Registered User
Joined: 12/11/2004
Posts: 74
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How can I create a PCF that will show the stochastics K line crossing over the D line when the value is under 40, for a buy or over 60 for a sell signal? The standard under 20 or over 80 values would be acceptable too if necessary. Would it apply to the stochastic formula I am now using on the Worden chart or any formula that I might wish to change to? Thanks, Bill
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Give me your Stochastic settings and I will be happy to help you out.
- Craig
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Registered User
Joined: 12/11/2004
Posts: 74
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Stochastic settings are 12,22,12 thanks Craig
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here ya go!
K line crossing over the D line when the value is under 40
(STOC12.22<40) AND (STOC12.22>AVG(STOC12.22,12)) AND (STOC12.22.1<AVG(STOC12.22.1,12))
K line crossing over the D line when the value is over 60
(STOC12.22>60) AND (STOC12.22<AVG(STOC12.22,12)) AND (STOC12.22.1>AVG(STOC12.22.1,12))
Let me know what you think!
- Craig
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I just got a call from Robert at your N.C. support division and he helped me get the new stochastics PCF working OK on my computer. The problem now is that the stochastics on my chart all were crossing over anywhere from 1 to 2 weeks before the PCF formula popped a buy signal on the 16 stocks that came up on the easy scan. So, it seems, you need to do something with the formula to get it to match the 12-22-12 K and D lines on the chart. Thanks so much to all of you great guys at Worden who work above and beyond to give the customers what the need. I've knocked around the markets for 60 years as a broker, RIA and member of the NASD and I've never seen anything to equal the service you render. Bill Benson
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I just looked at the Stochastics Formula you wrote and I suspect that the first number 12.22 (with the 12 being K ) value is wrongly matched up. The 22 part of the formula is really a smothing action for the D line and maybe should be mated to the last 12 in the formula which represents D smoothed by the middle 22 which is derived from K. I hope I made myself clear. In other words, the stochastics formula that appears on the chart is 12,22,12. The first 12 is K. The 22 is a derivitive of K but is a smoothing funtion for D. The last 12 is the D line. At least, that's how I think it works. In any case the line action on the chart is what I want to grab a PCF for. Thanks again. Bill
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I'm sorry, the buy side stochastics you wrote is working perfectly. I did not have the right watchlist up when I checked it. Now I am working on getting my sell side stochastics to update. Support can help me with that again tommorrow. Scratch my last 2 posted notes. Bill Benson
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Check the settings you have on the chart and post them exactly here for me. Also be sure that you are updating your PCF formulas. Below is a video on updating them.
Creating PCF’s
- Craig
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Registered User
Joined: 12/11/2004
Posts: 74
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Thanks Craig, everything is working perfectly now. Both the buy and sell signals are hitting at the same time the K and D lines are crossing over on the chart. You guys have done great work to get me just what I need. Bill Benson
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Glad to hear it! May all your trailing stops continue to get higher!
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I would like another PCF stochastic crossover that is more complex using the same under 40 or over 60 as the last PCF you made for me. Here it is:
The formula for the K is as follows:
K=100[(C-L5close)/(H5-L5)]
Where:
C= the most recent close
L5=the lowest low for the last 5 trading periods
H5=highest high for the for the same 5 trading periods being used in L5
D=100X(H3/L3)
Where:
H3=the 3 period sum of (C-L5)
L3=the 3 period sum of (H5-L5)
Thanks, Bill Benson
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Registered User
Joined: 2/5/2005
Posts: 55
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Is it possible to create a scan like this that calculates for weekly charts? Thanks!!!]
Dave
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Scanning for weekly charts usually requires the use of extremely lengthy PCF's. Someone else will have to address the issue as to whether it is possible to write what you're asking for...but I wanted to give you the warning that complex PCF's often slow down PCF calculation to a crawl.
When looking for things on weekly charts, it is often easier and more effective to change your chart to weekly, plot your indicators, and then do some type of visual sorting. You might be amazed at what you can find using this technique.
Several training videos demonstrate visual sorting. Click the links to watch them. I think you'll find them helpful.
Comparing indicators using Visual Difference sorts
Sort by indicator or price movement using Visual Change sorts
Sort by Visual Value to find new highs and lows in price and indicators
- Doug
Teaching Online!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Wow Bill(639649)... you almost wrote these yourself. You are very close to not needing me anymore. You will be writing these on your own in no time!
