1-2-3 High or Low

LOW
Mx:=Mov(L,4,S);
L > Ref(L,-1) AND L>Mx AND
Ref(L,-1) < Ref(Mx,-1) AND
LLV(L,4 ) > LLV(L,10 ) AND
RSI(14)<50

HIGH
Mx:=Mov(H,4,S);
H < Ref(H,-1) AND H < Mx AND
Ref(H,-1) > Ref(Mx,-1) AND
HHV(H,4 ) < HHV(H,10) AND
RSI(14)>50

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1 2 3 Ross Hook

Col A: Peak(1,H,10)<=1.1*Peak(2,H,10)
AND Peak(1,H,10)>=0.9*Peak(2,H,10)
AND Trough(1,L,10)>=1.1*Trough(2,H,10)
AND Trough(1,L,10)<=0.9*Trough(2,H,10)
AND LLV(L,25)
Col B: Peak(1,H,5)<=1.1*Peak(2,H,5)
AND Peak(1,H,5)>=0.9*Peak(2,H,5)
AND Trough(1,L,5)>=1.1*Trough(2,H,5)
AND Trough(1,L,5)<=0.9*Trough(2,H,5)
AND LLV(L,25)
Col C: Peak(1,H,1)<=1.1*Peak(2,H,1)
AND Peak(1,H,1)>=0.9*Peak(2,H,1)
AND Trough(1,L,1)>=1.1*Trough(2,H,1)
AND Trough(1,L,1)<=0.9*Trough(2,H,1)
AND LLV(L,25)

Filter colA=1 OR colB=1 OR colC=1

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1234's Sell

A:Close
B:ADX(14){The higher the better}
C: PDI(14)<MDI(14)
D:If(H>Ref(H,-1) and Ref(H,-1)>Ref(H,-2) and
Ref(H,-2)>Ref(H,-3),1,0)
E:{Entry}LLV(L,3)-.125
F:{stop}HHV(H,3)
Filter:ColB>30 and ColC and ColD=1

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2 Day Hammer Exploration

Here is an exploration that pattern traders may find useful. It tends to pick up two patterns: a two day hammer, that is if you combined the open for day 1 and close for day 2, the resulting bar would be a hammer, and a pattern similar to a Ross Hook, as I understand a Ross Hook.

Ref((C-L)/(H-L),-1)<=.30 AND
((C-L)/(H-L)) >= .70 AND
Ref(ATR(1),-1) >ATR(10) AND
ATR(1) >= ATR(10)

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21 Day Trigger

Look at these two oscillators in MSWIN, and compare them to Dahl. Put a 21 day EMA on each, think of the 21 day ema as a trigger. See what they tell you -- Dahl is long term, Ian is shortest term.

Raschke Oscillator = Mov(Fml( "Raschke 3-10" ),16,E)
where "Raschke 3-10" = Mov(C,3,S) - Mov(C,10,S)
Ian Oscillator = (Mov(C,4,S)-Mov(C,9,S)) + (Mov(C,9,S)-Mov(C,17,S))

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3 Minute Bar Breakout

{Functions used in Middle Screen}

MiddleScreenBlue := Mov( Close, 34, E )
MiddleScreenYell := Mov( Open, 13, E )

{Functions used in Lower Screen}

StochRed := Stoch( 9, 7 )
StochLagging : = Mov( StochRed, 7, S )

{ Main analysis section }

{BULLISH}
Cross( StochRed, StochLagging ) AND ( MiddleScreenYell > MiddleScreenBlue )

{BEARISH}
Cross( StochLagging, StochRed ) AND ( MiddleScreenYell < MiddleScreenBlue )

{ Breakout Notifier }
UpperSupportNow := Mov( OPEN, 10, E )
LowerSupportNow := Mov( CLOSE, 8, E )
PrevUpperSupport := Ref( Mov( OPEN, 10, E ), -1 )
PrevLowerSupportNow := ref( Mov( CLOSE, 8, E ), - 1 )
TRUE := 1
FALSE := 0
SignalledHigh := FALSE
SignalledLow :=FALSE

{ BULLISH }
IF ( ( L > UpperSupportNow ) AND ( Ref( L, -1 ) > PrevUpperSupport ) AND
SignalledHigh = FALSE )
THEN
SignalledHigh := TRUE
IF ( SignalledHigh = TRUE )
THEN
SignalledLow :=FALSE

