StockFetcher Forums · Filter Exchange · Range Contraction/Expansion Filter | << 1 ... 4 5 6 7 8 ... 12 >>Post Follow-up |
alf44 2,025 posts msg #52739 - Ignore alf44 modified |
7/1/2007 11:59:49 PM conyeuchua, Just so you understand...the "myROC" code in the filter is there to define MY OWN Rate of Change indicator...a simple 2 period ROC. If you choose to use the Rate of Change (ROC) that SF provides it comes along with a 13 period MA of the ROC. I didn't want to see that "slow line" (ie the 13 period MA) included in the ROC (displayed on the SF Charts)...so as a way to avoid it...I defined "my own" ROC. The "my roc" code gave me a way to compute the "roc^" column too. More about this column later in the post. Now...the two ROC related columns do NOT show actual ROC values. What the rocpiv (ROC pivot) column shows is the closing price (tomorrow) that will either maintain the current direction of the ROC(2) indicator...OR...turn it in the other direction. That ROC pivot # is derived like this: ---------------------------------- Day 1 = Today's Close Day 2 = Yesterday's Close Day 3 = Close 2 days ago ...so the ROC pivot # for tomorrow will be... Pivot = Day 1 (-) Day 3 (+) Day 2 ---------------------------------- After you start watching these ROC pivots for a while, you can begin to get a "feel" for when the stock will really have to "reach" for that Pivot #...and by knowing when the momentum is likely to turn, you can "anticipate" the movement, up or down, for the day. It helps you establish a "trading bias" for which way the stock might move next. No long-term implications. What the ROC(2) really is...or at least the way I and others use it...is a proxy to gauge the "buy day", "sell day", "sell short day" rhythm that George Douglas Taylor wrote about many years ago. This is just a short-term indicator, used to try and determine 2 or 3 day market swings. And that brings us to the "roc^" column... What the roc^ column shows is how many consecutive days the ROC(2) has been moving either...UP (+ numbers)...or...DOWN (- numbers). When the 2 period ROC moves 2 or 3 days in one direction...you can begin to expect it to turn in the other direction. --------------------------------- So, with that background info...the answer to your original question... ..."how do you approach it ?" I always start by FIRST pulling up a daily chart for the stock. It ALWAYS starts with the chart ! Then...I look at those ROC pivots AND the number of days the ROC(2) has been either UP or DOWN. This helps to give me a "trading bias" for how that stock might move tomorrow. From there I will take note of the trend column to see how the EMA(10), EMA(30) & EMA(150) stack up. Then a quick look at the 20hilo column to see if the stock is at a 20 day HIGH or LOW. Next, the clo^ , lo^ & hi^ columns to see if the stock is making consecutive higher/lower Closes, Lows or Highs. For each stock I will glance at my momentum columns... ...for trend strength - adx12 ...for overbought/oversold - %k7 ...for EXTREME overbought/oversold - rsi2 Then, within the context of all this I will start to look at my 13 different pattern columns, while glancing at the 6/100 volatility ratio column...vrat...to see if recent volatility is contracting compared to past volatility...AND the day position column...dp...to see if the stock closed in the TOP or BOTTOM half of it's daily range. This intricate combination of chart/indicators/column information & patterns are considered together...and from it all I try to form a composite picture...an educated assessment about how to best play that stock's price movement tomorrow...LONG...SHORT...or, NO PLAY at all ! Regards, alf44 |
alf44 2,025 posts msg #52740 - Ignore alf44 |
7/2/2007 12:08:52 AM Arooj, Thanks again for the comments and congrats on the 30" monitor. I'm envious ! In the coming days/weeks I will try to add more to my previous post. I at least hopefully got a start on trying to offer some clarification as to how I go about deciphering ALL the info being displayed. Regards, alf44 |
conyeuchua 83 posts msg #52742 - Ignore conyeuchua |
