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Hi Shashi,
Many thanks for your help. I've come up with the following - not exactly to
your suggestion in every detail, but hopefully in the spirit of it. I
haven't tested it much yet - all feedback and improvements welcome (coding
is not my strong point!). Anyone testing it please vary V1 especially to
your preference - I have it set very low for a 5-minute chart.
V1:=0.5; {ZigZag reversal amount}
V2:=0.50; {Minimum Retracement %}
V3:=0.618; {Maximum Retracement %}
C1:=Peak(1,C,V1) - Trough(1,C,V1); {Swing amount, i.e. price difference
between previous peak and previous trough}
C2:=Peak(1,C,V1) - C; {price difference between previous peak and current
close}
PeakBars(1,C,V1) <
TroughBars(1,C,V1) {the previous peak is later than the previous trough}
AND
C < Peak(1,C,V1) {price dropped below last Peak}
AND
C= LowestSince(1, C=Peak(1,C,V1), C)
AND
C2 > C1*V2 {retracement > minimum}
AND
C2 < C1*V3 {retracement < maximum}
Thanks again,
Nick
----- Original Message -----
From: "Shashi Aggarwal" <shashiag@xxxxxxxxxx>
To: "Metastock Digest (E-mail)" <metastock@xxxxxxxxxxxxxxxxxx>
Sent: Sunday, February 03, 2002 10:26 AM
Subject: Re: Fibonacci formula
> 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
>
>
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