{BEARISH}
IF ( ( H < LowerSupportNow ) AND ( Ref( H, -1 ) > PrevLowerSupport ) AND
SignalledLow = FALSE )
THEN
SignalledLow := TRUE
IF ( SignalledLow = TRUE )
THEN
SignalledHigh := FALSE

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5 Day High

{"Today must make a five-day high and today the close must be below the open."}

{Place the following in the MetaStock Explorer filter section.}

HIGH > Ref(HHV(HIGH,4),-1) AND CLOSE < OPEN

{or you can write it this way too ...}

HIGH > Ref(HIGH,-4)
AND HIGH > Ref(HIGH,-3)
AND HIGH > Ref(HIGH,-2)
AND HIGH > Ref(HIGH,-1)
AND CLOSE < OPEN

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52 Week Hi-Lo Exploration

ColA: {Close}C;
ColB: {52-week High} HighestSince(1, (DayOfMonth()=08 AND Month()=05
AND Year()=1998), H);
ColC: {52-week Low} LowestSince(1, (DayOfMonth()=08 AND Month()=05 AND
Year()=1998), L);

{Choose one of these filters}
{Filter 1:} ColA >= (0.9*(ColB))
{Filter 2:} ColB >= 2*ColC

{If you want both the conditions to be satisfied in the same query, just
join the two filters by the AND operator:}

Filter: (ColA >= (0.9*(ColB)) AND ColB >= ColC)

{One problem with the 52-wk High and 52-wk Low formula--every day you've got
to change the values for dayofmonth(), Month() and Year() functions. The
formula given above assumes that you would be running the query on May 07,
1998. Change the values of the above functions accordingly.}

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7 Day Rate Of Change Ported From Super Charts

((C-Ref(CLOSE,-7))/Ref(CLOSE,-7)*100)

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Adaptive Moving Average by Perry Kauffman

This is a Metastock for Windows version 6.5 formula.

Periods := Input("Time Periods",1,1000, 10);
Direction := CLOSE - Ref(Close,-periods);
Volatility := Sum(Abs(ROC(CLOSE,1,$)),periods);
ER := Abs(Direction/Volatility);
FastSC := 2/(2 + 1);
SlowSC := 2/(30 + 1);
SSC := ER * (FastSC - SlowSC) + SlowSC;
Constant := Pwr(SSC,2);
AMA := If(Cum(1) = periods +1, ref(Close,-1) + constant * (CLOSE - ref(Close,-1)),
Prev + constant * (CLOSE - PREV));

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ADX And Trendlines

if you want to identify directional movement by expressing that the ADX "is rising" the most basic way to do it would be:

ADX(14) > Ref(ADX(14),-1) -- Today's ADX is greater than yesterday's ADX.

There is another aspect to the ADX that bears investigation, though; namely the level of the ADX. There seems to be a general consensus that an ADX over, say, 30 indicates a stronger trend than lower ADX readings. So you could either write ADX(14) > 30 -- or not, depending on your objectives. You can stipulate that both conditions are true by joining them with the word "and."

Also, I have found the following helpful: try using the custom ADX formula posted on the MetaStock website. Wilder wrote the original ADX in such a fashion that it rounds the readings out to the nearest whole number. The "regular" canned MetaStock ADX does this, while the custom ADX does not. The non-rounded readings are just a shade more sensitive, which can be helpful.

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ADX Raw

{MetaStock code written by Equis and published in the Oct99 TASC}

Periods:= Input("Enter time periods",1,100,14);

PlusDM:= If(HIGH>Ref(HIGH,-1) AND
LOW>=Ref(LOW,-1), HIGH-Ref(HIGH,-1),
If(HIGH>Ref(HIGH,-1) AND LOW<Ref(LOW,-1)
AND HIGH-Ref(HIGH,-1)>Ref(LOW,-1)-LOW,
HIGH-Ref(HIGH,-1), 0));
DIPlus:= 100 * Wilders(PlusDM,Periods) /
ATR(Periods);

MinusDM:= If(LOW<Ref(LOW,-1) AND
HIGH<=Ref(HIGH,-1), Ref(LOW,-1)-LOW,
If(HIGH>Ref(HIGH,-1) AND LOW<Ref(LOW,-1)
AND HIGH-Ref(HIGH,-1)<Ref(LOW,-1)-LOW,
Ref(LOW,-1)-LOW, 0));
DIMinus:= 100 * Wilders(MinusDM,Periods) /
ATR(Periods);

