Same Direction

{It returns the number of periods the close is moving in the same direction. A positive number indicates ascending close prices, a negative descending ones and zero unchanged ones}

If(C>Ref(C,-1) AND Ref(C,-1)>Ref(C,-2),PREV+1,
If(C<Ref(C,-1) AND Ref(C,-1)<Ref(C,-2),PREV-1,
If(C>Ref(C,-1) AND Ref(C,-1)<=Ref(C,-2),1,
If(C<Ref(C,-1) AND Ref(C,-1)>=Ref(C,-2),-1,
0))))

This formula might be useful as a component of other indicators, systems or explorations, rather than as a stand-alone indicator.

Setting up the ADX Template

This constructs the template mentioned in the ADX article of the October 1999 issue of TASC by Paul Babbitt.

1. Chart your stock/index/whatever, using a "Clean" template, then do the same again, so that the two overlapping charts are displayed.

2. On the menu bar, click Windows, then Columns. The two charts will then be displayed side-by-side.

3. Change the left-hand chart from Daily to Weekly. Right click on the date scale and select X-Axis. Set the displayed range of dates to what you want, e.g., 1996 to 1999. Make sure the loaded dates range starts earlier. Click the Margin tab and set the margin to 1.

4. From the Indicator drop-down list select Moving Average and drag it to the left-hand chart. A 40 period on the weekly chart corresponds to a 200 day MA.

5. For the right-hand chart, leave it at a daily interval but set the X-Axis as in paragraph 3 above to, say, a 3-month display.

6. Drag the Bollinger Band indicator to the right-hand chart.

7. Drag the Directional Movement ADX indicator to the top of the right-hand chart until the cursor changes to a box, then release. Set the horizontal lines as desired.

8. Similarly drag the RSI indicator to the bottom of the right-hand chart.

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Shark-32 System, Walter Downs

The Shark exit signals don't appear to be all that good. In some cases, the sell signals provide good opportunities for short-selling, but the signals appear to be too few and far between to rely on them for sell signals for long trades. The Shark pattern occurs too infrequently, and there's no guarantee it'll occur when the trend reverses. With long trades, you'd have to look to other indicators, such as CCI, as you say, or maybe Parabolic SAR. You could use price breaking below certain moving averages, too -- or moving- average crossovers.

Seems like entry but no exits in Shark. maybe standard CCI(13) with 200 and -150 triggers.

The shark pattern signals, in the third window in the chart I sent, were really just alerts showing that the shark pattern had occurred on those days. The shark system is based on the close rising above levels set when the shark pattern occurs. The levels are set by the high and low in the shark pattern, and the close must break through them within 25 days of the signal.

The shark pattern, in other words, isn't a buy or sell signal. The buy signals were shown in the second window of the chart I sent. The window is labeled "Shark buy signal." Also, the signals are marked by green arrows over the price plot in the first window of the chart. I didn't include sell signals in the chart I sent earlier today. In the case of MU, the sell signals weren't very good, to be honest.

The Shark system is really based on two separate events: the occurrence of the pattern and then the signal.

The pattern isn't the signal. The system gives a signal if and when the stock breaks above the high point in the pattern over the next 25 days. The high on the first day of the pattern sets that high point. It's like a resistance level, set by the highest point in the shark fin. Sometimes the stock doesn't break above it, so there's no signal. The Shark pattern shows consolidation, which may indicate an expansion in price to come. But the breakout doesn't always occur. If the stock breaks below the low point in the pattern, there's a sell signal.

The idea behind the system is: Look for a three-bar shark pattern, based on progressively smaller ranges. It looks like a shark fin. Once that pattern appears, a level is set by the highest point in the fin, which is the high(-2). In the scan, I call that level "Sharkhigh." To get a buy signal, the price has to close above that level within 25 days. If you want to plot "sharkhigh" over a chart with the price, you can do it with the "BuyOK" part of the Metastock formula by plotting this in the Expert Adviser:

Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);

Shark:=If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2))=1,
{ try Ref(L,-1)>Ref(L,-2)), without the "=1"}
If(apex <= (Ref(H,-2)-(WB*Symmetry)) AND Apex >=
(Ref(L,-2)+(WB*Symmetry)) ,1,0),0);

