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There has been several attempts by various software programs but due to the
lack of their solid technical knowledge of what is required to make up a
legitimate or close to legitimate pattern the outcome has been disastrous.
Just because you have two price areas relatively close in height or depth
does not qualify for a valid pattern.
Items for valuable consideration:
A proportional value in size of the top or bottom has to be developed from
the preceding trend and this evaluation is not as easy as it sounds.
1. What I mean here is that there has to be range of max and min bars in the
trend area to even provide the foreground for a potential development of
those tops or bottoms.
2. The tops and bottoms have a min and max range of horizontal bars within
the rounding area of the top or bottom.
3. The most important requirement is that this horizontal time of the
number of horizontal bar quantity ( completed tops or bottoms picture) has
to have a proportional relationship of a relative max and min bar range
between its toping or bottoming relative to its previous trend.
3. The longer the trend (time or quantity of bars) the wider of larger
quantity of bars in the pattern following the trend making up the pattern
and too many or not enough bars will kill the validity of the pattern (Note:
Most Failures by most patterns to not follow through is not due to the
patens failing but due to the improper diagnosis of the pattern by giving
the pattern legitimization when they shouldn't and that is usually due to
the limited knowledge of the person makes the analysis.
Common Pattern Violations ( Invalids Patterns):
1. Poor picture proportional values ( Due to right brain limitations)
2. Invalid breakouts ( Due to limited breakout qualifications)
3. Invalid pattern development (Using unqualified connecting tops or
bottoms[Many times by some authors I have seen patterns being identified as
a pattern that has been developed from invalid connected tops of bottoms ;
its as if they from a hindsight
manner were forcing a picture just to have material to write about which
actually will mislead the unknowledgeable or beginner.])
There is a lot more than what I just covered but the above are general
considerations that require a lot of details to complete the subject.
In answering your question I do not think the omega program is robust enough
to do the complete analysis format required to
give you something valid enough to work with and anything short of that will
only get you in trouble.
Good Luck
James Lancaster
-----Original Message-----
From: Ian Waugh [mailto:ianwaugh@xxxxxxxxx]
Sent: Wednesday, August 27, 2003 7:03 AM
To: omega-list@xxxxxxxxxx
Cc: ianwaugh@xxxxxxxxxxxxxxxxxxx
Subject: Mine's a Double
Is anyone aware of any code for finding double tops and double bottoms?
It's for use with an indicator but presumably any code that can find
these things could be used on any kind of data.
I have an indicator, let's say it plots a value kk, and during its
meanderings, I'd like to know if it has formed a double top (M shape) or
double bottom (W shape). I'd then be able to do things like:
if kk>50 and "double top" then...
Would much appreciate any pointers.
Ian
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