)AND(BOP1.1<30)
BOP
Turns Red Today:
(BOP1<(-30))AND(BOP1.1>(-30))
BreakOut
on congestion:(Crz4money)
C>=20 AND
(C-MAXC42.1)>=1 AND V>=(1.5*AVGV42.1) AND (AVGV42.1)>=1000
Brookins
Buys:
AVGC9>AVGC21)AND(C2<C3)AND(C1<C2)AND(C>C1)AND(C>(C3*.9))
Kononov’s
Inertia Indicator:
13 * (C / C1)
- 5.1 * (C1 / C2) - 4 * (C2 / C3) - 1.9 * (C3 / C4) - 2 * (C4 /
C5)
Get
Rich Quick:(from
WOW)
(C>MAXH2.1)AND(V>2*V20)
Shark
Scan:
The focus of
the shark scan is a break of the top of the shark formation.
A shark formation is a set of 3 consecutive inside days.
IOW. day one high and low > and < day two high and low and
day two high and low > and < day three. sort of a small symetrical
triangle.
The buy signals are produced when the stock closes higher than day
one on the formation.
The sell signal is produced when the stock closes lower than day
one.
Shark Scan –
Long:
(H3>H2)AND(H2>H1)AND(L3<L2)AND(L2<L1)AND(H>H3)
Shark Scan –
Short:
(H3>H2)AND(H2>H1)AND(L3<L2)AND(L2<L1)AND(L<L3)
Price
Spread:(to
get the average price spread for four days ending yesterday.)
AVG(H4.1)-AVG(L4.1)
Up
3 consecutive days on expanding volume:
C>C1 AND C1>C2
AND C2>C3 AND V>V1 AND V1>V2 AND V2>V3
Stocks
that have risen 50 points a month for the past two months:
O-50 >= O30
AND O30-50 >= O60
. . . This part
of the equation is optional:
AND C <= O
+ (O*.3) OR C >=C1 -(.3*C1)
30%
price change today:
If you are looking for a "High" of the day to be 30% higher than
the "Open"
H > O*1.3
. . . If you
want the "Close to be 30% higher than the "Open" use:
C > O*1.3
Strong
chart:(anthonymdavis)
This will find stocks w/ a 50/200 day crossover, good BOP, TSV,
increasing RSI and
increasing volume over 3 days. I look at All Stocks and then sort
by the "Strong Chart" PCF
(STOC12.5 >
22) AND (BOP25.1 > 22) AND (TSV25 > 60) AND (RSI30.9 >
RSI30.9.2) AND (AVGC50 >AVGC200) AND (V > V3)
Catch
a rally:(cpratsch)
This scan is designed to catch a rally before its starts or catch
insider trading before the news comes out
V >= V1*1.5
AND TSV1 > TSV1.2 AND STOC12.5 > STOC12.5.2 AND C <= O
+ (O*.3) OR C >=C1 -(.3*C1)
. . . This part
of the equation is optional:
AND C <= O
+ (O*.3) OR C >=C1 -(.3*C1)
Close
up >5% and vol 2 to 4x 20da avg:
C>(C1*1.05)
and V>(AVGV20*2)
Turn
Up:(cpratsch)
(STOC41.5.3 <
20) and (STOC41.5.2 > 20) and (STOC41.5.2 < STOC41.5.1) and
(STOC41.5.1 < STOC41.5)
Selloffs:(Taftoony)
Making lower lows for the last 5 days and average 3 day volume today
is 150% of the ssame 5 days ago
L < L1 AND
L1 < L2 AND L2 < L3 AND L3 < L4 AND L4 < L5 AND AVGV5
>= AVGV5.5 * 1.5
Movers:(Taftoony)
9 day ma crossing 4 day ma, gapping up or down today
(AVGC4.1 >
AVGC9.1 AND AVGC4 > AVGC9) OR (AVGC4.1 > AVGC9.1 AND AVGC4
< AVGC9) AND (AVGV3 > AVGV3.3)
Easy scan:
. .
. BOP Value Today-H Rank 74 to 99
. .