Buyok:=Cross(C,ValueWhen(1,Shark=1,Ref(H,-2)));
{try Buyok:=ValueWhen(1,Shark=1,Ref(H,-2));}

Chk:=Cum(Buyok)-ValueWhen(1,Shark=1,Cum(Buyok));

ValidChk:=Alert(Shark=1,25);

Buy:= Buyok=1 AND Ref(Chk,-1)=0 AND ValidChk=1;

Buy OR Ref(Buy,-1) OR Ref(Buy,-2) OR Ref(Buy,-3) OR Ref(Buy,-4) OR
Ref(Buy,-5);

From: Brooke

For the pattern in the Indicator Builder:

Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);

If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2)),
If(apex <= (Ref(H,-2)-(WB*Symmetry)) AND Apex >=
(Ref(L,-2)+(WB*Symmetry)) ,1,0),0);

That's like a resistance level that the price has to break through. It lasts for 25 days or until a new Shark signal appears.

Combining Statistical and Pattern Analysis, Shark – 32 - Walter T.
Down, TASC 10/1998
Equis

First, choose Expert Adviser from the Tools menu in MetaStock 6.5.
Next, choose New and enter the following formulas:

Name:
Click the Name tab and enter "Shark – 32" in the Name field.

Trends:
Click the Trends tab and enter the following formulas in the Bullish
and Bearish fields.

Bullish: Mov(C,5,S)>Mov(C,20,S);

Bearish: Mov(C,5,S)<Mov(C,20,S);

Highlights:

Click the Highlights tab, choose New, and enter "3rd Bar" in the Name field. Now change the color in the Color field to Blue. Finally, enter the following formula in the Condition field, and then choose OK.

Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);
Shark:=If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2))=1,If(Apex <=
(Ref(H,-2)-(WB*Symmetry)) AND Apex >= (Ref(L,-2)+(WB*Symmetry))
,1,0),0);
Shark;

Using the same method as above, enter the following 2 highlight formulas.

Name: 2nd Bar
Color: Blue
Condition:
Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);
Shark:=If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2))=1,If(Apex <=
(Ref(H,-2)-(WB*Symmetry)) AND Apex >= (Ref(L,-2)+(WB*Symmetry))
,1,0),0);
Ref(Shark,+1)=1;

Name: 1st Bar
Color: Blue
Condition:
Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);
Shark:=If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2))=1,If(Apex <=
(Ref(H,-2)-(WB*Symmetry)) AND Apex >= (Ref(L,-2)+(WB*Symmetry))
,1,0),0);
Ref(Shark,+2)=1;

Symbols:
Click the Symbols tab, choose New and enter "Shark Buy" in the Name field. Now enter the following formula in the Condition field.

Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);
Shark:=If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2))=1,If(apex <=
(Ref(H,-2)-(WB*Symmetry)) AND Apex >= (Ref(L,-2)+(WB*Symmetry))
,1,0),0);
Buyok:=Cross(C,ValueWhen(1,Shark=1,Ref(H,-2)));
Chk:=Cum(Buyok)-ValueWhen(1,Shark=1,Cum(Buyok));
ValidChk:=Alert(Shark=1,25);

{Note* The above ValidChk variable makes the Shark signal valid for 25 periods. If the price does not cross above the High value of the base within 25 periods, you will not receive a signal. You can change the number of periods by changing 25 to the number of periods you desire. *}

Buy:= Buyok=1 AND Ref(Chk,-1)=0 AND ValidChk=1;
Buy;

Click the Graphic tab. Change the symbol in the Graphic field to Buy Arrow. Now change the color in the Color field to Green. Finally, type "Buy" in the Label field, and then choose OK.

Using the Same method as above, enter the following Symbol formula.

