New Triple-Screen setup

Testing new triple-screen setup using pcf’s in TeleChart.

The first filter, look for a positive long term trend using weekly data. The filter looks for a positive slope on the weekly MACD Histogram using:

 

(XAVGC26 - XAVGC12) -
(XAVGC26.4 - XAVGC12.4) > 0
  

The first term represents today MACD bar and the second, the MACD bar 5 days ago. I need the difference between the two to be positive to find bullish long-term trends.  

The second filter, looks a daily data and uses the Elder’s Force Index. If the FI turns negative on an uptrend day, it may be a buying opportunity. The formula looks like:

 

((((V*(C-C1))+(V1*(C1-C2)))/2) < 0) AND ((((V1*(C1-C2))+(V2*(C2-C3)))/2) > 0)
  

The first term indicates a negative FI for the current day. The second term indicates a positive FI value prior to that. Additional positive days could be added also.  

This is setup in one Scan which run at night after the market closes, generating a list of stocks with bullish long-term trends but with a daily downtrend. I weed out some of the less interesting ideas by taking out low volume instruments using another pcf:

 

(AVGV126 > 1000) AND
(V > AVGV63)
  

During the following trading day, I simply have to look in that list for intraday breakouts on any of those stocks. I setup another pcf which looks at the current price and compares it to yesterday’s high.  

 

C > H1
  

If try, I have my third buy signal. TC2007 is not the right tool for the third scan, a limit order directly with the broker would work best or any other realtime market scanner but I am currently paper trading so I run this other scan to find ideas.  

This is my first test on a triple-screen. I plan on setting up various triples using different indicators and comparing results.

 

ZICA and BLJ

Let me start with a disclaimer: Anything read here should be considered very “amateurish” as I am as green as can be when it comes to technical analysis. This blog is more a tool for me than for anyone else at this point. I am not trying to teach anything, I am brain dumping so I can refer to is later.

Today, ZICA and BLJ cought my attention. They both look they could be potential candidates.

BLJ is my current favorite. The long term trend is up, the BOP is turning positive and I am the Elder’s Force Index crossed below zero recently. We seem about to get a buy from the Stochastics indicator. I am watching it through the open, waiting for it to cross over 1.21.

ZICA‘s long term trend is a lot less attractive. But on the short term, we could get a quick climb up to 1.55, asssuming it breaks 1.21 early morning.

About

I am an Electrical Engineer by formation, I currently work as a Unix Systems Administrator and the market and its charts are my hobby. I was heavily inspired by bloggers like Trader Mike and by authors like Dr. Alexander Elder. This is my market blog…

And so it begins

Everybody has to start somewhere right… I am very new to this game but I love technical analysis so far. I have very inspired by several books, including one of favorite “Trading for a Living” by Dr. Alexander Elder. I was also very inspired by current bloggers, mainly Trader Mike who has a wealth of information on his blog and is just a pleasure to read.

I cannot afford to day-trade at the moment because of the PDT regulations so I plan to stay in the swing/positions trading window. Right now I am basically working on scans and PCFs on TC2007 and paper trading them to see what I like and feel confortable with. I may give MetaStock from Equis a try before settling on TeleChart. I want to develop decent scans to find 2-3 good setups which I would hold for 2-4 days. Not a way to make a fortune, just a sideline and a way NOT to lose a fortune.

My current trading account is fairly inactive, I am looking for good exits on some positions I was holding for a while. Once I have everything liquidated, I will transfer the assets to IB to try and save on commissions.

I do not plan on doing this full-time ever.