. Gap Up-H
. .
. Gap Down-H
. .
. Volume 5-Day-H Rank 49 to 99
Reversal:(Taftoony)(These
are the bottoming or topping stocks)
O >= C1 AND
H > O AND C < O
Easy scan:
. .
. Stochastic crossing down through 80
. .
. price per share-H Rank 72 to 99
Open>High:(Taftoony)("I
find that those opening above yesterday's high, not closing but
intraday, tend to run")
O > (H1 +
1)
Easy scan:
. . . Price per
share-H Val 16.94 to Max, Rank 64 to 99
Turn
Around Day:(Taftoony)
((C1
< C2) OR (H1 < H2 AND L1 > L2))
-Prev. day was down or inside
AND
V > 1.1* AVGV4.1
-at least 10% vol increase over prev 4 days
AND
((H + L) / 2) < C
-current price is in the upper half of today's trading range
AND
((H - L) / 8 - O) < C
-current price is not more than 1/8 of today's trading range below
the open
Turn
Around Day - Deep:(Taftoony)
((C1
< C2) OR (H1 < H2 AND L1 > L2)) AND V > 1.1*AVGV4.1
-same as above
AND
((H < (1.05 * O))
-hasn't made a serious run yet: high not more than 5% above open
OR
(H < (1.05 * C)))
-or if it has, is the curr price within 5% of the high?
AND
L < (.95 * O)
-low was at least 5% below the open
AND
C > (1.02 * L)
-current price is at least 2% off the low
AND
C > (.95 * O)
-current price is not more than 5% below the open
Established
Trend:(asmae)(
This scan is simple, but effective for finding a stock in an established
trend.)
(AVGC13.1
< AVGC26.1 AND AVGC13 > AVGC26) OR (AVGC13.1 > AVGC26.1
AND AVGC13 < AVGC26)
Scan
for Bases:(EmJaa)(I
set up a personal criteria called "Range Percent 20 Day" as follows.
Then I sort by this criteria. The stocks with low numbers are consolidating
- high numbers are flying (up and down).
(maxh20-minh20)/minh20*100
Force
Index:(cpratsch)
Elder
in his 1993 book "Trading for a Living" on page 227 brings the
formula
Force Index = Volume x (Close today - Close yesterday). I created
a watch list with high-value Force index stocks and am watching
them for a while to see what this tells us. Low force index stocks
are going down, high force index stocks are going up. For me the
question exists how much longer they are going up once they make
the top. There are big names in the up-list, could be good for a
future market turn-around. A similar indicator may be TSV. I created
a tab with TSV 18 and TSV 4 with short moving averages and watch
this. Both TSV settings try to tell us something: The short one
TSV4 acts like RSI3.3, the longer one TSV18 has its own power. TSV
contains volume, this is the interesting point. Has anybody experience
with the force index or with short TSVs?
(C - C1)*V
Buying
Uptrending stock on low volume:(ejr39)
When volume is
really low i.e.less than 30% of 180 day moving average of volume,
you have run out of sellers and a trend change should occur .
High volume
doesn't last long and comes at extremes.
You would probably make fair returns, buying on low volume and selling
on 2-3X's 180 day average of volume.
Low Volume is <1/3 of 180 day MA of volume and high is
> than 200 % of 180 MA.
Best time to buy when volume is 1/3 of 180 DMA of volume.
Time to sell:
When volume is 2-3 times the average.
(Stay away from thinly traded stocks when using this method).
(V < ( AVGV180.1
* .3))
%
of Daily Range:(ejr39)
(((C - L) / ((H
- L) + .001)) * 100)
Time
and Money D/V:(Sputnick55)
A concept stolen
from another world. Its a "daily varience" pcf. I use it as a
sort.
If there are several stocks I like and cant choose what one, I put
this in the sort section.
It is not the determining factor, however, It can be usefull in
what issue I pick.
What is it?
It just measures the daily highs and lows and gives a weighted daily
varience.
The higher the rank the possible more increase (and loss also) the
Lower, the less increase (or safety?)
