Telechart setup
Basic PCF functions
Close, low high
Closing price today
(C )
Today's high
(H )
Today's low price
(L )
Yesterday's closing price (one day ago)
(C1)
Closing price five days ago (5 trading days)
(C5)
Similarly O5 and L5 will give open and low 5 days ago
Closing price one month ago
(C21)
Closing price one week ago (5 trading days)
(C5)
Closing price one year ago (250 trading days)
(C250)
Closing price two years ago (500 trading days)
(C500)
Closing price three years ago (750 trading days)
(C750)
Closing price four years ago (1000 trading days)
(C1000)
Highest High or Lowest Low
Highest closing price over the last six months (126 trading days)
(MAXC126)
Lowest closing price over the last six months (126 trading days)
(MinC126)
Highest high over the last 20 trading days
(MAXH20)
Lowest low over the last 5 trading days
(MINL5)
Point Changes
Net Change
(C-C1)
Net Change 1 Week
(C-C5)
Net Change 1 Month
(C-C21)
Net Change 1 Year
(C-C250)
Spread Today: today's high minus today's low
(H-L)
Spread Yesterday: yesterday's high minus yesterday's low
(H1-L1)
% Change
One week percent change
((C-C5)/C5*100)
One month percent change
((C-C21)/C21*100)
1-year percent change in closing price (250 trading days)
((C-C250)/C250*100)
Percentage change in closing price from yesterday to today
((C-C1)/C1*100)
Percentage change in closing price from two days ago to yesterday
((C1-C2)/C2*100)
Moving Averages
Ten day price moving average
(AvgC10)
Value of Price 10 day moving average yesterday (one day ago)
(AvgC10.1)
Similarly you can do AVG of H or L
For Exponential Average XAVG is used so 50 day Exponential moving average will be (Xavgc50)
Volume
Volume today
(V)
Yesterday's volume
(V1)
Volume one week ago (5 trading days)
(V5)
5 day moving average of volume
(AvgV5)
100 day moving average of volume
(AvgV100)
Steps involved in creating simple PCF
Here is an example of PCF for DOJI
(O = C )
This formula describes the condition for DOJI where closing price of a stock is same as Opening Price.
1) First and foremost you require Telechart Software
2) Use the
button to create a new PCF.
Where can you find more information about PCF
http://forums.worden.com/default.aspx?g=posts&t=83
1) Episodic Pivots Method Related PCF
Episodic Pivots Scan
The EP scan has 2 components, it finds either :
1. a stock which has made a 8% plus move or
2. a stock up 5 dollar plus on 1 million volume.
The formula for Episodic Pivots is as follows:
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1) OR ((( 100 * (C - C1) / C1) >=8 AND V > 3000 AND (100 * V / AVGV100) >= 300) AND C > 1)
This scan has two parts:
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1)
C= price today
C1= price yesterday
V= volume today on hundreds
V1= volume yesterday
This portion finds a stock priced above 62.5 that had a 5 dollar plus move on 1 million shares volume and where todays volume is higher than yesterday.
and the second part
(( 100 * (C - C1) / C1) >= 8 AND V > 3000AND (100 * V / AVGV100) >= 300)
AVGV100= average volume in last 100 days
a 8% move.
5/62.5=8%
So if a stock priced below 62.5 has a 5 dollar move, it will be captured in the 8% scan.
While for a stock priced above 62.5, a 5 dollar move is not necessarily 8%. Say a 100 dollar stock goes up 5 dollar, it is 5% move.
The scan by cleverly combining two scans eliminates the need for two separate scans.
Setting up Tabs for EP
To trade Episodic Pivots on daily basis you need to be well organised. One of the ways to do this is to setup data tabs in Telechart for all the information you need for making EP decision.
The image above shows you following tabs:
1. Price percent change (green)
2. Latest float for example RDN shows 81617 float. It means float for RDN is 81 million
3. Price to sales Ratio as a rank. for example RDN shows value of 32 for this, that means it is ranked 32 percentile in terms of price to sales ratio
4. Volume Surge Today for example for RDN it shows a value of 447 which means it had 447% more volume than average 100 day volume
5. Volume Dollars 1-day for example it is 16751 for RDN Which means 167 million dollar volume
Sorting the Episodic Pivots scan output by Dollar volume allows you to prioritize the EP breakouts.
Chart Setting for EP
You can set up the scan
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1) OR ((( 100 * (C - C1) / C1) >= 8 AND V > 3000 AND (100 * V / AVGV100) >= 300) AND C > 1)
to show up on your chart.
That way you can find out where a EP happened.
To do this do this:
Once you do that you will get a EP marker on your chart like this:
Once you have the Episodic Pivots Scan output, then you need to use this template to analyse the EP.
Where does information for each of the column comes from:
1. Symbol: from Telechart EP scan
2. Sector Rank: IBD Stock Ckeckup
3. EPS% change: IBD Stock Ckeckup
4. Sales % change: IBD Stock Ckeckup
5. Float: Telechart Tab Latest Float
6. P/S: Telechart Tab Price to sales rank
7. Prior neglect: you have to decide best on when the stock had last rally
8. Earnings surprize: Finviz or IBD or MSN Moneycentral or Zacks or Yahoo Finance
9. Episodic Pivot: Th news that resulted in this big rally from Finviz/ yahoo/ google
10. Verdict: Whether to buy or not to buy
11. % risk: how much you want to risk
If you fill up the table this is how it will look for today
2) Top25 Breakout PCF
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1 (breakout scan)
C= Price today
C1=price yesterday
MINV3= minimum volume in last 3 days should be greater than 100000 (this eliminates stocks with low liquidity. If you have small account, you can use 500 value which means above 50000 daily volume in last 3 days.)
V= volume today
V1=volume yesterday
You apply this on "Common Stocks"
The stocks meeting the above condition you sort by the Momentum scan:
C / AVGC126
Select Top 25 stocks.
Selecting Stocks for entry from 25 stocks
The 25 breakout stocks which you get will have some overextended stocks, some which had a breakout earlier , and some which are just starting their swing. Those are the stocks that we are interested in.
Remember the basic objective of swing trading is to find a stock in an uptrend, then find a consolidation area and buy at start of next swing.
A picture will explain this clearly. This is what you are looking for:
From the Top 25 breakouts, if you find a breakout like this take it. Otherwise wait for next day.
If you get say 5 breakouts like this picture perfect breakouts then select the one with highest mdt ratings first.
3) Market Monitor PCF
How to interpret Market Monitor
# of stocks up>4% on high volume
(100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
up to 300 normal buying pressure
300 to 500 high buying pressure money flowing in to market
500 to1000 very high buying pressure (normally seen at beginning of a bullish turn from bearish phase)
1000 plus extreme buying pressure
300 plus day are common in bear markets.
At beginning of a bull move you will see a cluster of 3 to 5 big buying days of 300 plus.
Most turns in major trend start with 1000 plus buying day.
# of stocks down>4% on high volume
( 100 * (C - C1) / C1) <= ( - 4) AND V >= 1000 AND V > V1
up to 300 normal selling pressure
500 to 1000 very high selling pressure
1000 plus extreme selling pressure
Bear markets rallies typically start after such extreme 1000 plus selling days.
So a 1000 plus days after a 5 to 10 days of selling pressure is short term bullish.
# of stocks up>25% in a quarter
100 * ((C + .01) - ( MINC65 + .01)) / (MINC65 + .01) >= 25 and AVGC20 * AVGV20 >= 2500
Market is in bullish phase till the # of stocks up>25% in a quarter is greater than # of stocks down>25% in a quarter.
When this number goes below 200 it is extremely bullish. It indicates extreme bearishness.
Rallies which start from readings below 200 are extremely powerful. (I make my IRA/Roth IRA buys on such days)
EOD readings of below 200 are rare, most of the time 200 readings are reached intra day for few hours or minutes and market rebounds.
So when EOD readings drop to below 500 be on watch out for a reversal of bearish trend.
# of stocks down>25% in a quarter
(100 * ((C + .01) - (MAXC65 + .01)) / (MAXC65 + .01)) <= ( - 25) and AVGC20 * AVGV20 >= 2500
Market is in bullish phase till the # of stocks up>25% in a quarter is greater than # of stocks down>25% in a quarter.
When this number goes below 200 it is bearish. It indicates extreme bullishness.
Readings below 200 are rare and happen only intra day.
So watch for EOD readings of below 400.
Unlike end of bear market in bull market, markets do not turn immediately after such high readings.
There is a delay of 2 to 6 weeks before real selling might start and a top is formed.
# of stocks up>50% in a month
C20 >= 5 AND (AVGC20 * AVGV20) >= 2500 AND 100 * (C - C20) / C20 >= 50
This indicator tells you intermediate term extreme bullish phases and likely pullback/correction points
Readings above 20 are bearish.
They indicate high bullishness and tend to lead to correction.
Market resumes its bullish move once such high readings drop below 10.
