StockFetcher Forums · Filter Exchange · supply/demand exhaust candles<< >>Post Follow-up
mahkoh
892 posts
msg #107954
Ignore mahkoh
modified
9/7/2012 6:17:12 PM

The Law of Effort and Result

For a stock price to move (result), how much volume (effort) is associated with the move.
When the result (price) and effort (volume) are in harmony, the trend is likely to continue. However, if they are out of sync, for example, when volume is large, but price moves little, the current trend is in danger, and defensive measures must be taken.

Rick Redmont gives a simple example:

“You are looking at a stock. It trades 10,000 shares and goes up one point on the first day. [You see the effort and result.] The same thing happens on the second day. On the third day, it trades 20,000 shares and goes up 1 point. On the fourth day, it trades 40,000 shares and goes up half a point. On the fifth day, it trades 80,000 shares and is unchanged. [This group forms a cause, the effect of which is demand becomes exhausted.]

“On the third day, you had to exert twice as much effort to get the same result (as the first day),” Redmont noted. “The key to analyzing supply and demand is that the demand side burns itself out.”


“When the buying is through and satisfied-there is always supply there. That’s why prices go down faster-because supply is always there and demand is not. All you have to do is withdraw people who want to buy and prices fall.”
---------------------------------------------------------------
Fetcher[

set{x,high - low}
set{y,x/close}

set{avgvolspy,ind(spy,average volume(20))}
set{volspy1,ind(spy,volume)}
set{spyvol,volspy1/avgvolspy}
set{xvol,volume/average volume(20)}
set{relvol,xvol/spyvol}

set{z,y*relvol}


set{b,cma(z,30)}
draw b

set{cnt1,count(volume reached a new 5 day high,1)}
set{cnt2,count(y reached a new 5 day low,1)}

set{trigger,cnt1*cnt2}
trigger above 0.5

average volume(30) above 50000
price above 10
]





mahkoh
892 posts
msg #107973
Ignore mahkoh
modified
9/9/2012 5:38:44 PM

Not sure in the above article which move the author refers to. I assume it would not be the close to close move, but does he refer to the range between high and low or open and close. With that in mind I decided to see what the filter would do if I change "high - low" to "close - open".

Obviously I will need the absolute value of "close - open" so I use the following


Fetcher[


set{x,abs(close - open)}
set{y,x/close}

set{avgvolspy,ind(spy,average volume(20))}
set{volspy1,ind(spy,volume)}
set{spyvol,volspy1/avgvolspy}
set{xvol,volume/average volume(20)}
set{relvol,xvol/spyvol}

set{z,y*relvol}


set{b,cma(z,30)}
draw b

set{cnt1,count(volume reached a new 5 day high,1)}
set{cnt2,count(y reached a new 5 day low,1)}

set{trigger,cnt1*cnt2}
trigger above 0.5

average volume(30) above 50000
price above 10

]



but get very odd results


Removing all non essential:

Fetcher[
set{x,close - open}
set{y,x/open}
add column y
average volume(30) above 5000000
price above 10
]


compare this to
Fetcher[
set{x,abs(close - open)}
set{y,x/open}
add column y
average volume(30) above 5000000
price above 10
]



All values in the last filter's y column are 1!


Can anyone help me out here?

mahkoh
892 posts
msg #107974
Ignore mahkoh
modified
9/9/2012 6:11:53 PM

Well, apparently I have to code it like this

set{x1,close - open}
set{x,abs(x1)}

odd, since in the help examples
http://help.stockfetcher.com/sfhelp/?id=100314&isiframe=&isiframe=
this syntax is used

set{body, abs(close - open)}
set{body_dev,cstddev(body,15)}
show stocks where body_dev is above 2.0

Anyway, work in progress
Fetcher[



set{x1,close - open}
set{xx1,abs(x1)}
set{x,xx1/open}
set{x2,high - low}
set{x3,x2/open}

set{y1,x*x3}
set{y,1 - y1}
add column z

sort column 5 descending

set{avgvolspy,ind(spy,average volume(20))}
set{volspy1,ind(spy,volume)}
set{spyvol,volspy1/avgvolspy}
set{xvol,volume/average volume(20)}
set{relvol,xvol/spyvol}

set{z,y*relvol}


set{b,cma(z,30)}
draw b

set{cnt1,count(volume reached a new 5 day high,1)}
set{cnt2,count(y reached a new 5 day high,1)}

set{trigger,cnt1*cnt2}
trigger above 0.5

average volume(30) above 50000
price above 10

]





StockFetcher Forums · Filter Exchange · supply/demand exhaust candles<< >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus