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Gold User, Member, TeleChart
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| Unsure |
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| Wednesday, February 9, 2005 |
| Sunday, May 15, 2016 12:05:17 AM |
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So how do I request this formula as an addition to the other fundamental indicators?
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I'd like to request help creating a PCF that will sort all stocks by a value
indicator, namely "Earnings Yield". The formula is earnings per share
latest quarter divided by current market price.
Thank you,
- longterm
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Thanks for the observation, Jim. You're right, of course.
AVGV24 makes more sense.
-longterm
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After working with the suggestions above for the
past few weeks, I changed the PCF for
"4-week volume surge" to
AVGV6 > (AVGV20 * 2)
which is less restrictive than the prior formula
and more in line with what I normally look for
visually on a 6-day chart.
- longterm
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Thanks, Craig! You've obviously put a lot of thought and
energy into your response. I'm going to try your suggestions
throughout the day and will provide feedback later. If I
come up with Wilder RSI parameters that complement this
search, I will let you know.
Thanks again and enjoy your talks in Las Vegas this weekend!
- longterm
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Thanks again, Craig, for asking the pertinent follow-up questions. The price surge isn't measured by a percentage move or new high. Instead, using a 6-day chart, it would be characterized by the price breaking above the 65-bar moving average line on high volume (at least 4 times greater than the volume of the past 4 weeks) and sustaining that move upwards over the next several (3 to 7) trading days. Volume should also be sustained at a high level, though not necessarily as high as the initial breakout. Any pullbacks or retracements in price should end with a low at or higher than the 65-bar moving average before continuing up again. Price should "pull up" the moving average along with it but remain above it (except for the retracements mentioned above which should end at or above the 65-day MA). Again, you may wish to reflect on the movement of VRTX in 2004-2005 as a good example of what I'm trying to scan for.
Thanks very much for all your efforts,
- longterm
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Thanks for posting again, Craig. Let's forget the
Wilder RSI issue entirely for now for sake of simplicity:
I have yet to fine tune the settings. That aside, I would
like the surge in price to have occured within the last
several days at most, let's say starting from a minimum
of 3 to a maximum of 7 trading days. This should
allow enough time to make sure it's truly the
start of a new trend upwards rather than a head-fake.
Rising volume on the breakout would be the
primary confirmation. Once I work out the
Wilder RSI parameters (on my own), I would use it as
further (secondary) confirmation.
Thanks for all your efforts,
- longterm
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Thanks, diceman! I was not aware of that video. Interesting that it ended with a display of VRTX as a consolidating
candidate just before it took off 3 months later.
longterm
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Perhaps an example of what I'm looking for is in order, since
a "picture is worth 1000 words." Please take a look at
Vertex Pharmaceuticals (VRTX) on a 3 day chart for the
period 2004 - 2005. It was basically flat until May of '05 when the price surged on higher volume. I bought it at
$13 and was able to ride it to $40.
LongTerm
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Thanks, Craig, for responding. "Flat" needn't be absolutely flat, just a trading range in price over a relatively long period of time so that the long term MA is generally a horizontal line. This would indicate little interest in the stock among traders and investors for some time (1, 2 or 3 years). Low volatility in price, MA and volume for an extended period until *BAM*, something happens to take price and volume up sharply and steadily over a few days or weeks.
I haven't selected Wilder RSI settings, but am open to suggestions on that. Basically, it would be nice for RSI to cross up over the S&P500 comparison line coincident with the incident looked for above.
- LongTerm
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