DIDif:= Abs(DIPlus - DIMinus);
DISum:= DIPlus + DIMinus;
ADXRaw:= 100 * Wilders(DIDif/DISum, Periods);

ADXRaw

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ADX with Stochastic Signals

Metastock users can reproduce the trend bars and entry signals shown on the CWO chart using the Expert Advisor. Create a new expert and under Symbols add a new entry with the following condition :

ADX(14) > 20 AND ( Mov(C,15,S) > Mov(C,30,S)) AND ( Mov(C,5,S) > Mov(C,30,S)) AND Stoch(5,3) < 30 AND Ref(Stoch(5,3) ,-1) >=30

Under Trends add the Bullish formula :

ADX(14) > 20 AND ( Mov(C,15,S) > Mov(C,30,S)) AND ( Mov(C,5,S) > Mov(C,30,S))

and the Bearish formula :

ADX(14) > 20 AND ( Mov(C,15,S) < Mov(C,30,S)) AND ( Mov(C,5,S) < Mov(C,30,S))

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Alligator Indicators

Following are the Bill William's Alligator indicators I put together.
Please read his book "Trading Chaos" and pick up a demo of his
"Investor's Dream" software from his web site to see how they are used.

Hope you find them useful.

originally from Gary Randall -- Brunswick, Maine, U.S.A.
----------------------------------------------

Chaos Blue BL
{Alligator Blue Balance Line - Jaw }
{13 bar smoothed average offset 8 bars }

Ref(Wilders(MP(),13),-8);

----------------------------------------------

Chaos Red BL
{Alligator Red Balance Line - Teeth }
{8 bar smoothed average offset 5 bars }

Ref(Wilders(MP(),8),-5);

----------------------------------------------

Chaos Green BL
{Alligator Green Balance Line - Lip }
{5 bar smoothed average offset 3 bars }

Ref(Wilders(MP(),5),-3);

----------------------------------------------

Chaos Gator
{ Chaos Alligator }
{ Plot as histogram }

green := Fml("Chaos Green");
red := Fml("Chaos Red");
blue := Fml("Chaos Blue");

If(green > red AND red > blue, green - blue,
If(blue > red AND red > green, green - blue,
0));

----------------------------------------------

Chaos AO
{ Chaos Awsome Oscillator - measures momentum }
( A very close approximation of MFI }
{ Plot as histogram }

Mov(MP(),5,S) - Mov(MP(),34,S);

----------------------------------------------

Chaos AO Signal Line
{ Chaos Awsome Oscillator Signal Line }
{ Plot as line over AO histogram }

Mov(Mov(MP(),5,S) - Mov(MP(),34,S),5,S)

----------------------------------------------

Chaos AC
{ Chaos Accelerator/Decelerator Oscillator }
{ Measures acceleration }
{ Plot as histogram }

Fml("Chaos AO") - Mov(Fml("Chaos AO"),5,S);

----------------------------------------------

Chaos Fractal
{ Chaos Fractal (simple version +1=Up, -1=Dn) }

High1 := Ref(HIGH,-2);
High2 := Ref(HIGH,-1);
High3 := Ref(HIGH,0);
High4 := Ref(HIGH,1);
High5 := Ref(HIGH,2);
Low1 := Ref(LOW,-2);
Low2 := Ref(LOW,-1);
Low3 := Ref(LOW,0);
Low4 := Ref(LOW,1);
Low5 := Ref(LOW,2);
Fractal :=
If((High3 > High1) AND (High3 > High2) AND (High3 > High4) AND (High3 >
High5), +1,0);

Fractal :=
If((Low3 < Low1) AND (Low3 < Low2) AND
(Low3 < Low4) AND (Low3 < Low5),
If(Fractal > 0, 0, -1), Fractal);

Fractal;

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Alligator System Modifications

from Murray Richards . . .

