Hello to
everyone
I have written
this formula and found it useful
This exploration finds stock have
reached 20 day and 50 day moving
averages(MA) very close together with
condition that 20day MA has been
above 50 day MA for at least 60
bars
It has been observed that when these two averages come very close
sharp
price breakouts happen.
60 day condition has been put because
the security should be trending consistently
upwards.
formula:
col
a
a:=Mov(C,20,S)-Mov(C,50,S);
(a/Mov(C,20,S))*100
col
b
Mov(C,20,S)
col c
Mov(C,50,S)
col d
C
col
e
BarsSince(Mov(C,50,S)>Mov(C,20,S))
filter
BarsSince(Mov(C,50,S)>Mov(C,20,S))>20
AND C>Mov(C,50,S) AND C> Mov(C,20,S)
AND Mov(C,20,S)>Mov(C,50,S) AND
colA<2
Value of cole more the better because more bars strongers
the trend.
This can be
very useful in timing " the next big move " after a stock consolidates after
rise
Results of this exploration can be further optimized by plotting bollinger
bands over the chart.
In a chart where bollinger bands appear to "squeeze" togather more chanses
of a big breakout
Feedback
from group members is requested regarding this formula
In this group many
things are discussed but seldom something of practical
use comes up ,for
ex recent discussion over "parabolic trend line ".
My endeavor has always
been that formulas should be useful in practical
investment
decisions.
I hope members find this formula
useful
Safdar