Does it work ? Well the Tech stocks are typically the top
ranked issues! (can we say ulcers?)
The Higher the rank number the more of a variance there is between
the open and close.
Or the "faster moving stocks".(it does not consider price just up/down
movement per day-so gappers are considered but the "gap space" is
not) or you can make it a % also. thats all it is.. really simple..
I use it as a sort. You can use it for what ever you like.
The higher the ranking the "faster moving" it can be..
If you put it in tc2000 you will see all the TECH stocks right up
on top. They have the highest daily varience (say aol today has
a weighted 10 day varaince of $6.56 and yhoo 11.97 ... thats a weighted
11.97+/- difference from low to high a day! Big difference than
say IBM at $2.81 a day or cpu(compusa) at $.31 per day..)
So what would be your poison ? The three scans look at it different
way, depending upon your
flavore of investing. What one you use depends on you. Try all three
and see if you like them and
what one suits your style. If any. (my style is short term, usally
under 10days. If there are a few issues I like and can't decide
what one. I throw this in the sort and the higher ranked one will
get a extra gold star on its forehead.. thats my style, your mileage
will vary)
Want to daytrade.. put the ranking at 97%+ and have a ball...
To me its just a extra tool.
#1 D/V Heavy:
(((H9 - L9) *
1) + ((H8 - L8) * 2) + ((H7 - L7) * 3) + ((H6 - L6) * 4) + ((H5
- L5) * 5) + ((H4 - L4) * 6) +
((H3 -L3) * 7) + ((H2 - L2) * 8) + ((H1 - L1) * 9)+ ((H - L) * 10))/55
#2 D/V Light:
(((H9 - L9) *
4) + ((H8 - L8) * 4) + ((H7 - L7) * 4) + ((H6 - L6) * 4) + ((H5
- L5) * 5) + ((H4 - L4) * 5) +
((H3 -L3) * 5) + ((H2 - L2) * 6) + ((H1 - L1) * 6)+ ((H - L) * 7))/50
#3 D/V None:
((H9 - L9) +
(H8 - L8) + (H7 - L7) + (H6 - L6) + (H5 - L5) + (H4 - L4) + (H3
- L3) + (H2 - L2) + (H1 - L1) +(H10 - L10)) / 10
Consolidation
10 day:(For
10 days, the formula is:)
((MaxC10-MinC10)/MinC10
* 100) < 0.5
Scan
for Co's that have a defined market cap:(ejr39)
In an EasyScan:
from the Criterion Library, select <Media General Fundamentals>
Select <Capitalization> Adjust Range Selector for your values.
ATR:
ATR:(ejr39)
The
True Range indicator is the greatest of the following:
True
Range INDICATORS (5 days)
. .
. 1. The distance from today's high to today's low.
((H-L)+(H1-L1)+(H2-L2)+(H3-L3)+(H4-L4)/5)
. . . 2. The
distance from yesterday's close to today's high.
(((C1-H)+(C2-H1)+(C3-H2)+(C4-H3)+(C5-H4))/5)
. . . 3. The
distance from yesterday's close to today's low.
(((C1-L)+(C2-L1)+(C3-L2)+(C4-L3)+(C5-L4))/5)
The Average True
Range is a moving average (typically 14-days) of the True Ranges.
From:
http://www.equis.com/free/taaz/avertrurang.html
Average True
Range - 5 day value (moving average of the True Ranges)
((((H-L)+(H1-L1)+(H2-L2)+(H3-L3)+(H4-L4))/5)+
(((C1-H)+(C2-H1)+(C3-H2)+(C4-H3)+(C5-H4))/5)+
(((C1-L)+(C2-L1)+(C3-L2)+(C4-L3)+(C5-L4))/5))/3
Adjust the number
of days to suit your style.
ATR:(Gahsb)
Try
this for calculating ATR (Average True Range):
((ABS(H
- L) + ABS(H1 - L1) + ABS(H2 - L2) + ABS(H3 - L3) + ABS(H4 - L4)
+ ABS(H - C1) +
ABS(H1 - C2) + ABS(H2 - C3) + ABS(H3 - C4) + ABS(H4 - C5) + ABS(L
- C1) + ABS(L1 - C2) +
ABS(L2 - C3) + ABS(L3 - C4) + ABS(L4 - C5)) / 15) /(2/3)
This
is of course only for 5 days. Expand it for as many days as desired.
