Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Author: Craig Shipman
keywords: candlestick Candlestick hammer hammers hanging man PCF personal criteria formula formulas reversal pattern patterns easyscan sort
- Craig
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To view this video you must have Macromedia Flash Player and Microsoft Internet Explorer 5+
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here are the two PCFs used in the video
Body as % of Shadow
ABS(C - O) / (H - L) * 100
Body Center as % of Shadow
(((C + O) / 2) - L) / (H - L) * 100
Enjoy!
- Craig
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Registered User
Joined: 10/7/2004
Posts: 9
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Thanks Craig! Your video provides excellent explanations on how to code a hammer in PCF.
As you show on your video we can setup the “Body as % of Shadow” and “Body Center as % of Shadow”. I call those adjustments “Margin”.
A popular author about candlestick pattern proposed a shadow at least three times the length of the body and the body should be located within the first 1/3 of the candle. Of course this is the theory. In practice the candle may deviate from that perfect figure and still be valid… This brings me to the concept of “Margin”.
For example the Doji is a little cross. Its PCF is:
c = o
…which means the close is equal to the open or the reverse. That’s it!
However in practice the Doji may deviate from the perfect formula and still be valid. Therefore I introduce a “Margin” of 10% in my candlestick pattern PCF:
abs(o - c) <= 0.1*(h - l)
… which mean that we accept that the open minus the close (or vice-versa) can be less or equal to 10% of the shadow length (high - low).
This bring my to my Questions:
------------------------------
1) How much margin should we put for each individual candlestick reversal patterns?
2) Are you aware of any study (like back testing) that optimizes the margin for each candlestick patterns? …optimization in order to increase the yield of success of each play…
Thanks very much
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I don't know a real answer to this exists. I would say it really depends on the trader. Is 10% acceptable to you? If so let it go! If not, what is?
As an aside... try this PCF for me:
ABS(O-C)/(H-L)*100
It is a small reworking of your PCF. It will return, as a percentage, how the body compares to the whole candle. A value of "10" is 10%. Sort a watchlist by this criterion in ascending order. Look at the charts. The ones at the top should look like Dojis... what value shows when they stop? This may be YOUR margin.
Make sense?
- Craig
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Registered User
Joined: 10/7/2004
Posts: 9
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That's a great idea! I will definitely give it a try and conduct my own study.
Many thanks.
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Registered User
Joined: 12/16/2004
Posts: 24
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I am a beginner on TC2000 as well as trading so please excuse my ignorance. I was looking forward to giving the hammer/hangman scan ago but only got as far as the value/rank gauge. My gauge starts at 570.88 and goes up to 7051.31, what does this mean?
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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For which condition do you see these values?
- Doug
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Registered User
Joined: 12/16/2004
Posts: 24
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Body center as % of shadow looks like this;
-228.52 90
-1025.63 75
-1961.91 50
-3465.57 25
-6281.82 10
VALUE RANK
Body as % of shadow looks like;
90
7051.31 75
4028.33 50
2159.38 25
570.85 10
VALUE RANK
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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james71:
Did you copy and paste the formulas that Craig posted below the video? Did you update them for All Items in System?
Let me know, and we'll get this resolved for you.
- Doug
Teaching Online!
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Registered User
Joined: 12/16/2004
Posts: 24
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Doug, Thankyou for help..I've now got it sorted.
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Great! I'm glad it's working for you now!
- Doug
Teaching Online!
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Registered User
Joined: 2/2/2005
Posts: 9
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I have watched the video about Doji's followed by a gap, but when I try to make a new easy scan I don't have the open/close etc. in my drop down box. Where can I find them?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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The PCFs for that video can be found below it. Scroll under the video and you should find everything you need.
- Craig
Here to Help!
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Registered User
Joined: 2/2/2005
Posts: 9
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Thank you. I am new to this and finally understood that I have to enter my own PCF's and name them. When I did this things are working GREAT! My next question is, how do I write a PCF if I am wanting to limit my search to stocks between $5-50 and with a volume of 200,000?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You only need to add these conditions (not PCFs, they are already in your system):
Price Per Share
(limit to a value of 5 to 50)
Volume Today
(limit to a value of 2000 to MAX - volume is in hundreds)
Here is a video to help you along:
(and thanks for the high rating on my post!)
Using EasyScan to find stocks that meet your own criteria
- Craig
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Registered User
Joined: 3/3/2005
Posts: 5
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Hi Craig
When I go to the pcf,s the option for the candle bodys are not there.
Do you have any suggestions.?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Yes. You have to create them. The formulas for these conditions are under the video (above here).
Here is a video on creating PCFs
How to create a Personal Criteria Forumula (PCF)
Watch this video then use the formulas above to get these conditions in your system.
- Craig
Here to Help!
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Registered User
Joined: 12/9/2004
Posts: 48
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I'm attempting to modify my hammer/hanging man pcf's to instead search for a "shooting star" candle pattern. Evidently I'm not using the right approach to changing the values in "body as % of shadow" or "body center as % of shadow". And perhaps this is not the right approach at all? Please help me with the correct "answer" to this puzzle. Of course what I'm looking for is a long upper shadow as compared to a smaller (lower) body.
