Registered User
Joined: 4/29/2006
Posts: 75
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Hi Guys,
I am having problems with the following PCF. When I add the terminology to make it an exponential average I get an error. I followed the guidence given earlier in another question on how to construct an average of an average but I must be doing something wrong. Below are the basic and advanced versions of the PCF.
Basic PCF Works OK
PCF: (((AVGC14.22 - AVGO14.22) / (AVGH14.22 - AVGL14.22)) * (AVGV14.22 ),3) < 0
Test Results: (((23.78 - 23.87) / (24.18 - 23.57)) * (217377.40 ),3.00) < 0.00
Advanced PCF Gives Error (See second line immeadiately after Test Results:)
PCF: (XAVG(((AVGC14.22 - AVGO14.22) / (AVGH14.22 - AVGL14.22)) * (AVGV14.22 ),3)) < 0
Test Results: (XAVGError(((23.78 - 23.87) / (24.18 - 23.57)) * (217377.40 ),3.00)) < 0.00
What am I doing wrong?
Thanks in advane for your help, Richard
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Registered User
Joined: 4/29/2006
Posts: 75
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OK, figured out what I did wrong.
Here's the solution:
((Xavg(AVGC14.22,3) - Xavg(AVGO14.22,3)) / (Xavg(AVGH14.22,3) - Xavg(AVGL14.22,3)) * (Xavg(AVGV14.22 ,3))) < 0
Richard
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Registered User
Joined: 4/29/2006
Posts: 75
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Hi All TeleChart Staff and Member Traders,
Just wanted to take this opportunity to thank you for all you do to help us other traders use TeleChart to its fullest potential. I learn so much here and from TCNet Chat that it is easy to get INFORMATION OVERLOAD!!
One thing I just completed by taking Bruce's lead was to develop a spreadsheet to construct complex PCFs. It took awhile to set it up but well worth it. Now I can set up the PCFs, construct many scenarios, and test them in short order.
Thanks again and Happy Trading!
Best Regards, Richard
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Registered User
Joined: 1/28/2005
Posts: 6,049
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One thing to also remember Sumboddie.
You can take PCF's from posts and save them in a word
document for later use. You can also add notes and
descriptions as you feel necessary.
You may not even have to time to look at it but keep it
on hold for future investigation.
Thanks
diceman
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Registered User
Joined: 4/29/2006
Posts: 75
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Hey Diceman,
You must be a fly on the wall, LOL. I do just that ... copy and paste from all sorts of posts including this forum to Worden Notes to TCNet Chat. I using your suggestion about pasting things into a Word table and then using adjacent cells to explain and even maybe rank for sorting later. I read a lot of YOUR posts and commend you for sharing.
What I found using my Excel spreadsheet is that it is really easy to setup a complex PCF by dividing all of its parameters into separate cells and then add the special characters like ( ) * / + - < > And Or etc in other cells. Then I can change the parameters very easily and have the spread sheet concatenate all the cells into an error free PCF formula and paste directly into the PCF. I am amazed at how much time it saves and how much flexibility to gives me.
Here is an example of a custom indicator I developed:
((XAVG(AVGC14.22,3) - XAVG(AVGO14.22,3)) / (XAVG(AVGH14.22,3) - XAVG(AVGL14.22,3)) * (XAVG(AVGV14.22,3))) < 0 AND ((XAVG(AVGC14,3) - XAVG(AVGO14,3)) / (XAVG(AVGH14,3) - XAVG(AVGL14,3)) * (XAVG(AVGV14,3))) < ((XAVG(AVGC14.5,3) - XAVG(AVGO14.5,3)) / (XAVG(AVGH14.5,3) - XAVG(AVGL14.5,3)) * (XAVG(AVGV14.5,3))) AND ((XAVG(AVGC14.5,3) - XAVG(AVGO14.5,3)) / (XAVG(AVGH14.5,3) - XAVG(AVGL14.5,3)) * (XAVG(AVGV14.5,3))) < ((XAVG(AVGC14.10,3) - XAVG(AVGO14.10,3)) / (XAVG(AVGH14.10,3) - XAVG(AVGL14.10,3)) * (XAVG(AVGV14.10,3))) AND ((XAVG(AVGC14.10,3) - XAVG(AVGO14.10,3)) / (XAVG(AVGH14.10,3) - XAVG(AVGL14.10,3)) * (XAVG(AVGV14.10,3))) < ((XAVG(AVGC14.15,3) - XAVG(AVGO14.15,3)) / (XAVG(AVGH14.15,3) - XAVG(AVGL14.15,3)) * (XAVG(AVGV14.15,3))) AND ((XAVG(AVGC14.15,3) - XAVG(AVGO14.15,3)) / (XAVG(AVGH14.15,3) - XAVG(AVGL14.15,3)) * (XAVG(AVGV14.15,3))) < ((XAVG(AVGC14.20,3) - XAVG(AVGO14.20,3)) / (XAVG(AVGH14.20,3) - XAVG(AVGL14.20,3)) * (XAVG(AVGV14.20,3)))
My spreadsheet made this a snap to create, test and debug. The total development including the other indicators that go with it turn up some very interesting stock action.