If you want 20 days the "15" becomes "60" but the "2/3" remains
the same.
Congestion:
(MAXH25 - MINL25)
/ (((AVGH25 - AVGL25) * 25) + .001) * 100
Vertical
Horizontal Filter VHF(14):
http://www.equis.com/free/taaz/verthorizfilter.html
< Probably
the biggest dilemma in technical analysis is determining if prices
are
trending or are in a trading-range. Trend-following indicators
such as the MACD
and moving averages are excellent in trending markets, but
they usually generate
multiple conflicting trades during trading-range (or "congestion")
periods.
On the other hand, oscillators such as the RSI and Stochastics
work well when prices fluctuate within a trading range, but they
almost always close positions prematurely during trending markets.
The VHF indicator ATTEMPTS to determine the "trendiness" of
prices to help you decide which indicators to use. >
Last
Updated: 02-16-2001
VHF(14) PCF:
(MAXC14-MINC14)/(.001+ABS(C-C1)+ABS(C1-C2)+ABS(C2-C3)+ABS(C3-C4)+ABS(C4-C5)+
ABS(C5-C6)+ABS(C6-C7)+ABS(C7-C8)+ABS(C8-C9)+ABS(C9-C10)+ABS(C10-C11)+ABS(C11-C12)+
ABS(C12-C13)+ABS(C13-C14))
The
VHF PCF simply defines a Range for the past 14 days –
the highest high (resistance) and the lowest low (support).
Trending
stocks – both up and down – have higher VHF values;
use trend-following or lagging indicators such as MACD, moving averages,
and Bollinger Bands
(Volitility).
‘Range bound’ or consolidating stocks have lower
VHF values. Oscillators, the anticipatory indicators, including
Wilder’s RSI, Stochastics, Momentum, StochRSI, Williams %R,
and the Ultimate Oscillator work well when prices fluctuate within
a trading range. For a quick visual of the price’s direction,
apply a 14-day Linear Regression line to the price chart. Adjust
the VHF PCF to suit your investment style.
Price
Action Indicator(PAIN):(ejr39)
If you
were only given today's open, high, low and close, how could you
make heads or tails of it? The Price Action Indicator (PAIN) can
help. The formula returns a single value that weighs
. .
. 1. intra-day momentum (C-O)
. .
. 2. Late Selling Pressure (LSP) (C-L)
. .
. 3. Late Buying Pressure (LBP) (C-H)
The
output is shown to be consistent with the interpretation of Japanese
candlestick patterns. See Michael B. Geraty (1997). "Getting Better
Directions" Futures Vol. 26: Aug.
PAIN:
((C-O)+(C-H)+(C-L))/2
PAIN can help
separate winning spreads from loosing spreads! A stock’s price
must have momentum to continue a move. If the intra-day momentum
(C-O) is too narrow, the day’s price action lacks momentum;
i.e. if the intra-day momentum is a doji (C = O) or a near doji,
the price action is decisive and lacks momentum. If the Close is
near the Low (LSP), the stock’s price is under selling pressure
– the Bears are ‘pushing’ the price down. If the
Close is near the High (LBP), the stock’s price is under buying
pressure – the Bulls are ‘driving’ the price up.
So, if the overall market conditions remain favorable, a high PAIN
value with the close near the high (LBP) will be an excellent potential
long.
EasyScan filter
for PAIN:
. .
.volume-5-day
. .
.volume-90-day
. .
.capitalization
. .
.BOP value today
Other
suggestions: Is
the stock trading within a range or trending? Or is it a breakout?
If you are unsure, try the Vertical Horizontal Filter. Yes, the
stock can trend within the range i.e. rolling stock; support (MINLn-periods)
and resistance (MAXHn-periods) define the range. If the stock is
trading within a range, which oscillators and what time frames will
you apply? If the stock is trending, what moving averages will be
in the ‘stack’? Which moving average will be the trigger?
