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Dear Christos Panayiotou,
"We search for stocks, overbought more than 10 days and then cross
the overbought level (say 80) downwards. This is a sign that
overbought condition may come to an end, especially if a negative
divergence occurs.
Sometimes a stock may be overbought just for one or two days. This is
not so important, may happen for various reasons and we want to
filter it out.
More than ten days overbought, at least, is not coincidental."
This is a fine scenario and, whithout a proof, the only remaining
thing for you is that the author is experienced etc.Thank you for
these kind words.
But, we need proofs.
And here we have the opportunity to prove this, not only for a single
stock, but for the whole market. If results are positive, then this
scenario is working for your market. In the opposite, search for
something else.
We search here for overbought issues, with stochd(14)>80, for more
than 10 days, until they cross again the 80 line.
For this purpose we create a new composite, say "_tendays80".
(As you know, from the newsletter, you may create many composites)
/*OVERBOUGHT ISSUES WITH STOCHD(14)>80 MORE THAN 10 DAYS*/
s1=stochd(14);
t1=1+barssince(cross(s1,80));
t2=iif(s1>80,t1,0);
t5=peak(t2,1,1);
t4=iif(t5!=ref(t5,-1),t5,0);
EnableScript("jscript");
days = day();
months = month();
years = year();
values = t4>10;
<%
days = AFL("days").toArray();
months = AFL("months").toArray();
years = AFL("years").toArray();
values = AFL("values").toArray();
oAB = new ActiveXObject("Broker.Application");
comp = oAB.Stocks.Add("_tendays80");
for( i = 0; i < days.length; i++ )
{
qt = comp.Quotations.Add( years[ i ] + "-" + months[ i ] + "-" +
days[ i ] );
qt.Volume += values[ i ] == 1 ? 1 : 0;
}
%>
buy=0;
In Indicator Builder, you may see the graph, pasting the code:
/*GRAPH*/
graph0 = foreign("_tendays80","V");
You may change 80 by 70, create another composite, the "_tendays70",
you may change days and ask 15 or 20 etc.
The best for your market is the one you may use to "predict" next
movements.
There is a lot of wisdom hidden in stochastics procedure and, with
composites, a small part may be revealed for your benefit.
P.S. Graphs of above were not bad in my data and gave another
confirmation
to NDI garph.
Best Regards
Dimitris Tsokakis
--- In amibroker@xxxx, "Christos Panayiotou" <pachris@xxxx> wrote:
> Demetri
> I am really very happy with your great contribution , your
technical knowledges and experience that you have been sharing with
us, i dont know about others but for me its a great help.
> I however woult like to ask you about your srategy to great buy and
sell signals, the way you compinate diferent indicators in order to
have reliable results.
> Filika Christos
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