QUOTEK=100[(C-L5close)/(H5-L5)]
Where:
C= the most recent close
L5=the lowest low for the last 5 trading periods
H5=highest high for the for the same 5 trading periods being used in L5
In PCF language K=
100*((C-MINL5)/(MAXH5-MINL5))
you have the word close in there and I will assume it was a typo. If not, I need to understand what it means.
QUOTED=100X(H3/L3)
Where:
H3=the 3 period sum of (C-L5)
L3=the 3 period sum of (H5-L5)
In PCF language D=
((C-MINL5)+(C1-MINL5.1)+(C2-MINL5.2))/((MAXH5-MINL5)+(MAXH5.1-MINL5.1)+(MAXH5.2-MINL5.2))*100
You now have the formulas for your K and D. You can plot them as custom indicators and visually sort them. You can divide one by the other to determine their relationship (is one above or below the other?). With these two elements, you can do anything! Let me know how it goes....
- Craig
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Registered User
Joined: 12/11/2004
Posts: 74
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Close means the closing price. I assume you will need to change the formula? Thanks, Bill
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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QUOTEK=100[(C-L5close)/(H5-L5)]
For C-L5 it is the most recent close less the lowest low for the last 5 days. How does the close after the L5 relate? Is it multiplied? If so to what? the L5 or the difference of C and L5? I don't understand what it means. How is "close" different than "C" in the formula?
I need some more help...
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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Please refer to the formula you made for me on Feb 12 which does the crossover calculation. I don't know how to manipulare these 2 PCF's you just wrote. Thanks, Bill
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Registered User
Joined: 12/11/2004
Posts: 74
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C is the current closing price and L5close is the lowest close in the last 5 days so it is Current close minus the lowest close in the last 5 days.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You define L5 in your original post as:
QUOTEL5=the lowest low for the last 5 trading periods
I took this literally as the "low".
I will correct my original post with the lowest close for 5 days....
Later in the formula L5 is used by itself. In that case does it mean the lowes daily LOW price?
- Craig
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Registered User
Joined: 12/11/2004
Posts: 74
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Scrap the last note. The L5+the lowest low for the last 5 trading periods, as explained under (where:)
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Now I am confused.
Does this mean L5 is the lowest LOW and the "close" should be ignored?
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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Damnit, I meant the L5=the lowest low for last 5 trading periods
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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OK... that is how I understood it at first.
What do I do with the "close" part that follows it? Ignore it?
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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When I said damnit, I'm mad at my error, not mad at you, sorry.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I assumed so... you seem like too nice a guy to curse a lowly trainer like me!
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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Your guess is as good as mine. Somebody else wrote this formula and I have been using it for years on another service provider. It's public info, not stolen. Thanks, Bill
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I have no guess... try it as I wrote it and see how it looks.
Was there any explanation of what it was supposed to do given to you? From that I might be able to deduce the meaning.
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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Thanks Craig, Please explain a little more how I can plot the 2 formulas and see them and get a signal when a (buy)K crossing up through D under the value of 40 or a (sell) K crossing down through D over the value of 60. Like you did on the PCF you gave me on Feb 12,Thanks.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Each of the formulas can be plotted in the same window as custom indicators. Just choose CUSTOM and INDICATOR when you add the indicator. Put the formula for one in then do it again for the other formula.
Once plotted you can sort by their net difference (don't use visual difference as they may be on different scales. Because their scales may be a bit different (should not be too different) they may be "crossing" in value but not visually on the chart. I plotted them and checked their scales on a few stocks and they were close. Below is a video on difference sorting of 2 indicators:
Comparing indicators using Visual Difference sorts
Just be sure you choose Net Difference for the method (not visual).
These videos are on PCFs in general. Think of your two formulas as two indicators in the same way AVGC10 and AVGC20 are two indicators. From these videos I bet you can take the next step...
How to create a Personal Criteria Forumula (PCF)
Constructing more versatile and reusable Personal Criteria Formulas
Create PCFs and EasyScans to find moving average crossovers
Let me know what you come up with after you watch the videos and play with it a bit.
- Craig
Here to Help!