What is the MACD’s time frame? Is an MACD divergence evident?
What is the Momentum time frame?
Breakouts:
Is it
a breakout based on moving averages (trend) i.e. 2/20-day BreakOut?
http://www.traders.com/Documentation/FEEDbk_docs/Archive/1296/Abstracts1296/1296Landry.html
http://www.traders.com/Documentation/FEEDbk_docs/Archive/1296/Abstracts1296/2_20
DaySdbar.html
2/20-day
breakout:
(L2<AVGC20)AND(L1>AVGC20)AND(L>AVGC20)
Consolidation
breakout(upside) – translated from
MS:
((MAXC80-MINC80)/(.001+MINC80))*100>=10AND((MAXC80.5-MINC80.5)/(.001+MINC80.5))*100<
10AND(C>MAXC80.5AND(AVGV5>=(1.5*AVGV60.5))
Is the stock
being accumulated i.e. BOP greater than its 10-dma? Now, looking
at candlestick charts with the PAIN sort values in the left window
decide which values have enough LBP and intra-day momentum for the
stock’s price to continue upward? Adjust the PAIN EasyScan
Range Selector Rank or Value to fit your observations of the candlestick
charts.
P.S.
Befriend the trend, maintain a DNS WatchList containing trending
stocks – check the club’s website for DNS PCFs.
http://www.tradeon.com/tradeon/tc2000/index.html
Scans
for 4-10 week basing pattern:(ejr39)
Trending
/ Consolidating (4) (for 4 weeks or 20 trading days):
(MAXH20-MINL20)/(.001+(AVGH20-AVGL20)*20)*100
Trending
/ Consolidating (8) (for 8 weeks or 40 trading days):
(MAXH40-MINL40)/(.001+(AVGH40-AVGL40)*40)*100
Equis
Consolidation Index:
((MAXC80-MINC80)/(.001+MINC80))*100
http://www.equis.com/free/hotstocks/upbreak.htm
http://www.equis.com/free/hotstocks/dnbreak.htm
EasyScan:
From
the Criterion Library select
<Technical>
. .
<Price as Percent of 52 Week High- H> (Value) 90 to Max
<Personal
Criteria>
. .
.<Trending / Consolidating (4) PCF>. . . (Value) Min to 20
OR
. .
.<Trending / Consolidating (8) PCF>. . . (Value) Min to 20
OR
. .
.<Equis Consolidation Index PCF >. . .(Value) Min to 20
Add
minimum price per share, 5-day and 90-day volume, and capitalization
criteria to eliminate closed end funds, illiquid stocks, and penny
stocks. Adjust the Consolidating / Consolidation PCFs for % range
in which you wish consolidation.
Pull-Back
Scan-Help:(ejr39)
C within 90%
of MAXH:
(C > MAXH250
* .9)
or
(C > MAXH125
* .9)
or
(C > MAXH60
*.9)
From Big Dog
Bounce bdb pullback:
(MAXH5.1 >
C * 1.1)
or
5 down days (pullback):
H5>H4ANDH4>H3ANDH3>H2ANDH2>H1ANDH1>HANDL5>L4ANDL4>L3ANDL3>L2ANDL2>L1ANDL1>L
or
4 down days (pullback):
H4>H3ANDH3>H2ANDH2>H1ANDH1>HANDL4>L3ANDL3>L2ANDL2>L1ANDL1>L
. . . In an EasyScan,
add 1 <C within 90% of MAXH> PCF and 1 <pullback> PCF.
Suggestions:
To the
EasyScan, add capitalization, 5-day and 90-day volume criteria to
eliminate closed-end funds and illiquid stocks add a custom DAHL
that includes the number of days in the MAXH PCF to assure stock
is uptrending. add price per share criteria greater than $10.