Thanks for any help you can give me.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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odejonge,
Like Hanging Man or Hammer, Body as % of Shadow must be small. Body Center as % of Shadow is on the opposite end of the spectrum however and the rangefinder should be small and extend all the way to the bottom instead of small and extending all the way to the top.
I have found adding the following PCF as a condition of my EasyScans helps by eliminating completely flat candlesticks.
H<>L
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/9/2004
Posts: 48
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Although much better, many still look more like doji's or spinning tops, many also with bodies in the middle of the candles. Also, the candles appear to be relatively small in length as compared to most of the hanging man candles that I typically see. Perhaps there just aren't many classic examples available right now? Or maybe I'm still not entirely sure how to set the rank or value parameters in "Body Center as % of Shadow"? Presently I have it set: Rank = 1 to 11. Is that correct? Thanks a bunch for your help.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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odejonge,
I must admit to actually using some additional PCFs when identifying candlestick patterns using this technique.
Body Bottom as % of Shadow:
(O+C-2*L-ABS(O-C))/(H-L)*50
Body Top as % of Shadow:
(O+C-2*L+ABS(O-C))/(H-L)*50
My Shooting Star EasyScan has the following settings:
Body as % of Shadow:
Value = Min to 25
Body Top as % of Shadow:
Value = Min to 25
If you wish to avoid completely flat bodies, you may wish to use something like Value = 5 to 25 for Body as % of Shadow instead.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/9/2004
Posts: 48
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After a couple of days trial, I'm now getting some real good "shooting stars". I know they occur somewhat infrequently, and I use a limited scan, so I probably just had to try this out until successful.
Thanks again for your help on this one.
-Bill
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Registered User
Joined: 5/6/2005
Posts: 7
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QUOTE (james71) I am a beginner on TC2000 as well as trading so please excuse my ignorance. I was looking forward to giving the hammer/hangman scan ago but only got as far as the value/rank gauge. My gauge starts at 570.88 and goes up to 7051.31, what does this mean?<img src="/training/images/emoticons/smile004.gif"/>
Hi Hemik Make sure when using the gauge it is all the closed before clicking and draging. Example when blue is showing there should be no
white showing at the min or Max before you start your adjustments
this should help.
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Registered User
Joined: 6/18/2005
Posts: 3
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Great video on candle hammers. I followed your instrucions under the new scan, PCF's and there was no candle body entry. Do you have any advice?
Thank you.
Todd
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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pinche,
Did you copy and paste the formulas that Craig posted below the video? Did you update them for All Items in System? Here is a video on creating PCFs:
How to create a Personal Criteria Forumula (PCF)
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 6/18/2005
Posts: 3
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Thank You, I just saw them.
Todd
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Registered User
Joined: 11/24/2005
Posts: 1
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Hi, I've just signed up for Telechart and would like to know how (if possible) can I scroll over the chart to view the daily open/close/high/low??
Regards
Steve
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Yes.
If you press your period (.) or full-stop key twice it will bring up the pointer crosshair and the data window. You can then use your mouse or the arrow keys on your keyboard to scan through.
- Craig
Here to Help!
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Registered User
Joined: 3/9/2005
Posts: 15
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Hi.. another great video. I know cause I understood it...
Well not all, what purpose does it serve? Would not scanning for price in a certain range or useing moving averages get you the same results. I have found that there are many indicators and pcf's. What I am trying to come up with is a few that I can focus on and use, without overlapping.. thanks as always.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Candlestick patterns are popular and requested. This led to the video. You decide if any pattern is valid and fits your analysis style.
This video teaches how to search for the pattern but, in no way, validates it.
- Craig
Here to Help!
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Registered User
Joined: 3/1/2006
Posts: 11
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Hello. I have tried to add the two pcf in the video for hammer and hangingman. However instead of giving me a range, it gives me true of false? I'm using TC2005
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Please copy and paste the PCFs from your system here so I can look them over.
- Craig
Here to Help!
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Registered User
Joined: 3/1/2006
Posts: 11
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ABS(C - O) / (H - L) * 100
(((C + O) / 2) - L) / (H - L) * 100
Also, please check the ones I'm using for doji's
O1 / C1
H1 / L1
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Be sure these are built as 4 seperate PCFs.
If they are you should get your range selectors.
- Craig
Here to Help!
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Registered User
Joined: 3/1/2006
Posts: 11
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they are all built as four seperate pcfs
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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When you add them to your EasyScan, are you adding 4 separate conditions? The PCF's you showed are not of the type that would give you a True/False result if they are entered separately as 4 individual PCF's.
- Doug
Teaching Online!
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Registered User
Joined: 3/1/2006
Posts: 11
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yes each one is a separte condition. Is there a way I can add a screenshot so you can see what I see?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Do me a favor.
Edit this PCF:
Body as % of Shadow
ABS(C - O) / (H - L) * 100
Change the test symbol to IBM and give me the numbers and the result that shows up.
- Craig
Here to Help!
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Registered User
Joined: 3/1/2006
Posts: 11
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Here are the #'s ABS(82.89 - 82.60) / ( 83.22 - 82.30) * 100.00 and the result was 31.52
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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OK. Now create a new EasyScan with just that criterion. Does it give a range selector?
- Craig
Here to Help!
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