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I did manage to get the formulas you gave me up on my PCF and it is not working well at all. Meanwhile, I have e-mailed my source on the formula to inquire what the word "close" means in the formula. I should have an answer in 48 hours. Thanks, Bill Benson
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I tried the new stochastic formula you gave me again this morning and it seems to be very sensitive to the time frame size. On about a three month daily, it works fine. If I receive any new info on the word "close" in the formula, I'll let you know. Many thanks, Bill Benson
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Registered User
Joined: 2/7/2005
Posts: 19
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I am trying create a stochastic PCF to give charts where K = D today.
Thanks
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here is what it would be if your stochastic settings are 12,22,10
STOC12.22=AVG(STOC12.22,10)
It is rare that the two are equal. Are you looking for a crossover? Read the above to see how a crossover can be scanned for.
- Craig
Here to Help!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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QUOTEHi Craig, I tried the new stochastic formula you gave me again this morning and it seems to be very sensitive to the time frame size. On about a three month daily, it works fine. If I receive any new info on the word "close" in the formula, I'll let you know. Many thanks, Bill Benson
Please remember that the scale of the two lines will be slightly different. The more you zoom out the more data will be shown and the closer the scales will get. Review what I said about how to handle this in my above posts.
- Craig
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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No need for a PCF. Try this.
In your Stochastics settings, make sure your SD period is set to 1. The result will be that you will only see one line on your Stochastics...the SK line.
Now, plot a simple moving average of Stochastics, and make the period whatever you would have ordinarily wanted your SD period to be.
Now you're back to seeing two lines on the Stochastics chart, but they are actually two separate indicators...the SK (fast) Stochastics, and a moving average of the SK.
Now do a visual comparison sort. Sort by Stochastics compared to the moving average of Stochastics. When the sort is complete, scroll down your WatchList until you find stocks returning values of zero. These are the stocks where SK and SD are meeting.
If you're not familiar with the Visual Comparison Sort, here is a training video that will demonstrate the technique.
Comparing indicators using Visual Difference sorts
By the way, the PCF's that Craig wrote further up in this topic will also work for you. I just think the method I described here might be simpler in the long run.
- Doug
Teaching Online!
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Registered User
Joined: 2/7/2005
Posts: 19
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I read through your discussion on the K and D cross over and watched some of the tutorial videos. All are very helpful.
I wanted to refine the PCF to identify the cross over on the day it happened. I might have to create a narrow range for comparing the values rather than strictly equal to.
Thanks for your help.
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Follow the technique I described above for visual comparison sorting, and look for values just slightly above and slightly below zero. If the value is exactly zero, then the SK and SD are equal. When the values are close to zero, one of the two lines will be just slightly above or below the other...and many of these will have just experienced a crossover.
- Doug
Teaching Online!
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Registered User
Joined: 12/11/2004
Posts: 74
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Hi Craig, I'm stuck on trying to get the new stochastic formula you last gave me to signal crossovers. You gave me a stochastic formula on Feb. 12 that signaled crossovers of K and D lines where the buy crossovers came at values under 40 and the sell crossovers came at values over 60. Could you please alter the latest stochastic PCF's to do the same thing? It was set to only show crossovers for 1 day with that .1 in the last paragraph. I'm talking now about altering the PCF where the K line formula is: 100*((C-MINL5)/(MAXH5-MINL5)) and the D line was a very long one. Thanks much. Bill Benson 639649
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Registered User
Joined: 12/11/2004
Posts: 74
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Is Craig not in today? I posted a question at 6:00AM this morning and have had no reply yet. Thanks, Bill 639649
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Nope, just taking me a little time to get this formula right... I like being missed, though!
Try this for me. Remember when you look at your charts you may not see the crossover graphically because of the scaling issue discussed above:
Crazty K line crossing over the Crazy D line when the value is under 40:
((100*((C-MINL5)/(MAXH5-MINL5)))<40) AND ((100*((C-MINL5)/(MAXH5-MINL5))
)>(((C-MINL5)+(C1-MINL5.1)+(C2-MINL5.2))/((MAXH5-MINL5)+(MAXH5.1-MINL5.1)+(MAXH5.2-MINL5.2))*100)) AND ((100*((C1-MINL5.1)/(MAXH5.1-MINL5.1))
)<(((C1-MINL5.1)+(C2-MINL5.2)+(C3-MINL5.3))/((MAXH5.1-MINL5.1)+(MAXH5.2-MINL5.2)+(MAXH5.3-MINL5.3))*100))
- Craig
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