Readings of below 3 are bullish.
# of stocks down>50% in a month
C20 >= 5 AND (AVGC20 * AVGV20) >= 2500 AND 100 * (C - C20) / C20 <= ( - 50)
This indicator tells you intermediate term extreme bearish phases and likely counter trend rally points during bear market.
They indicate high bearishness and tend to lead to reflex rallies.
# of stocks up> 13% in 34 days
100 * ((C + .01) - ( MINC34 + .01)) / (MINC34 + .01) >= 13 and AVGC20 * AVGV20 >= 2500
# of stocks up >25% in a quarter look for 25% move in 65 days while this looks for half of that move in half the time frame.
So it gives buy and sell signal faster compared to Primary indicator.
But it tends to be noisy.
# of stocks down>13% in 34 days
(100 * ((C + .01) - (MAXC34 + .01)) / (MAXC34 + .01)) <= ( - 13) and AVGC20 * AVGV20 >= 2500
% of stocks in confirmed uptrend using Guppy MMA
XAVGC3 > XAVGC30 AND XAVGC5 > XAVGC30 AND XAVGC7 > XAVGC30 AND XAVGC10 > XAVGC30 AND XAVGC12 > XAVGC30 AND XAVGC15 > XAVGC30 AND XAVGC3 > XAVGC35 AND XAVGC5 > XAVGC35 AND XAVGC7 > XAVGC35 AND XAVGC10 > XAVGC35 AND XAVGC12 > XAVGC35 AND XAVGC15 > XAVGC35 AND XAVGC3 > XAVGC40 AND XAVGC5 > XAVGC40 AND XAVGC7 > XAVGC40 AND XAVGC10 > XAVGC40 AND XAVGC12 > XAVGC40 AND XAVGC15 > XAVGC40 AND XAVGC3 > XAVGC45 AND XAVGC5 > XAVGC45 AND XAVGC7 > XAVGC45 AND XAVGC10 > XAVGC45 AND XAVGC12 > XAVGC45 AND XAVGC15 > XAVGC45 AND XAVGC3 > XAVGC50 AND XAVGC5 > XAVGC50 AND XAVGC7 > XAVGC50 AND XAVGC10 > XAVGC50 AND XAVGC12 > XAVGC50 AND XAVGC15 > XAVGC50 AND XAVGC3 > XAVGC60 AND XAVGC5 > XAVGC60 AND XAVGC7 > XAVGC60 AND XAVGC10 > XAVGC60 AND XAVGC12 > XAVGC60 AND XAVGC15 > XAVGC60
Readings above 70 are bearish
Readings below 30 are bullish
% of stocks in confirmed downtrend using Guppy MMA
XAVGC3 < XAVGC30 AND XAVGC5 < XAVGC30 AND XAVGC7 < XAVGC30 AND XAVGC10 < XAVGC30 AND XAVGC12 < XAVGC30 AND XAVGC15 < XAVGC30 AND XAVGC3 < XAVGC35 AND XAVGC5 < XAVGC35 AND XAVGC7 < XAVGC35 AND XAVGC10 < XAVGC35 AND XAVGC12 < XAVGC35 AND XAVGC15 < XAVGC35 AND XAVGC3 < XAVGC40 AND XAVGC5 < XAVGC40 AND XAVGC7 < XAVGC40 AND XAVGC10 < XAVGC40 AND XAVGC12 < XAVGC40 AND XAVGC15 < XAVGC40 AND XAVGC3 < XAVGC45 AND XAVGC5 < XAVGC45 AND XAVGC7 < XAVGC45 AND XAVGC10 < XAVGC45 AND XAVGC12 < XAVGC45 AND XAVGC15 < XAVGC45 AND XAVGC3 < XAVGC50 AND XAVGC5 < XAVGC50 AND XAVGC7 < XAVGC50 AND XAVGC10 < XAVGC50 AND XAVGC12 < XAVGC50 AND XAVGC15 < XAVGC50 AND XAVGC3 < XAVGC60 AND XAVGC5 < XAVGC60 AND XAVGC7 < XAVGC60 AND XAVGC10 < XAVGC60 AND XAVGC12 < XAVGC60 AND XAVGC15 < XAVGC60
10 Day cumulative breadth ratio
#of stocks up> 4% in last 10 days/#of stocks down>4% in last 10 days
When market is in bearish phase first time ratio is 2 plus signals start of a bull move.
Ratio below .50 signals start of a bearish move after a bull move has been in progress.
What happens at the beginning of a rally
A big 300 plus day on # of stocks up> 4% in day on high volume
Series of 300 plus days in 5to 10 days time frame.
The Cumulative Breadth Ratio goes above 2 confirming start of a bull move.
The Primary Indicator turns bullish
Bottoms tend to be formed suddenly.
What happens at the end of a rally
There is a slow deterioration in breadth on Primary Indicator.
After weeks or month Primary Indicator turns bearish.
Real selling starts after that.
The intermediate dips/pullbacks/corrections in a bullish uptrend
Are signaled by secondary indicator showing extreme readings.
The intermediate rallies in a bearish downtrend
Are signaled by secondary indicator showing extreme readings.
Breadth deteriorates slowly at the top
Tops take a long time to form and are difficult to spot.
Breadth suddenly improves at bottom
Market bottoms happen suddenly. Market turns often are a single day phenomenon.
When looking at Market Monitor look at 10 to 15 days trend and not focus only on single day readings.
4) Momentum Related PCF
C / AVGC126
5) Liquidity PCF
MINV3.1 >= 1000
6) Pullback PCF
1. Setup liquidity pcf: MINV3.1 >= 1000
2. setup 10 day price% change pcf : 100 * (C - C10) / C10
3. Common Stocks
4. 30 day price trend vs. market rank= 95 plus
5. 10 day price change value=<5%
6. Price % change today <=2% (value)
7. Price as % of 30 day high=90 to max (value)
8. Price % change today <=2% (value)
9. Liquidity condition
MDT PCF
C / AVGC126
MDT Breakouts PCF
C >= 1.04 * C1 AND MINV3.1 >= 1000 AND V > V1
Top 25 Breakouts PCF
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1
Anticipated Breakouts PCF
(100 * (C - C1) / C1) >= 1.25 AND V >= 1000 AND V > .50 * V1 AND MINV3.1 >= 1000 AND (100 * (C1 - C2) / C2) <= 1.25 AND (100 * (C1 - C4) / C4) <= 2 AND (100 * (C - C1) / C1) <= 3
EP Breakouts PCF
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1) OR (((100 * (C - C1) / C1) >= 8 AND V > 3000 AND (100 * V / AVGV100) >= 300) AND C >= 1)
6 Month High PCF
(100 * ((C + .01) - (MAXC130 + .01)) / (MAXC130 + .01))
Relative Linearity PCF
(C - C60) / (ABS(C - C1) + ABS(C1 - C2) + ABS(C2 - C3) + ABS(C3 - C4) + ABS(C4 - C5) + ABS(C5 - C6) + ABS(C6 - C7) + ABS(C7 - C8) + ABS(C8 - C9) + ABS(C9 - C10) + ABS(C10 - C11) + ABS(C11 - C12) + ABS(C12 - C13) + ABS(C13 - C14) + ABS(C14 - C15) + ABS(C15 - C16) + ABS(C16 - C17) + ABS(C17 - C18) + ABS(C18 - C19) + ABS(C19 - C20) + ABS(C20 - C21) + ABS(C21 - C22) + ABS(C22 - C23) + ABS(C23 - C24) + ABS(C24 - C25) + ABS(C25 - C26) + ABS(C26 - C27) + ABS(C27 - C28) + ABS(C28 - C29) + ABS(C29 - C30) + ABS(C30 - C31) + ABS(C31 - C32) + ABS(C32 - C33) + ABS(C33 - C34) + ABS(C34 - C35) + ABS(C35 - C36) + ABS(C36 - C37) + ABS(C37 - C38) + ABS(C38 - C39) + ABS(C39 - C40) + ABS(C40 - C41) + ABS(C41 - C42) + ABS(C42 - C43) + ABS(C43 - C44) + ABS(C44 - C45) + ABS(C45 - C46) + ABS(C46 - C47) + ABS(C47 - C48) + ABS(C48 - C49) + ABS(C49 - C50) + ABS(C50 - C51) + ABS(C51 - C52) + ABS(C52 - C53) + ABS(C53 - C54) + ABS(C54 - C55) + ABS(C55 - C56) + ABS(C56 - C57) + ABS(C57 - C58) + ABS(C58 - C59) + ABS(C59 - C60) + 0.001)
Understand relative linearity concept. Do not use PCF scan; you can eyeball it.