Equis
Consolidation Index:(ejr39)
Equis
consolidation index upbreak:
((MAXC80.5-MINC80.5)/(.001+MINC80.5))*100<10AND((MAXC80-MINC80)/(.001+MINC80))*100>=10AND
(C>MAXC80.5)AND(AVGV5>=AVGV60.5*1.5)
http://www.equis.com/free/hotstocks/upbreak.htm
Equis
consolidation index downbreak:
((MAXC80.5-MINC80.5)/(.001+MINC80.5))*100<10AND((MAXC80-MINC80)/(.001+MINC80))*100>=10AND
(C<MINC80.5)AND(AVGV5>=AVGV60.5*1.5)
http://www.equis.com/free/hotstocks/dnbreak.htm
Consolidating:(babynuke)
(MAXH25 - MINL25)
/ (((AVGH25 - AVGL25) * 25) + .001) * 100
Breaking
up/down out of a trading range:(Hammerhead
Jake)
I just recently
updated my TC2000 account and have been playing with a few scans
that bring up stocks that have just broken up or down out of a trading
range. Below is the basic formula for stocks breaking down:
(MAXH20 - MINL20)/(MAXH20
+ MINL20)/2 < .15 AND C < MINL20.1
The formula can
be back-tested by the following:
(MAXH20.60 -
MINL20.60)/(MAXH20.60 + MINL20.60)/2 < .15 AND C60 < MINL20.61
This will return
the same results as the first, but 60 days in the past. The formula
can be reversed for finding stocks that are breaking up out of a
trading range:
(MAXH20 - MINL20)/(MAXH20
+ MINL20)/2 < .15 AND C > MAXH20.1
Finding
IPO's:(ejr39)
#0 IPO:
C40
or
C’9/28/99’
Adjust
the number of days in the past or the calendar date to see that
day's Closing value. Calculate for all stocks. Update all criteria.
At the main chart screen, select All Stocks from the WatchList dropdown
menu select #0 IPO PCF from the Sort dropdown menu. Move the Chart
List window’s slider (at the right side of the window) down
to the bottom of the list; those stocks with a blank value are new
to the exchanges
–
probably IPOs.
Pennant
Formations:
Pennant
Formations:(joebhernandez)
I use this scan
that works pretty good for pennants:
MAXC20 >=
C * 1.15 AND C >= AVGC40
You can also
filter it further using something like this:
( AVGH5 - AVGL5
) / 2 - (AVGH34 - AVGL34 ) / 2
You're looking
for a negative number for stocks consolidating so you could add
" < 0 to 2nd scan or leave it that way and look at the actual
number.
Pennant
Formations:(ejr39)
(MAXH5<MAXH10)AND(MAXH10<MAXH20)AND(MINL5>MINL10)AND(MINL10>MINL20)
PCF is best used
with bar charts and confirmed by trendlines.
Updated: 11-18-01 Bollinger
Bands:(ejr39)
This tutorial
on BBands by Mr. Bollinger is a MUST READ - Introduction -
http://www.bollingerbands.com/bb_tutorial_1.asp
Introduction
to %b and Band Width -
http://www.bollingerbands.com/bb_tutorial_5.asp
Figure 7 within
the %b and Band Width section shows formulas for Band Width and
%b.
Avoiding
Multiple Counting:
(or the use of indicators derived from the same data to confirm
each other)
http://www.bollingerbands.com/bb_tutorial_6.asp
%b (From the
InSync Index):
(C-(AVGC20-(C*.01)))/(.001+((AVGC20+(C*.99))-(AVGC20-(C*.01))))
Band Width:
(((AVGC20+(C*.99))-(AVGC20-(C*.01)))/(.001+AVGC20))
"The indicator
%b tells us where we are WITHIN the bands…" "At 100 we are
at the upper band, at 0 we are at the lower band. Above 100 we are
above the upper bands and below 0 we are below the lower band."
"Indicator %b lets us compare price action to indicator action."
(repeat) COMPARE PRICE ACTION TO INDICATOR ACTION i.e. Stochastics
< 20 AND %b < (0) or RSI > 80 AND %b < 100
From Kevin Haggerty’s
Short-Term Volatility Trading Bands article:
www.tradehard.com
(trial or full membership required)
. .
under Advanced Trader’s Strategies
"Remember,
don’t take a position blind at the trading bands. There must
be some reversal pattern out of the level as the stock and market
dynamics tell you it’s a go.
