Setting up telechart
Mark Boucher'a method of momentum trading
For Long Term Traders
( (2 * C * 100 / C5) + (2 * C * 100 / C25) + (2 * C * 100 / C40) + (2
* C * 100 / C65) + (C * 100 / C130) + (C * 100 / C195) + (C * 100 /
C260)) / 11
He advises taking top 20% stocks ranked by this kind of ROC scan.
For Short Term Traders
( (2 * C * 100 / C5) + (2 * C * 100 / C25) + ( C * 100 / C40) ) / 5
He advises focusing on top 20% stocks by this kind of ROC scan.
After first using relative strength to narrow the universe of stocks, he uses earnings and other fundamental criteria to narrow this universe. Within that narrower universe he uses a Runaway Pattern criteria "TBBLBG" , which stands for Thrust Breakout (TB), Breakaway Lap (BL), and Breakaway Gap (BG).
Thrust Breakout (TB): The low of the Breakout Bar is higher than the low, but below the close of the preceding bar.
Breakaway Lap (BL): The low of the Breakout Bar is higher than the close, but below the high the preceding bar.
Breakaway Gap (BG): The low of the Breakout Bar is higher than the high of the preceding bar.
RSI2 bullish bounce
50 * (C - XAVGC3.1) / 2 / (.500030519440884 * (ABS(C - C1) + .5 * (ABS(C1 - C2) + .5 * (ABS(C2 - C3) + .5 * (ABS(C3 - C4) + .5 * (ABS(C4 - C5) + .5 * (ABS(C5 - C6) + .5 * (ABS(C6 - C7) + .5 * (ABS(C7 - C8) + .5 * (ABS(C8 - C9) + .5 * (ABS(C9 - C10) + .5 * (ABS(C10 - C11) + .5 * (ABS(C11 - C12) + .5 * (ABS(C12 - C13) + .5 * (ABS(C13 - C14)))))))))))))))) + 50
list rank 1 to 10
Liquidity
MINV3.1 >= 1000
price vs 200 day moving average value>100
Common stocks
price>10
How can you narrow the list further:
Sort by 5 days % change and look at stocks with highest % drop
From that sort by relative strength ranking using C / AVGC126 and select higher ranked stock
Within that prefer stocks down 3 days in a row
Select stocks down more yesterday
Stocks whose RSI2 is low for days in row are preferred.
All things being equal look for higher liquidity stocks.
Such methods work during such time periods. Exit should be once stock climbs over 5 MA. Such method should be traded with no stop.
RSI Bearish for short selling
same pcf set the rsi rank 90 to 99
price vs 200 day avg<100
everything else same.
Top 25 breakout PCF
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1
MDT PCF
Use rank
Set this as Tab sort column
C / AVGC126
Relative linearity
Understand concept.
Don't use any pcf
Distance from 6 month high
(100 * ((C + .01) - (MAXC130 + .01)) / (MAXC130 + .01))
Values above (-8) preferred.
Set this as Tab sort column
Volume Surge
Telechart System Criteria="Volume Surge Today"
Set is as value tab sort column
Prior Day narrow or negative
No scan do this visually
# of +4% breakout in last 10 days
Add this on chart as "Percent True" in middle panel in Green
(100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
It will show green spikes in middle panel when there was 4% b/o
# of -4% breakdowns in last 10 days
Add this on chart as "Percent True" in middle panel in Red
( 100 * (C - C1) / C1) <= ( - 4) AND V >= 1000 AND V > V1
It will show red spikes in middle panel when there was -4% b/d
Top 25 breakout pcf
Add this on chart as "Percent True" in middle panel in White
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1
It will show white spikes in middle panel when there was 4% b/o
Float
This is system criteria= "latest float"
Set is as value tab sort column
Note:
Always use rounding when setting Tab column
What is relative linearity
This is from my earlier post on this topic:
Relative linearity or fractal efficiency: We want stocks that are trending smoothly. You do not want a stock that is jumping all over the place. Stocks with smooth trends are stocks that have active buyer support and have higher likelihood of continuing their smooth move. If you study stocks that make big moves, moves of 200 plus in a quarter or in 6 months will have smooth trends. They have very orderly corrections. Buyers are continuously supporting such stock. This constant demand results in a very smooth trend.
Look at this stock , HGG. It is up 353% in less than 6 month. It has had a smooth up move with orderly corrections.