To All a Happy Super Bowl Sunday
Best Regards, Richard
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Registered User
Joined: 4/29/2006
Posts: 75
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Oh, by the way, I developed a spreadsheet using Dr Elder's methodology to calculate SafeZone stops, long or short. You can get the stops based on 30 days of prices from TeleChart for any of your favorite stocks in about 2 minutes ( I can do it in about 30 seconds). I also included the ability to change the safety factor on the fly. Dr Elder suggests using a safety factor of between 2.0 and 3.0 until you are comfortable with the results and then maybe experiment with it further.
I offer to share this Beta spreadsheet with the TeleChart staff and members in recognition for the contributories to this forum.
Be careful out there and be srue hug your kids!
Best Regards, Richard
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Sumboddie
What is the purpose of the custom indicator you supplied?
Is it your own or a version of something else?
Thanks
diceman
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Registered User
Joined: 4/29/2006
Posts: 75
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Hi Diceman,
I got the idea from Dr. Elder's book "Trading for a Living" wherein he described Larry Williams' Accumulation/Distribution indicator. This indicator, in the form of ((C-O)/(H-L))*V, credits bulls or bears with only a fraction of each day's volume. This fraction depends on the day's range and the distance from the opening to the closing price. The greater the spread between opening and closing price relative to the daily range, the greater the change in Accumulation/Distribution.
I plotted the indicator using a 14 bar simple moving average and checked the Center Zero Line. I made the color black so that it would not show up on the chart but would show the zero line. Then I constructed three exponential moving averages of this indicator. The indicators have a period of 3 bars, 7 bars, and 13 bars respectively. The 3 bar indicator is a solid line colored green. The 7 bar indicator is a dotted line colored yellow and the 13 bar indicator is a dashed line colored red. It is interesting to note that this indicator does not work for all stocks or in all time frames. But it does work with most stocks. I use it in combination with other indicators including the pseudo-Impulse System described elsewhere in this forum.
Of course this indicator, like any other indicator, is not perfect but it can be quite reliable most of the time. I trade in the direction of the greenline relative to the other two and the strength of the trend is indicated by the degree of divergence. The overall strength of the stock is indicated by this indicator's position relative to the zero line.
After I constructed the indicator and began to see how it reacted to price and volume I liked what I saw. My goal is to trade short-term using the weekly and daily charts. This indicator, while allowing me to manage my trades on a daily basis, allows me to make good entries intraday. I have found the indicator works quite reliably down to the 5 minute charts. So those traders who choose to enter and exit trades the same day may find this indicator useful.
As I started seeing strong patterns emerge showing short and intermediate term trend reversals, I wanted to develop PCFs to scan for these patterns. The PCF above scans for stocks where the greenline of the above indicator was below zero a month ago, the greenline is below the yellow and red lines, and all three lines have been trending lower for the past month (based on consecutive 5 bar periods). I was able to construct the above PCF in a few minutes by using my Excel spreadsheet PCF generator.
The next PCF I will develop will expand on the one above by scanning for the follow-on period where the indicator has turned up with the greenline crossing up through the yellow and red lines indicating a short-term bottom and the trend is now up. Following that I will develop other PCFs that will look for the reverse for short candidates.