Drag this to the chart and change it to a histogram and plot green

AO oscillator Green
If( Mov(( H+L)/2, 5, S)- Mov(( H+L)/2, 34, S),
>,Ref(Mov( ( H+L)/2, 5, S)- Mov(( H+L)/2, 34, S),-1),( Mov(( H+L)/2, 5, S)-
Mov(( H+L)/2, 34, S )),0)

Put in the same window and plot it red as a histogram
A Oscillator red
If( Mov( ( H+L)/2, 5, S)- Mov( ( H+L)/2, 34, S),
<,Ref(Mov( ( H+L)/2, 5, S)- Mov( ( H+L)/2, 34, S),-1), Mov( ( H+L)/2, 5,
S)- Mov( ( H+L)/2, 34, S),0)

Acc
Mov(( H+L)/2, 5, S)- Mov(( H+L)/2, 34, S)-
Mov(Mov(( H+L)/2, 5, S)- Mov(( H+L)/2, 34, S) , 5, S)

Put in its on window as a histogram and plot red
AC Red
If( Fml( "Acc" )<Ref( Fml( "Acc" ),-1) ,Fml( "Acc" ),0 )

Put in the same window and plot green

AC green
If( Fml( "Acc" )<Ref( Fml( "Acc" ),-1) ,Fml( "Acc" ),0 )

Start a new expert and chose highlights
color red

Fml( "AC RED" )AND Fml( "A Oscillator red" )

Color green

Fml( "AC Green" ) AND Fml( "A Oscillator Green " )

Save as a template

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Anti Trigger- LB Raschke (For Metastock v6.5)

Original formula based on L.B. Raschke's "Street Smarts"
book's Quick Indicator Articles. Re-written by Ton Maas.

{FUNCTIONS-IND-REFERENCE-INDEX:
FF=FASTLINE,SS=SLOWLINE,SETBARS=3DAYMOVAVE,
ENTRYADD=+1,EXITADD=+1}
{FUNCTIONS-VAR-REFERENCE-INDEX:
BBUY=(VAR),SSELL(VAR),CBUY(VAR),CSELL(VAR),FF(VAR),SS(VAR),
LXSTOP(VAR),SXSTOP(99999),MP(VAR)}
{FUNCTIONS-MISC-REFERENCE-INDEX:
AT0BBUY =BULLLONG
AT0SSELL =BEARSHORT
AT0CSELL =CLOSEBEARSHORT
AT0CBUY =CLOSEBULLLONG
AT0MP =MARKETPOSITION (-1=LONG,+1 SHORT)
AT0LXSTOP=CLOSELONGEXITLEVEL(STOPLOSS)
AT0SXSTOP=CLOSESHORTEXITLEVEL(STOPLOSS)}

{INDICATOR NAME : ANTI TRIGGER}

{THE FORMULA (+REQUIRED FUNCTIONS) FOR THE ANTI TRIGGER INDICATOR}
AT0SETBARS:=3;
AT0FF:=Stoch(7,AT0SETBARS);
AT0SS:=Mov(Stoch(7,AT0SETBARS),10,E);
AT0ENTRYADD:=+1;
AT0EXITADD:=+1;
AT0CSELL:={use in expadv or systest}{for RT del the REF-function}
If(AT0FF>Ref(AT0FF,-1) AND AT0SS<Ref(AT0SS,-1),C+1,0);
AT0CBUY:={use in expadv or systest}{for RT del the REF-function}
If(AT0FF<Ref(AT0FF,-1) AND AT0SS>Ref(AT0SS,-1),C+1,0);
AT0BBUY:={use in expadv or systest}{for RT del the REF-function}
If(AT0CBUY>AT0SETBARS,H+AT0ENTRYADD,99999);
AT0SSELL:={use in expadv or systest}{for RT del the REF-function}
If(AT0CSELL>AT0SETBARS,L-AT0ENTRYADD,0);
AT0MP:={use in expadv or systest}If(AT0BBUY<99999, -1,If(AT0SSELL>0,1,0));
{AT0LXSTOP:=}{use in expadv or systest}{for RT del the REF-function}
{IF(REF(AT0MP,-1)<1 OR (REF(AT0BBUY,-1)<99999 AND
H>REF(AT0BBUY,-1)), L-AT0EXITADD,0);}
{AT0SXSTOP:=}{use in expadv or systest}{for RT del the REF-function}
{IF(REF(AT0MP,-1)>-1 OR (REF(AT0SSELL,-1)>0 AND
L<REF(AT0SSELL,-1)), H+AT0EXITADD,0);}
AT0MP

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Are There Weekly Patterns in the Stock Market?