7/2/2007 1:03:45 AM Alf44, Thank you so much for taking the time to explain your approach. It helps me appreciate your "work of art" more. Conyeuchua |
papagatorga 124 posts msg #52886 - Ignore papagatorga |
7/8/2007 8:57:40 PM alf44- I have been trying to find a filter that will reflect what you call Range Contraction. I copied the following portion of one of your notes (Show stocks in which today's daily range (today's high price minus low price) is narrower than the previous 6 days) This produced no results. What I am searching for are stocks whose volatility has significantly decreased and their price is going sideways in a narrow range. I don't care if the period is 5 days or 5 weeks, it's the pattern I'm seeking. One can see it very well with Bollinger Bands where the bands narrow and go parallel. I asked StockFetcher for help and they gave me a filter but it wasn't that close to what I was seeking. I searched Range Contraction and got no hits, not even your filters. Any help would be appreciated. Papagator |
alf44 2,025 posts msg #52894 - Ignore alf44 modified |
7/8/2007 11:05:38 PM papagatorga, My Range Contraction/Expansion Filter is made up of several (13) different scans...designed to identify SPECIFIC 1 or 2 day price contraction/expansion patterns (not counting all the other stuff). The one you picked out (from the bunch) happens to be an NR7...that is a day (1 day) whose range is the narrowist range of the last 6 days. Often following an NR7...you will see a day (or days) of Range Expansion...that is Trend Days or Wide Range Days. ---------------------------------- Here is a simple NR7 scan applied to the NASDAQ 100... This IS what it is ! The NR7 is JUST 1 day's price action...specifically RANGE...compared to the 6 previous days ! Based on your post...this may NOT be what you're after. ------------------------------- You might try some sort of Historical Volatility based scan. I have just such an HV scan as part of the criteria in my Range Contraction/Expansion Filter (column "vrat"). What this "vrat" column represents is the RATIO of a 6 day Historical Volatility to a 100 day Historical Volatility. I am looking for the 6 day HV to be LESS THAN 50% of the 100 day HV (a "1" in the "vrat" column represents this). ---------------------------------- Here is a simple Historical Volatility scan applied to the NASDAQ 100... This will return stocks whose 6 day HV is less than 50% of the 100 day HV...ie. Range Contraction relative to the last 100 days ! ---------------------------------- Regards, alf44 |
papagatorga 124 posts msg #52908 - Ignore papagatorga |
7/9/2007 2:24:55 PM alf44 - appreciate the quick response. It doesn't seem to provide exactly what I am looking for. Most of the Bollinger Bands are expanding not running parallel. I'll keep looking. Thanks |
chetron 2,817 posts msg #64590 - Ignore chetron |
7/1/2008 6:50:29 PM pop |
alf44 2,025 posts msg #67174 - Ignore alf44 modified |
9/11/2008 2:39:36 PM This is the current version of the Range Contraction/Expansion Filter ! A few NEW things since the last version I posted...I've cleaned up some things...added some NEW patterns...refined my displayed Technical Indicators...and even created a NEW Trend Indicator based on MMAs ! This continues to be a work in progress... ...as I trade with it and see things that need to be tweaked / added / eliminated and that would be helpful in my trading...they shall be tweaked / added / eliminated !!! --------------------------------------------------------- ----------------------------------------------------------------------- Regards, alf44 |
alf44 2,025 posts msg #67176 - Ignore alf44 modified |
9/11/2008 2:42:28 PM chetron...now that this "filter posting issue" has been resolved...in the interest of keeping this thread "on topic" ... ...please delete your posts...and I'll do the same ! Thank you in advance and thanks again for your help !!! Regards, alf44 |
chetron 2,817 posts msg #67177 - Ignore chetron modified |
9/11/2008 2:54:08 PM a |
StockFetcher Forums · Filter Exchange · Range Contraction/Expansion Filter | << 1 ... 4 5 6 7 8 ... 12 >>Post Follow-up |
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