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Using Rate of Change Indicator to create a Scan Condition Rate this Topic:
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trottom
Posted : Thursday, September 15, 2016 4:25:44 PM
Platinum Customer Platinum Customer

Joined: 7/28/2014
Posts: 14


I am trying to create a scan condition which is simply when the Rate of Change Indicator (for a Moving Linear Regression line) is greater than 0.  For whatever reason, it s returning no results.  I'm looking at my charts and they show positive ROC results whenever the Moving Linear Regression line is rising so I'm not sure what I'm doing incorrectly.  Thanks

Bruce_L
Posted : Thursday, September 15, 2016 4:46:57 PM


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Joined: 10/7/2004
Posts: 58,149

It is a bug. I can write a Condition Formula to work around the issue, but I would need to know the periods of both the ROC and the MLR.



-Bruce
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trottom
Posted : Thursday, September 15, 2016 5:41:11 PM
Platinum Customer Platinum Customer

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The weekly MLR is 13 and the ROC is 1.  Thanks again

Bruce_L
Posted : Friday, September 16, 2016 9:35:34 AM


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The value of a 1-period rate of change (net) indicator applied to a 13-period moving linear regression indicator applied to price can be written as follows.

(25 * C - 36 * AVGC12.1 + 11 * C13) / 91

This would greater than zero when:

25 * C + 11 * C13 > 36 * AVGC12.1

And less than zero when:

25 * C + 11 * C13 < 36 * AVGC12.1

How to create and save a Condition (PCF) Formula



-Bruce
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trottom
Posted : Friday, September 16, 2016 1:57:19 PM
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Thanks Bruce.  I'll give that a shot and see how it works. 

trottom
Posted : Tuesday, September 20, 2016 3:33:31 PM
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Bruce,

Can I bother you for another formula.  Again it is for when the rate of change indicator is greater than 0 but this time it will be for the Monthly chart when the MLR is 9 and the ROC is 1.   Thanks

 

v

Bruce_L
Posted : Wednesday, September 21, 2016 10:23:32 AM


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The value of a 1-period rate of change (net) indicator applied to a 13-period moving linear regression indicator applied to price can be written as follows.

(17 * C - 24 * AVGC8.1 + 7 * C9) / 45

This would greater than zero when:

17 * C + 7 * C9 > 24 * AVGC8.1

And less than zero when:

17 * C + 7 * C9 < 24 * AVGC8.1



-Bruce
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trottom
Posted : Wednesday, September 21, 2016 10:26:16 AM
Platinum Customer Platinum Customer

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Bruce,

Can I get your help with another formula?  Again it is for when the rate of change indicator is greater than 0 but this time it will be for a MONTHLY chart when the MLR is 9 and the ROC is 1.

Thanks again for all your help

trottom
Posted : Wednesday, September 21, 2016 10:26:55 AM
Platinum Customer Platinum Customer

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Posts: 14

Never mind....just got your response.

Thanks again

trottom
Posted : Monday, October 17, 2016 3:56:38 PM
Platinum Customer Platinum Customer

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Bruce,

Can I bother you again for another iteration of this formula?  I need to find when the Rate of Change indicator is greater than 0 for the DAILY chart when the MLR is 30 and the ROC is 2. 

 

I'd like to be able to complete different iterations of this without having to continue to bother you however I can't really decipher how you are coming up the formulas.  Maybe as a baby step, how would the same formula differ if I wanted it for when the ROC is 1. 

 

Thanks again, I really appreciate your help.   

Bruce_L
Posted : Monday, October 17, 2016 4:35:04 PM


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Posts: 58,149

Please try the following Indicator Formula for a ROC2 of an MLR30.

(59 * C + 56 * C1 - 168 * AVGC28.2 + 25 * C30 + 28 * C21) / 465

There is a generalized form of this for a 1 period rate of change of a moving linear regression given in the Slope of moving linear regression line topic where P is the period of the MLR.

((P * 2 - 1) * C - (P * 3 - 3) * AVGC(P-1).1 + (P - 2) * CP) / (P * (P + 1) / 2)

So if we had a ROC1 of a MLR30, we would get the following by substituting 30 for P.

((30 * 2 - 1) * C - (30 * 3 - 3) * AVGC(30-1).1 + (30 - 2) * C30) / (30 * (30 + 1) / 2)

Which comes out to the following if you calculate out each of the individual parts.

59 * C - 87 * AVGC29.1 + 28 * C30) / 465



-Bruce
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Putt4Dough
Posted : Monday, October 17, 2016 5:26:55 PM

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Nice!

trottom
Posted : Monday, October 17, 2016 9:41:57 PM
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Thanks again Bruce.

trottom
Posted : Tuesday, October 18, 2016 2:31:06 PM
Platinum Customer Platinum Customer

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Bruce,

When creating an EasyScan, I can use the formulas that you gave me to identify when the ROC is greater than zero.  However, it doesn't give the option to identify stocks when the ROC is just turning positive.  Is there a way to create a condition that either identifies when 1)WEEKLY ROC crosses up through a zero horizontal line or 2) Prior WEEKLY ROC is less than zero an current WEEKLY ROC is greater than zero?

Thanks

Bruce_L
Posted : Tuesday, October 18, 2016 2:35:29 PM


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Joined: 10/7/2004
Posts: 58,149

You can create one bar ago versions of the formulas to check for the previous bar.

An easier method might be to plot the desired value based indicator as Custom PCF Indicator. Then you can click on it and select Create Scan Condition to check for it crossing up or down through zero.



-Bruce
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trottom
Posted : Tuesday, October 18, 2016 2:50:12 PM
Platinum Customer Platinum Customer

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Got it!  Thanks.

I'm a finance guy who is a tech dummy so this stuff is like another language to me.  Appreciate all your assistance. 

trottom
Posted : Tuesday, January 24, 2017 6:06:14 AM
Platinum Customer Platinum Customer

Joined: 7/28/2014
Posts: 14

Bruce,

Can you give me a hand on another formula please?  I need a formula to find when the Rate of Change indicator is greater than 0 for the 4 HOUR chart when the MLR is 40 and the ROC is 2. 

Thanks again 

 

Bruce_L
Posted : Tuesday, January 24, 2017 10:25:46 AM


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Joined: 10/7/2004
Posts: 58,149

Please try the following Condition Formula with the time frame of the Condition Formula set to 4 hour.

79 * C + 76 * C1 + 35 * C40 + 38 * C41 > 228 * AVGC38.2



-Bruce
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trottom
Posted : Tuesday, January 24, 2017 11:37:35 AM
Platinum Customer Platinum Customer

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Bruce,

That returns a boolean result and not a value.  I was hoping to calculate the ROC value like the formulas that you were able to provide above.  Again, appreciate the help. 

Bruce_L
Posted : Tuesday, January 24, 2017 11:52:10 AM


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Joined: 10/7/2004
Posts: 58,149

Please try the following Indicator Formula.

(79 * C + 76 * C1 + 35 * C40 + 38 * C41 - 228 * AVGC38.2) / 820



-Bruce
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trottom
Posted : Tuesday, January 24, 2017 12:31:20 PM
Platinum Customer Platinum Customer

Joined: 7/28/2014
Posts: 14

Nailed it Bruce.  Thanks again.

Bruce_L
Posted : Tuesday, January 24, 2017 12:36:28 PM


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Joined: 10/7/2004
Posts: 58,149

You're welcome.



-Bruce
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