Name: Shark Sell
Condition:
Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);
Shark:=If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2))=1,If(apex <=
(Ref(H,-2)-(WB*Symmetry)) AND Apex >= (Ref(L,-2)+(WB*Symmetry))
,1,0),0);
Sellok:=Cross(ValueWhen(1,Shark=1,Ref(L,-2)),C);
Chk:=Cum(Sellok)-ValueWhen(1,Shark=1,Cum(Sellok));
ValidChk:=Alert(Shark=1,25);

{Note* The above ValidChk variable makes the Shark signal valid for 25 periods. If the price does not cross below the Low value of the base within 25 periods, you will not receive a signal. You can change the number of periods by changing 25 to the number of periods you desire.*}

Sell:= Sellok=1 AND Ref(Chk,-1)=0 AND ValidChk=1;
Sell;
Symbol: Sell Arrow
Color: Red
Label: Sell

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Shark Pattern

Symmetry:=.28;
Apex:=(H+L)/2;
WB:=Ref(H,-2)-Ref(L,-2);

If((H<Ref(H,-1) AND L>Ref(L,-1) AND Ref(H,-1)<Ref(H,-2) AND
Ref(L,-1)>Ref(L,-2)),
If(apex <= (Ref(H,-2)-(WB*Symmetry)) AND Apex >=
(Ref(L,-2)+(WB*Symmetry)) ,1,0),0);


{simply place the above in the filter section}

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Shifted TSMA Indicator

You could use the Reference (Ref) function to shift your indicator back in time and you could add or multiply by a constant or variable to give your indicator a vertical shift. I've never used a time series moving average so I'm kind of out of my league, but I guess it could look like this:

TSMA:= Mov(CLOSE,5,TIMESERIES);
ShiftedTSMA:= Ref(TSMA, -1) + 2;
ShiftedTSMA

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Signal Formulas

MetaStock for Windows System Tester
01_R2/Regress Slope/MFI/TSF - (Vol Rqd)

Enter Long:
Alert(RSquared(C,21) < 0.15,21) AND
LinRegSlope(C,34) > opt1 AND
HHV(LinRegSlope(C,34),5) =
HHV(LinRegSlope(C,34),13) AND
HHV(MFI(55),5) = HHV(MFI(55),13) AND
HHV(TSF(C,55),5) = HHV(TSF(C,55),13)
Close Long:
LLV(TSF(C,55),5) = LLV(TSF(C,55),13) AND
LinRegSlope(C,34) < opt1
Enter Short:
Alert(RSquared(C,21) < 0.15,13) AND
LinRegSlope(C,34) < opt2 AND
LLV(LinRegSlope(C,34),5) =
LLV(LinRegSlope(C,34),13) AND
LLV(MFI(55),5) = LLV(MFI(55),13) AND
LLV(TSF(C,144),5) = LLV(TSF(C,144),13)
Close Short:
HHV(TSF(C,144),5) = HHV(TSF(C,144),13)
OPTIMIZATION VARIABLES

OPT1: Min = -0.10 Max = 0.00 Step = 0.10
OPT2: Min = -0.20 Max = 0.00 Step = 0.10
STOPS ALL OFF

02_R2/Regress Slope/CMO - All
SIGNAL FORMULAS

Enter Long:
Alert(RSquared(C,21) < 0.15,21) AND
LinRegSlope(C,34) > opt1 AND
HHV(LinRegSlope(C,34),5) =
HHV(LinRegSlope(C,34),13) AND
CMO(C,55) > 0 AND
C = HHV(C,5)
Close Long:
LinRegSlope(C,34) < opt1 AND
CMO(C,55) < 0 AND
C = LLV(C,5)
Enter Short:
Alert(RSquared(C,21) < 0.15,13) AND
LinRegSlope(C,34) < opt2 AND
LLV(LinRegSlope(C,34),5) =
LLV(LinRegSlope(C,34),13) AND
CMO(C,55) < 0 AND
C = LLV(C,5)
Close Short:
LinRegSlope(C,34) > opt2 AND
CMO(C,55) > 0 AND
C = HHV(C,5)
OPTIMIZATION VARIABLES

OPT1: Min = -0.10 Max = 0.00 Step = 0.10
OPT2: Min = -0.20 Max = 0.00 Step = 0.10

