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Ok..i have tried .. its more of 1 week that i try to develop this
formula but i cant do..may be im too stupid for do it and so i have
think to ask help to all you..
Below i have attached the sinthesys of this idea. If someone want to
try to develop this formula with amibroker and need more
information can ask me, may by i have forget some crucial
information (as you can see,english is not my preferred language )..
Bye
A Detailed Example of the 3PB Method.
Consider the series of prices in Table 1.
In this table, column 1 lists the date and column 2 lists the daily
closing price of the Dow Jones Industrial Average between June 16
and August 31, 1998.This is an arbitrary starting point
The next day, June 17, the closing price was 8,829.46. This price is
higher than the start price, so it is considered a new price. In
column 3, we place the ordinal number of this new price indicating
the 1st new high.
At this point, we can say the trend is up. Given that we have only
two prices, we would not have much confidence in this brief trend.
But even with only two prices, we have two pieces of crucial
information: (1) the direction of trend, and (2) a precise number
which allows us to determine whether the trend is broken.
That is, any close lower than the original starting price, will
break the uptrend and initiate a down trend. Column 5 contains the
break price. For a break to occur, the actual market price in our
example must be lower than the starting price of 8,665.29. If the
closing price is the same as the break price, it is not considered a
break.
The price must be lower than the break price. The 3PB method is
telling the trader to go long at 8,829.46. Consequently, in column
6, we enter a trade at 8,829.46. When the method indicates a
reversal, this trade will be liquidated and a go short position
will be initiated. This would be indicated in column 7. Column 8
records the relative gain or loss (g/l) in the trade on a daily
basis.
It should be clear that even with only two prices, the method itself
is always in the market, either long or short..
For the next four sessions, the Dow made neither a new high, nor
went below the indicated break price. From the perspective of the
3PB method, the only important prices are new prices (that is higher
prices in an uptrend and lower prices in a downtrend) and break
prices. A price that is neither is a non-event.
On June 24, the Dow closed at 8,923.87, the 2nd new price high. With
this 2nd new high, the method confirms the trend.20 And, with this
second new high, the trade now shows a gain of 94.41 points. Since
we do not yet have three new prices, it is not yet possible to have
a 3-price break. Consequently, the break price remains 8,665,29.
On June 25, the Dow closed higher again. We now have our 3rd new
high. With the 2nd and 3rd new high prices, the question arises as
to what the break price should be.
Now we come to the special character of the three-price break
method. Here is where the method gets its name. The name implies
that the method needs at least three prices, before the idea of
break becomes meaningful. Once we do have three new highs, then the
break price becomes a true three-price break value.
Now, to determine where the break price is, we count backwards three
boxes.
That is, beginning at the lower right hand corner of the top box and
counting this as one, we count backwards three boxes. This brings us
to the lower end of the first up box. You can see clearly that the
break price is the start price. So, whenever one begins a 3PB chart
arbitrarily, the first genuine three-price break value will be the
arbitrary start price after three new prices.
TABLE 1
Date; Price ;# ; Break ;Long ; Short ; G/L
; ;
6.16.98 ;8,665.29 ;0 ; ; ; ;
6.17.98 ;8,829.46 ;1 ;8665.29 ;8829.46 ; ;0.00
6.18.98 ;8,813.01 ;... ;8665.29 ; ; ;(16.45)
6.19.98 ;8,712.87 ;... ;8665.29 ; ; ;(116.59)
6.22.98 ;8,711.13 ;... ;8665.29 ; ; ;(118.33)
6.23.98 ;8,828.46 ;... ;8665.29 ; ; ;(1.00)
6.24.98 ;8,923.87 ;2 ;8665.29 ; ; ;94.41
6.25.98 ;8,935.58 ;3 ;8665.29 ; ; ;106.12
6.26.98 ;8,944.54 ;4 ;8829.46 ; ; ;115.08
6.29.98 ;8,997.36 ;5 ;8923.87 ; ; ;167.90
6.30.98 ;8,952.02 ;... ;8923.87 ; ; ;122.56
7.1.98 ;9,048.67 ;6 ;8935.58 ; ; ;219.21
7.2.98 ;9,025.26 ;... ;8935.58 ; ; ;195.80
7.5.98 ;9,091.77 ;7 ;8944.54 ; ; ;262.31
7.7.98 ;9,085.04 ;... ;8944.54 ; ; ;255.58
7.8.98 ;9,174.97 ;8 ;8997.36 ; ; ;345.51
7.9.98 ;9,089.78 ;... ;8997.36 ; ; ;260.32
7.10.98 ;9,105.74 ;... ;8997.36 ; ; ;276.28
7.13.98 ;9,096.21 ;... ;8997.36 ; ; ;266.75
7.14.98 ;9245.54 ;9 ;9048.67 ; ; ;416.08
7.15.98 ;9234.47 ;... ;9048.67 ; ; ;405.01
7.9.98 ;9,089.78 ;... ;8997.36 ; ; ;260.32
7.16.98 ;9328.19 ;10 ;9091.77 ; ; ;498.73
7.17.98 ;9337.97 ;11 ;9174.97 ; ; ;508.51
7.20.98 ;9295.75 ;... ;9174.97 ; ; ;466.29
7.21.98 ;9190.19 ;... ;9174.97 ; ; ;360.73
7.22.98 ;9128.98 ;1 ;9337.97 ; ;9128.98 ;299.52
7.23.98 ;8932.98 ;2 ;9337.97 ; ; ;196.00
7.24.98 ;8937.36 ;... ;9337.97 ; ; ;191.62
7.27.98 ;9028.24 ;... ;9337.97 ; ; ;100.74
7.28.98 ;8934.78 ;... ;9337.97 ; ; ;194.20
7.29.98 ;8914.96 ;3 ;9328.19 ; ; ;214.02
7.30.98 ;9026.95 ;... ;9328.19 ; ; ;102.03
7.31.98 ;8883.29 ;4 ;9128.98 ; ; ;245.69
8.3.98 ;8786.74 ;5 ;8932.98 ; ; ;342.24
8.4.98 ;8487.31 ;6 ;8914.96 ; ; ;641.67
8.5.98 ;8546.78 ;... ;8914.96 ; ; ;582.20
8.6.98 ;8577.68 ;... ;8914.96 ; ; ;551.30
8.7.98 ;8598.02 ;... ;8914.96 ; ; ;530.96
8.10.98 ;8574.85 ;... ;8914.96 ; ; ;554.13
8.11.98 ;8462.85 ;7 ;8883.29 ; ; ;666.13
8.12.98 ;8552.96 ;... ;8883.29 ; ; ;576.02
8.13.98 ;8459.50 ;8 ;8786.74 ; ; ;669.48
8.14.98 ;8425.00 ;9 ;8487.31 ; ; ;703.98
8.17.98 ;8574.85 ;1 ;8425.00 ;8574.85 ; ;554.13
8.18.98 ;8714.65 ;2 ;8425.00 ; ; ;139.80
8.19.98 ;8693.28 ;... ;8425.00 ; ; ;118.43
8.20.98 ;8611.41 ;... ;8425.00 ; ; ;36.56
8.21.98 ;8533.65 ;... ;8425.00 ; ; ;(41.20)
8.24.98 ;8566.61 ;... ;8425.00 ; ; ;(8.24)
8.25.98 ;8602.65 ;... ;8425.00 ; ; ;27.80
8.26.98 ;8523.35 ;... ;8425.00 ; ; ;(51.50)
8.27.98 ;8165.99 ;1 ;8714.65 ; ;8165.99 ;(408.86 )
8.28.98 ;8051.68 ;2 ;8714.65 ; ; ;662.97
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