StockFetcher Forums · Filter Exchange · uptrend pullback trend<< 1 2 3 >>Post Follow-up
jaketheguy
52 posts
msg #38382
Ignore jaketheguy
10/9/2005 1:12:13 AM

What are we looking for?

I did a cursory look at the long filter...some days the thing returns hundreds of stocks!

Start 21 days back, then 20.....some green, but a lot of RED performance to the current date.

Good for a day or two? Start 3, 2, 1 day back.....still a lot of RED on 3 days and 2 days....more green on 1 day, but 211 stocks to choose from on 1 day back.


TheRumpledOne
6,362 posts
msg #38384
Ignore TheRumpledOne
10/9/2005 11:24:35 AM

"That you would ask that question tells me one thing...you have obviously not done any sort of "click-through" with my humble filter...starting about 30 or 40...or, 50 days ago...to present ! If you had...I think the answer to your question ("how to make money with this filter") would be fairly obvious ! "

THOU SHALT NOT ASSUME.

The reason I asked was that I did do what you suggested BEFORE you suggested it.

So my request still stands.

THANKING YOU IN ADVANCE.


alf44
2,025 posts
msg #38386
Ignore alf44
10/9/2005 3:56:45 PM

First of all...to the question..."what are we looking for ?"

I think I can answer that with a post I made here at SF back in 2003:

----------------------------------------------------------------


alf44 12/31/2003 2:09:21 PM

This set-up is what Linda Bradford Raschke calls "The Holy Grail" !

Not to be in any way confused with the RSI(2) "HG" scan frequently touted on SF by RumpledOne and others!

-----------------------

Rashke's "Holy Grail" is what she calls Momentum Retracement !

GO LONG:
...only after ADX(14) rises above 30 (this indicates a "strong" UPtrend) AND retraces to SUPPORT (ie.Trendline or EMA)...she uses an EMA(20) !

This would be a countertrend decline within an upward trend !

She places a "Buy-Stop" just above the HIGH of the last declining bar and let's that take you into the Long trade !

GO SHORT:
...only after ADX(14) rises above 30 (indicating a "strong" DOWNtrend) AND retraces to RESISTANCE (ie. Trendline or EMA)...again...she uses an EMA(20) !

This would be a countertrend advance within a downward trend !

She places a "Sell-Stop" just below the LOW of the last advancing bar and let's that take you into the SHORT trade !

Price objectives for both of these trades is a retest of the previous High/Low ! Then you have to decide whether it's ONLY a retest OR a continuation of the original trend !

-----------------------

I've been tweeking this scan for some time but am still not altogether pleased with the results. I'll continue and post once I have something truly useful.

Meanwhile, I would also like to see others here take a shot at refining this scan !


Regards,

alf44

-----------------------------------------------------------------

Now, obviously...as we say down South...

..."There's more than one way to skin a cat !"

My earlier attempts at capturing this set-up more closely resembled the filter that "ham1198" posted above on this thread. There is no doubt he had this "Holy Grail" set-up in mind when he wrote his filter...and may I say...he's done an excellent job. My filter(s) (both LONG & SHORT) are a variation of his (ie. "ham1198") filter AND of the "original Rashke Holy Grail" (I don't use an ADX(14) or an EMA(20) for example)...but, they both attempt to find the same situations. That is...strongly trending stocks that have had pull-backs...with the expectation that they will resume their moves in the direction of their prevailing trend. Possibly, after they have re-traced to a Moving average like the EMA(20) or EMA(30).

As for an "ENTRY METHOD" for the stocks that are returned...use the "Thrust Method" of entry. Once again, "ham1198" has described this entry method (or, at least something close to it) in his post above.

Thrust entry for LONGS:

If you are wanting to enter LONG because the trend is UP, wait for a down day in which the High is lower than the previous day's High and the Low is lower than the previous day's Low. When this happens, place a Buy Stop just over the High of the down day and use that to take you into the trade.

THIS ORDER IS GOOD ONLY FOR THE NEXT DAY !

Thrust entry for SHORTS:

If you are wanting to enter SHORT because the trend is DOWN, wait for an up day in which the High is higher than the previous day's High and the Low is higher than the previous day's Low. Place a Sell Stop just under the Low of the up day and use that to take you into the trade.

Again...THIS ORDER IS GOOD ONLY FOR THE NEXT DAY !

There are, of course, NO guarantees that these "pull-backs" won't pull-back even further. They very often will ! With that in mind, it may be necessary to continue to move your Buy/Sell Stop to achieve a proper entry. There are also, of course, NO guarantees that these "pull-backs" won't be a CHANGE in TREND altogether. Hey, what's a Trader to do ? I don't know any way around this. You just TRY to find the set-ups. To this end, I HAVE included within each of these filters a provision that the Close be ABOVE the S1 level (for the LONG scan) and that the Close be BELOW the R1 level (for the SHORT scan). This is at least an indication of a possible reassertion of the prevailing trend. I also included a Day Position Close requirement in both filters. But hey...