Volume Surge PCF
100*v/avgv100
Narrow or Negative Prior Day PCF
100 * (C1 - C2) / C2
+4% or -4% b/o Prior 5 Days PCF
ABS(ABS(C1 / C2 - 1) >= .04 AND V1 >= 1000 AND V1 > V2) - (ABS(C2 / C3 - 1) >= .04 AND V2 >= 1000 AND V2 > V3) - (ABS(C3 / C4 - 1) >= .04 AND V3 >= 1000 AND V3 > V4) - (ABS(C4 / C5 - 1) >= .04 AND V4 >= 1000 AND V4 > V5) - (ABS(C5 / C6 - 1) >= .04 AND V5 >= 1000 AND V5 > V6)
+4% or -4% b/o Prior 10 Days PCF
ABS(ABS(C1 / C2 - 1) >= .04 AND V1 >= 1000 AND V1 > V2) - (ABS(C2 / C3 - 1) >= .04 AND V2 >= 1000 AND V2 > V3) - (ABS(C3 / C4 - 1) >= .04 AND V3 >= 1000 AND V3 > V4) - (ABS(C4 / C5 - 1) >= .04 AND V4 >= 1000 AND V4 > V5) - (ABS(C5 / C6 - 1) >= .04 AND V5 >= 1000 AND V5 > V6) - (ABS(C6 / C7 - 1) >= .04 AND V6 >= 1000 AND V6 > V7) - (ABS(C7 / C8 - 1) >= .04 AND V7 >= 1000 AND V7 > V8) - (ABS(C8 / C9 - 1) >= .04 AND V8 >= 1000 AND V8 > V9) - (ABS(C9 / C10 - 1) >= .04 AND V9 >= 1000 AND V9 > V10) - (ABS(C10 / C11 - 1) >= .04 AND V10 >= 1000 AND V10 > V11)
21-Day/10-Day Weakness/Consolidation PCF
C1 <= 1.10 * C22 AND C1 <= 1.10 * C11
7. RSI 2 bullish bounce scan
2-period RSI - a short-term mean-reversion indicator
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(C13-14))))))))))))))))+50
create a new scan with the above PCF and add these conditions :
common stocks
liquidity MINV3.1>=1000
list rank 1 to 10
price vs 200 day moving average value>100
price>10
Telechart has built-in RSI2 function (unsmoothed, 2-period).
You can search Worden's forums for many examples:
http://forums.worden.com/default.aspx?g=posts&t=44377
8. EP Pullbacks scan
step 1:
run the following 40 day EP scan:
(( 100 * (C1 - C2) / C2) >= 8 AND V1 > 3000 AND (100 * V1 / AVGV100.1) >= 300) OR (( 100 * (C2 - C3) / C3) >= 8 AND V2 > 3000 AND (100 * V2 / AVGV100.2) >= 300) OR (( 100 * (C3 - C4) / C4) >= 8 AND V3 > 3000 AND (100 * V3 / AVGV100.3) >= 300) OR (( 100 * (C4 - C5) / C5) >= 8 AND V4 > 3000 AND (100 * V4 / AVGV100.4) >= 300) OR (( 100 * (C5 - C6) / C6) >= 8 AND V5 > 3000 AND (100 * V5 / AVGV100.5) >= 300) OR (( 100 * (C6 - C7) / C7) >= 8 AND V6 > 3000 AND (100 * V6 / AVGV100.6) >= 300) OR (( 100 * (C7 - C8) / C8) >= 8 AND V7 > 3000 AND (100 * V7 / AVGV100.7) >= 300) OR (( 100 * (C8 - C9) / C9) >= 8 AND V8 > 3000 AND (100 * V8 / AVGV100.8) >= 300) OR (( 100 * (C9 - C10) / C10) >= 8 AND V9 > 3000 AND (100 * V9 / AVGV100.9) >= 300) OR (( 100 * (C10 - C11) / C11) >= 8 AND V10 > 3000 AND (100 * V10 / AVGV100.10) >= 300) OR (( 100 * (C11 - C12) / C12) >= 8 AND V11 > 3000 AND (100 * V11 / AVGV100.11) >= 300) OR (( 100 * (C12 - C13) / C13) >= 8 AND V12 > 3000 AND (100 * V12 / AVGV100.12) >= 300) OR (( 100 * (C13 - C14) / C14) >= 8 AND V13 > 3000 AND (100 * V13 / AVGV100.13) >= 300) OR (( 100 * (C14 - C15) / C15) >= 8 AND V14 > 3000 AND (100 * V14 / AVGV100.14) >= 300) OR (( 100 * (C15 - C16) / C16) >= 8 AND V15 > 3000 AND (100 * V15 / AVGV100.15) >= 300) OR (( 100 * (C16 - C17) / C17) >= 8 AND V16 > 3000 AND (100 * V16 / AVGV100.16) >= 300) OR (( 100 * (C17 - C18) / C18) >= 8 AND V17 > 3000 AND (100 * V17 / AVGV100.17) >= 300) OR (( 100 * (C18 - C19) / C19) >= 8 AND V18 > 3000 AND (100 * V18 / AVGV100.18) >= 300) OR (( 100 * (C19 - C20) / C20) >= 8 AND V19 > 3000 AND (100 * V19 / AVGV100.19) >= 300) OR (( 100 * (C20 - C21) / C21) >= 8 AND V20 > 3000 AND (100 * V20 / AVGV100.20) >= 300) OR (( 100 * (C21 - C22) / C22) >= 8 AND V21 > 3000 AND (100 * V21 / AVGV100.21) >= 300) OR (( 100 * (C22 - C23) / C23) >= 8 AND V22 > 3000 AND (100 * V22 / AVGV100.22) >= 300) OR (( 100 * (C23 - C24) / C24) >= 8 AND V23 > 3000 AND (100 * V23 / AVGV100.23) >= 300) OR (( 100 * (C24 - C25) / C25) >= 8 AND V24 > 3000 AND (100 * V24 / AVGV100.24) >= 300) OR (( 100 * (C25 - C26) / C26) >= 8 AND V25 > 3000 AND (100 * V25 / AVGV100.25) >= 300) OR (( 100 * (C26 - C27) / C27) >= 8 AND V26 > 3000 AND (100 * V26 / AVGV100.26) >= 300) OR (( 100 * (C27 - C28) / C28) >= 8 AND V27 > 3000 AND (100 * V27 / AVGV100.27) >= 300) OR (( 100 * (C28 - C29) / C29) >= 8 AND V28 > 3000 AND (100 * V28 / AVGV100.28) >= 300) OR (( 100 * (C29 - C30) / C30) >= 8 AND V29 > 3000 AND (100 * V29 / AVGV100.29) >= 300) OR (( 100 * (C30 - C31) / C31) >= 8 AND V30 > 3000 AND (100 * V30 / AVGV100.30) >= 300) OR (( 100 * (C31 - C32) / C32) >= 8 AND V31 > 3000 AND (100 * V31 / AVGV100.31) >= 300) OR (( 100 * (C32 - C33) / C33) >= 8 AND V32 > 3000 AND (100 * V32 / AVGV100.32) >= 300) OR (( 100 * (C33 - C34) / C34) >= 8 AND V33 > 3000 AND (100 * V33 / AVGV100.33) >= 300) OR (( 100 * (C34 - C35) / C35) >= 8 AND V34 > 3000 AND (100 * V34 / AVGV100.34) >= 300) OR (( 100 * (C35 - C36) / C36) >= 8 AND V35 > 3000 AND (100 * V35 / AVGV100.35) >= 300) OR (( 100 * (C36 - C37) / C37) >= 8 AND V36 > 3000 AND (100 * V36 / AVGV100.36) >= 300) OR (( 100 * (C37 - C38) / C38) >= 8 AND V37 > 3000 AND (100 * V37 / AVGV100.37) >= 300) OR (( 100 * (C38 - C39) / C39) >= 8 AND V38 > 3000 AND (100 * V38 / AVGV100.38) >= 300) OR (( 100 * (C39 - C40) / C40) >= 8 AND V39 > 3000 AND (100 * V39 / AVGV100.39) >= 300) OR (( 100 * (C40 - C41) / C41) >= 8 AND V40 > 3000 AND (100 * V40 / AVGV100.40) >= 300)
This scan will give stocks that had EP in the last 40 days
step2:
make a trip to Home Depot and get this
because you'll need it to find good pullbacks
9. EP bearish 40 days
