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Registered User
Joined: 1/9/2005
Posts: 8
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I have read Stan Weinstein's Making Money in Bull and Bear markets and I really want to use TC to scan for stocks that have been trading in a tight range for atleast three years. I am having trouble getting the setting correct. I am looking for stocks under 3.00 that have been trading in a tight range for atleast three years and are 5% above a new high. A stock like FORD from 2003 to 2005 is a good example of what I am looking for. Could you please advise about the formula I should use for this and also any tutorial I should watch to help me get these types of stocks?
Thanks,
Meg
Also, I have not used TC 2000 in about two months and I don't know if I still have the CD. What do I need to do to update my stock bank to current times?
Thanks again for your time.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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If it has only been two months, you should probably be able to just select Databank | Update via Internet | Update to get the most recent data.
Assuming I'm understanding it at all, I believe there are at least two questions that need to be answered before attempting to implement the described technique. How tight did the trading range have to be? How long ago can it have broken out of this trading range?
For example, the following formula looks for stocks less than $3 that were within a 10% trading range for the three years ending two weeks ago but are now at least 5% above that range:
C<3 AND MAXH756.10/MINL756.10<=1.1 AND C>=MAXH756.10*1.05
I just made those ranges and timeframes up randomly, so they are probably not something you would want to use. You should come up with values that actually make sense on your own. You may be interested in the following forum topic and videos:
How to create a Personal Criteria Forumula (PCF)
Handy PCF example formulas to help you learn the syntax of PCFs!
Using EasyScan to find stocks that meet your own criteria
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 1/9/2005
Posts: 8
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Thanks for your help. I am looking for stocks under 3.00 that have been in a stage 1 consolidation for three years and whose closing price has moved out of this consolidation by 5% or less. Does that clarify?
Thanks
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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What is a stage one consolidation?
- Doug
Teaching Online!
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Registered User
Joined: 6/3/2005
Posts: 20
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I'm trying to follow Bruce's logic on this so that I can use parts of it:
C<3 AND MAXH756.10/MINL756.10<=1.1 AND C>=MAXH756.10*1.05
c <3 = close today is < 3.00
maxh756.10/minl756.10 = is that the trading range for the past 3 yrs (756) and within a 10% range? (.l0)
AND C>=MAXH756.10*1.05 = something to the effect that the close today is higher than the 3 year trading range...
I'm lost on the rest of the formula. I've been trying to work a formula that would return say a 25 day consolidation pattern AND that pattern was moving in a 10% range. would that be MAXH25.10/MINL25.10?
I watched the video on breakouts and bouncers, very helpful for the next step - finding the actual breakout!
thanks!
marceia
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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I think you have a fairly good understanding of the various components of the Personal Criteria Formula.
C<3 - The current Close is less than $3.00.
MAXH756.10/MINL756.10<=1.1 - The trading range for the 3 Year period ending two weeks ago is within a 10% range.
C>=MAXH756.10*1.05 - The current Close is at least 5% higher than the top of trading range for the 3 Year period ending two weeks ago.
The 1.05 and 1.1 represent 5% and 10%. 756 is the approximate number of trading days in three years. 10 is the approximate number of trading days in two weeks. The ANDs string everything together.
MAXH25.10/MINL25.10 represents the ratio of High to Low for the 25 Periods ending 10 Periods ago (You would have to subtract 1 and multiply by 100 to get the range expressed as a percentage). This alone would not normally be used to determine if a stock is trending or consolidating. The example PCF Trending/Consolidating (25 day) compares the average trading range to the trading range over the past 25 days. Lower values reveal consolidation while higher values reveal trending.
Trending/Consolidating (25 day):
(MAXH25 - MINL25) / ((AVGH25 - AVGL25) *25) * 100
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 6/3/2005
Posts: 20
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gotcha. I'll work with this for a bit and see what I get. the more i use telechart, the more impressed I am with it's capabilities. I just wish I had paid more attention in algebra class! If they had told me I could make money with math, I would have listened.
thanks again!
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Registered User
Joined: 1/9/2005
Posts: 8
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Doug,
What I mean by a stage 1 is a stock that is bouncing/consolidating between support and resistance for a long time (more than two years). I am looking for a stock that has just recently broken out from such a trend like by 10% or less on heavy volume. A look at the chart of FORD from 2003 to 2005 shows the type of stock I am looking to scan for. It bounced between 2.00 and 3.50 for a long time until it broke out into new territory and then ran up to 30 within a few months. I am looking for stocks that are under 6.00 moving sideways/consolidating for more than three years and then breaking out into virgin territory. Can you help ? I tried using the PCF for consolidating 25 day by changing the 25 to a higher number like 400, but that didn't seem to work.
I would really appreciate your help.
Meg
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Check out this video
Scan for stocks bouncing in a lateral channel
You can set the time period to 750 trading days by adjusting the formulas used.
- Craig
Here to Help!
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Registered User
Joined: 12/1/2004
Posts: 9
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Thanks for the guidance. I tried it and that particular PCF was not there. I did find some PCF guidance on Phase II at this site. No Phase Four. I'll keep looking.
http://www.tradeon.com/tradeon/tc2000/wein.html
HerbJ
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