For Long Term Traders
( (2 * C * 100 / C5) + (2 * C * 100 / C25) + (2 * C * 100 / C40) + (2
* C * 100 / C65) + (C * 100 / C130) + (C * 100 / C195) + (C * 100 /
C260)) / 11
He advises taking top 20% stocks ranked by this kind of ROC scan.
For Short Term Traders
( (2 * C * 100 / C5) + (2 * C * 100 / C25) + ( C * 100 / C40) ) / 5
He advises focusing on top 20% stocks by this kind of ROC scan.
After first using relative strength to narrow the universe of stocks, he uses earnings and other fundamental criteria to narrow this universe. Within that narrower universe he uses a Runaway Pattern criteria "TBBLBG" , which stands for Thrust Breakout (TB), Breakaway Lap (BL), and Breakaway Gap (BG).
Thrust Breakout (TB): The low of the Breakout Bar is higher than the low, but below the close of the preceding bar.
Breakaway Lap (BL): The low of the Breakout Bar is higher than the close, but below the high the preceding bar.
Breakaway Gap (BG): The low of the Breakout Bar is higher than the high of the preceding bar.
RSI2 bullish bounce
50 * (C - XAVGC3.1) / 2 / (.500030519440884 * (ABS(C - C1) + .5 * (ABS(C1 - C2) + .5 * (ABS(C2 - C3) + .5 * (ABS(C3 - C4) + .5 * (ABS(C4 - C5) + .5 * (ABS(C5 - C6) + .5 * (ABS(C6 - C7) + .5 * (ABS(C7 - C8) + .5 * (ABS(C8 - C9) + .5 * (ABS(C9 - C10) + .5 * (ABS(C10 - C11) + .5 * (ABS(C11 - C12) + .5 * (ABS(C12 - C13) + .5 * (ABS(C13 - C14)))))))))))))))) + 50
list rank 1 to 10
Liquidity
MINV3.1 >= 1000
price vs 200 day moving average value>100
Common stocks
price>10
How can you narrow the list further:
Sort by 5 days % change and look at stocks with highest % drop
From that sort by relative strength ranking using C / AVGC126 and select higher ranked stock
Within that prefer stocks down 3 days in a row
Select stocks down more yesterday
Stocks whose RSI2 is low for days in row are preferred.
All things being equal look for higher liquidity stocks.
Such methods work during such time periods. Exit should be once stock climbs over 5 MA. Such method should be traded with no stop.
RSI Bearish for short selling
same pcf set the rsi rank 90 to 99
price vs 200 day avg<100
everything else same.
Top 25 breakout PCF
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1
MDT PCF
Use rank
Set this as Tab sort column
C / AVGC126
Relative linearity
Understand concept.
Don't use any pcf
Distance from 6 month high
(100 * ((C + .01) - (MAXC130 + .01)) / (MAXC130 + .01))
Values above (-8) preferred.
Set this as Tab sort column
Volume Surge
Telechart System Criteria="Volume Surge Today"
Set is as value tab sort column
Prior Day narrow or negative
No scan do this visually
# of +4% breakout in last 10 days
Add this on chart as "Percent True" in middle panel in Green
(100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
It will show green spikes in middle panel when there was 4% b/o
# of -4% breakdowns in last 10 days
Add this on chart as "Percent True" in middle panel in Red
( 100 * (C - C1) / C1) <= ( - 4) AND V >= 1000 AND V > V1
It will show red spikes in middle panel when there was -4% b/d
Top 25 breakout pcf
Add this on chart as "Percent True" in middle panel in White
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1
It will show white spikes in middle panel when there was 4% b/o
Float
This is system criteria= "latest float"
Set is as value tab sort column
Note:
Always use rounding when setting Tab column
What is relative linearity
This is from my earlier post on this topic:
Relative linearity or fractal efficiency: We want stocks that are trending smoothly. You do not want a stock that is jumping all over the place. Stocks with smooth trends are stocks that have active buyer support and have higher likelihood of continuing their smooth move. If you study stocks that make big moves, moves of 200 plus in a quarter or in 6 months will have smooth trends. They have very orderly corrections. Buyers are continuously supporting such stock. This constant demand results in a very smooth trend.
Look at this stock , HGG. It is up 353% in less than 6 month. It has had a smooth up move with orderly corrections.
posted by Rajaram Pai at 6:10 PM
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