Do price pressures build up over the weekend that cause predictable distortions in the stock market on Monday? If the market is up or down a certain number of days in a row, what are the chances it will follow the trend the next day? Is the trend on Monday reversed on Tuesday? To find out, we loaded our S&P 500 data back to 1980, and ran a test. The results were this - the trend on Monday (either up or down) was reversed 55% of the time, a fairly significant result. This might tell us that the weekend causes an emotional buildup that moves the market an excessive amount on Monday, which is then corrected by Tuesday. Larger stocks, as represented by the Dow Jones Industrial Average, reversed slightly less - 54% of the time. Small stocks, as represented by the Russell 2000 (data back to 1990) showed the opposite pattern, going with the trend 60% of the time.

In the futures markets, the US dollar (data back to 1990) reversed 54% of the time, and the 30 year treasury bond (data back to 1987) reversed 53% of the time.

In recent years, the pattern has been less pronounced. In fact, if you study just the last two years, you get reversals of 53% in the Dow, 52% in the S&P 100, a continuation in the trend 50.5% of the time in the S&P 500 and a continuation 54% of the time in the Russell 2000 . The US dollar has reversed 58% of the time in the last two years, the CRB index 54% of the time, while other futures have shown continuation trends - 55% for gold, 54% for treasury bonds, and 55% for crude oil.

Next, we studied every possible price trend for the five day period. A nice Thursday trend emerged - if Monday and Tuesday went one direction, and then Wednesday reversed this trend, there was a 62% chance that Thursday would continue this reversal (we’ll represent this as XXOO, where X just means one direction, not necessarily up or down, and O means the other direction). If the first four days of the week all moved in the same direction (XXXX), Friday had a 61% chance of doing the same (XXXXX). And if Tuesday reversed Monday, but was then reversed by Wednesday, and the trend continued Thursday, there was a 63% chance that Friday would continue the trend set Wednesday (XOXXX).

The MetaStock formulas for the Tuesday calculation are included below. Formulas for the remaining days of the week build on these formulas, and are too extensive to include here (you need 2 formulas for Tuesday, 4 for Wednesday, 8 for Thursday, and 16 for Friday).

To build an exploration that looks for stocks with a high incidence of Tuesday reversal, simply put the formula "Tuesday % occurrence. of XX vs. XO" in a column in the Explorer, run an exploration on all of your securities, then sort by the aforementioned formula.

======================
Formula "Tuesday XX Pattern"

{ Looks for XX pattern, returns +1 if it finds it }
If(Ref(DayOfWeek(),-2) = 5 {2 days ago was Fri} AND
Ref(DayOfWeek(),-1) = 1 {Yesterday was Mon}
AND
DayOfWeek() = 2 {Today is Tuesday}
AND { Either both days were up or down }
((Ref(CLOSE,-2) > Ref(CLOSE,-1) AND
Ref(CLOSE,-1) > CLOSE ) OR
(Ref(CLOSE,-2) < Ref(CLOSE,-1) AND
Ref(CLOSE,-1) < CLOSE )) ,
+1, { +1 if XX pattern }
0) { Otherwise 0 }

======================
Formula "Tuesday XO Pattern"

{ Looks for XO pattern, returns +1 if it finds it }
If(Ref(DayOfWeek(),-2) = 5 {2 days ago was Fri} AND
Ref(DayOfWeek(),-1) = 1 {Yesterday was Mon}
AND
DayOfWeek() = 2 {Today is Tuesday}
AND { Tuesday is opposite direction of Monday }
((Ref(CLOSE,-2) > Ref(CLOSE,-1) AND
Ref(CLOSE,-1) < CLOSE ) OR
(Ref(CLOSE,-2) < Ref(CLOSE,-1) AND
Ref(CLOSE,-1) > CLOSE )) ,
+1, { +1 if XO pattern }
0) { Otherwise 0 }

======================
Formula "Tuesday % occurrence. of XX vs. XO"
{ Gives the % occurrence of XX (that Tuesday goes the same direction as Monday) }

Cum(Fml("Tuesday XX pattern"))/
(Cum(Fml("Tuesday XX pattern")) + Cum(Fml("Tuesday XO pattern")) ) * 100

======================

Note that unchanged days, either Monday or Tuesday, are ignored in the calculations.

by John DeBry

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ATR Custom Indicator

periods:=Input("ATR Periods?",1,100,10);
TH:=If(Ref(C,-1) > H,Ref(C,-1),H);
TL:=If(Ref(C,-1) < L,Ref(C,-1),L);
TR:=TH-TL;
Mov(TR,periods,S)