(( 100 * (C - C1) / C1) <= ( - 8) AND V > 3000 AND (100 * V / AVGV100) >= 300) OR (( 100 * (C1 - C2) / C2) <= ( - 8) AND V1 > 3000 AND (100 * V1 / AVGV100.1) >= 300) OR (( 100 * (C2 - C3) / C3) <= ( - 8) AND V2 > 3000 AND (100 * V2 / AVGV100.2) >= 300) OR (( 100 * (C3 - C4) / C4) <= ( - 8) AND V3 > 3000 AND (100 * V3 / AVGV100.3) >= 300) OR (( 100 * (C4 - C5) / C5) <= ( - 8) AND V4 > 3000 AND (100 * V4 / AVGV100.4) >= 300) OR (( 100 * (C5 - C6) / C6) <= ( - 8) AND V5 > 3000 AND (100 * V5 / AVGV100.5) >= 300) OR (( 100 * (C6 - C7) / C7) <= ( - 8) AND V6 > 3000 AND (100 * V6 / AVGV100.6) >= 300) OR (( 100 * (C7 - C8) / C8) <= ( - 8) AND V7 > 3000 AND (100 * V7 / AVGV100.7) >= 300) OR (( 100 * (C8 - C9) / C9) <= ( - 8) AND V8 > 3000 AND (100 * V8 / AVGV100.8) >= 300) OR (( 100 * (C9 - C10) / C10) <= ( - 8) AND V9 > 3000 AND (100 * V9 / AVGV100.9) >= 300) OR (( 100 * (C10 - C11) / C11) <= ( - 8 ) AND V10 > 3000 AND (100 * V10 / AVGV100.10) >= 300) OR (( 100 * (C11 - C12) / C12) <= ( - 8) AND V11 > 3000 AND (100 * V11 / AVGV100.11) >= 300) OR (( 100 * (C12 - C13) / C13) <= ( - 8) AND V12 > 3000 AND (100 * V12 / AVGV100.12) >= 300) OR (( 100 * (C13 - C14) / C14) <= ( - 8) AND V13 > 3000 AND (100 * V13 / AVGV100.13) >= 300) OR (( 100 * (C14 - C15) / C15) <= ( - 8 ) AND V14 > 3000 AND (100 * V14 / AVGV100.14) >= 300) OR (( 100 * (C15 - C16) / C16) <= ( - 8) AND V15 > 3000 AND (100 * V15 / AVGV100.15) >= 300) OR (( 100 * (C16 - C17) / C17) <= ( - 8) AND V16 > 3000 AND (100 * V16 / AVGV100.16) >= 300) OR (( 100 * (C17 - C18) / C18) <= ( - 8) AND V17 > 3000 AND (100 * V17 / AVGV100.17) >= 300) OR (( 100 * (C18 - C19) / C19) <= ( - 8) AND V18 > 3000 AND (100 * V18 / AVGV100.18) >= 300) OR (( 100 * (C19 - C20) / C20) <= ( - 8) AND V19 > 3000 AND (100 * V19 / AVGV100.19) >= 300) OR (( 100 * (C20 - C21) / C21) <= ( - 8 ) AND V20 > 3000 AND (100 * V20 / AVGV100.20) >= 300) OR (( 100 * (C21 - C22) / C22) <= ( - 8 ) AND V21 > 3000 AND (100 * V21 / AVGV100.21) >= 300) OR (( 100 * (C22 - C23) / C23) <= ( - 8) AND V22 > 3000 AND (100 * V22 / AVGV100.22) >= 300) OR (( 100 * (C23 - C24) / C24) <= ( - 8) AND V23 > 3000 AND (100 * V23 / AVGV100.23) >= 300) OR (( 100 * (C24 - C25) / C25) <= ( - 8) AND V24 > 3000 AND (100 * V24 / AVGV100.24) >= 300) OR (( 100 * (C25 - C26) / C26) <= ( - 8 ) AND V25 > 3000 AND (100 * V25 / AVGV100.25) >= 300) OR (( 100 * (C26 - C27) / C27) <= ( - 8 ) AND V26 > 3000 AND (100 * V26 / AVGV100.26) >= 300) OR (( 100 * (C27 - C28) / C28) <= ( - 8 ) AND V27 > 3000 AND (100 * V27 / AVGV100.27) >= 300) OR (( 100 * (C28 - C29) / C29) <= ( - 8 ) AND V28 > 3000 AND (100 * V28 / AVGV100.28) >= 300) OR (( 100 * (C29 - C30) / C30) <= ( - 8 ) AND V29 > 3000 AND (100 * V29 / AVGV100.29) >= 300) OR (( 100 * (C30 - C31) / C31) <= ( - 8 ) AND V30 > 3000 AND (100 * V30 / AVGV100.30) >= 300) OR (( 100 * (C31 - C32) / C32) <= ( - 8 ) AND V31 > 3000 AND (100 * V31 / AVGV100.31) >= 300)
OR
(( 100 * (C32 - C33) / C33) <= ( - 8) AND V32 > 3000 AND (100 * V32 / AVGV100.32) >= 300) OR (( 100 * (C33 - C34) / C34) <= ( - 8) AND V33 > 3000 AND (100 * V33 / AVGV100.33) >= 300) OR (( 100 * (C34 - C35) / C35) <= ( - 8) AND V34 > 3000 AND (100 * V34 / AVGV100.34) >= 300) OR (( 100 * (C35 - C36) / C36) <= ( - 8 ) AND V35 > 3000 AND (100 * V35 / AVGV100.35) >= 300) OR (( 100 * (C36 - C37) / C37) <= ( - 8 ) AND V36 > 3000 AND (100 * V36 / AVGV100.36) >= 300) OR (( 100 * (C37 - C38) / C38) <= ( - 8 ) AND V37 > 3000 AND (100 * V37 / AVGV100.37) >= 300) OR (( 100 * (C38 - C39) / C39) <= ( - 8 ) AND V38 > 3000 AND (100 * V38 / AVGV100.38) >= 300) OR (( 100 * (C39 - C40) / C40) <= ( - 8 ) AND V39 > 3000 AND (100 * V39 / AVGV100.39) >= 300) OR (( 100 * (C40 - C41) / C41) <= ( - 8 ) AND V40 > 3000 AND (100 * V40 / AVGV100.40) >= 300) AND C > 5
this scan can be used to find good short opportunities when market develops 10% kind of correction
10. Momentum scans
set up following PCF in TC:
MDT126
C / AVGC126
MDT42
C / AVGC42
Volume condition
MINV3.1 > 1000
then set up 2 easyscans
MDT126
Common Stocks
MDT126 PCF set to list Rank >97
Volume 3 days =true
Price per share>3
MDT 42
MDT42 PCF set to list Rank >97
Volume 3 days =true
Price per share>3
Understanding this scan:
MINV3.1 > 1000
this is basically a minimum volume condition and it looks for stocks that traded more than 100000 shares in last three days
C / AVGC126 or C / AVGC42
these two tells you how far the stock is from 126 days moving average or 42 days MA, and the farther it is , the stronger the price momentum.
11. How to find stock likely to lead after a correction using TC
create a scan using this PCF Guppy MMA+
XAVGC3 < XAVGC30 AND XAVGC5 < XAVGC30 AND XAVGC7 < XAVGC30 AND XAVGC10 < XAVGC30 AND XAVGC12 < XAVGC30 AND XAVGC15 < XAVGC30 AND XAVGC3 < XAVGC35 AND XAVGC5 < XAVGC35 AND XAVGC7 < XAVGC35 AND XAVGC10 < XAVGC35 AND XAVGC12 < XAVGC35 AND XAVGC15 < XAVGC35 AND XAVGC3 < XAVGC40 AND XAVGC5 < XAVGC40 AND XAVGC7 < XAVGC40 AND XAVGC10 < XAVGC40 AND XAVGC12 < XAVGC40 AND XAVGC15 < XAVGC40 AND XAVGC3 < XAVGC45 AND XAVGC5 < XAVGC45 AND XAVGC7 < XAVGC45 AND XAVGC10 < XAVGC45 AND XAVGC12 < XAVGC45 AND XAVGC15 < XAVGC45 AND XAVGC3 < XAVGC50 AND XAVGC5 < XAVGC50 AND XAVGC7 < XAVGC50 AND XAVGC10 < XAVGC50 AND XAVGC12 < XAVGC50 AND XAVGC15 < XAVGC50 AND XAVGC3 < XAVGC60 AND XAVGC5 < XAVGC60 AND XAVGC7 < XAVGC60 AND XAVGC10 < XAVGC60 AND XAVGC12 < XAVGC60 AND XAVGC15 < XAVGC60
then add to the scan the volume liquidity scan as follow:
MINV3.1 >= 1000
go through these stocks sorted by 52 week high or six month high and look for stocks that have orderly low volume pullbacks or sideways move
12. Kirkpatrick Scan/ "Value 40" using TC
create an Easyscan using the following criteria:
price/sales rank<40
Sales million 1 year>200 million
Breakout ((100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1)=true
Stock should be within 8% of six month high.
