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Registered User
Joined: 6/30/2017
Posts: 1,227
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Bruce, I know you can't give advice but this is more of a techincal indicator question...
Lots of traders and authors talk about "stable" price action - I was wondering if you know a way to quantify it.
Imagine two stocks that have risen 10% in the last month, but one did it relatively smoothly while the other bungee jumped up and down. Their linear regression slope would (I think) be similar but the first stock's data would be "tighter" while the latter stock's data would be more "dispersed".
Actually, I may have just answered my own question. Both stocks would have similar Slopes, but the smoother rising stock would have a much higher R-Squared. Eureka!
The heck with decaf. I can live w/ typos ... I need my caffeine!
Any thoughts? Anything else besides R-Squared that you can think of to scan for "consistently" trending stocks? I guess ADX might qualify but I'm open to alternatives.
My heart is good ... for now ... I want to avoid as many yo-yo stocks as I can. :)
Smoother is better...
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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You may want to take a look at the FINDING STOCKS IN A RISING CHANNEL? topic.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 1/28/2005
Posts: 6,049
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The K-Ratio and Ucler Index come to mind.
Thanks
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Whoops Ulcer Index.
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Registered User
Joined: 6/30/2017
Posts: 1,227
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Bruce, thanks. I'll check out the link.
diceman, thanks! LOL! ... I think I know how the Ulcer Index got its name. I almost spilled my coffee laughing!
Never heard of either K-Ratio or the Ulcer Index. Will check them both out.
Thanks to both of you guys. You rock!!
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Registered User
Joined: 5/30/2014
Posts: 53
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Here's something simple I did (trying to do something else!) that may help.
CountTrue(((xavgc20.2 > xavgc10.2) AND (xavgc10 > xavgc20)) OR ((xavgc10.2 > xavgc20.2) AND (xavgc20 > xavgc10)),200)
It counts the number of 10Ema and 20Ema cross overs/unders in the last 200 bars. The smaller the number, the "trendier" the price action.
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Registered User
Joined: 9/17/2010
Posts: 484
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Some scan criteria I'm playing with:
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Your RSquare over a 30 bar period
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Kaufman Efficiency Ratio over 60 days
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Trade Bias Count of bars where Stoc 70 .3 is over 50 in the past 30 days. 30 is a prefect score
Obviously one factor to decide on is what time period are you looking for? I haven't decided whether I prefer 30 or 60 days (see confusion above).Or is it some other period?
Another trick would be to select your favorite indicator (eg Stoc or RSI) and apply Donchian Channels, and the look for lower channel to always be above 30 or 50 or whatever
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