StockFetcher Forums · Filter Exchange · Here's a challenging filter idea ...<< >>Post Follow-up
64 posts
msg #38724
Ignore dkatz
11/6/2005 12:22:40 PM

... and one I wouldn't be able to design in a million years -- anyone care to take a shot? I've noticed in quite a few charts that as a stock reaches it's bottom, the size of the candlesticks body decreases in a measured way. If you can imagine a ball falling to the ground, just before the ball begins to hit the ground, the diameter is at it's maximum, let's call the diameter from top to bottom ".75 cents candle body" total distance. Then it begins to hit and compress the next day, diameter reduces to ".50 cents top to bottom of candle body". And the next day it reduces further to, say, ".15 cents top to bottom of candle body". Clear indication the stock/ball has hit the floor. Subsequent to this, you'll sometimes see a series of candles with very small bodies -- i.e., consolidation taking place, indecision among traders. What I would like to have is a filter which targets this sequence of candle body compression. So you would have a Muddy filter idea -- the stock is falling (ball has been dropped) -- but within that you would have something dictating or filtering for sequentially smaller candle body size. Day one after initial drop is perhaps 30% or more smaller body than previous day, and the next day is 30% or more smaller than that day, and so on. Here's an example: have a look at RVISQ, 3 December of 2004 start. Open to close day one is .52 to .45, 7 cents // open close day two is .47 to .43, 4 cents // open to close day three is .44 to .42, 2 cents. Look at the bounce after that. Might be workable to use hi/low rather than just body. Notice 22 Nov, same stock. Hi/Low day one = .18 cents // day 2 = .08 cents // day 3 = .03 cents. Then 1 day of consolidation and an extraordinary bounce. Anyone care to give this a try? --d

313 posts
msg #38727
Ignore riggs
11/6/2005 1:53:10 PM

Yikes dkatz - Einstein still alive? Because it sounds like he's the ONLY man for the job. I'll be watching this thread for sure. If ANYONE can calculate this into filter form, we'll ALL be able to buy 1000 shares of (GOOG)@ $400.00


64 posts
msg #38728
Ignore dkatz
11/6/2005 2:22:48 PM

Forgot to mention -- RSI(2) should be < than 25 to ensure proximity to bottom. I'm pretty sure this thing can be built by some of the adepts here, based on the complexity and precision of many of the filters that have been shared already. Hoping so anyway.

22 posts
msg #38760
Ignore jficquette
11/8/2005 1:58:15 AM


I wrote a deal in tradestation created a rsi using true range as input. When this rsi is low it means the bars are getting compressed. Also consider just looking for stocks where the true range has been increasing or decreasing for 10 days etc.



6,362 posts
msg #38761
Ignore TheRumpledOne
11/8/2005 8:24:22 AM


Did you post your indicator on the TradeStation forum?

If not, would you mind posting it here or emailing it to me.


139 posts
msg #38762
Ignore BFreshour
11/8/2005 9:19:24 AM

I'm also interested in that filter... If we can convert it from Tradestation to StockFetcher...

StockFetcher Forums · Filter Exchange · Here's a challenging filter idea ...<< >>Post Follow-up

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