Worden Trainer
Joined: 10/1/2004
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Keywords: Channel rolling bouncing consolidating easyscan pcf pcfs custom indicator support resistance
- 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 PCFs used in the video:
Trend/Consolidate 60 days
(MAXH60 - MINL60) / (AVGH60 - AVGL60) * 100
60 Day Directional Move
AVGC30 / AVGC30.30
The Custom Indicator
ABS((MAXH30-MAXH30.30)/MAXH30.30)*ABS((MINL30-MINL30.30)/MINL30.30)
The WatchList Tab PCF
MAXH60-MINL60
Here are the same PCFs for a 40-day/bar range:
Trend/Consolidate 40 days
(MAXH40 - MINL40) / (AVGH40 - AVGL40) * 100
40 Day Directional Move
AVGC20 / AVGC20.20
The Custom Indicator
ABS((MAXH20-MAXH20.20)/MAXH20.20)*ABS((MINL20-MINL20.20)/MINL20.20)
The WatchList Tab PCF
MAXH40-MINL40
ENJOY!
- Craig
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Registered User
Joined: 10/7/2004
Posts: 5
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Craig, The Custom Indicator Settings in the video has an extra MAXH30.30 compared to the formula in the list. Which one or are both correct? Thank you, bjjgksa.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Go to about 6:58 into the video. I think the formula matches perfectly with the one on the list (unless I am missing something).
- Craig
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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bjjgksa:
I just reviewed the video, and perhaps I missed it, but it looks to me like the video matches the formula that Craig posted for the custom indicator. If you use the one he posted below the video, you should be fine.
- Doug
Teaching Online!
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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bjjgksa:
Your last two posts came up as blank, so I deleted them. Could you try again, please?
- Doug
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Registered User
Joined: 10/7/2004
Posts: 5
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Thanks, I guess this old eye (only have one) failed me the first time. Hate to bother you, but could please check the last item in the list. Comparing this PFC (40 days) to the 60 Day Watchlist Tab PFC it looks like the 20 should be 40
Thanks, Bob W.
PS Love the new TC2005 Program.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Your "old eye" is not that bad... good catch. I fixed it above. It should have been MAXH40-MINL40 from the beginning. Thanks!
- Craig
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Registered User
Joined: 1/12/2005
Posts: 3
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To Craig S.
Hi Craig,
On 1/27/05 you responded to my question regarding setting up an easy scan for rolling stocks. Your reply was entitled: "Scan for stocks bouncing in a lateral channel."
I have followed your instructions exactly, but the scan returned 1,068 possibilities. What else could you suggest in order to make this number reduce to around 500?
Thank you.
Peg Bunch
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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I would suggest that there are attributes to some of the 1,068 stocks that would make them untradeable for you. Things like price (too cheap, too expensive) or perhaps volume (too low - illiquid). If you add some conditions to your scan to weed out some of those, you'll likely wind up with a more manageable number.
- Doug
Teaching Online!
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 Gold Customer
Joined: 12/30/2004
Posts: 7
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A helpful video, thanks.
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Registered User
Joined: 3/29/2005
Posts: 4
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Hi Craig:
I was trying to follow your instructions on this video, and I seem to be missing two conditions that you mentioned on my easy scan.
The two conditions are :
Trend/Consolidate 60 day and 60 day directional move.
Am I missing something? Or, are these conditions I can create myself?
Thanks,
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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earthbizcom:
Scrollup from here to the post just below the video. I think the two conditions you're looking for are the first two PCF's listed.
- Doug
Teaching Online!
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Registered User
Joined: 3/31/2005
Posts: 37
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I am looking for some verification that the PCF's I entered are indeed correct or not. When I run the scan I get approximately 725 results give or take 15. Would you run this scan on your system and see if this is a justifiable amount for the PCF's and today's market? Thank you for your help.
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Are you using the 60 day period or the 40 day period?
- Doug
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Registered User
Joined: 3/31/2005
Posts: 37
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I am using the 60 day period.
Thanks
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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The best way to verify your results is to look at the charts. Once you sorted your EasyScan by the Custom Indicator were you seeing stocks bouncing in a 60-day (or more) channel?
