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Ron,
Short body candles is similar the Short candles in general.
For small H-L, devided by H+L for scaling purposes, we have a small
D_ratio value, since D_ratio=(H-L)/(H+L).
A similar approach could help your investigation.
Create first your
Ron_ratio=1000*(O-C)/(H+L);
smooth it to avoid whipsaws with something like
R=DEMA(Ron_ratio,20);
and see the resulting oscillation.
The plot of R will tell so many things to your next steps.
Dimitris Tsokakis
--- In amibroker@xxxxxxxxxxxxxxx, "mrdavis9" <mrdavis9@xxxx> wrote:
> Yuki and Jason and others, thanks for your comments to my post
regarding short bodied candles. I am only vaguely aware of what ATR
does. I printed out the stockcharts.com explanation of it and will
read it tomorrow during lunch.
>
> I have attached a chart which illustrates why I want to narrow my
focus specifically to short bodied candles. I have been looking at
a lot charts in an attempt to identify conditions which frequently
occur just ahead of a quick price runup. On 3/28.03, XMSR's rising
price levels rolled over into a consolidation pattern of shorter
bodied candles. This consolidation pattern of shorter bodied candles
continued until 4/16/03 when it closed at $6.15. When I am long in
an EOD trading setup such as this, I look at various technical
indicators, as well at the chart action, in order to determine when
to exit a trade. I would have received my exit signal in the EOD
data download for 5/7/03. I act on this exit signal by selling on
the open of the following market day. I would have received $11.12,
ignoring slippage. This amounts to a gross profit of almost 81% in
21 calendar days. This is just shy of 1400% annualized. I am AFL
challenged, and have not been able to write code for finding these
trading setups. That is why I tried to modify one to make it find
the short candle patterns. Surely, there are other AB users who are
trading these short candle basing setups, and can assist me here. I
am including my origional post regarding finding Short candles.
>
> I actually like to see a few slightly larger down day candles
during these consolidation patterns. I interpret them to mean that
the bulls are trying to push up the price, but the bears are still
holding the bulls in check. At this stage of my observations, I want
to stick with roughly level, to slightly uptrending consolidation
patterns. I appreciate all criticisms and suggestions that may be
offered.
>
======================================================================
=====
> This is my earlier post.
>
>
> I searched the Library for flat bases, and consolidations, and came
up with nothing. I am barely starting to comprehend a few aspects
of AFL coding. I found an indicator that I used as a model in my
attempt to try to make an indicator that would visually show when the
distance between the open and close is diminishing or expanding The
first code below is my MODIFICATION of the Indicator that I used as
a model. The second code below is the ACTUAL INDICATOR that I used
as the model. My attempt failed to work. My real goal is to
have scans that will be able to identify flat bases, as well as
other consolidation patterns. Buy and sell arrows are not necessary
for what I am wanting. I will then need to be able run this scan
on stocks whose prices move up and down rapidly. I could then place
an OCO order (one cancels other) and catch it whichever way that it
breaks out of the consolidation pattern. Suggestions for
improvements, as well as original codes for consolidation patterns
will be appreciated. Ron D
>
>
======================================================================
=====
>
> This is my effort
> "Todays Open = "+WriteVal(O,1.2);
> "Todays Close = "+WriteVal(C,1.2);
> "Distance Open to Close = "+WriteVal(abs(O-C),1.3);
>
> "Largest Distance = "+WriteVal(Max(abs(O-C)),1.3 );
>
> "Smallest Distance = "+WriteVal(Min(abs(O-C)) ,1.3 );
>
> Plot( Max( abs(O-C) )," Highest",colorGreen,styleLine);
>
> Plot( Min( abs(O-C) ), " Smallest",colorRed,styleLine);
> ====================================================================
> This is the code used as a model
>
> /*this is an attempt to determine the market range AND expansion
AND market opens. The idea is to give an
> idea of the potential risks AND rewards for any trade taken during
>
> the Day, by knowing what A typical trading Day looks like.
>
> I would need to do catalog the following:
>
> Open
>
> Low
>
> High
>
> Close
>
> the distance from the Open to the Low
>
> the distance from the Open to the High
>
> the distance from the Open to the Close
>
> the smallest distance from the Open for that Day
>
> the largest distance from the Open for that Day
>
> Then I would like to Plot the following:
>
> the 10 Day average of the smallest distance
>
> the 10 Day average of the largest distance*/
>
> "Todays Open = "+WriteVal(O,1.2);
>
> "Todays Low = "+WriteVal(L,1.2);
>
> "Todays High = "+WriteVal(H,1.2);
>
> "Todays Close = "+WriteVal(C,1.2);
>
> "Distance Open to Low = "+WriteVal(abs(O-L),1.3);
>
> "Distance Open to High = "+WriteVal(abs(O-H),1.3);
>
> "Distance Open to Close = "+WriteVal(abs(O-C),1.3);
>
> "Largest Distance = "+WriteVal(Max( Max(abs(O-L),abs(O-H) ) ,abs(O-
C) ),1.3 );
>
> "Smallest Distance = "+WriteVal(Min(Min(abs(O-L),abs(O-H) ),abs(O-
C) ),1.3 );
>
> Largest10Avg = MA( Max( Max(abs(O-L),abs(O-H)) ,abs(O-C) ),10) ;
>
> Smallest10Avg = MA( Min( Min(abs(O-L),abs(O-H) ) ,abs(O-C) ) ,10) ;
>
> Plot(MA( Max( Max(abs(O-L),abs(O-H)) ,abs(O-C) ),10) ,"10MA
Highest",colorGreen,styleLine);
>
> Plot(MA( Min( Min(abs(O-L),abs(O-H) ) ,abs(O-C) ) ,10), "10MA
Smallest",colorRed,styleLine);
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