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agentrr
Posted : Monday, October 8, 2012 4:37:01 PM
Registered User
Joined: 6/16/2007
Posts: 4

I am looking to set up conditions to find potential reversal patterns on my master list and the Russell 3000 list.  I understand that most traders are momentum oriented but I am a true contrarian.  I assume once you set a condiion you can screen on any time frame?  I already screen on stochastics turning up thru 20; reversal of lower level bollinger bands; and 5 day consecutive decline in price. I would like formulas that show :

Triple Cross of moving averages after a decline( it can be a flattening trend rather than all M.A. actually crossing)

A formula that highlights a reverse head and shoulder Bottom

And other formulas that might also fit reversal patterns

 

I am not a day trader so most of my interest is in swing trading(one week to 3 months) and long term investing(over one year).  I have already designed a workspace that shows some momentum indicators so that there is more than only price decline that gets me involved  Thanks  Richard

Bruce_L
Posted : Tuesday, October 9, 2012 11:22:24 AM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138

You can edit the Time Frame of Personal Criteria Formula when you create or edit it by using the Time Frame drop down menu. You can edit the Time Frame of a Conditon when you create it by using the Time Frame drop-down menu.

If you change a PCF or Condition after you have used it as a WatchList Column or EasyScan Condition, the changes will not be reflected in that WatchList Column or EasyScan Condition as they are copies and not linked to the originals.

You can however change the Time Frame of some (but not all) WatchList Columns by right-clicking on the WatchList Column Header, selecting Edit Columns and adjusting the TimeFrame drop-down. You can also change the Time Frame of an EasyScan Condition by clicking its Conditions tab, clicking on the individua EasyScan Condition to edit it and adjusting the TimeFrame drop-down.

We can create a Condition Formula for three moving averages changing their relative positions from one bar to the next. For example, the following Condition Formula checks for the 10-Period Exponential Moving Average to be above the 20-Period Exponential Moving Average and the 20-Period Exponential Moving Average to be above the 30-Period Exponential Moving Average during the current bar while the 10-Period Exponential Moving Average was below the 20-Period Exponential Moving Average and the 20-Period Exponential Moving Average was below the 30-Period Exponential Moving Average during the previous bar.

XAVGC10 > XAVGC20 AND XAVGC20 > XAVGC30 AND XAVGC10.1 < XAVGC20.1 AND XAVGC20.1 < XAVGC30.1

You could check for this to have happened over 5-bars instead by changing the bars ago parameters in the second half of the formula.

XAVGC10 > XAVGC20 AND XAVGC20 > XAVGC30 AND XAVGC10.5 < XAVGC20.5 AND XAVGC20.5 < XAVGC30.5

As to a flattening trend without crossing, this would require coming up with an unambiguous objective definition. You need to actually define it. You can't just "know it when you see it".

You may wish to review the following for information on pattern recognition in TC2000 (the topics mentioning double top and double bottom patterns will be most on target):

Falling wedge
Cup with a handle formation
PCF for cup with a handle
Scanning for Chart Patterns
Scanning for Stocks Printing a Double or Triple Bottom
PCFs for pennants and flags
PCF's for Triangles
Does TeleChart support Elliott Wave indicators?
Double top/bottom trend
Finding Double Tops and Double Bottoms
CUP AND HANDLE AGAIN
Finding Continuation Triangles And Wedges With Telechart
Cup & Handle PCF
Double tops and bottoms
Flag wedge and pennant pcf
05/01/2012 Webinar: Trading the Flag and Pennant Patterns

That said, I personally do not think complex pattern recognition is practical in TC2000 using formulas and Scans. They are at the very least beyond my abilities to help you create without a specific unambiguous objective definition of what you are attempting to identify (it can't be an I know it when I see it type of definition or be based entirely on an image). This is true of pattern recognition in general with the exception of fixed size candlestick patterns (which are fairly straightforward as long as the pattern is well defined):

Boolean PCFs for Candlestick Patterns

The trainers can't give setting, interpretation or investment advice, so I cannot suggest other formulas that might also fit reversal patterns (although the candlestick patterns mentioned above are broken into bullish and bearish categories).



-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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