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ATR Modified

prd1:=input("enter ATR period",1,9999,7);
prd2:=(prd1*2)-1;
{max (absolute) of yesterday's close to today's high or today's low}
myatr1:=Max(Abs(Ref(C,-1)-H),Abs(Ref(C,-1)-L));
{max of yesterday's close to today's high or today's low or today's range}
myatr2:=Max(myatr1,H-L);

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ATR Trailing Stop Loss

For Long:
HHV(H - 2.5*ATR(5),10)

For Short:
LLV(L + 2.5*ATR(5),10)

Furthermore, it may be beneficial to dynamically adjust the number of lookback periods in the HHV() or the LLV() function.

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Automatic Support and Resistance

Copied from Technical Analysis of Stocks and Commodities Magazine. This is in regards to an article on page 51 of the May 1998 issue.
In my article "Automatic support and resistance" in this issue, I present a computerized approach to finding support and resistance levels on a chart. To recreate the indicators and system described in my article using MetaStock for Windows, enter the following formulas:

Indicators:
S1: IF(Ref(LOW,-4)=LLV(LOW,9),Ref(LOW,-4),PREVIOUS)
S2: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S1"),-1))
S3: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S2"),-1))
S4: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S3"),-1))
S5: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S4"),-1))
S6: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S5"),-1))

WSO: 100*(1­(Int(Fml("S1")/CLOSE)+Int(Fml("S2")/CLOSE)+Int(Fml("S3")/CLOSE)+Int(Fml("S4")/CLOSE) +Int(Fml("S5")/CLOSE)+Int(Fml("S6")/CLOSE))/6)

R1: IF(Ref(HIGH,-4)=HHV(HIGH,9),Ref(HIGH,-4),PREVIOUS)
R2: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R1"),-1))
R3: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R2"),-1))
R4: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R3"),-1))
R5: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R4"),-1))
R6: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R5"),-1))

WRO: 100*(1­(Int(Fml("R1")/CLOSE)+Int(Fml("R2")/CLOSE) +Int(Fml("R3")/CLOSE)+Int(Fml("R4")/CLOSE) +Int(Fml("R5")/CLOSE)+Int(Fml("R6")/CLOSE))/6)

The indicators S1 through S6 and R1 through R6 should be plotted as points and not as a continuous line.

Trading System Formulas and Parameters: Enter long positions on either building support or sustained uptrend and exit position using stops. No short positions.

Enter Long: Fml("WSO") > Mov( Fml("WSO") , 4 , S ) OR Mov( Fml("WRO") , 30 , S ) > 95

Stop Out:

Breakeven stop: Floor level at 2%

Trailing stop: Profit risk of 10 Percent, ignoring 10 periods

Maximum loss stop: Maximum loss of 7%

Other Conditions:

Initial equity = 1000, Long positions only, Trade price = close, Trade delay = 0, Entry commission = 0%, Exit commission = 0%, , Interest rate = 5%, Margin req. 100%

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Average Dollar Price Volatility Exploration-Deel

This exploration is designed to provide the average dollar price volatility figure in column F. This will find this figure for all stocks scanned. It is most useful to apply this just to an exploration of a small group of stocks. It matches the steps in Deels book The Strategic Electronic Day Trader.
                   
Col A: day 1    HIGH - LOW   
Col B: day 2    Ref((HIGH-LOW),-1)   
Col C:     Ref((HIGH-LOW),-2)   
Col D:     Ref((HIGH-LOW),-3)   
Col E:     Ref((HIGH-LOW),-4)   
Col F:     (H - L + (Ref(H,-1) - Ref(L,-1)) + (Ref(H,-2) - Ref(L,-2))+(Ref(H,-3) - Ref(L,-3)) + (Ref(H,-4) - Ref(L,-4))) / 5

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Average Dollar Price Volatility Indicator-Deel

This indicator plots the value on the chart display. It is useful only as a quick method of attaching the volatility value to the stock. Apply this with caution and make sure that the new scale display is also included.

(H - L + (Ref(H,-1) - Ref(L,-1)) + (Ref(H,-2) - Ref(L,-2))+(Ref(H,-3) - Ref(L,-3)) + (Ref(H,-4) - Ref(L,-4))) / 5

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Average-Modified Method

From The New Commodity Trading Systems and Methods,
by Perry J. Kaufman Chapter 4 - Moving Averages, pg. 60.