- Craig
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Registered User
Joined: 3/31/2005
Posts: 37
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Yes and No. Some of these stand out in a channel while others could be subject to speculation on the part of the interpreter. i.e. FHR, GTOP HAIN. I did not go thru all 700+. I am trying to narrow down the search. If this returned quantity is correct then I can increas the number of days to above 60. If the quantity is not correct then I can return to rebuiling the scan (again).
Thanks.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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The process is designed to include charts that you may, or may not, consider in a channel. I wanted to be sure I had a chance to see those stocks and make the call versus the computer tossing them without me seeing them.
The sort will reduce the number of stocks you need to look at. As you go down the list the number of stocks you will see in a channel will get less and less. You should not look at all of them. Stop once you stop seeing stocks in the pattern.
Feel free to add conditions to the scan. Things like fundamentals can be included to reduce the list down.
- Craig
Here to Help!
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Registered User
Joined: 5/5/2005
Posts: 1
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Worden. Just started looking at this program. Home Run!!
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Registered User
Joined: 5/12/2005
Posts: 49
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Scott, it looks as if this scan could be modified to locate stocks that just broke-out of a trading channel to the upside with the recent (past 3 days)prices 5-10 cents greater than the greatest price in the channel ?
Any ideas ?
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Registered User
Joined: 5/12/2005
Posts: 49
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Craig,
I'm a new member and would love to learn how to do this, could you help me to create this PCF that I outlined below in a note to scott.
"It looks as if this scan could be modified to locate stocks that just broke-out of a 40 day  trading channel to the upside with the recent (past 3 days) prices 5-10 cents greater than the greatest price in the channel ?"
Still learning,
dcarnell
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Craig may have a better idea when he gets back from the Las Vegas Money Show, but you might want to try this in the meantime. I don't know how much of the original technique you wish to use, so I'll adjust all of the 40-day/bar range formulas back 3 days.
Trend/Consolidate 40 days, 3 days ago:
(MAXH40.3 - MINL40.3) / (AVGH40.3 - AVGL40.3) * 100
40 Day Directional Move, 3 days ago:
AVGC20.3 / AVGC20.23
The Custom Indicator, 3 days ago:
ABS((MAXH20.3-MAXH20.23)/MAXH20.23)*ABS((MINL20.3-MINL20.23)/MINL20.23)
The WatchList Tab PCF, 3 days ago:
MAXH40.3-MINL40.3
Add a Personal Criteria Formula for the difference between the current price and the greatest price in the channel:
3-Day Breakout in Dollars:
C-MAXH40.3
Assuming you really want to limit it to a 5-10 cent difference, add the PCF to your EasyScan with the following settings:
3-Day Breakout in Dollars: Value: .05 to .10
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 12/30/2004
Posts: 16
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One of many of your most helpful vids. I have recreated it in several time frames with value. Well, almost. The video was vey detailed and step by step until the very end where out of nowhere came the "The WatchList Tab PCF."
I have looked for other help, without effect. I remain confused unable to duplicate this final step. While the scan is useful without it... the little explanation that is given makes it clear that the scan would be even more useful with this added sort.
Can you offer some suggestions. I cannot even come up with a good question --- the whole "watchList Tab PCF" seemed out of left field.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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The last part of the video gives you a way to easily see the price range of the bounces. Are the bounces spanning $4.00 or $400.00?
Here is a video on PCFs and WatchList Tabs to help you with the last step.
How to create a Personal Criteria Forumula (PCF)
Customize the Information Displayed in the WatchList
- Craig
Here to Help!
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Registered User
Joined: 12/30/2004
Posts: 16
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Okay, a little dense, but I got it now. I watched those vids before.... now it is very obvious that the phrase "WatchList Tab PCF" is just a combination of those two ideas. It was just surprising terminology for someone not in the "know." Now I am <BG>
Thanks
Max
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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It meant a PCF displayed on one of the tabs. Glad we got it all figured out!
- Craig
Here to Help!
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Registered User
Joined: 7/22/2005
Posts: 15
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Cool!
I appreciate the video. I will study it several times. But indulge me if you will. How does on analyze for stocks that are trending upward or downward but still have a channeling pattern? Thanks. You've been a great help.
Gerald
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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Try the techniques demonstrated in this video:
Sort using envelopes, regression channels and Bollinger bands
- Doug
Teaching Online!