%b – Upper
Band:
(C-(AVGC20-(C*.99)))/(.001+((AVGC20+(C*.99))-(AVGC20-(C*.01))))*100
%b – Lower
Band:
(C-(AVGC20-(C*.01)))/(.001+((AVGC20+(C*.99))-(AVGC20-(C*.01))))*100
%b – Mid
Band:
(C-(AVGC20-(C*.5)))/(.001+((AVGC20+(C*.99))-(AVGC20-(C*.01))))*100
For
comparison to the Bollinger Bands, use the extreme relative values
in EasyScans or Sorts. In the overall scheme, I'm finding I prefer
to make the comparison between price action to indicator action
using the Mid Band PCF.
===
Updated:
11-18-01
Bollinger
Band PCFs Message
106 by jdh1344
http://clubs.yahoo.com/clubs/auxiliarytc2000usergroup
Upper band
AVGC20
+ 2 * SQR((20 * (C * C + C1 * C1 + C2 * C2 + C3
* C3 + C4 * C4 + C5 * C5 + C6 *C6 + C7* C7 + C8 * C8 +
C9 * C9 + C10 * C10 + C11 * C11 + C12 * C12 + C13 *
C13 + C14 * C14 + C15 * C15 + C16 * C16 + C17 * C17 +
C18 * C18 + C19 * C19) - (AVGC20*20) * (AVGC20*20)) /
(20 * 20))
C
above upper band
C>(AVGC20
+ 2 * SQR((20 * (C * C + C1 * C1 + C2 * C2 +
C3 * C3 + C4 * C4 + C5 * C5 + C6 *C6 + C7* C7 + C8 *
C8 + C9 * C9 + C10 * C10 + C11 * C11 + C12 * C12 + C13
* C13 + C14 * C14 + C15 * C15 + C16 * C16 + C17 * C17
+ C18 * C18 + C19 * C19) - (AVGC20*20) * (AVGC20*20))
/ (20 * 20)))
Lower
band
AVGC20
- 2 * SQR((20 * (C * C + C1 * C1 + C2 * C2 + C3
* C3 + C4 * C4 + C5 * C5 + C6 * C6 + C7 * C7 + C8 * C8
+ C9 * C9 + C10 * C10 + C11 * C11 + C12 * C12 + C13 *
C13 + C14 * C14 + C15 * C15 + C16 * C16 + C17 * C17 +
C18 * C18 + C19 * C19) - (AVGC20 * 20) * (AVGC20 *
20)) / (20 * 20))
C
below lower band
C<(AVGC20
- 2 * SQR((20 * (C * C + C1 * C1 + C2 * C2 +
C3 * C3 + C4 * C4 + C5 * C5 + C6 * C6 + C7 * C7 + C8 *
C8 + C9 * C9 + C10 * C10 + C11 * C11 + C12 * C12 + C13
* C13 + C14 * C14 + C15 * C15 + C16 * C16 + C17 * C17
+ C18 * C18 + C19 * C19) - (AVGC20 * 20) * (AVGC20 *
20)) / (20 * 20)))
Mid
band
AVGC20
Band width = upper band - lower band / middle band
(Those with lower values are contracted, higher values are expanded)
((AVGC20
+ 2 * SQR((20 * (C * C + C1 * C1 + C2 * C2 +
C3 * C3 + C4 * C4 + C5 * C5 + C6 *C6 + C7* C7 + C8 *
C8 + C9 * C9 + C10 * C10 + C11 * C11 + C12 * C12 + C13
* C13 + C14 * C14 + C15 * C15 + C16 * C16 + C17 * C17
+ C18 * C18 + C19 * C19) - (AVGC20 * 20) * (AVGC20 *
20)) / (20 * 20))) - (AVGC20 - 2 * SQR((20 * (C * C +
C1 * C1 + C2 * C2 + C3 * C3 + C4 * C4 + C5 * C5 + C6 *
C6 + C7 * C7 + C8 * C8 + C9 * C9 + C10 * C10 + C11 *
C11 + C12 * C12 + C13 * C13 + C14 * C14 + C15 * C15 +
C16 * C16 + C17 * C17 + C18 * C18 + C19 * C19) -
(AVGC20 * 20) * (AVGC20 * 20)) / (20 * 20)))) / AVGC20
%b
= close - lower band / upper band - lower band
(Tells where close is "percentage wise" within the band)
(C
- (AVGC20 - 2 * SQR((20 * (C * C + C1 * C1 + C2 *
C2 + C3 * C3 + C4 * C4 + C5 * C5 + C6 * C6 + C7 * C7 +
C8 * C8 + C9 * C9 + C10 * C10 + C11 * C11 + C12 * C12
+ C13 * C13 + C14 * C14 + C15 * C15 + C16 * C16 + C17
