This formula is giving me a lot of errors.
Not very good with formulaes.
Somebody kindly repair this formula
Description:
BbandGap - How to Make Money Shorting Stocks in Up and Down Markets
Formula:
/* BbandGap. Written by Klaus Hengher
based on Tools and Tactics for the Master Day Trader
Velez, Capra (Pristine)
BbandGap - How to Make Money Shorting Stocks in Up and Down Markets
The Set Up
1) The stock must first puncture and close outside (above) the upper
Bollinger
Band. The closer the closing price is to the high of the day, the
better.
And the bigger the day's advance, the better. As a general rule,
you will
want this day's bar to be at least $2 or more in length from high
to low.
This is not always necessary, but it's better to have it.
2) On the following day, the stock must 'gap' down below the prior day's
close.
This 'gap down' is crucial as it serves as the most important
criteria of
the entire strategy. If the stock does not open for trading below
the prior
day's close by at least 50 cents (preferably more), no action should be
taken. We need weakness right at the open. Example: If on Tuesday
the stock
closed at $40, we want to see the stock open for trading on
Wednesday no
higher than $39.50. It must open down!
Note: In many cases, this gap down will be caused by either an
exceptionally
weak market open or a negative news item on the company, such as a
brokerage
downgrade.
But in either case, the gap down signifies major selling (profit
taking),
and the pros who short will be loving it. Keep in mind that both
the above
criteria must be met before action is taken.
The Action
Once the above Set Up Criteria is met, the trader will do the following:
1) Sell the stock short (at the market if you have the luxury of being
able to
kill the trade instantly in the event the stock gets too far away
from you).
With order entry systems like The Executioner(r), the trader will
be able
to
instantly cancel the open order, if need be. If the trader lacks this
'instant canceling' capability, he is better off placing a limit sell
order.
2) Once the short has been filled, place a protective stop 1/8 above
the high
of the prior day. This is our insurance policy against disaster. If the
stock rises above the high of the prior day, that is our sign that the
shorts are being squeezed, and the major advance has more steam
left, as
those short will be forced to buy at higher prices to curtail their
losses.
3) Hold for two to three days or more, protecting your profits on the
way down
with some form of trailing stop methodology. Note: Some traders may
want to
move their protective stop 1/8 above each prior day's high. This is
called
'tracking the prior highs.' Others may want to 'book profits' in the
following manner: 'Once up $1, move stop to break-even. Once up $2,
protect
1/2 of the gain, and once up $3 or more, protect 2/3 of the gain.
Note: The idea is to ride the short for maximum profits. But of
course if
the trader is shorting a weak stock in the context of a bullish market
environment, booking the profits sooner rather than later is preferred,
even
if it means missing additional gains.
}
*/
fClose = Ref(C,-1);
fHigh = Ref(H,-1);
fLow = Ref(L,-1);
fAdvDrop = fClose - Ref(C,-2);
fAtr = Ref(ATR(8),-1);
diffHl = fHigh-fLow;
fStoch = Ref(StochD(14),-1);
fBBandTop=Ref(BBandTop(C,20,2),-1);
fOpenCond = fClose - 0.5 * fAtr;
fOpen = Ref(O,0);
fStopLoss = fHigh + 0.5 * fAtr;
bbTopSell =
// The stock must first puncture and close outside (above) the upper
Bollinger
Band
IIf( fClose > fBBandTop AND
// The closer the closing price is to the high of the day, the better.
fClose > (fLow + 0.75 * diffHL ) AND
// And the bigger the day's advance, the better
fAdvDrop > (1.5 * fAtr) AND
// On the following day, the stock must 'gap' down below the prior day's
close.
// This 'gap down' is crucial as it serves as the most important
criteria of
// the entire strategy.
fOpen < fOpenCond AND
// Overbought condition added
fStoch > 80, 1, 0 );
/* Exploration Columns for Sorting */
NumColumns = 10;
Column0 = fOpen;
Column1 = fOpenCond;
Column2 = fStopLoss;
Column0Name = "Open";
Column1Name = "OpenCond";
Column2Name = "StopLoss";
Column0Format = 1.2;
Column1Format = 1.2;
Column2Format = 1.2;
Filter = bbTopSell == 1;
Buy = 0;
Sell = bbTopSell>0;
Please note that this group is for discussion between users only.
To get support from AmiBroker please send an e-mail directly to
SUPPORT {at} amibroker.com
For other support material please check also:
http://www.amibroker.com/support.html
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/amibroker/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/amibroker/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
