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 Gold Customer
Joined: 6/23/2011
Posts: 28
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I am trying to come up with a search that will identify stocks that are trending (either up or down) over an intermediiate to long duration time frame.
Can you help me with this.
Thanks,
Sam
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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It would depend on your specific unambiguous objective definition of both "trending" and "intermediate to long duration".
-Bruce
Personal Criteria Formulas
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Gold Customer
Joined: 6/23/2011
Posts: 28
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Trending either up or down, not sideways.
Intermediate would be weeks, long-term months.
Could you give me some input for a more ambiguous objective definition ?
What I am looking for are stocks with good EPS (over 25%) for the last year that are in a sustained trend (up or down but not sideways). I would prefer stocks without high volatility.
My objective is to identify good covered call candidates as well as good vertical spread candidates.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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You need to definite trending in something other than subjective (I know it when I see it) terms. The very first step in identifying what you want using a computer is to objectively define and quantify it. Computers don't understand what a "trend" is or is not.
What makes it a trend?
Does it just need to have a positive or negative linear regression slope with a net change in the same direction? If so, most symbols will qualify.
Does it need to have a certain percent change over the period?
Does it have to a narrow average range versus total range over the period in question (if so, what ratio between the two)?
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Gold Customer
Joined: 6/23/2011
Posts: 28
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It needs to have a positive, or negative, linear regression preferably with a somewhat narrow average range.
I don't have tha answers to the questions you are asking. I don't want to be too rigid with parameters and miss good candidates.
I would rather have a somewhat broad list and refine it with conditions and visual examination. However, I would like to start with a base list of stocks with a distinct visually defined trend moving either up or down.
I think I read somewhere that the ADX indicator is helpful with identifying trending stocks if applied properly.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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A Condition Formula for the Linear Regression Slope and Net Change to have the same non-zero sign over 20-Bars with an Average Range of less than 15% of the Total Range over those same 20-Bars would be:
SGN(19 * (C - C19) + 17 * (C1 - C18) + 15 * (C2 - C17) + 13 * (C3 - C16) + 11 * (C4 - C15) + 9 * (C5 - C14) + 7 * (C6 - C13) + 5 * (C7 - C12) + 3 * (C8 - C13) + C9 - C10) = SGN(C - C19) AND C <> C19 AND (AVGH20 - AVGL20) / (MAXH20 - MINL20) < .15
If you want ADX to be above a certain value, you can click on ADX and select Create Condition, choose Greater Than from the Condition drop down menu and adjust the settings as desired. You could then add both Conditions to the same Scan.
Indicators, Sorting & Scanning
Using Linear Regression vs Classical Peaks/Valleys for Divergence Analysis
PCF Formula Descriptions
Handy PCF example formulas to help you learn the syntax of PCFs!
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Gold Customer
Joined: 6/23/2011
Posts: 28
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Thanks Bruce
I know how to copy the formula but am having trouble with pasting it.
Please refresh me with that keystroke again for pasting a formula.
Thanks
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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You can use ctrl-c to copy and ctrl-v to paste.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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