The Market's gonna do...what the Market's gonna do !

Now...assuming things DO work favorably and you DO get into the trade...what about a "PRICE TARGET" for this trade set-up. The INITIAL price target objective should be a re-test of the previous High/Low. At that point, it becomes necessary to gauge Market conditions and decide whether this was/is only a simple re-test OR a continuation move in the direction of the original trend. Of course, here again...there are NO guarantees that it will reach this INITIAL price target...it IS...just a "target."

The use of Protective Stops and Trailing Stops (to lock in profits, if the trade moves in your favor) should be used. imo

I welcome further comments/suggestions that may make these filters better.

Also, I realized that a couple of the "Draw Line" items that I included in the filters I posted yesterday screwed up the charts when you tried to view them from weeks ago. I apologize for that.

The filters below have corrected those problems...the SF Flash charts that these filters generate should look much better.

-----------------------

Fetcher[/* LONG MoMo Retrace */

Show stocks where the

count(EMA(10) above EMA(30),10) is above 5 and
count(RSI(14) above 50,20) is above 10 and
count(Close below PP,10) is above 2 and

EMA(10) is above EMA(30) and
EMA(30) is above EMA(150) and

30 day Slope of Close is above 0 and
15 day Slope of the EMA(10) 3 days ago is above 0 and
5 day Slope of Low is below 0 and

Close reached a new 4 day Low within the last 2 days and
Close above Day Position(0.40,1) and
Close above S1 1 day ago and

Average Volume(65) is above 100000 and
Price is above 2 and

and add column High and
and add column PP {pivot} and
and add column Low and

Draw RSI(14) line at 60 and
Draw RSI(14) line at 50 and
Draw RSI(14) line at 40 and
Draw Price Line at R1 1 day ago and
Draw Price Line at PP 1 day ago and
Draw Price Line at S1 1 day ago and

Draw MACD(3,10,16) and
Draw Slow Stochastic(7,16) Fast %K and
Draw Slow Stochastic(7,16) Slow %D and
Draw ADX(14) and

do not Draw PP and
do not Draw S1 and
do not Draw Day Position(0.40,1) and
do not Draw Close 4-Day Low and
do not Draw 30-day Slope of Close and
do not Draw 15-day Slope of EMA(10) 3 days ago and
do not Draw 5-day Slope of Low and

chart-time is 3 Months
]



----------------------


Fetcher[/* SHORT MoMo Retrace */

Show stocks where the

count(EMA(10) below EMA(30),10) is above 5 and
count(RSI(14) below 50,20) is above 10 and
count(Close above PP,10) is above 2 and

EMA(10) is below EMA(30) and
EMA(30) is below EMA(150) and

30 day Slope of Close is below 0 and
15 day Slope of the EMA(10) 3 days ago is below 0 and
5 day Slope of Low is above 0 and

Close reached a new 4 day High within the last 2 days and
Close below Day Position(0.40,1) and
Close below R1 1 day ago

Average Volume(65) is above 100000 and
Price is above 7 and

add column High and
add column PP {pivot} and
add column Low and

Draw RSI(14) line at 60 and
Draw RSI(14) line at 50 and
Draw RSI(14) line at 40 and
Draw Price Line at R1 1 day ago and
Draw Price Line at PP 1 day ago and
Draw Price Line at S1 1 day ago and

Draw MACD(3,10,16) and
Draw Slow Stochastic(7,16) Fast %K and
Draw Slow Stochastic(7,16) Slow %D and
Draw ADX(14) and

do not Draw PP and
do not Draw R1 and
do not Draw Day Position(0.40,1) and
do not Draw Close 4-day High and
do not Draw 30-day Slope of Close and
do not Draw 15-day Slope of EMA(10) 3 days ago and
do not Draw 5-day Slope of Low and

chart-time is 3 Months
]



----------------------


Regards,

alf44





alf44
2,025 posts
msg #38395
Ignore alf44
10/10/2005 7:20:04 PM

I've been playing around with ham1198's filter...

...as I said before...this is an excellent filter and one that conforms pretty well to the original "Rashke Holy Grail" set-up.

When you run ham's filter along side my "MoMo Retrace" filters they DO return alot of the same stocks (although he has not written a filter to strictly address stocks in strong DOWN trends).

My filter(s) DO return many, many MORE stocks...but this is primarily due to the fact that I didn't place the same rigid Price AND Volume criteria as his filter (ie. Price between 30 & 180...Vol. > 250,000). When I add those same criteria to my "MoMo Retrace" filters...the return numbers (quantity wise) are close to the same...although mine still returns a few more stocks. This is due to an overall more flexible set of filter instructions from MY fiters vs. ham's.

ham's filter has criteria that compares an ROC(20) to the ROC(20) of the Russell Index...criteria for ADX(14) > 25...EMA(20)...etc...

ham's filter tends to find stocks with 2-3 day pull-backs...my "MoMo Retrace" finds stocks with 2-3 day pull-backs...as well as...3-5 day pull-backs...5-10 day pull-backs...etc...