STOPS ALL OFF

03_R2/Regress Slope/Qstick - (OHLC Rqd)
SIGNAL FORMULAS

Enter Long:
Alert(RSquared(C,21) < 0.15,21) AND
LinRegSlope(C,34) > opt1 AND
HHV(LinRegSlope(C,34),5) =
HHV(LinRegSlope(C,34),13) AND
Qstick(55) > opt1 AND
HHV(Qstick(55),5) = HHV(Qstick(55),13)
AND C=HHV(C,5)
Close Long:
LinRegSlope(C,34) < opt1 AND
Qstick(55) < opt1 AND
C = LLV(C,5)
Enter Short:
Alert(RSquared(C,21) < 0.15,13) AND
LinRegSlope(C,34) < opt2 AND
LLV(LinRegSlope(C,34),5) =
LLV(LinRegSlope(C,34),13) AND
Qstick(55) < opt2 AND
LLV(Qstick(55),5) = LLV(Qstick(55),13)
AND C = LLV(C,5)
Close Short:
LinRegSlope(C,34) > opt2 AND
Qstick(55) > opt2 AND
C = HHV(C,5)

OPTIMIZATION VARIABLES

OPT1: Min = -0.10 Max = 0.00 Step = 0.10
OPT2: Min = -0.10 Max = 0.00 Step = 0.10

STOPS ALL OFF

04_R2/Regress Slope/CCI/TSF - All
SIGNAL FORMULAS

Enter Long:
Alert(RSquared(C,21) < 0.15,21) AND
LinRegSlope(C,34) > opt1 AND
HHV(LinRegSlope(C,34),5) =
HHV(LinRegSlope(C,34),13) AND
HHV(CCI(55),5) = HHV(CCI(55),13) AND
CCI(55) > 0 AND
HHV(TSF(C,55),5) = HHV(TSF(C,55),13)
AND C = HHV(C,5)
Close Long:
LLV(TSF(C,55),5) = LLV(TSF(C,55),13) AND
LinRegSlope(C,34) < opt1 AND
CCI(55) < 0 AND
C = LLV(C,5)
Enter Short:
Alert(RSquared(C,21) < 0.15,13) AND
LinRegSlope(C,34) < opt2 AND
LLV(LinRegSlope(C,34),5) =
LLV(LinRegSlope(C,34),13) AND
LLV(CCI(55),5) = LLV(CCI(55),13) AND
LLV(TSF(C,144),5) = LLV(TSF(C,144),13)
AND C = LLV(C,5)
Close Short:
HHV(TSF(C,144),5) = HHV(TSF(C,144),13) AND
C = HHV(C,5)
OPTIMIZATION VARIABLES

OPT1: Min = -0.10 Max = 0.00 Step = 0.10
OPT2: Min = -0.20 Max = 0.00 Step = 0.10

STOPS ALL OFF

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Short term horizontal trading ranges

exploration by Jim Greening

HHV(C,21) < 1.1*Mov(C,21,S) AND
LLV(C,21) > 0.9*Mov(C,21,S)

{place the formulas above in the filter section; nothing else is required}

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Sideways Channels Exploration

Periodicity: Daily

Formulas

ColumnA: Top
Mov(Peak(1,H,1),45,S)-Ref(Mov(Peak(1,H,1),45,S),-45)

ColumnB: Bottom
Mov(Trough(1,L,1),45,S)-Ref(Mov(Trough(1,L,1),45,S),-45)

Filter:
ColA < 1 AND ColA > -1 AND ColB < 1 AND ColB > -1

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Sine Weighted Moving Average

{from Equis}

PI:=3.1415926;
SD:=180/6;
S1:=Sin(1*180/6)*C;
S2:=Sin(2*180/6)*Ref(C,-1);
S3:=Sin(3*180/6)*Ref(C,-2);
S4:=Sin(4*180/6)*Ref(C,-3);
S5:=Sin(5*180/6)*Ref(C,-4);
Num:=S1+S2+S3+S4+S5;
Den:=Sin(SD)+Sin(2*SD)+Sin(3*SD)+Sin(4*SD)+Sin(5*SD);
Num/Den

I use the peak and trough function in MetaStock to show support and resistance levels. It could also be used as a trailing stoploss method.

