Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
Use visual sorting with Stochastics to find stocks where the SK line is crossing the SD line. Find these crossovers when Stochastics is currently above 80 or below 20.
Stochastics SK Period SD Period actual value sort visual comparison sort moving average
If you would like to view the video offline, click here and select the Save option.
- Doug
Teaching Online!
To view this video you must have Macromedia Flash Player and Microsoft Internet Explorer 5+
|
|
Registered User
Joined: 1/14/2005
Posts: 21
|
Thanks Doug for the practical demonstration of what the three variables of the stoch actually represent. It is a real shame that so many who know how to use it do not have the ability to explain it to others in a form that is as understandable as what you have done here.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
I second that. I think this is one of Doug's best videos to date.
- Craig
Here to Help!
|
|
Registered User
Joined: 11/26/2004
Posts: 5
|
Can this method be written in a pcf? I would definitely like to use this with other
pcf's I have in mind...thx.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
I believe the following formula will work for you if you have Stochastics 12.5.10. Change the numbers to reflect your Stochastics settings.
STOC12.5.1 < AVG(STOC12.5.1,10) AND STOC12.5 > AVG(STOC12.5,10)
- Doug
Teaching Online!
|
|
Registered User
Joined: 11/26/2004
Posts: 5
|
I went through the manual process as illustrated in the
video. It produced a universe of stocks against the SP500.
I filtered it down as described in the video and eventually
got down to 30 or so stocks that are either in the
<20 or >80 range. However, when I used your formula against
SP500 it only produced a half dozen stocks that were marked
TRUE in the sort column. STOC values are the same in both
senerios. What am I missing?
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
The method described in the video found stocks that have experienced a crossover recently, or might be about to experience a crossover. The idea being that once the list was narrowed down that far, it would be easy to scroll through and use your eyes to identify the stocks that actually did experience the crossover you were looking for.
The PCF I gave you finds stocks where the crossover has occurred, and it occurred from yesterday to today.
PCF's are often more precise, but as a result, more restrictive. That's why I like the method demonstrated in the video rather than using PCF's.
- Doug
Teaching Online!
|
|
Registered User
Joined: 11/26/2004
Posts: 5
|
Can you give me the breakdown on the formula. The difference between the left and right side of the AND operator. Why the %d is not used on the right of the formula?
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
You can't program the sd line per se in a PCF. However, sd is merely a moving average of the sk. This is explained in the video.
STOC12.5.1 < AVG(STOC12.5.1,10) AND STOC12.5 > AVG(STOC12.5,10)
The left side of the formula says that STOC12.5.1 (which is the SK yesterday) is less than the 10 day moving average of the SK yesterday (which is the SD yesterday). The right side of the formula says the same thing, except the .1 has been left out to make it for today instead of yesterday, and the < has been changed to <. Essentially, it means that the SK was beow the SD yesterday and the SK is above the SD today. Works beautifully on my chart.
- Doug
Teaching Online!
|
|
Registered User
Joined: 11/26/2004
Posts: 5
|
Can you qualify your pcf where the near or actual crossover is in the <20 or >80 range...thx.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
Sure. Just add the following to the PCF above:
AND ((STOC12.5>=80) OR (STOC12.5<=20))
- Doug
Teaching Online!
|
|
Registered User
Joined: 2/22/2006
Posts: 29
|
hi...i just tried the following formula as suggested:
STOC12.5.1 < AVG(STOC12.5.1,10) AND STOC12.5 > AVG(STOC12.5,10)STOC12.5.1 < AVG(STOC12.5.1,10) AND STOC12.5 > AVG(STOC12.5,10)
i did it on the S&P 500. two of the stocks say "true". what does this mean? ahh, does it mean that these are the only two that occurred below the 20 line or above the 80 line?
so, now that i have created the formula, i can create an easy scan with this using all stocks + optionable stocks...and it should show me the stocks that are crossing over either 80 or 20. isn't this easier than going through the many steps in the video?
thanks.
barbara
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Your PCF has problems.
THIS PCF will find crossovers for 12/5/10 that happen above 80 or below 20:
(STOC12.5 > AVG(STOC12.5,10) AND STOC12.5.1 < AVG(STOC12.5.1,10)AND STOC12.5<=20) OR (STOC12.5 < AVG(STOC12.5,10) AND STOC12.5.1 > AVG(STOC12.5.1,10)AND STOC12.5>=80)
- Craig
Here to Help!
|
|
Registered User
Joined: 3/12/2006
Posts: 7
|
Doug,
I am a new member, and just viewing this video has made me think I have found a winner in TC2000. I can see where this particular method would open up a good number of potentials to do some further research on.