Thanks for the interest and happy trading :-)
Regards, Richard
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Registered User
Joined: 4/29/2006
Posts: 75
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BTW, one other indicator I use is a 9 bar XAVG of the BOP (not visible) in the same chart window as the one above. I look for stocks where this indicator is in gear with the above indicator or neautral. I will not be in a position when they oppose each other.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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"This indicator, in the form of ((C-O)/(H-L))*V"
--------------------------------------------------------------------------
This does not appear to be true. The indicator is in a
true/false format. (percent true indicator)
I don't know if an error occurred in the copy/paste.
Thanks
diceman
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Registered User
Joined: 4/29/2006
Posts: 75
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Diceman,
I stand corrected. In an earlier post I stated that the following was a “custom indicator”. The following is NOT an indicator, but rather a Boolean formula based on my custom indicator in the form of ((C-O)/(H-L))*V with 3, 7, and 13 bar EMAs. This is one of the formulas I use to scan for stocks that potentially will display a pattern, based on past month’s price and volume action, for which I am looking. The stocks that fill the scan will have a “true” value when meeting the conditions below. Then when I navigate through the watch list, I can see the pattern I am looking for and flag the best ones.
((XAVG(AVGC14.22,3) - XAVG(AVGO14.22,3)) / (XAVG(AVGH14.22,3) - XAVG(AVGL14.22,3)) * (XAVG(AVGV14.22,3))) < 0 AND ((XAVG(AVGC14,3) - XAVG(AVGO14,3)) / (XAVG(AVGH14,3) - XAVG(AVGL14,3)) * (XAVG(AVGV14,3))) < ((XAVG(AVGC14.5,3) - XAVG(AVGO14.5,3)) / (XAVG(AVGH14.5,3) - XAVG(AVGL14.5,3)) * (XAVG(AVGV14.5,3))) AND ((XAVG(AVGC14.5,3) - XAVG(AVGO14.5,3)) / (XAVG(AVGH14.5,3) - XAVG(AVGL14.5,3)) * (XAVG(AVGV14.5,3))) < ((XAVG(AVGC14.10,3) - XAVG(AVGO14.10,3)) / (XAVG(AVGH14.10,3) - XAVG(AVGL14.10,3)) * (XAVG(AVGV14.10,3))) AND ((XAVG(AVGC14.10,3) - XAVG(AVGO14.10,3)) / (XAVG(AVGH14.10,3) - XAVG(AVGL14.10,3)) * (XAVG(AVGV14.10,3))) < ((XAVG(AVGC14.15,3) - XAVG(AVGO14.15,3)) / (XAVG(AVGH14.15,3) - XAVG(AVGL14.15,3)) * (XAVG(AVGV14.15,3))) AND ((XAVG(AVGC14.15,3) - XAVG(AVGO14.15,3)) / (XAVG(AVGH14.15,3) - XAVG(AVGL14.15,3)) * (XAVG(AVGV14.15,3))) < ((XAVG(AVGC14.20,3) - XAVG(AVGO14.20,3)) / (XAVG(AVGH14.20,3) - XAVG(AVGL14.20,3)) * (XAVG(AVGV14.20,3)))
I hope this clears up the confusion.
Best Regards, Richard
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Thanks for the explanations.
Thanks
diceman
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Registered User
Joined: 2/28/2009
Posts: 11
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Hi Richard!
I am a big fan of Dr. Elder as well, and I'm finishing my third book by him. Could I possibly get a copy of the spreadsheet? This would help a lot with managing the SafeZone.
Thanks!
Brit in Nashville
QUOTE (InvestAlert) Oh, by the way, I developed a spreadsheet using Dr Elder's methodology to calculate SafeZone stops, long or short. You can get the stops based on 30 days of prices from TeleChart for any of your favorite stocks in about 2 minutes ( I can do it in about 30 seconds). I also included the ability to change the safety factor on the fly. Dr Elder suggests using a safety factor of between 2.0 and 3.0 until you are comfortable with the results and then maybe experiment with it further.
I offer to share this Beta spreadsheet with the TeleChart staff and members in recognition for the contributories to this forum.
Be careful out there and be srue hug your kids!
Best Regards, Richard
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