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Long consolidation with improving MS & ADX over 15 Rate this Topic:
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cosmo1962
Posted : Monday, January 6, 2014 7:49:49 PM
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Joined: 10/7/2004
Posts: 50

I'm looking for help in writing a formula for the buyside. I'm looking to identify stocks that are consolidating for minimum 3 months (tight range) that are within 3% of the consolidation high, money stream sloping upward and improving and an ADX that is15 or above and is improving hopefully sloping upward

If its possible I would also like to create one for the downside

Bruce_L
Posted : Tuesday, January 7, 2014 1:44:38 PM


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

What is the maximum range you want for the consolidation? For example, if you want the high of the most recent three months to be at most 10% above the low of the most recent 3 months, you could use the following daily Condition Formula to check for your consolidation with price within 3% of the high:

MAXH63 <= 1.1 * MINL63 AND C >= .97 * MAXH63

Different requirements would lead to different formulas.

I would probably create the other conditions by just clicking on the indicators on the chart and selecting Create Scan Condition.

Create Conditions from Your Chart

To check for MoneyStream sloping upward for example, you could create a condition for Moving Up Net or Moving Up Smart (don't use Moving Up Percent because MS can cross through zero). Set the Period to number of bars over which you want to be checking for a positive slope. How fast you want things to move up is up to you.

You can do the same with ADX to check for ADX to be sloping up and you can use Greater Than set to 15 to check for ADX being above 15.

You would want to add all of the conditions to the same EasyScan. The EasyScan would then return a list of symbols from its List to Scan which meet the requirements of all of the EasyScan Conditions.

Building a Scan with Multiple Conditions

You would need to change the consolidation formula a bit to check for price to be within 3% of the consolidation low instead of the high:

MAXH63 <= 1.1 * MINL63 AND C <= 1.03 * MINL63

And you would need to check for MS and ADX to be moving down instead of moving up, but the technique for creating the downside EasyScan is otherwise the same.



-Bruce
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