Bottom line...they BOTH require observation AFTER the scan results are spit out.

The "Thrust Method" of entry that has been described in this thread will work well with BOTH of these filters.

They will BOTH make you RICH...if you learn them...and trade them correctly !



Regards,

alf44





alf44
2,025 posts
msg #38398
Ignore alf44
10/11/2005 2:41:51 AM

ham1198,

I've been going over your filter and have a few questions.


First, what does the phrase:

"set{CC,days(close is above close 1 day ago,100)}"

accomplish?

It doesn't SEEM to DO anything...and when you remove it entirely from the filter it has NO effect on the results.


Second, these phrases:

"close is above EMA(20)"

"close divided by EMA(20) is between 1.10 and 0.90"


The first one's pretty self-explanatory...BUT...if it IS true then...

...the "Close divided by EMA(20) could NEVER be BELOW 1 ...

...so why the "1.10 to 0.90" instruction ?

What am I missing ?

---------------------

Just trying to understand your thinking. Look forward to your reply. tia


Regards,

alf44




ham1198
172 posts
msg #38400
Ignore ham1198
10/11/2005 12:47:43 PM

alf, thanks for your comments but i humbly cannot except them. a while back sf said matthew claassen would no longer be with sf. i googled his name and came up with the shrewd investor website. (http://www.shrewdinvesting.com/cat_content.asp?catid=136)
i am a follower of matt c now. go to the link and it should show 3 articles by him. you sound a lot smater than me so you should find them interesting and informative. The Relative Average Oscillator used to be a filter used on sf but they no longer provide it. maybe matt claassen copyrighted it.
in regard to your quesstions, i have tweaked it over time and those are little things i saw on other filters and just put in. if you look at matt's filter you'll see where i made my tweaks.
i follow his filter and these simple rules, again i saw this posted on sf, and have been very successful:
In my opinion there are at least the following 4 ingredients of a trading plan:

1. A sound and proven ENTRY technique
2. A sound and proven EXIT technique
3. Use of limit and stop loss orders (always)
4. Sound principles of MONEY MANAGEMENT
good luck to you and i wish matt claassen was still associated with sf. he appeared to be very knowledgeable.



ham1198
172 posts
msg #38401
Ignore ham1198
10/11/2005 1:04:57 PM

alf, here's the entire filter i use. the cc,days....etc. just shows me the # of days the stock has been lower or pulling back. i forget where i picked that up, it's been so long. there's some sf holy grail, the rsi(2), some Thomas R. demark,(9 consecutive close.) this indicator attempts to detect price tops and bottoms through adjacent highs and lows. have fun playing with it. best of luck, my man

/* counter trend long set-up */
set{CC,days(close is above close 1 day ago,100)}
show stocks where price is between $30.00 and 180.00
and average volume(30) is above 250,000
and date offset is 0
and ROC(20) is above Ind(^RUA,ROC(20))
and ADX(14) is above 25
and +DI is above -DI
and close is above close 20 days ago
and close is above EMA(20)
and close divided by EMA(20) is between 1.10 and 0.90
and low is below the low 3 days ago
and average volume(3) is below average volume(3) 3 days ago
and OBV(30) is above Average OBV(30)
and 60 day slope of the close greater than 0
and 200 day slope of the close greater than 0
and rsi(2) is below 10
and count nine consecutive daily price closes which are lower than the close four days earlier


and add column cc
and sort column 5 descending

/* Columns */
add column trail 15 day high {STOP}
add column ptaker {Take Profit}

/* Charting */
draw y on plot close
draw ptaker on plot close
draw trail 15 day high on plot close
draw rsi(7)
do not draw trail

/* Variables */
set {atr2,2 * average true range(10)}
set {llv20,low 20 day low + atr2}
set {y,llv20}
set {trail,close - atr2}
set {ptaker,cema(high,13)+atr2}



alf44
2,025 posts
msg #38403
Ignore alf44
10/11/2005 2:13:59 PM

ham,

Thanks for the replies !

I'll keep playing around with it.

G'luck to you as well !!!


Regards,

alf44




TheRumpledOne
6,362 posts
msg #38406
Ignore TheRumpledOne
10/11/2005 4:05:17 PM

Fetcher[
/* PRICE CALCULATIONS */
set{CCb,days(close is above close 1 day ago,100)}
set{CCa,days(close is below close 1 day ago,100)}
set{CLxCL, CCa - CCb}
]



Shows number of days close above/below previous close


TheRumpledOne
6,362 posts
msg #38407
Ignore TheRumpledOne
10/11/2005 4:07:10 PM

Fetcher[
/* PRICE CALCULATIONS */
set{CCb,days(close is above close 1 day ago,100)}
set{CCa,days(close is below close 1 day ago,100)}
set{CLxCL, CCa - CCb}

add column CLxCL
]



Now it really does...lol

When are we going to get the EDIT MESSAGE button?



StockFetcher Forums · Filter Exchange · uptrend pullback trend<< 1 2 3 >>Post Follow-up

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