Gold Customer
Joined: 5/21/2005 Posts: 17
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Hello
I am looking to write a formula to find gaps. Specifically I am looking for two types. When a stock has been in a downtrend and there is a doji or several dojis in a row then there is a bullsih candle that gaps up after the doji. The gap can be very small or large.
The second is when there is an uptrend and then a doji or several dojis and then a gap down on the next candle.
I am looking at end of day charts mostly and can refine it if I decide to do a shorter or longer timeframe.
Thanks for your help.
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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Do the dojis need to be exact dojis where the open equals the close or can they be near dojis? If they can be near dojis, how close to the open and close need to be?
How are you defining a gap up? As the open above the previous close, as the open above the previous high, as the low above the previous close, as the low above the previous high or something else?
How do you want to define a downtrend? Does the linear regression slope and/or net change over some arbitary period need to be negative, does a short term moving average need to be below a longer term moving average, do there need to be a certain number or certain percentage of negative net changes over some arbitrary period or something else entirely?
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