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Registered User
Joined: 3/20/2005
Posts: 17
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I did a search on the forum and didn't find a complete answer for this screen. Anybody has a PCF for pennants and flags screen? Would like the stock has made a breakout move of more than 10% either up or down direction with good volume, then it forms flags or pennants in last 3 to 5 days. Thanks!
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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When you say a breakout move, a move from what? A period of consolidation? An envelope channel, bollinger band, or linear regression channel? Downtrend followed by a turn to the upside? Lots of different definitions for a breakout.
Here are a couple of training videos that might help with the breakout issue:
Sort using envelopes, regression channels and Bollinger bands
Spotting trend changes using linear regression channel sorts
Remember that every pattern you look for must be expressed mathematically, often using some combination of open, high,low, close, and volume, within a specified time period. It can be done in many cases, but your eyes can often provide a quicker scan.
Consider creating a scan to find stocks that you consider tradable (weed out those outside of your trading range, etc.). Then apply one of the techniques in the videos to identify those having experienced breakouts. By then, you'll likely have narrowed the list to quite a manageable number of stocks, which you can scroll through quickly...looking for the very obvious flag or pennant formations you want.
- Doug
Teaching Online!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Let me play around with some ideas...
It is problematic because defining a past breakout in PCF language is messy... as is the nebulous time-frame problem.
I would do this while you wait:
1. Search for breakouts every day and put ones you consider valid in their own WatchList.
Here is a great video on scanning for breakouts:
EasyScan Design for Breakouts and Bouncers
2. Review the contents of your Breakout WatchList each day (should only take a minute or two) and see if any are forming you desired pattern. Bottom line; flags/pennants are best found with the eye, not math (IMHO).
- Craig
Here to Help!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I just tried something that is finding some very interesting charts (that include penants and flags)
1) Create an EasyScan called "Up 10% last Month"
Price Per Share (set to values that fit your trading)
Volume 90-days (set to values/ranks that fit your trading)
Price Percent Change 1-Month (set to VALUE 10 to MAX)
2) Save your EasyScan. It should find only a few hundred or less stocks.
3) Create a Custom Percent True indicator:
Smoothing Average: 5 exponential
Formula: H<H1
4) Right click on your new indicator and sort by ACTUAL VALUE in descending order.
Let me know what you think!
- Craig
Here to Help!
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Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
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Hi, Accutrading:
For a huge number of reasons, PCF-eze is not the tool to use to identify "classic" chart patterns such as pennants and flags and triangles and H&S, etc.
However, for the flags at least, you can approximate it by using Linear Regression Channels. A breakout above or below the channels would consitute the signal.
Try setting that up on the screen and see if you like the results. Use Channel SortBy and a one or two day Extension to find the breakouts. The problem is you have to decide how long the LinReg width is .. and that typically varies from one stock's flag pattern to the other.
So, my general conclusion is that if you REALLY want to use classic patterns, then either:
1) do it visually in TC, after culling your WL down as MUCH as possible first
2) get another TA platform to help you identify those patterns (not allowed to mention possibilities here, but there are several out there).
If you need a PCF for this, it can be done ... but first do the chart experimentation since you will have to lock in on a given periods and width input to accomplish this.
Jim Dean
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Doug's post above offers two videos on channel sorts. I think both he and tanstaafl offer great options for you. Finding breakouts then tracking them in their own WatchList for the days following is also something to consider.
- Craig
Here to Help!
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Registered User
Joined: 2/4/2009
Posts: 2
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Craig -
I use Bull and Bear flags in my trading plan. I found your Easy Scan very helpful. I scanned US Stocks, Vol > 1 million, Price > $25, in addition to up 10%. That found 63 stocks. Half showed decent set ups to study. and I took a trade on MOS.
Thanks
Jm
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