* C17 + C18 * C18 + C19 * C19) - (AVGC20 * 20) *
(AVGC20 * 20)) / (20 * 20)))) / (((AVGC20 + 2 *
SQR((20 * (C * C + C1 * C1 + C2 * C2 + C3 * C3 + C4 *
C4 + C5 * C5 + C6 *C6 + C7* C7 + C8 * C8 + C9 * C9 +
C10 * C10 + C11 * C11 + C12 * C12 + C13 * C13 + C14 *
C14 + C15 * C15 + C16 * C16 + C17 * C17 + C18 * C18 +
C19 * C19) - (AVGC20 * 20) * (AVGC20 * 20)) / (20 *
20))) - (AVGC20 - 2 * SQR((20 * (C * C + C1 * C1 + C2
* C2 + C3 * C3 + C4 * C4 + C5 * C5 + C6 * C6 + C7 * C7
+ C8 * C8 + C9 * C9 + C10 * C10 + C11 * C11 + C12 *
C12 + C13 * C13 + C14 * C14 + C15 * C15 + C16 * C16 +
C17 * C17 + C18 * C18 + C19 * C19) - (AVGC20 * 20) *
(AVGC20 * 20)) / (20 * 20)))))
Message
108 by jdh1344
http://clubs.yahoo.com/clubs/auxiliarytc2000usergroup
The
last two formula come from John Bollinger's website:
http://www.bollingerbands.com/services/bb/bandwidth.asp
where
he briefly tells you how he uses them.
The
width formula expresses bandwidth as a percentage of the moving
average. It may not be all that predictive of a visual squeeze pattern.
It seems to me that a visual squeeze would be somewhat relative
to the previous bandwidth that a given stock had been in.
He indicates that when bandwidth drops below 2% (.02 ) a sharp expansion
in volatility usually occurs in the very near future.
%b is quite useful as it seems to me.
If you
use it as a qualifying PCF in the sort window against any given
WatchList, speaking of the close, anything above 1.0 is above the
top band, anything at 1.0 is on the top band anything at .5 is at
mid-band anything at 0.0 is on the lower band anything -0.01and
lower is below the lower band.
EF
ratio:(BigJDawson)
Was
doing some house cleaning on my files, thought some of you might
be interested in this. It is Perry Kaufman's "Efficiency Ratio",
also known as fractal efficiency. It is supposed to determine how
smooth a move is, or a market is. He uses it over a longer time
frame, or uses rolling periods to see the tendancy of a market.
A smoother market is better for trend following systems. Generally
he is refering to futures markets because certain ones have a tendancy
to trend more than others. But it also works with stocks. His original
formula doesn't go from + to -, so you don't know the trend direction.
This one does. Basically, the more movement it takes to get from
point A to B, the choppier the market is. If it makes a straight
line it is more efficient. And hopefully less moves against you
along the way. Two things to watch for is a market with a spike,
or is flat will have a high value. So it is best to use with another
filter such as a momentum indicator to eliminate the flat liners.
I also adapted it using monthly periods which worked well, but took
too long to update and other methods work as well. The higher the
numbers
the better.
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