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One, is not this a Gann technique?
Two, why not just use a trusted MA like a VIDYA? and
Three, where do you divide the earth's diameter multiplied by the speed of
your charge card's overdue notice being mailed to you?
(Sorry, John, I couldn't resist. Your way probably works, but I'm all for
simplicity)
-----Original Message-----
From: John F. Berentson <jfb.nyc@xxxxxxxxxxxxxxxx>
To: Bob Hunt <RHunt.066@xxxxxxxxxxxxxxxx>; Dave Pape <davepape@xxxxxxxxxxxx>
Cc: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Sunday, February 14, 1999 13:14
Subject: RE: Coding a semi-permanent support/resistance line
>Bob is correct; what you are asking about is Stowell's Three Bar Net Line.
>The rules are:
>
>1. Assuming the market is in a current up move, find the highest high and
>use the low of this bar as bar 1.
>2. Compare this low to the most recent previous low that is lower than the
>low of bar 1 and label this bar 2.
>3. Using the low of bar 2, compare this low to the previous low that is
>lower than the low of bar 2 and label the new low as bar 3.
>4. Working from right to left on your chart, disregard all inside bars.
>5. The low of bar 3 becomes the Three Bar Net Line for the current up move.
>6. Each time the newest bar's high is greater than the previous highest
>high, it is necessary to recalculate the location of the Three Bar Net
Line.
>7. The Three Bar Net Line is a single value and extends directly across the
>chart.
>8. As long as the market does not close below this trend line, the trend is
>up.
>
>Stowell uses the Three Bar Net Line together with a 3 period ROC to trade
>bonds on a 144 tick bar chart.
>
>Sorry, but I can't help you with the EZLanguage nor can I confirm the
>usefulness of the technique.
>
>JFB
>Shaven Heads Trading NYC
>
>
>-----Original Message-----
>From: Bob Hunt [mailto:RHunt.066@xxxxxxxxxxxxxxxx]
>Sent: Friday, February 12, 1999 10:08 PM
>To: Dave Pape
>Cc: omega-list@xxxxxxxxxx
>Subject: Re: Coding a semi-permanant support/resistance line
>
>
>It seems to me that I remember Joseph Stowell, of bond trading fame,
>used this technique to determine trend. A few years back, I strained
>my brain for quite some time trying to code this, and I finally
>decided it was just too complex to even mess with (it's easy to do it
>visually, but back then my coding skills just weren't up to it, and
>they may not be up to it even today).
>
>My recommendation would be to abandon it. There's many, much easier
>ways to determine trend.
>
>Bob Hunt
>
>--------------------------------------------------
>
>Dave Pape wrote:
>>
>> Recently, I've been looking at an idea that I read in one of my trading
>books.
>> Unfortunately, I can't remember what book I read it in but the authors
>idea was to
>> produce floating support/resistance lines.
>> While it is easy to produce manually on a small number of charts, I am
>curious to
>> know if it can be coded for backtesting and ease of use on numerous
>charts.
>> Someone with more experience and resources (I'm using Supercharts 4.0)
may
>> have better luck with it than I have.
>>
>> The idea is this:
>> 1. If the market is in an uptrend and todays low was higher than
>yesterdays,
>> mark today as Day 1.
>> 2. Draw a line to the left from the low of Day 1 until it hits a bar
with
>a lower low
>> and label that Day 2.
>> 3. Draw another line left from the low of Day 2 until it hits another bar
>with a lower
>> low. This would be Day 3. Draw a line to the right from the bottom of
>this bar into
>> the future.
>>
>> This line becomes the Short Countbackline (a floating support line).
>>
>> As the next bar is formed, if the low was higher than yesterdays, a new
>line
>> would take the place of the previous. If the next bars low was lower, not
>higher,
>> our original line would remain. A sell signal would be produced if prices
>in the
>> future close below our line.
>> To generate a Long Countbackline (floating resistance line) he used the
>same
>> technique as above, except higher highs are used.
>
>
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