From what I have seen, you and Craig do a fantastic job. Keep up the great work.
|
|
Registered User
Joined: 10/7/2004
Posts: 2
|
Craig S
Copied the last posted PCF (STO12.5 >AVG( etc. In formula test for IBM: Error in Formula Syntax, and market days needed to calculate criterion:28. What's wrong. Thanks
Kalk
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
I just tested the PCF and it works fine.
Highlight the entire PCF then right click the highlighted area and choose COPY.
Go to TeleChart, click the NEW button then PERSONAL CRITERIA FORMULA. Name the PCF then, in the formula box, RIGHT CLICK and choose PASTE.
- Craig
Here to Help!
|
|
Registered User
Joined: 8/20/2005
Posts: 23
|
Doug,
I'm trying to get my hands around the overbought / oversold stocks recognition. Can I infer that stocks whose stoc's are below the 20 are overbought and stoc's above the 80 oversold? 
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
Just the opposite is the way Stochastics is typically interpreted: below 20 - oversold; above 80 - overbought.
- Doug
Teaching Online!
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Be careful,though. In the video below I show what below 20 and above 80 really mean. Be sure to check it out:
Understanding Stochastics
- Craig
Here to Help!
|
|
Registered User
Joined: 8/20/2005
Posts: 23
|
thx guys and the videos are great.. 
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
Our pleasure!
- Doug
Teaching Online!
|
|
Registered User
Joined: 12/7/2004
Posts: 43
|
Hi guys,
I downloaded this video and the Understanding Stochastics.
This video did not work, the other video did.
Why?
|
|
Administration
Joined: 9/30/2004
Posts: 9,187
|
Found a corrupt media file. Download this version and you should be able to view the video.
Sorting with Stochastics
|
|
Registered User
Joined: 5/29/2006
Posts: 8
|
hello guys,
i use stochastics in my personal criteria formular. i am afraid the search returnded some unfavorable result. could it be that there is a fault or what.
i used
STOC8.3 >= 60
and it returned "ebay" as one of the result yet the stochastic is just 8.31% which shouldn't be one of the results.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
Ebay's STOC8.3 is well over 60 today.
Are you looking at a daily chart? Edit your plotted stochastics, is the PERIOD 8 and the SK period 3?
If not, we need to change your PCF. What settings do you have?
- Craig
Here to Help!
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
shoat,
What are the Stochastics Settings on your chart? My results for EBAY on a Daily chart are as follows (as of the 5/31/2006 Market Close):
Period: 8
SK Period: 3
SD Period: 1
Average Type: Simple
Value: 79.04
Equivalent PCF: STOC8.3
Period: 8
SK Period: 3
SD Period: 3
Average Type: Simple
Value: 82.04
Equivalent PCF: AVG(STOC8.3,3)
Period: 8
SK Period: 3
SD Period: 1
Average Type: Exponential
Value: 73.15
Equivalent PCF: XAVG(STOC8.1,3)
Period: 8
SK Period: 3
SD Period: 3
Average Type: Exponential
Value: 71.87
Equivalent PCF: .500488758553275 * (XAVG(STOC8.1.0,3) + 2 / 4 * (XAVG(STOC8.1.1,3) + 2 / 4 * (XAVG(STOC8.1.2,3) + 2 / 4 * (XAVG(STOC8.1.3,3) + 2 / 4 * (XAVG(STOC8.1.4,3) + 2 / 4 * (XAVG(STOC8.1.5,3) + 2 / 4 * (XAVG(STOC8.1.6,3) + 2 / 4 * (XAVG(STOC8.1.7,3) + 2 / 4 * (XAVG(STOC8.1.8,3) + 2 / 4 * (XAVG(STOC8.1.9,3)))))))))))
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 5/29/2006
Posts: 8
|
craig
yes i was in the middle of the chat around mid may. i gave a closer look and found i was wrong. so that is sorted.
however, i don't know what you mean by PCF. could you shed more light?
thanks
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 18,819
|
A PCF is a Personal Criteria Formula. STOC8.3 is a PCF.
Here is a short video to learn more: How to create a Personal Criteria Forumula (PCF)
- Craig
Here to Help!
|
|
Registered User
Joined: 5/29/2006
Posts: 8
|
thanks bruce.
it now sorted. new to telechart and still playing around. i was looking at mid may and thought it was for today.
thanks
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
shoat,
You're welcome.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
 Platinum Customer
Joined: 2/20/2007
Posts: 83
|
Thanks for this wonderful post. I have been trying to do some stragey plots in Blocks. This was exactly what I needed to understand the wonderful Blocks tool a little better.
I was able to use the moving average and crossovers to adjust my trade positions. You might want to consider revising this post and placing it also in the blocks area.
Thank you
|
|
|
Guest-1 |