So it is a value scan which looks at bottom 40% stock by value
13. Finding shorts using TC
a. create an Easyscan using the following these steps:
Common Stocks
Price per share>10
63 day momentum rank 1 to 20 ( c/c63 )
Volume 3 day pcf= true ( minv3.1>=3000 )
b. another way is to create a Easyscan as follow:
Common stocks
Price per share Rank >90
Volume 3 day pcf ( minv3.1>=3000)
Both require elbow grease to find good shorts set ups
Close, low high
Closing price today
(C )
Today's high
(H )
Today's low price
(L )
Yesterday's closing price (one day ago)
(C1)
Closing price five days ago (5 trading days)
(C5)
Similarly O5 and L5 will give open and low 5 days ago
Closing price one month ago
(C21)
Closing price one week ago (5 trading days)
(C5)
Closing price one year ago (250 trading days)
(C250)
Closing price two years ago (500 trading days)
(C500)
Closing price three years ago (750 trading days)
(C750)
Closing price four years ago (1000 trading days)
(C1000)
Highest High or Lowest Low
Highest closing price over the last six months (126 trading days)
(MAXC126)
Lowest closing price over the last six months (126 trading days)
(MinC126)
Highest high over the last 20 trading days
(MAXH20)
Lowest low over the last 5 trading days
(MINL5)
Point Changes
Net Change
(C-C1)
Net Change 1 Week
(C-C5)
Net Change 1 Month
(C-C21)
Net Change 1 Year
(C-C250)
Spread Today: today's high minus today's low
(H-L)
Spread Yesterday: yesterday's high minus yesterday's low
(H1-L1)
% Change
One week percent change
((C-C5)/C5*100)
One month percent change
((C-C21)/C21*100)
1-year percent change in closing price (250 trading days)
((C-C250)/C250*100)
Percentage change in closing price from yesterday to today
((C-C1)/C1*100)
Percentage change in closing price from two days ago to yesterday
((C1-C2)/C2*100)
Moving Averages
Ten day price moving average
(AvgC10)
Value of Price 10 day moving average yesterday (one day ago)
(AvgC10.1)
Similarly you can do AVG of H or L
For Exponential Average XAVG is used so 50 day Exponential moving average will be (Xavgc50)
Volume
Volume today
(V)
Yesterday's volume
(V1)
Volume one week ago (5 trading days)
(V5)
5 day moving average of volume
(AvgV5)
100 day moving average of volume
(AvgV100)
Steps involved in creating simple PCF
Here is an example of PCF for DOJI
(O = C )
This formula describes the condition for DOJI where closing price of a stock is same as Opening Price.
1) First and foremost you require Telechart Software
2) Use the
button to create a new PCF.
Where can you find more information about PCF
http://forums.worden.com/default.aspx?g=posts&t=83
1) Episodic Pivots Method Related PCF
Episodic Pivots Scan
The EP scan has 2 components, it finds either :
1. a stock which has made a 8% plus move or
2. a stock up 5 dollar plus on 1 million volume.
The formula for Episodic Pivots is as follows:
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1) OR ((( 100 * (C - C1) / C1) >=8 AND V > 3000 AND (100 * V / AVGV100) >= 300) AND C > 1)
This scan has two parts:
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1)
C= price today
C1= price yesterday
V= volume today on hundreds
V1= volume yesterday
This portion finds a stock priced above 62.5 that had a 5 dollar plus move on 1 million shares volume and where todays volume is higher than yesterday.
and the second part
(( 100 * (C - C1) / C1) >= 8 AND V > 3000AND (100 * V / AVGV100) >= 300)
AVGV100= average volume in last 100 days
a 8% move.
5/62.5=8%
So if a stock priced below 62.5 has a 5 dollar move, it will be captured in the 8% scan.
While for a stock priced above 62.5, a 5 dollar move is not necessarily 8%. Say a 100 dollar stock goes up 5 dollar, it is 5% move.
The scan by cleverly combining two scans eliminates the need for two separate scans.
Setting up Tabs for EP
To trade Episodic Pivots on daily basis you need to be well organised. One of the ways to do this is to setup data tabs in Telechart for all the information you need for making EP decision.
The image above shows you following tabs:
1. Price percent change (green)
2. Latest float for example RDN shows 81617 float. It means float for RDN is 81 million
3. Price to sales Ratio as a rank. for example RDN shows value of 32 for this, that means it is ranked 32 percentile in terms of price to sales ratio
4. Volume Surge Today for example for RDN it shows a value of 447 which means it had 447% more volume than average 100 day volume
5. Volume Dollars 1-day for example it is 16751 for RDN Which means 167 million dollar volume
Sorting the Episodic Pivots scan output by Dollar volume allows you to prioritize the EP breakouts.
Chart Setting for EP
You can set up the scan
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1) OR ((( 100 * (C - C1) / C1) >= 8 AND V > 3000 AND (100 * V / AVGV100) >= 300) AND C > 1)
to show up on your chart.
That way you can find out where a EP happened.
To do this do this:
Once you do that you will get a EP marker on your chart like this:
Once you have the Episodic Pivots Scan output, then you need to use this template to analyse the EP.
Where does information for each of the column comes from:
1. Symbol: from Telechart EP scan
2. Sector Rank: IBD Stock Ckeckup
3. EPS% change: IBD Stock Ckeckup
4. Sales % change: IBD Stock Ckeckup
5. Float: Telechart Tab Latest Float
6. P/S: Telechart Tab Price to sales rank
7. Prior neglect: you have to decide best on when the stock had last rally
8. Earnings surprize: Finviz or IBD or MSN Moneycentral or Zacks or Yahoo Finance
9. Episodic Pivot: Th news that resulted in this big rally from Finviz/ yahoo/ google
10. Verdict: Whether to buy or not to buy
11. % risk: how much you want to risk
If you fill up the table this is how it will look for today
2) Top25 Breakout PCF
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1 (breakout scan)
C= Price today
C1=price yesterday
MINV3= minimum volume in last 3 days should be greater than 100000 (this eliminates stocks with low liquidity. If you have small account, you can use 500 value which means above 50000 daily volume in last 3 days.)
V= volume today
V1=volume yesterday
You apply this on "Common Stocks"
The stocks meeting the above condition you sort by the Momentum scan:
C / AVGC126
Select Top 25 stocks.
Selecting Stocks for entry from 25 stocks
The 25 breakout stocks which you get will have some overextended stocks, some which had a breakout earlier , and some which are just starting their swing. Those are the stocks that we are interested in.
Remember the basic objective of swing trading is to find a stock in an uptrend, then find a consolidation area and buy at start of next swing.
A picture will explain this clearly. This is what you are looking for:
From the Top 25 breakouts, if you find a breakout like this take it. Otherwise wait for next day.
If you get say 5 breakouts like this picture perfect breakouts then select the one with highest mdt ratings first.
3) Market Monitor PCF
How to interpret Market Monitor
# of stocks up>4% on high volume
(100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
up to 300 normal buying pressure
300 to 500 high buying pressure money flowing in to market
500 to1000 very high buying pressure (normally seen at beginning of a bullish turn from bearish phase)
1000 plus extreme buying pressure
300 plus day are common in bear markets.
At beginning of a bull move you will see a cluster of 3 to 5 big buying days of 300 plus.
Most turns in major trend start with 1000 plus buying day.
# of stocks down>4% on high volume
( 100 * (C - C1) / C1) <= ( - 4) AND V >= 1000 AND V > V1
up to 300 normal selling pressure
500 to 1000 very high selling pressure
1000 plus extreme selling pressure
Bear markets rallies typically start after such extreme 1000 plus selling days.
So a 1000 plus days after a 5 to 10 days of selling pressure is short term bullish.
# of stocks up>25% in a quarter
100 * ((C + .01) - ( MINC65 + .01)) / (MINC65 + .01) >= 25 and AVGC20 * AVGV20 >= 2500
Market is in bullish phase till the # of stocks up>25% in a quarter is greater than # of stocks down>25% in a quarter.
When this number goes below 200 it is extremely bullish. It indicates extreme bearishness.
Rallies which start from readings below 200 are extremely powerful. (I make my IRA/Roth IRA buys on such days)
EOD readings of below 200 are rare, most of the time 200 readings are reached intra day for few hours or minutes and market rebounds.
So when EOD readings drop to below 500 be on watch out for a reversal of bearish trend.
# of stocks down>25% in a quarter
(100 * ((C + .01) - (MAXC65 + .01)) / (MAXC65 + .01)) <= ( - 25) and AVGC20 * AVGV20 >= 2500
Market is in bullish phase till the # of stocks up>25% in a quarter is greater than # of stocks down>25% in a quarter.
When this number goes below 200 it is bearish. It indicates extreme bullishness.
Readings below 200 are rare and happen only intra day.
So watch for EOD readings of below 400.
Unlike end of bear market in bull market, markets do not turn immediately after such high readings.
There is a delay of 2 to 6 weeks before real selling might start and a top is formed.
# of stocks up>50% in a month
C20 >= 5 AND (AVGC20 * AVGV20) >= 2500 AND 100 * (C - C20) / C20 >= 50
This indicator tells you intermediate term extreme bullish phases and likely pullback/correction points
Readings above 20 are bearish.
They indicate high bullishness and tend to lead to correction.
Market resumes its bullish move once such high readings drop below 10.
Readings of below 3 are bullish.
# of stocks down>50% in a month
C20 >= 5 AND (AVGC20 * AVGV20) >= 2500 AND 100 * (C - C20) / C20 <= ( - 50)
This indicator tells you intermediate term extreme bearish phases and likely counter trend rally points during bear market.
They indicate high bearishness and tend to lead to reflex rallies.
# of stocks up> 13% in 34 days
100 * ((C + .01) - ( MINC34 + .01)) / (MINC34 + .01) >= 13 and AVGC20 * AVGV20 >= 2500
# of stocks up >25% in a quarter look for 25% move in 65 days while this looks for half of that move in half the time frame.
So it gives buy and sell signal faster compared to Primary indicator.
But it tends to be noisy.
# of stocks down>13% in 34 days
(100 * ((C + .01) - (MAXC34 + .01)) / (MAXC34 + .01)) <= ( - 13) and AVGC20 * AVGV20 >= 2500
% of stocks in confirmed uptrend using Guppy MMA
XAVGC3 > XAVGC30 AND XAVGC5 > XAVGC30 AND XAVGC7 > XAVGC30 AND XAVGC10 > XAVGC30 AND XAVGC12 > XAVGC30 AND XAVGC15 > XAVGC30 AND XAVGC3 > XAVGC35 AND XAVGC5 > XAVGC35 AND XAVGC7 > XAVGC35 AND XAVGC10 > XAVGC35 AND XAVGC12 > XAVGC35 AND XAVGC15 > XAVGC35 AND XAVGC3 > XAVGC40 AND XAVGC5 > XAVGC40 AND XAVGC7 > XAVGC40 AND XAVGC10 > XAVGC40 AND XAVGC12 > XAVGC40 AND XAVGC15 > XAVGC40 AND XAVGC3 > XAVGC45 AND XAVGC5 > XAVGC45 AND XAVGC7 > XAVGC45 AND XAVGC10 > XAVGC45 AND XAVGC12 > XAVGC45 AND XAVGC15 > XAVGC45 AND XAVGC3 > XAVGC50 AND XAVGC5 > XAVGC50 AND XAVGC7 > XAVGC50 AND XAVGC10 > XAVGC50 AND XAVGC12 > XAVGC50 AND XAVGC15 > XAVGC50 AND XAVGC3 > XAVGC60 AND XAVGC5 > XAVGC60 AND XAVGC7 > XAVGC60 AND XAVGC10 > XAVGC60 AND XAVGC12 > XAVGC60 AND XAVGC15 > XAVGC60
Readings above 70 are bearish
Readings below 30 are bullish
% of stocks in confirmed downtrend using Guppy MMA
XAVGC3 < XAVGC30 AND XAVGC5 < XAVGC30 AND XAVGC7 < XAVGC30 AND XAVGC10 < XAVGC30 AND XAVGC12 < XAVGC30 AND XAVGC15 < XAVGC30 AND XAVGC3 < XAVGC35 AND XAVGC5 < XAVGC35 AND XAVGC7 < XAVGC35 AND XAVGC10 < XAVGC35 AND XAVGC12 < XAVGC35 AND XAVGC15 < XAVGC35 AND XAVGC3 < XAVGC40 AND XAVGC5 < XAVGC40 AND XAVGC7 < XAVGC40 AND XAVGC10 < XAVGC40 AND XAVGC12 < XAVGC40 AND XAVGC15 < XAVGC40 AND XAVGC3 < XAVGC45 AND XAVGC5 < XAVGC45 AND XAVGC7 < XAVGC45 AND XAVGC10 < XAVGC45 AND XAVGC12 < XAVGC45 AND XAVGC15 < XAVGC45 AND XAVGC3 < XAVGC50 AND XAVGC5 < XAVGC50 AND XAVGC7 < XAVGC50 AND XAVGC10 < XAVGC50 AND XAVGC12 < XAVGC50 AND XAVGC15 < XAVGC50 AND XAVGC3 < XAVGC60 AND XAVGC5 < XAVGC60 AND XAVGC7 < XAVGC60 AND XAVGC10 < XAVGC60 AND XAVGC12 < XAVGC60 AND XAVGC15 < XAVGC60
10 Day cumulative breadth ratio
#of stocks up> 4% in last 10 days/#of stocks down>4% in last 10 days
When market is in bearish phase first time ratio is 2 plus signals start of a bull move.
Ratio below .50 signals start of a bearish move after a bull move has been in progress.
What happens at the beginning of a rally
A big 300 plus day on # of stocks up> 4% in day on high volume
Series of 300 plus days in 5to 10 days time frame.
The Cumulative Breadth Ratio goes above 2 confirming start of a bull move.
The Primary Indicator turns bullish
Bottoms tend to be formed suddenly.
What happens at the end of a rally
There is a slow deterioration in breadth on Primary Indicator.
After weeks or month Primary Indicator turns bearish.
Real selling starts after that.
The intermediate dips/pullbacks/corrections in a bullish uptrend
Are signaled by secondary indicator showing extreme readings.
The intermediate rallies in a bearish downtrend
Are signaled by secondary indicator showing extreme readings.
Breadth deteriorates slowly at the top
Tops take a long time to form and are difficult to spot.
Breadth suddenly improves at bottom
Market bottoms happen suddenly. Market turns often are a single day phenomenon.
When looking at Market Monitor look at 10 to 15 days trend and not focus only on single day readings.
4) Momentum Related PCF
C / AVGC126
5) Liquidity PCF
MINV3.1 >= 1000
6) Pullback PCF
1. Setup liquidity pcf: MINV3.1 >= 1000
2. setup 10 day price% change pcf : 100 * (C - C10) / C10
3. Common Stocks
4. 30 day price trend vs. market rank= 95 plus
5. 10 day price change value=<5%
6. Price % change today <=2% (value)
7. Price as % of 30 day high=90 to max (value)
8. Price % change today <=2% (value)
9. Liquidity condition
MDT PCF
C / AVGC126
MDT Breakouts PCF
C >= 1.04 * C1 AND MINV3.1 >= 1000 AND V > V1
Top 25 Breakouts PCF
C >= 1.04 * C1 AND MINV3 >= 1000 AND V > V1
Anticipated Breakouts PCF
(100 * (C - C1) / C1) >= 1.25 AND V >= 1000 AND V > .50 * V1 AND MINV3.1 >= 1000 AND (100 * (C1 - C2) / C2) <= 1.25 AND (100 * (C1 - C4) / C4) <= 2 AND (100 * (C - C1) / C1) <= 3
EP Breakouts PCF
((C - C1) >= 5 AND V > 10000 AND C >= 62.50 AND V > V1) OR (((100 * (C - C1) / C1) >= 8 AND V > 3000 AND (100 * V / AVGV100) >= 300) AND C >= 1)
6 Month High PCF
(100 * ((C + .01) - (MAXC130 + .01)) / (MAXC130 + .01))
Relative Linearity PCF
(C - C60) / (ABS(C - C1) + ABS(C1 - C2) + ABS(C2 - C3) + ABS(C3 - C4) + ABS(C4 - C5) + ABS(C5 - C6) + ABS(C6 - C7) + ABS(C7 - C8) + ABS(C8 - C9) + ABS(C9 - C10) + ABS(C10 - C11) + ABS(C11 - C12) + ABS(C12 - C13) + ABS(C13 - C14) + ABS(C14 - C15) + ABS(C15 - C16) + ABS(C16 - C17) + ABS(C17 - C18) + ABS(C18 - C19) + ABS(C19 - C20) + ABS(C20 - C21) + ABS(C21 - C22) + ABS(C22 - C23) + ABS(C23 - C24) + ABS(C24 - C25) + ABS(C25 - C26) + ABS(C26 - C27) + ABS(C27 - C28) + ABS(C28 - C29) + ABS(C29 - C30) + ABS(C30 - C31) + ABS(C31 - C32) + ABS(C32 - C33) + ABS(C33 - C34) + ABS(C34 - C35) + ABS(C35 - C36) + ABS(C36 - C37) + ABS(C37 - C38) + ABS(C38 - C39) + ABS(C39 - C40) + ABS(C40 - C41) + ABS(C41 - C42) + ABS(C42 - C43) + ABS(C43 - C44) + ABS(C44 - C45) + ABS(C45 - C46) + ABS(C46 - C47) + ABS(C47 - C48) + ABS(C48 - C49) + ABS(C49 - C50) + ABS(C50 - C51) + ABS(C51 - C52) + ABS(C52 - C53) + ABS(C53 - C54) + ABS(C54 - C55) + ABS(C55 - C56) + ABS(C56 - C57) + ABS(C57 - C58) + ABS(C58 - C59) + ABS(C59 - C60) + 0.001)
Understand relative linearity concept. Do not use PCF scan; you can eyeball it.
Volume Surge PCF
100*v/avgv100
Narrow or Negative Prior Day PCF
100 * (C1 - C2) / C2
+4% or -4% b/o Prior 5 Days PCF
ABS(ABS(C1 / C2 - 1) >= .04 AND V1 >= 1000 AND V1 > V2) - (ABS(C2 / C3 - 1) >= .04 AND V2 >= 1000 AND V2 > V3) - (ABS(C3 / C4 - 1) >= .04 AND V3 >= 1000 AND V3 > V4) - (ABS(C4 / C5 - 1) >= .04 AND V4 >= 1000 AND V4 > V5) - (ABS(C5 / C6 - 1) >= .04 AND V5 >= 1000 AND V5 > V6)
+4% or -4% b/o Prior 10 Days PCF
ABS(ABS(C1 / C2 - 1) >= .04 AND V1 >= 1000 AND V1 > V2) - (ABS(C2 / C3 - 1) >= .04 AND V2 >= 1000 AND V2 > V3) - (ABS(C3 / C4 - 1) >= .04 AND V3 >= 1000 AND V3 > V4) - (ABS(C4 / C5 - 1) >= .04 AND V4 >= 1000 AND V4 > V5) - (ABS(C5 / C6 - 1) >= .04 AND V5 >= 1000 AND V5 > V6) - (ABS(C6 / C7 - 1) >= .04 AND V6 >= 1000 AND V6 > V7) - (ABS(C7 / C8 - 1) >= .04 AND V7 >= 1000 AND V7 > V8) - (ABS(C8 / C9 - 1) >= .04 AND V8 >= 1000 AND V8 > V9) - (ABS(C9 / C10 - 1) >= .04 AND V9 >= 1000 AND V9 > V10) - (ABS(C10 / C11 - 1) >= .04 AND V10 >= 1000 AND V10 > V11)
21-Day/10-Day Weakness/Consolidation PCF
C1 <= 1.10 * C22 AND C1 <= 1.10 * C11
7. RSI 2 bullish bounce scan
2-period RSI - a short-term mean-reversion indicator
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(C13-14))))))))))))))))+50
create a new scan with the above PCF and add these conditions :
common stocks
liquidity MINV3.1>=1000
list rank 1 to 10
price vs 200 day moving average value>100
price>10
Telechart has built-in RSI2 function (unsmoothed, 2-period).
You can search Worden's forums for many examples:
http://forums.worden.com/default.aspx?g=posts&t=44377
8. EP Pullbacks scan
step 1:
run the following 40 day EP scan:
(( 100 * (C1 - C2) / C2) >= 8 AND V1 > 3000 AND (100 * V1 / AVGV100.1) >= 300) OR (( 100 * (C2 - C3) / C3) >= 8 AND V2 > 3000 AND (100 * V2 / AVGV100.2) >= 300) OR (( 100 * (C3 - C4) / C4) >= 8 AND V3 > 3000 AND (100 * V3 / AVGV100.3) >= 300) OR (( 100 * (C4 - C5) / C5) >= 8 AND V4 > 3000 AND (100 * V4 / AVGV100.4) >= 300) OR (( 100 * (C5 - C6) / C6) >= 8 AND V5 > 3000 AND (100 * V5 / AVGV100.5) >= 300) OR (( 100 * (C6 - C7) / C7) >= 8 AND V6 > 3000 AND (100 * V6 / AVGV100.6) >= 300) OR (( 100 * (C7 - C8) / C8) >= 8 AND V7 > 3000 AND (100 * V7 / AVGV100.7) >= 300) OR (( 100 * (C8 - C9) / C9) >= 8 AND V8 > 3000 AND (100 * V8 / AVGV100.8) >= 300) OR (( 100 * (C9 - C10) / C10) >= 8 AND V9 > 3000 AND (100 * V9 / AVGV100.9) >= 300) OR (( 100 * (C10 - C11) / C11) >= 8 AND V10 > 3000 AND (100 * V10 / AVGV100.10) >= 300) OR (( 100 * (C11 - C12) / C12) >= 8 AND V11 > 3000 AND (100 * V11 / AVGV100.11) >= 300) OR (( 100 * (C12 - C13) / C13) >= 8 AND V12 > 3000 AND (100 * V12 / AVGV100.12) >= 300) OR (( 100 * (C13 - C14) / C14) >= 8 AND V13 > 3000 AND (100 * V13 / AVGV100.13) >= 300) OR (( 100 * (C14 - C15) / C15) >= 8 AND V14 > 3000 AND (100 * V14 / AVGV100.14) >= 300) OR (( 100 * (C15 - C16) / C16) >= 8 AND V15 > 3000 AND (100 * V15 / AVGV100.15) >= 300) OR (( 100 * (C16 - C17) / C17) >= 8 AND V16 > 3000 AND (100 * V16 / AVGV100.16) >= 300) OR (( 100 * (C17 - C18) / C18) >= 8 AND V17 > 3000 AND (100 * V17 / AVGV100.17) >= 300) OR (( 100 * (C18 - C19) / C19) >= 8 AND V18 > 3000 AND (100 * V18 / AVGV100.18) >= 300) OR (( 100 * (C19 - C20) / C20) >= 8 AND V19 > 3000 AND (100 * V19 / AVGV100.19) >= 300) OR (( 100 * (C20 - C21) / C21) >= 8 AND V20 > 3000 AND (100 * V20 / AVGV100.20) >= 300) OR (( 100 * (C21 - C22) / C22) >= 8 AND V21 > 3000 AND (100 * V21 / AVGV100.21) >= 300) OR (( 100 * (C22 - C23) / C23) >= 8 AND V22 > 3000 AND (100 * V22 / AVGV100.22) >= 300) OR (( 100 * (C23 - C24) / C24) >= 8 AND V23 > 3000 AND (100 * V23 / AVGV100.23) >= 300) OR (( 100 * (C24 - C25) / C25) >= 8 AND V24 > 3000 AND (100 * V24 / AVGV100.24) >= 300) OR (( 100 * (C25 - C26) / C26) >= 8 AND V25 > 3000 AND (100 * V25 / AVGV100.25) >= 300) OR (( 100 * (C26 - C27) / C27) >= 8 AND V26 > 3000 AND (100 * V26 / AVGV100.26) >= 300) OR (( 100 * (C27 - C28) / C28) >= 8 AND V27 > 3000 AND (100 * V27 / AVGV100.27) >= 300) OR (( 100 * (C28 - C29) / C29) >= 8 AND V28 > 3000 AND (100 * V28 / AVGV100.28) >= 300) OR (( 100 * (C29 - C30) / C30) >= 8 AND V29 > 3000 AND (100 * V29 / AVGV100.29) >= 300) OR (( 100 * (C30 - C31) / C31) >= 8 AND V30 > 3000 AND (100 * V30 / AVGV100.30) >= 300) OR (( 100 * (C31 - C32) / C32) >= 8 AND V31 > 3000 AND (100 * V31 / AVGV100.31) >= 300) OR (( 100 * (C32 - C33) / C33) >= 8 AND V32 > 3000 AND (100 * V32 / AVGV100.32) >= 300) OR (( 100 * (C33 - C34) / C34) >= 8 AND V33 > 3000 AND (100 * V33 / AVGV100.33) >= 300) OR (( 100 * (C34 - C35) / C35) >= 8 AND V34 > 3000 AND (100 * V34 / AVGV100.34) >= 300) OR (( 100 * (C35 - C36) / C36) >= 8 AND V35 > 3000 AND (100 * V35 / AVGV100.35) >= 300) OR (( 100 * (C36 - C37) / C37) >= 8 AND V36 > 3000 AND (100 * V36 / AVGV100.36) >= 300) OR (( 100 * (C37 - C38) / C38) >= 8 AND V37 > 3000 AND (100 * V37 / AVGV100.37) >= 300) OR (( 100 * (C38 - C39) / C39) >= 8 AND V38 > 3000 AND (100 * V38 / AVGV100.38) >= 300) OR (( 100 * (C39 - C40) / C40) >= 8 AND V39 > 3000 AND (100 * V39 / AVGV100.39) >= 300) OR (( 100 * (C40 - C41) / C41) >= 8 AND V40 > 3000 AND (100 * V40 / AVGV100.40) >= 300)
This scan will give stocks that had EP in the last 40 days
step2:
make a trip to Home Depot and get this
because you'll need it to find good pullbacks
9. EP bearish 40 days