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Registered User
Joined: 12/18/2004
Posts: 180
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I've been working with the techniques in this video for a week now. Overall, I think this was a great video. There is one problem. If we are using a Vertical Horizontal Filter, such as the one introduced by Adam White in the 1991 issue of Futures magazine, or any variation, such as Trending/Consolidation (the only difference is that the original VHF uses closing prices, and Trending/Consolidation uses High-Low), and we are looking for bouncing stocks within a lateral channel, it is counter-productive. Remember, any version of a VHF looks for the maximum distance the price traveled and compares that to the cumulative distance the price traveled. It says nothing about the overall trend. In other words, the very rolls or bounces that I am looking for are omitting the best stocks from the scan, because they cause the VHF to falsely return a high value because the stock has rolled in the past. In my opinion, these type of trending indicators are not very helpful for this type of scan. I have tried several other things in its place, such as "100*(C-((MAXC40.20+MINC40.20)/2))/((MAXC40.20+MINC40.20)/2)", or price percent change from 40-day median range 20 days ago, and this did not seem to do the trick, and I am currently at a loss. If anyone has any suggestions on how to correct this problem, please reply!
Thanks,
John
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Registered User
Joined: 12/18/2004
Posts: 180
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In other words, many times, the stock will roll or bounce sharply, only to retreat to the channel, and may never leave the channel, and in other cases, the channel narrows and the price range tightens (probably the beginning of a move). Our VHF (or variation) is stating that, since at some point within the time frame, the price wiggled a little bit, the stock is really rippin' (in one direction or the other)! I have also found this to work in reverse, where the VHF falsely returns consolidating values for stocks that are trending relative to their normal range. I also meant to state that price percent change did not work very well as a replacement, because sometimes I would hit on a peak-to-valley or vice versa within the rolling overall consolidation pattern.
Thanks,
John
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I am not familiar with VHF so I am at a loss.
If you are looking for stocks with tightening ranges in their highs and lows you may like this video:
Finding Expanding or Contracting Bollinger Bands
you may also enjoy:
EasyScan Design for Breakouts and Bouncers
- Craig
Here to Help!
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Registered User
Joined: 12/18/2004
Posts: 180
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Actually, I was just stating that the Trending/Consolidating seemed to be omitting some good stocks, and including unwanted stocks. I could not find a really good replacement (tried linear regression, etc.), so I guess we can live with it. Here is what I am currently using for a similar scan:
ABS(C - C60) / (ABS(C-C1)+ ABS(C1-C2)+ ABS(C2-C3)+ ABS(C3-C4)+ ABS(C4-C5)+ ABS(C5-C6)+ ABS(C6-C7)+ ABS(C7-C8)+ ABS(C8-C9)+ ABS(C9-C10)+ABS(C10 - C11) + ABS(C11 - C12) + ABS(C12 - C13) + ABS(C13 - C14) + ABS(C14 - C15) + ABS(C15 - C16) + ABS(C16 - C17) + ABS(C17 - C18) + ABS(C18 - C19) + ABS(C19 - C20) + ABS(C20 - C21) + ABS(C21 - C22) + ABS(C22 - C23) + ABS(C23 - C24) + ABS(C24 - C25) + ABS(C25 - C26) + ABS(C26 - C27) + ABS(C27 - C28) + ABS(C28 - C29) + ABS(C29 - C30) + ABS(C30 - C31) + ABS(C31 - C32) + ABS(C32 - C33) + ABS(C33 - C34) + ABS(C34 - C35) + ABS(C35 - C36) + ABS(C36 - C37) + ABS(C37 - C38) + ABS(C38 - C39) + ABS(C39 - C40) + ABS(C40 - C41) + ABS(C41 - C42) + ABS(C42 - C43) + ABS(C43 - C44) + ABS(C44 - C45) + ABS(C45 - C46) + ABS(C46 - C47) + ABS(C47 - C48) + ABS(C48 - C49) + ABS(C49 - C50) + ABS(C50 - C51) + ABS(C51 - C52) + ABS(C52 - C53) + ABS(C53 - C54) + ABS(C54 - C55)+ABS(C55-C56)+ABS(C56-C57)+ABS(C57-C58)+ABS(C58-C59)+ABS(C59-C60)) * 100
This takes the absolute price change over the whole period and compares to the absolute amount the price would have moved if it had moved in one direction. This works better for me, because it deals with the current price relative to the price at the beginning of the period as opposed to two points within the period that may or may not be relevant to the current price position within the range, and allows for the price to have bounced as much as it wanted as long as the relative price as percent of beginning price is not above rank 50. If you set the range selector on a market rank of 50 to minimum, it seems to work fairly well. This is the same thing as a Chande Momentum Oscillator, except that I used the absolute value of "(C-C60)" instead of the actual value (because we are not necessarily concerned with the direction of the net change in this PCF, just the amount net change relative to the amount it could have moved if you straighten out each price bar in one direction, although it could be done either way).