This formula is for version 6.5 of MetaStock for Windows 95 & NT only and cannot be written in previous version.
This is a modified simple moving average.

The formula will prompt you for input for the number of time periods to use in the moving average.

Day:=Cum(1)+1;

Z:=Input("Periods",2,1000,5);

MV:=(1/Z);

If(Day<(Z+2),C,If(day=(Z+2),Mov(C,LastValue(Z),S),PREV+(MV*(C-PREV))))

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5 35 5 MACD

The 5,35,5 MACD is a variation of the standard 12,26,9 MACD and was made popular by Chris Manning, who uses it to identify major market divergence points:

When first plotted on a chart, the 5,35,5 MACD will appear as a solid line with no horizontal line at the value of zero. After applying the 5 35 5 MACD indicator to your chart, use the following steps to create a histogram with vertical line at zero.

1. Double click the indicator to open the properties dialogue box.

2. Select the Color\Style tab and using the Style drop-down list, select the histogram setting (second from the bottom).

3. Select the Horizontal Lines tab and enter a value of zero (0) for the horizontal line value. Click Add.

4. Click OK

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Absolute Breadth Index

The Absolute Breadth Index (ABI) is a market momentum indicator that was developed by Norman G. Fosback. The ABI shows how much activity, volatility, and change is taking place on the New York Stock Exchange while ignoring the direction prices are headed. You can think of the ABI as an "activity index". High readings indicate market activity and change, while low readings indicate lack of change. In Mr. Fosback's book, Stock Market Logic, he indicates that historically, high values typically lead to higher prices three to twelve months later.

The MetaStock™ formula for the Absolute Breadth Index is:

ABS ( Advancing Issues - Declining Issues )

To plot it:

• Create a composite security of the Advancing Issues - Declining Issues. In Windows versions use The DownLoader™ to create the composite or in the DOS versions use MetaStock's File Maintenance to create the composite.
• In MetaStock open the composite and plot the custom formula ABS( C ) on it.

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Advance Decline Line with Negative Volume

There is a way to get the negative volume on an advance-decline line chart in MetaStock™ for Windows™.

The requirement is: Each security must have both the number of issues and the volume in the file. Advancing issues with advancing volume in one security and declining issues with declining volume in one security file. These files may be obtained from Reuters Trend Data by way of The DownLoader for Windows. You will also need to create a composite security of the Advance-Decline line, which is the advances - declines.

The following steps will get you an advance-decline line with negative volume where applicable. Follow these steps once and save as a CHART. When you want to use it simply load the chart and the program will calculate the new volume plot using the new data.

• Create a NEW chart of the advancing issues.

• Create a NEW chart of the declining issues.

• Create a NEW chart of the advance-decline composite.

• Create a NEW INNER WINDOW on the declining issues chart.

• Delete the volume plot on the advance-decline composite chart.

• Copy the volume from the advancing issues chart and paste it into the new inner window on the declining issues chart.

• Drop the custom formula, P-V on the advancing volume plot in the declining issues chart, creating a new scale.

• Copy that plot to the empty inner window (where the volume was) of the advance-decline composite.

• Save that chart as the adv-decl chart (perhaps advdecl.mwc).

This will be the chart you load to do your study of the advance-decline line with negative volume.

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ADX / ADXR Custom (without Rounding)

Here are custom ADX and ADXR formulas that will plot the decimals after the calculation. The built-in indicators plot exactly as Welles Wilder plots them in his book, New Concepts in Technical Trading Systems. These custom indicators calculate the same way except they do not round as Wilder does.

ADX Custom

Periods:=Input("Time Periods",1,100,14);
PlusDM:=If(H>Ref(H,-1) AND L>=Ref(L,-1), H-Ref(H,-1),If(H >Ref(H,-1) AND L<Ref(L,-1)
AND H-Ref(H,-1)> Ref(L,-1)-L, H-Ref(H,-1),0));
PlusDI:=100*Wilders(PlusDM,Periods)/ATR(Periods);
MinusDM:=If(L<Ref(L,-1) AND H<=Ref(H,-1), Ref(L,-1)-L,If(H>Ref(H,-1) AND L<Ref(L,-1)
AND H-Ref(H,-1)<Ref(L,-1)-L, Ref(L,-1)-L,0));
MinusDI:=100*Wilders(MinusDM,Periods)/ATR(Periods) ;
DIDif:=Abs(PlusDI-MinusDI);
DISum:=PlusDI+MinusDI;
ADXFinal:=100*Wilders(DIDif/DISum,Periods);
ADXFinal

