Re: Lindahl Formation EL code - here it is

[Philip Schmitz <pschmi02@xxxxxxxxxxx>]

Many thanks for your trouble, Alex. I'm sure it will take some tinkering, but
who knows, maybe the pattern can be made to serve some purpose, depending on
where it occurs. In any event, you've been generous with your time. Much
obliged.

Philip

Alex Matulich wrote:

> Philip Schmitz asked about coding the Lindahl formation.  I've
> given it a shot, below.  Save the following as a signal in the EL
> PowerEditor.
>
> The formation occurs more often than I thought it would.  However, I
> can't see that it's any more reliable an entry signal than flipping
> a coin.  Signals appear without respect to whether the market will
> go up, down, or sideways after the signal.
>
> If anybody finds it useful, please tell me how.  Personally I think
> pattern recognition techniques are nice for learning about markets
> but not particularly useful for making reliable trades.
>
> {***************************************
>  Written by: Alex Matulich
>  Description: Lindahl pattern by Colin Alexander
> ****************************************}
>
> {The Lindahl Rule
> Buying: Within nine bars from the low of the formation:
> (a) price must exceed the high of the bottom bar;
> (b) price must then take out the low of the preceding bar;
> (c) on entry day, price must take out the high the preceding bar and
>     close above the preceding bar's close and the current bar's open
> Opposite for selling.
> This formation may be completed in as few as 3 bars or as many as 9.}
>
> variables: newlowbar(10), newhibar(10), lowbar(0), hibar(0), b(0);
>
> if low < low[1] then newlowbar = 0 else newlowbar = newlowbar[1] + 1;
> if high > high[1] then newhibar = 0 else newhibar = newhibar[1] + 1;
>
> lowbar = lowestbar(low, 9);
> if low[lowbar] < low[lowbar+1] and lowbar > 1 then begin  {low identified}
>         b = highestbar(high, lowbar-1);
>     if high[b] > high[lowbar]                                   {(a)}
>        and newlowbar < b                                        {(b)}
>        and high > high[1] and close > close[1] and close > open {(c)}
>          then buy("L") tomorrow open;
> end;
>
> hibar = highestbar(high, 9);
> if high[hibar] > high[hibar+1] and hibar > 1 then begin
>         b = lowestbar(low, hibar-1);
>     if low[b] < low[hibar]
>        and newhibar < b
>        and low < low[1] and close < close[1] and close < open
>         then sell("S") tomorrow open;
> end;