[EquisMetaStock Group] Re: Countback-type Oscillator and signals

["formulaprimer" <formulaprimer@xxxxxxxxx>]

What is the nature of the countback theory. what does it do exactly. 
what is the general theory for it?
thanks.


--- In equismetastock@xxxxxxxxxxxxxxx, "Jose Silva" <josesilva22@xxx> 
wrote:
>
> I've been playing around with the Countback-type Oscillator below, 
> and some signals based on it look promising on some charts.
> 
> Indicators/Oscillators of this type don't generally suffer from the 
> lagging characteristics of mainstream smoothed indicators (e.g. 
> Stoch, MACD, MAs, etc), and they lend themselves to promising 
signals.
> 
> Any suggestion for a suitable name for this oscillator is welcome.
> 
> 
> MetaStock -> Tools -> Indicator Builder -> New
> -> copy & paste complete formula between "---8<---" lines.
> 
> =========================
> Countback-type Oscillator
> =========================
> ---8<-------------------------------------
> 
> { Countback-type oscillator & signals v2.0
>   Incorporating automatic overBought/Sold levels
>   Trade at own risk.
> 
> ©Copyright 2005~2006 Jose Silva.
>  The grant of this license is for personal use
>   only - no resale or repackaging allowed.
>  http://www.metastocktools.com }
> 
> { User inputs }
> pds:=Input("Oscillator countback periods",
>  1,252,21);
> plot:=Input("plot:  [1]Oscillator,  [2]Signals",
>  1,2,1);
> type:=Input("signals: [1]OBought/Sold, [2]Higher Lo, Lower 
Hi",1,2,1);
> 
> { Countback oscillator }
> C1:=Ref(C,-1);
> x:=Sum((C>C1)*(C-C1),pds)
>  /Max(Sum(Abs(C-C1),pds),.000001)*100;
> 
> { Automatic overBought/Sold levels }
> avg:=Cum(x)/Cum(IsDefined(x));
> pk:=Ref(x,-1)=HHV(x,3) AND Ref(x,-1)>avg;
> pkVal1:=ValueWhen(1,pk,Ref(x,-1));
> pkVal2:=ValueWhen(2,pk,Ref(x,-1));
> pkValAvg:=Cum(pkVal1)/Cum(IsDefined(pkVal1));
> 
> tr:=Ref(x,-1)=LLV(x,3) AND Ref(x,-1)<avg;
> trVal1:=ValueWhen(1,tr,Ref(x,-1));
> trVal2:=ValueWhen(2,tr,Ref(x,-1));
> trValAvg:=Cum(trVal1)/Cum(IsDefined(trVal1));
> 
> { OverBought/Sold signals }
> entry:=x<trValAvg;
> exit:=x>pkValAvg;
> 
> { Higher troughs / lower peaks signals }
> entry:=If(type=1,entry,
>  trVal1>trVal2 AND x>pkVal1);
> exit:=If(type=1,exit,
>  pkVal1<pkVal2 AND x<trVal1);
> 
> { Clean signals }
> init:=Cum(IsDefined(entry+exit))=1;
> bin:=ValueWhen(1,entry-exit<>0 OR init,entry);
> long:=bin*(Alert(bin=0,2)
>  OR entry*Cum(entry)=1);
> short:=(bin=0)*(Alert(bin,2)
>  OR exit*Cum(exit)=1);
> 
> { Plot in own window }
> If(plot=1,pkValAvg,0); {Grey}
> If(plot=1,avg,0);      {Grey}
> If(plot=1,trValAvg,0); {Grey}
> If(plot=1,x,long-short)
> 
> ---8<-------------------------------------
> 
> 
> jose '-)
> http://www.metastocktools.com
>





 
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