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SIROC Indicator From Elder

ROC(Mov(C,13,E),21,%)

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Slope of a Linear Regression Line

The following custom formula will return the slope of a Linear Regression Line.
tp:=Input("Time Periods",1,200,21);

((tp*(Sum(Cum(1)*C,tp)))-(Sum(Cum(1),tp)*(Sum(C,tp))))/((tp*Sum(Pwr(Cum(1),2),tp))-Pwr(Sum(Cum(1),tp),2))

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SPECIAL TRIX

This is my own version of the well-known indicator, TRIX. I have had much better results with this than the canned version that comes with every charting program.

trix(12)-ref((trix(12)),-1)

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Stix Indicator

Mov((H+L)/2,5,S)-Mov((H+L)/2,35,S)

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Stochastic and RSI System

Mov((RSI(8)-LLV(RSI(8),8))/(HHV(RSI(8),8)-(LLV(RSI(8),8))),5,w)*100

A formula like this works best with confirming indicators. If the MACD 13-34-89 is above the zero line (purple line in window 2 above), it confirms and uptrend and the indicator is usually more accurate. If the MACD 13-34-89 is below the zero line, then a "short" indication from the StochRSI may give better results.StochRSI 13 also gives excellent indicators- in this index it had 4 out of 5 winning signals in two year period. The time between signals is of course longer. Check this method out on your favorite issues.

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Stochastic MA System

enter long
mov(stoch(55,21),5,w)>ref(mov(stoch(55,21),5,w),-1)
and mov(stoch(55,21),5,w)<75 and
mov(stoch(55,21),5,w)>20
exit long
(mov(stoch(55,21),5,w)<75 and
ref(mov(stoch(55,21),5,w),-1)>75)
enter short
(mov(stoch(55,21),5,w)<70 and
ref(mov(stoch(55,21),5,w),-1)>70) and
mov(stoch(55,21),5,w)<ref(mov(stoch(55,21),5,w),-1)
exit short
mov(stoch(55,21),5,w)>ref(mov(stoch(55,21),5,w),-1)
and mov(stoch(55,21),5,w)<75 and
mov(stoch(55,21),5,w)>20

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Stochastic Momentum

SMI-Plex:=
StochMomentum(2,1,2)+StochMomentum(3,2,1)+StochMomentum(4,2,3)+StochMomentum
(5,3,5)+StochMomentum(8,21,13)+StochMomentum(13,25,2)

SMI13E-Plex:=
Mov(StochMomentum(2,1,2)+StochMomentum(3,2,1)+StochMomentum(4,2,3)+StochMome
ntum(5,3,5)+StochMomentum(8,21,13)+StochMomentum(13,25,2),13,E)

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Stochastic Momentum Indicator

{Appeared in the January 1993 issue of Stocks & Commodities magazine}

100 * ( Mov( Mov(C - (.5 * ( HHV(H,13) + LLV(L,13))),25,E),2,E) / (.5*Mov(
Mov( HHV(H,13) - LLV(L,13),25,E),2,E)))

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StochPVT Indicators

Though not directly related to the volume percent indicator, I have recently been using a volume indicator that I wrote myself in MetaStock's formula language. It uses the same idea that Chande used to turn RSI into the StochRSI oscillator and the preprogrammed Price Volume Trend function. Price Volume Trend is similar to On Balance Volume, except that as the volume is accumulated, it is weighted according to the percent price change from the previous close.

I use fast and slow "stochastic" lines to judge when either accumulation or distribution is taking place. I used a look back period of 19 days which fits my style. Signals are generated by the fast crossing above or below the slow lines. I have not worked with it enough to say whether or not divergences offer signals too.