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Registered User
Joined: 12/18/2004
Posts: 180
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One last note. You could get completely nuts (like I did) and include three time frames in one PCF using a true or false version of the PCF written in three different time frames set to less than or equal to the maximum value that lines up with 50% rank on the range selector. This would include stocks consolidating in all three time frames.
(-1)*((ABS(C - C60)/(ABS(C-C1)+ ABS(C1-C2)+ ABS(C2-C3)+ ABS(C3-C4)+ ABS(C4-C5)+ ABS(C5-C6)+ ABS(C6-C7)+ ABS(C7-C8)+ABS(C8-C9)+ABS(C9-C10)+ABS(C10 - C11) + ABS(C11 - C12) + ABS(C12 - C13) + ABS(C13 - C14) + ABS(C14 - C15) + ABS(C15 - C16) + ABS(C16 - C17) + ABS(C17 - C18) + ABS(C18 - C19) + ABS(C19 - C20) + ABS(C20 - C21) + ABS(C21 - C22) + ABS(C22 - C23) + ABS(C23 - C24) + ABS(C24 - C25) + ABS(C25 - C26) + ABS(C26 - C27) + ABS(C27 - C28) + ABS(C28 - C29) + ABS(C29 - C30) + ABS(C30 - C31) + ABS(C31 - C32) + ABS(C32 - C33) + ABS(C33 - C34) + ABS(C34 - C35) + ABS(C35 - C36) + ABS(C36 - C37) + ABS(C37 - C38) + ABS(C38 - C39) + ABS(C39 - C40) + ABS(C40 - C41) + ABS(C41 - C42) + ABS(C42 - C43) + ABS(C43 - C44) + ABS(C44 - C45) + ABS(C45 - C46) + ABS(C46 - C47) + ABS(C47 - C48) + ABS(C48 - C49) + ABS(C49 - C50) + ABS(C50 - C51) + ABS(C51 - C52) + ABS(C52 - C53) + ABS(C53 - C54) + ABS(C54 - C55)+ABS(C55-C56)+ABS(C56-C57)+ABS(C57-C58)+ABS(C58-C59)+ABS(C59-C60)) * 100<=13.10)+
(ABS(C-C50)/(ABS(C-C1)+ ABS(C1-C2)+ABS(C2-C3)+ ABS(C3-C4)+ABS(C4-C5)+ ABS(C5-C6)+ABS(C6-C7)+ ABS(C7-C8)+ABS(C8-C9)+ ABS(C9-C10)+ ABS(C10-C11)+ ABS(C11-C12)+ ABS(C12-C13)+ ABS(C13-C14)+ ABS(C14-C15)+ ABS(C15-C16)+ ABS(C16-C17)+ ABS(C17-C18)+ ABS(C18-C19)+ ABS(C19-C20)+ ABS(C20-C21)+ ABS(C21-C22)+ ABS(C22-C23)+ ABS(C23-C24)+ ABS(C24-C25)+ ABS(C25-C26)+ ABS(C26-C27)+ ABS(C27-C28)+ ABS(C28-C29)+ ABS(C29-C30)+ ABS(C30-C31)+ ABS(C31-C32)+ ABS(C32-C33)+ ABS(C33-C34)+ ABS(C34-C35)+ ABS(C35-C36)+ ABS(C36-C37)+ ABS(C37-C38)+ ABS(C38-C39)+ ABS(C39-C40)+ ABS(C40-C41)+ ABS(C41-C42)+ ABS(C42-C43)+ ABS(C43-C44)+ ABS(C44-C45)+ ABS(C45-C46)+ ABS(C46-C47)+ ABS(C47-C48)+ ABS(C48-C49)+ ABS(C49-C50))*100<=12.8)+ (ABS(C-C40)/ (ABS(C-C1)+ ABS(C1-C2)+ ABS(C2-C3)+ ABS(C3-C4)+ ABS(C4-C5)+ ABS(C5-C6)+ ABS(C6-C7)+ ABS(C7-C8)+ ABS(C8-C9)+ ABS(C9-C10)+ ABS(C10-C11)+ ABS(C11-C12)+ ABS(C12-C13)+ ABS(C13-C14)+ ABS(C14-C15)+ ABS(C15-C16)+ ABS(C16-C17)+ ABS(C17-C18)+ ABS(C18-C19)+ ABS(C19-C20)+ ABS(C20-C21)+ ABS(C21-C22)+ ABS(C22-C23)+ ABS(C23-C24)+ ABS(C24-C25)+ ABS(C25-C26)+ ABS(C26-C27)+ ABS(C27-C28)+ ABS(C28-C29)+ ABS(C29-C30)+ ABS(C30-C31)+ ABS(C31-C32)+ ABS(C32-C33)+ ABS(C33-C34)+ ABS(C34-C35)+ ABS(C35-C36)+ ABS(C36-C37)+ ABS(C37-C38)+ ABS(C38-C39)+ ABS(C39-C40))*100<=13.22))
Set the range selector on "Value" 1 to Max. (the values I set for each time frame can be tweeked, if anyone is crazy enough to use this).
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I love to see our videos inspiring you to come up with your own methods. This is thinking for yourself!
- Craig
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Registered User
Joined: 12/18/2004
Posts: 180