(( 100 * (C - C1) / C1) <= ( - 8) AND V > 3000 AND (100 * V / AVGV100) >= 300) OR (( 100 * (C1 - C2) / C2) <= ( - 8) AND V1 > 3000 AND (100 * V1 / AVGV100.1) >= 300) OR (( 100 * (C2 - C3) / C3) <= ( - 8) AND V2 > 3000 AND (100 * V2 / AVGV100.2) >= 300) OR (( 100 * (C3 - C4) / C4) <= ( - 8) AND V3 > 3000 AND (100 * V3 / AVGV100.3) >= 300) OR (( 100 * (C4 - C5) / C5) <= ( - 8) AND V4 > 3000 AND (100 * V4 / AVGV100.4) >= 300) OR (( 100 * (C5 - C6) / C6) <= ( - 8) AND V5 > 3000 AND (100 * V5 / AVGV100.5) >= 300) OR (( 100 * (C6 - C7) / C7) <= ( - 8) AND V6 > 3000 AND (100 * V6 / AVGV100.6) >= 300) OR (( 100 * (C7 - C8) / C8) <= ( - 8) AND V7 > 3000 AND (100 * V7 / AVGV100.7) >= 300) OR (( 100 * (C8 - C9) / C9) <= ( - 8) AND V8 > 3000 AND (100 * V8 / AVGV100.8) >= 300) OR (( 100 * (C9 - C10) / C10) <= ( - 8) AND V9 > 3000 AND (100 * V9 / AVGV100.9) >= 300) OR (( 100 * (C10 - C11) / C11) <= ( - 8 ) AND V10 > 3000 AND (100 * V10 / AVGV100.10) >= 300) OR (( 100 * (C11 - C12) / C12) <= ( - 8) AND V11 > 3000 AND (100 * V11 / AVGV100.11) >= 300) OR (( 100 * (C12 - C13) / C13) <= ( - 8) AND V12 > 3000 AND (100 * V12 / AVGV100.12) >= 300) OR (( 100 * (C13 - C14) / C14) <= ( - 8) AND V13 > 3000 AND (100 * V13 / AVGV100.13) >= 300) OR (( 100 * (C14 - C15) / C15) <= ( - 8 ) AND V14 > 3000 AND (100 * V14 / AVGV100.14) >= 300) OR (( 100 * (C15 - C16) / C16) <= ( - 8) AND V15 > 3000 AND (100 * V15 / AVGV100.15) >= 300) OR (( 100 * (C16 - C17) / C17) <= ( - 8) AND V16 > 3000 AND (100 * V16 / AVGV100.16) >= 300) OR (( 100 * (C17 - C18) / C18) <= ( - 8) AND V17 > 3000 AND (100 * V17 / AVGV100.17) >= 300) OR (( 100 * (C18 - C19) / C19) <= ( - 8) AND V18 > 3000 AND (100 * V18 / AVGV100.18) >= 300) OR (( 100 * (C19 - C20) / C20) <= ( - 8) AND V19 > 3000 AND (100 * V19 / AVGV100.19) >= 300) OR (( 100 * (C20 - C21) / C21) <= ( - 8 ) AND V20 > 3000 AND (100 * V20 / AVGV100.20) >= 300) OR (( 100 * (C21 - C22) / C22) <= ( - 8 ) AND V21 > 3000 AND (100 * V21 / AVGV100.21) >= 300) OR (( 100 * (C22 - C23) / C23) <= ( - 8) AND V22 > 3000 AND (100 * V22 / AVGV100.22) >= 300) OR (( 100 * (C23 - C24) / C24) <= ( - 8) AND V23 > 3000 AND (100 * V23 / AVGV100.23) >= 300) OR (( 100 * (C24 - C25) / C25) <= ( - 8) AND V24 > 3000 AND (100 * V24 / AVGV100.24) >= 300) OR (( 100 * (C25 - C26) / C26) <= ( - 8 ) AND V25 > 3000 AND (100 * V25 / AVGV100.25) >= 300) OR (( 100 * (C26 - C27) / C27) <= ( - 8 ) AND V26 > 3000 AND (100 * V26 / AVGV100.26) >= 300) OR (( 100 * (C27 - C28) / C28) <= ( - 8 ) AND V27 > 3000 AND (100 * V27 / AVGV100.27) >= 300) OR (( 100 * (C28 - C29) / C29) <= ( - 8 ) AND V28 > 3000 AND (100 * V28 / AVGV100.28) >= 300) OR (( 100 * (C29 - C30) / C30) <= ( - 8 ) AND V29 > 3000 AND (100 * V29 / AVGV100.29) >= 300) OR (( 100 * (C30 - C31) / C31) <= ( - 8 ) AND V30 > 3000 AND (100 * V30 / AVGV100.30) >= 300) OR (( 100 * (C31 - C32) / C32) <= ( - 8 ) AND V31 > 3000 AND (100 * V31 / AVGV100.31) >= 300)
OR
(( 100 * (C32 - C33) / C33) <= ( - 8) AND V32 > 3000 AND (100 * V32 / AVGV100.32) >= 300) OR (( 100 * (C33 - C34) / C34) <= ( - 8) AND V33 > 3000 AND (100 * V33 / AVGV100.33) >= 300) OR (( 100 * (C34 - C35) / C35) <= ( - 8) AND V34 > 3000 AND (100 * V34 / AVGV100.34) >= 300) OR (( 100 * (C35 - C36) / C36) <= ( - 8 ) AND V35 > 3000 AND (100 * V35 / AVGV100.35) >= 300) OR (( 100 * (C36 - C37) / C37) <= ( - 8 ) AND V36 > 3000 AND (100 * V36 / AVGV100.36) >= 300) OR (( 100 * (C37 - C38) / C38) <= ( - 8 ) AND V37 > 3000 AND (100 * V37 / AVGV100.37) >= 300) OR (( 100 * (C38 - C39) / C39) <= ( - 8 ) AND V38 > 3000 AND (100 * V38 / AVGV100.38) >= 300) OR (( 100 * (C39 - C40) / C40) <= ( - 8 ) AND V39 > 3000 AND (100 * V39 / AVGV100.39) >= 300) OR (( 100 * (C40 - C41) / C41) <= ( - 8 ) AND V40 > 3000 AND (100 * V40 / AVGV100.40) >= 300) AND C > 5
this scan can be used to find good short opportunities when market develops 10% kind of correction
10. Momentum scans
set up following PCF in TC:
MDT126
C / AVGC126
MDT42
C / AVGC42
Volume condition
MINV3.1 > 1000
then set up 2 easyscans
MDT126
Common Stocks
MDT126 PCF set to list Rank >97
Volume 3 days =true
Price per share>3
MDT 42
MDT42 PCF set to list Rank >97
Volume 3 days =true
Price per share>3
Understanding this scan:
MINV3.1 > 1000
this is basically a minimum volume condition and it looks for stocks that traded more than 100000 shares in last three days
C / AVGC126 or C / AVGC42
these two tells you how far the stock is from 126 days moving average or 42 days MA, and the farther it is , the stronger the price momentum.
11. How to find stock likely to lead after a correction using TC
create a scan using this PCF Guppy MMA+
XAVGC3 < XAVGC30 AND XAVGC5 < XAVGC30 AND XAVGC7 < XAVGC30 AND XAVGC10 < XAVGC30 AND XAVGC12 < XAVGC30 AND XAVGC15 < XAVGC30 AND XAVGC3 < XAVGC35 AND XAVGC5 < XAVGC35 AND XAVGC7 < XAVGC35 AND XAVGC10 < XAVGC35 AND XAVGC12 < XAVGC35 AND XAVGC15 < XAVGC35 AND XAVGC3 < XAVGC40 AND XAVGC5 < XAVGC40 AND XAVGC7 < XAVGC40 AND XAVGC10 < XAVGC40 AND XAVGC12 < XAVGC40 AND XAVGC15 < XAVGC40 AND XAVGC3 < XAVGC45 AND XAVGC5 < XAVGC45 AND XAVGC7 < XAVGC45 AND XAVGC10 < XAVGC45 AND XAVGC12 < XAVGC45 AND XAVGC15 < XAVGC45 AND XAVGC3 < XAVGC50 AND XAVGC5 < XAVGC50 AND XAVGC7 < XAVGC50 AND XAVGC10 < XAVGC50 AND XAVGC12 < XAVGC50 AND XAVGC15 < XAVGC50 AND XAVGC3 < XAVGC60 AND XAVGC5 < XAVGC60 AND XAVGC7 < XAVGC60 AND XAVGC10 < XAVGC60 AND XAVGC12 < XAVGC60 AND XAVGC15 < XAVGC60
then add to the scan the volume liquidity scan as follow:
MINV3.1 >= 1000
go through these stocks sorted by 52 week high or six month high and look for stocks that have orderly low volume pullbacks or sideways move
12. Kirkpatrick Scan/ "Value 40" using TC
create an Easyscan using the following criteria:
price/sales rank<40
Sales million 1 year>200 million
Breakout ((100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1)=true
Stock should be within 8% of six month high.
So it is a value scan which looks at bottom 40% stock by value
13. Finding shorts using TC
a. create an Easyscan using the following these steps:
Common Stocks
Price per share>10
63 day momentum rank 1 to 20 ( c/c63 )
Volume 3 day pcf= true ( minv3.1>=3000 )
b. another way is to create a Easyscan as follow:
Common stocks
Price per share Rank >90
Volume 3 day pcf ( minv3.1>=3000)
Both require elbow grease to find good shorts set ups
posted by Rajaram Pai at 7:49 PM
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