Formulas for the StochPVT are shown below:

{Fast line}

Mov((PVT()-LLV(PVT(),19))/
(HHV(PVT(),19)-LLV(PVT(),19)), 5, S)

{Slow Line}

Mov(Mov((PVT()-LLV(PVT(),19))/
(HHV(PVT(),19)-LLV(PVT(),19)), 5, S),3,S)

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Stoch RSI

Although I keep the best of the bunch as a "super secret" for friends, relatives, and clients ... here is a smattering of formulae that might be useful. StoRSI's perform very differently when you plug in various numbers. Experiment and determine which are most suitable for your style and markets. Substitute numbers, apply moving averages, get creative. These are just a few:

((RSI(21)-LLV(RSI(21),8))/((HHV(RSI(21),13))-LLV(RSI(21),13)))

((RSI(21)-LLV(RSI(21),21))/((HHV(RSI(21),21))-LLV(RSI(21),21)))

((RSI(14)-LLV(RSI(14),14))/((HHV(RSI(14),14))-LLV(RSI(14),14)))

Mov((RSI(21)-LLV(RSI(21),13))/(HHV(RSI(21),8)-(LLV(RSI(21)+.00001,13))),8,E)*100

Mov((RSI(5)-LLV(RSI(5),5))/(HHV(RSI(5),5)- (LLV(RSI(5),5))),3,E)*100

Mov((RSI(13)-LLV(RSI(13),13))/(HHV(RSI(13),13)- (LLV(RSI(13),13))),3,E)*100

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Stop Loss Indicator

periodsshort:=Input("periods if short",1,50,10); periodslong:=input("periods
if long",1,50,10);

HHV(H,periodsshort)-atr(periodsshort);{stop loss level for short positions}
LLV(L,periodslong)+ATR(periodslong);{stop loss level for long positions}

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ST Oscillator

{The StTO is really nothing unique. It is basically a momentum indicator and plots very similar to the "Chande Momentum Oscillator" with the main difference being the "StTO" doesn't seem to swing as far as the CMO. I am not sure how the math is calculated for the CMO, but the (basic) math for the StTO is:

(Close- Yesterday's Close) /(H-L)}

{Here is the MetaStock code I use:}

{name: StTO}

{Short-term Trend Oscillator}

Lb:=Input("Smoothing Period?",1,60,5);
Num:=C-Ref(C,-1);
Den:=H-L;
Mn:=If(Mov(Num,Lb,S)=0,.01,Mov(Num,Lb,S));
Md:=If(Mov(Den,Lb,S)=0,.01,Mov(Den,Lb,S));
(Mn/Md)*100

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Starc Band

STARC BAND Formula = (Mov(Typical(),5,S))

Starc Upper Band:
Fml( "STARC BAND" )+ (ATR(15)*1.33)

Starc Lower Band:
Fml( "STARC BAND" )-(ATR(15)*1.33)

Any five day moving average will work.

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Support and Resistance

I wrote this MetaStock Expert for calculating the support 1 & 2 and resistance 1 & 2 as per Futures magazine, October 1999, page 52.

FIRST RESISTANCE: WRITEVAL(-L+(2* (H+L+C)/3),1.2)
SECOND RESISTANCE: WRITEVAL(((H+L+C)/3) +((-L+(2*
(H+L+C)/3))-(-H+(2* (H+L+C)/3))),1.2)
FIRST SUPPORT:
WRITEVAL(-H+(2*(H+L+C)/3),1.2)
SECOND SUPPORT: WRITEVAL(((H+L+C)/3)
-((-L+(2* (H+L+C)/3))-(-H+(2* (H+L+C)/3))),1.2)

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Support and Resistance Levels

AVd:=If(CLOSE>Ref(Peak(1,H,1) ,-1),
{then}1,
{else}If(CLOSE<Ref(Trough(1,L,1),-1),
{then}-1,
{else}0));
ANv:=ValueWhen(1,AVd<>0,AVd);
SuRe:=If(ANv=-1,
{then}Peak(1,H,1),
{else}Trough(1,L,1));
SuRe;

{StochCMO}

mp1:=Input("RSI Periods",1,377,13);
mp2:=Input("Stoch Periods",1,377,13);
mp3:=Input("Slowing Periods",1,377,1);
mp4:=Input("EMA Periods",1,377,5);

Mov(Sum((CMO(c,mp1)-LLV(CMO(c,mp1),mp2)),mp3)/Sum((.0000001+(HHV(CMO(c,mp1),
mp2)-(LLV(CMO(c,mp1),mp2)))),mp3),mp4,E)*100

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System Test Examples

from Glen Wallace

"Buy at the open plus half the average true range of the last ten days?"

