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Re: [EquisMetaStock Group] A useful exploration



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Bala, this because the stock should be trending upwards.Better play with a stock which has a history of consistency
In fact more days the better.20 is just as a reference .Ideally it should be more than 80.you would observe that the more the no of bars more reliable is the signal.
Plus in cola less difference in % the better.
Safdar
----- Original Message -----
Sent: Sunday, November 27, 2005 9:40 AM
Subject: Re: [EquisMetaStock Group] A useful exploration

Hi Safdar,

This was a really useful indicator to identify breakouts. Thanks!!!.

I have one observation though.  The following portion in the filter

"BarsSince(Mov(C,50,S)>Mov(C,20,S))>20".

How did you come up with the no of days since, as 20?. Because of this filter a lot of stocks that would have been selected get rejected (listed in India NSE). Also Most of the stocks rejected due to this filter  have had the 20 day moving average move below the 50 day moving average for one or two days before going up. In the chart it shows up like whiplash.

I am trying to refine this particular condition and would greatly appreciate your help.

Thanks
Bala

On 11/26/05, Safdar <Safdar@xxxxxxxxxxxxx> wrote:
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



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