|
PureBytes Links
Trading Reference Links
|
Nick, Maurice, Kush and others,
At one time I had created a pullback/ Fib. retracement formula but can't
seem to find it now. I then gave up using it, not because it didn't work (it
did!), but I could never tell in real time whether the retracement would be
38%, 50%, or 62% (the commonest ratios)! Thus, for example, I would buy on a
38% retracement just to see it fall to 62% retracement. Or I would buy at
62% retracement just to see it fall even further and the trend get reversed.
I guess that's a limitation we have to live with; of course, once the trend
resumes, it is very easy with 20/20 hindsight to see how much the
retracement was.
Enough said. The logic was as follows:
1) Define trend. e.g. for an uptrend, you would specify the most recent
swing high/low (#1) be higher than the prior swing high/low (#2). You NEED
to use the Peak & Trough functions for this, which depend on the zigzag
indicator. As for the % amount you would choose, that depends on your
trading time frame - larger % for longer time frame and vice versa. (Note:
zigzag is a tricky function; read the online help. In particular, note this
section from online help: "Be forewarned, that the last leg (i.e., segment)
of the Zig Zag is dynamic, meaning that it can change. Therefore, be
careful when designing system tests, experts, etc. based on the Zig Zag
indicator". But don't let this scare you. I got used to it over time, and so
can you.)
2) Define a recent high implying that the trend is continuing e.g. HHV(C,20)
> most recent swing high (e.g. HHV(C,20) > Peak(1,C,10)).
3) Define a pullback e.g. C < HHV(C,20)
4) Define most recent swing e.g. Swing:= HHV(C,20) - Trough(1,C,10) (using
10% swing as an example);
4) Define extent of pullback e.g. for a pullback between 50% & 68% of recent
swing, it would be something like: C < (Trough(1,C,10) + 0.51*Swing) AND C >
(Trough(1,C,10) + 0.31*Swing).
Use filters as needed.
There you have it. Metastock programming is not very easy, but its not
rocket science either. Once you start doing it yourself, AND UNDERSTAND THE
LOGIC BEHIND YOUR ARGUMENTS, you will catch on pretty fast. Try it - I have
done most of the work for you above. Just make sure you use the parameters
appropriate for your trading.
Shashi
----------------------------------------------------------
----- Original Message -----=20
From: Maurice Cruz=20
To: metastock@xxxxxxxxxxxxx=20
Sent: Friday, February 01, 2002 6:46 AM
Subject: Fibonacci Formulas
Group,
I would also be interested in this, or any other
fibonacci-related indicators.
Maurice
----- Original Message -----=20
From: Nick Channon=20
To: metastock@xxxxxxxxxxxxx=20
Sent: Thursday, January 31, 2002 8:53 PM
Subject: Fibonacci Formulas
Hi Group,
I wonder if anyone has a formula to detect a Fibonacci Retracement? =
If so, kindly post. If not, any suggestions on how best to construct =
one? Would it be feasible to base it on zigzag?
Many thanks,
Nick
|