HIGH >= OPEN + 0.5*Ref(ATR(10), -1)

"If these two moving averages cross today, buy on tomorrow's open."

MA1:= Mov(CLOSE, 10, SIMPLE);
MA2:= Mov(CLOSE, 20, SIMPLE);
Ref(Cross(MA1, MA2), -1)
(with System Testing Options | Testing tab | Entry Price set to "Open" and delay set to
zero)

"Exit five bars after entry."

EntryCondition:= {your trade entry conditions};
BarsSince(EntryCondition >= 5)

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Short Volume Wave

if(oscv(1,50,S,%),>,0, if(V,>,ref(V,-1),1,0),0)

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Slope of a Line

The following custom formula returns the slope of a line. For example, this formula returns the slope of a 14 day run of the security's closing prices.

( (14 * (Sum(Cum( 1 ) * C ,14 ) ) ) - (Sum(Cum( 1 ) ,14 ) * (Sum( C ,14) ) ) ) / ( (14 * Sum(Pwr (Cum( 1 ) ,2 ) ,14 ) ) - Pwr(Sum(Cum( 1 ) ,14 ) ,2 ) )

To apply this to different lines you would replace C with the desired syntax for the line. For example the slope of a 25 period simple moving average would be:

( ( Sum(Cum(1) * Mov(C,25,S),14) ) - (Sum(Cum(1),14) * Sum(Mov(C,25,S),14) / 14) ) / ( (Sum(Power(Cum(1),2),14) ) - (Power(Sum(Cum(1),14),2) / 14) )

You could also make this a universal formula by using the P variable. You could then plot the formula on top of any line.

( (14*(Sum(Cum(1)*P,14) ) ) - Sum(Cum(1),14)*(Sum(P,14 ) ) ) / ( (14*Sum(Pwr(Cum(1),2 ),14 ) )-Pwr(Sum(Cum(1),14),2 ) )

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Standard Error Bands for MetaStock for Windows

For interpretation refer to the article "Standard Error Bands", in the September 96 issue of TASC, written by Jon Anderson.

21 period Upper Band (smoothed):

Mov((21 * Sum(Cum(1) * C,21) - Sum(Cum(1),21) * Sum(C,21)) / (21 * Sum(Pwr(Cum(1),2),21) - Pwr(Sum(Cum(1),21),2)) * Cum(1) + (Mov(C,21,S) - Mov(Cum(1),21,S) * (21 * Sum(Cum(1) * C,21) - Sum(Cum(1),21) * Sum(C,21))/ (21 * Sum(Pwr(Cum(1),2),21) - Pwr(Sum(Cum(1),21),2))) +2*(Sqrt(((Sum(Power(C,2),21)-(Power(Sum(C,21),2)/21)) -((Sum(Cum(1)*C,21))-((Sum(Cum(1),21)*Sum(C,21)/21)))/ ((Sum(Power(Cum(1),2),21))-(Power(Sum(Cum(1),21),2)/21)) *((Sum(Cum(1)*C,21))-((Sum(Cum(1),21)*Sum(C,21)/21)))) /19)),3,S)

21 period Lower Band (smoothed):

Mov((21 * Sum(Cum(1) * C,21) - Sum(Cum(1),21) * Sum(C,21)) / (21 * Sum(Pwr(Cum(1),2),21) - Pwr(Sum(Cum(1),21),2)) * Cum(1) +(Mov(C,21,S) - Mov(Cum(1),21,S) * (21 * Sum(Cum(1) * C,21) - Sum(Cum(1),21) * Sum(C,21))/ (21 * Sum(Pwr(Cum(1),2),21) - Pwr(Sum(Cum(1),21),2))) - 2*(Sqrt(((Sum(Power(C,2),21)-(Power(Sum(C,21),2)/21)) -((Sum(Cum(1)*C,21))- ((Sum(Cum(1),21) * Sum(C,21)/21))) / ((Sum(Power(Cum (1),2),21))-(Power(Sum(Cum(1),21),2)/21))*((Sum(Cum(1)*C,21))- ((Sum(Cum(1),21)*Sum(C,21)/21)))) /19)),3,S)

21 period R2 (smoothed):