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Hey, Craig. This method did not work as well as I hoped. I am using the regular Trending/Consolidation (it did seem to work better than the modified CMO I posted), but I feel that the modified CMO I posted can be used in place of the 100*AVGC30/AVGC30.30, because it compares the overall price gain to the cumulative absolute price gain, rather than just the average price 30-days to the average price 30.30 days. I wish someone (a rocket scientist) would have developed a really good indicator to determine whether prices are net trending or net consolidating. I haven't tried ADX indicator sorting for this yet, but that takes to long!
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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What don't you like about the results the method in this videos shows?
- Craig
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Registered User
Joined: 12/18/2004
Posts: 180
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When I tried the AVGC30/AVGC30.30, It seemed that if the stock had been higher in its range during the prior thirty days than it had in the last thirty days, especially for lower priced stocks (I set my scan up for a minimum of $10), the percent change of the moving average was beyond the limits of the set maximum value on the range selector, although the stock sometimes barely moved overall. I found this to be true sometimes when the stock had just bounced a couple of times in the prior thirty days, and then tightened its range in the last thirty days, or vice versa. I guess some things, you just have to live with. On the flip side, with the modified CMO, you could end up with stocks that weren't really consolidating at all! It may allow them to pass just because they were moving up or down rather slowly! I guess that's why they say perfectionists have the most trouble with this stuff.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You are beginning to realize that the eye is the best pattern recognizer there is.
The program needs set math parameters where the eye can just identify a pattern because it "looks right".
Think of EasyScan not as the final search tool. Don't try and scan or sort to find the exact number of stocks that meet the condition (nor more or less).
Think of EasyScan as a time-saver. It gets rid of the stocks that COULD NEVER be in the pattern leaving you with the stocks that MIGHT be in the pattern. You don't have to worry about sifting through the stocks that could not be in the pattern.
Once you have the list of the ones that MIGHT be the pattern, you, your eyes, your brain and the spacebar will be the final scanning tool.
Keep your scans loose and flexible and let your pattern-recognizing ninja brain do the final scanning. I would prefer the EasyScan included a stock that MIGHT be in the pattern so I can look at it and decide (and press the spacebar if it "don't look right") than have EasyScan eliminate it (hiding it) and I don't get the chance to make a judgement on the stock.
Does that make sense?
- Craig
Here to Help!
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Registered User
Joined: 12/18/2004
Posts: 180
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No one could have said it better! That's why you guys do what you do. Keep up the good work!
John
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