ADXR Custom

Periods:=Input("Time Periods",1,100,14);
PlusDM:=If(H>Ref(H,-1) AND L<=Ref(L,-1), H-Ref(H,-1),If(H>Ref(H,-1) AND L<Ref(L,-1)
AND H-Ref(H,-1)>Ref(L,-1)-L, H-Ref(H,-1),0));
PlusDI:=100*Wilders(PlusDM,Periods)/ATR(Periods);
MinusDM:=If(L<Ref(L,-1) AND H<=Ref(H,-1), Ref(L,-1)-L,If(H>Ref(H,-1) AND L<Ref(L,-1)
AND H-Ref(H,-1)<Ref(L,-1)-L, Ref(L,-1)-L,0));
MinusDI:=100*Wilders(MinusDM,Periods)/ATR(Periods) ;
DIDif:=Abs(PlusDI-MinusDI);
DISum:=PlusDI+MinusDI;
ADXFinal:=100*Wilders(DIDif/DISum,Periods);
ADXRCustom:= (ADXFinal+Ref(ADXFinal,LastValue(1-periods)))/2;
ADXRCustom

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Arms Index (TRIN)

The Arms Index, also known as TRIN, is a market indicator that shows the relationship between the number of stocks that increase or decrease in price (advancing/declining issues) and the volume associated with stocks that increase or decrease in price (advancing/declining volume). The Arms Index was developed by Richard W. Arms, Jr. in 1967.

The Arms Index is primarily a short term trading tool. The Index shows whether volume is flowing into advancing or declining stocks. If more volume is associated with advancing stocks than declining stocks, the Arms Index will be less than 1.0; if more volume is associated with declining stocks, the Index will be greater than 1.0.

The formula for the Arms Index is:

(Advancing Issues / Declining Issues) / (Advancing Volume / Declining Volume)

To calculate the Arms Index in MetaStock™ for Windows you will need to first collect the four pieces of data.

• Reuters Trend Data (RTD) supplies this data in two files. The tickers are X.NYSE-A (Advances, number and volume) and X.NYSE-D (Declines, number and volume).

• Dial/Data also supplies this data in two files. Advances, number and volume and Declines, number and volume. The tickers are @*NAZ_K and @*NDZ_K.

• CompuServe supplies this data in 4 files. The tickers are NYSEI (Advances)use the cusip 00000157 rather than the symbol; NYSEJ (declines); NYUP (Advance volume) and NYDN (decline volume).
   

After the data has been collected follow these steps:

For data from RTD or Dial Data

• In the DownLoader™ create a composite security of the Advances / Declines.

• In MetaStock open the composite.

• Create and plot the custom formula: C/V

• This gives you the Arms Index (TRIN).

For data from CompuServe

• In the DownLoader create the two composites.

  • Advancing Issues / Declining Issues

  • Advancing Volume / Declining Volume

• In MetaStock open both composites.

• Tile the charts so they can both be viewed.

• Drag the plot of the Adv. Volume/Dec. Volume composite into an inner window in the Adv. Issues/Dec. Issues chart.

• Create the custom formula: C/P

• Plot this formula on top of the Adv. Volume/Dec. Volume plot (the Adv. Volume/Dec. Volume plot will turn a purplish color to signify the formula will be plotted on it).

You will know have the Arms Index (TRIN) plotted. You can drag it to its own inner window if you prefer.

For interpretation refer to Mr. Arms book, The Arms Index.

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Aroon Indicators, by Tushar Chande

For interpretation of the Aroon indicators refer to Tushar Chande's article "Time Price Oscillator" in the September, 95 Technical Analysis of Stocks & Commodities magazine.

The Aroon down:

The Aroon up:

The Aroon Oscillator = Aroon up - Aroon down.

** The UP and DOWN Aroon indicators are to be plotted in the same inner-window.
** These are constructed using 14 time periods, you can alter this by replacing every entry of 14 with the desired time period.
Note: The Aroon indicators are built in indicators, in MetaStock 6.0 for Windows.

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