Mov((Pwr(Corr(Cum(1),C,21,0),2)),3,S)

21 period Regression Slope:

(((Sum(Cum(1)*C,21))-(Sum(Cum(1),21)*Sum(C,21)/21)) / ((Sum(Power(Cum(1),2),21))-(Power(Sum(Cum(1),21),2)/21)))

21 period %A:

((C-Fml("21 period lower band (smoothed)")) / (Fml("21 period upper band(smoothed)") -Fml("21 period lower band (smoothed)")))

21 period Regression (smoothed):

Mov((21*Sum(Cum(1)*C,21)-Sum(Cum(1),21)*Sum(C,21))/ (21*Sum(Pwr(Cum(1),2),21)-Pwr(Sum(Cum(1),21),2))*Cum(1) +(Mov(C,21,S) - Mov(Cum(1),21,S) * (21*Sum(Cum(1) * C,21) - Sum(Cum(1),21)*Sum(C,21))/(21*Sum(Pwr(Cum(1),2),21) -Pwr(Sum(Cum(1),21),2))),3,S)

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Stochastic %D

The following formula is a three day moving average of a 14 day Stochastic. In MetaStock for Windows this would be the indicator line that is plotted with the built in Stochastic indicator

Mov( ( ( ( C - LLV( L,14 ) ) /( HHV( H,14 ) - LLV( L,14 ) ) ) * 100 ) ,3 ,S )

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Stochastic Wave Long

if(ref(stoch(14,3),-1),=,llv(stoch(14,3),3),2, if(stoch(14,3),=,llv(stoch(14,3),3),1,0))

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Stochastic Wave Short

if(ref(stoch(14,3),-1),=,hhv(stoch(14,3),3),2, if(stoch(14,3),=,hhv(stoch(14,3),3),1,0))

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Support and Resistance

Think of security prices as the result of a head-to-head battle between a bull (the buyer) and a bear (the seller). The bulls push prices higher and the bears push prices lower. The direction prices actually move reveals who is winning the battle.

Support levels indicate the price where the majority of investors believe that prices will move higher, and resistance levels indicate the price at which a majority of investors feel prices will move lower.

To create the Support and Resistance indicator in MetaStock use the following custom formula:

LookBack := Input("Look Back Periods",1,1000,10);
Resistance :=ValueWhen(1,Cross(Mov(C, LookBack,
S),C),HHV(H, LookBack));
Support :=ValueWhen(1,Cross(C,Mov(C, LookBack,
S)),LLV(L, LookBack));
Resistance;
Support;

To use this formula most effectively, use the parameters dialogue to change the style to a dotted line while increasing the line weighting.

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Simple Moving Average with Resistance and Support

In this issue, Dennis L.Tilley uses support and resistance to confirm price and SMA crossover signals in his article "Simple Moving Average with Resistance and Support".

In MetaStock for Windows, you can easily recreate the SMARS Indicators discussed in Tilley's article. First, choose Indicator Builder from the Tools menu in MetaStock 6.5. Next, choose New and enter the following formulas:

*Note: It is much easier to see the difference between the actual "Resistance and Support" lines and the "Resistance and Support * F " lines if you change the color and/or style of one of them.

To Display the Indicators in MetaStock 6.5 Drag the "Moving Average" indicator from the Indicator QuickList into the price window. Choose Simple as the method, enter the time periods and then click OK.

Now, drag the "Resistance and Support" indicator from the QuickList into the price window. You will be prompted to enter the "Look Back" periods. You should select the same time periods you used with the "Moving Average".

Finally, drag the "Resistance and Support * F" indicator into the price window. You will be prompted to enter the "Percentage" and the "Look Back" periods. If you would like the indicator to be a 10% difference from the "Resistance and Support" line, you would enter 10. You should select the same time periods you used with the "Moving Average".

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Smoothing Techniques for More Accurate Signals

The following MetaStock formulas are from the 1998 January TASC article "Smoothing Techniques for more Accurate Signals", by Tim Tillson. Refer to his article for interpretation.

"More sophisticated smoothing techniques can be used to determine market trend. Better trend recognition can be lead to more accurate trading signals."

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