Rusty99

Also see http://www.mtpredictor.com/pricing/documents/ATRStophelpfile.pdf Cheers,

seeExit Strategy - The ATR Ratchet - ForexForums.org There are lots of options for adjustments.

I have developed a ratchet chandelier stop loss for ProRealTime. It is developed as an indicator that "hangs" a set multiple of ATR below the recent highest HIGH. It includes a Rachet - it adds a small multiple of ATR each day after the Rachet was last reset by the indicator last falling within the range. This works on the concept of reducing your risk the longer you hold the stock. In the example shown below the initial setting is 1.9 * ATR - after 5 days this reduces to 1.75, after 10 days to 1.6 and after 20 days 1.3 etc. It is easy to change the various parameters. The settings shown below are for swing trading Indicator (as an overlay onthe main chart) myhigh = highest[3](high) - 1.9*(AverageTrueRange[5](close)) IF (mytot > low) THEN myx = 0 ELSE myx = myx + 0.03 ENDIF myextra = myx[1]*(AverageTrueRange[5](close)) mytot = myhigh +myextra RETURN mytot Cheers,

Thanks for that - I had a look at this and I agree that it uses similar ideas, but the focus is on the bar display rather than an indicator that can be used to screen stocks. See the thread " Retest on Lower Volume with Volume Gradient " for similar ideas. Following comments elsewhere there is a need to break the link with VSA. I have renamed the indicator - Volume Position Range Signal (VPRS) It measures relative changes in the Volume, Position of the Close on the bar, and the Relative True Range and generates a Signal that can be used to screen stock for closer scrutiny. Having the 'better volume indicator' for displaying the stocks found would be a good enhancement, as would VSA. Cheers and Thanks for the Feedback,

Thanks for the responses. Develping and testing a system was down the track at little. BUT I have produced a backtest formula based on VSAtot, which has potential as a trading system as there are good buy and sell signals. The system needs further development and tweaking but below are the results. As I said this is very preliminary and needs further work, but it shows potential. and another

I have been developing an integrated indicator based on VSA (Volume Spread Analysis) concepts. The indicator combines three parameters Position of the close on the bar as a percentage of the range Rate of change of volume (%) Rate of change the range (high-low)(%) {These are separate indicators that are added for VSAtot) The parameters are equally scaled and added, thus far. This indicator is aimed at develping a screener tool to pick stocks for closer scrutiny. (see VSAtot in the chart). It would be used with other indicators and combined with other signals for the screener (price trend). Given its combining three elements the signals are going to be mixed and require scrutiny. The idea is to find find stocks for closer examination. Currently the screener simply looks for an upswing in VSAtot in the last 3 days and a price surge. I would be interested in any similar ideas for this approach. Cheers,

I would have thought that the changes in volume are already displayed in the volume chart. I have been looking at ways to integrate the rate of change of volume with the position of the close on the bar and the range size itself (spread). My indicator is aimed at develping a screener tool to pick stocks for closer scrutiny. (see VSAtot in the chart). It would be used with other indicators and combined with other signals for the screener. Given its combining three elements the signals are going to be mixed and require scrutiny. I would be interested in any similar ideas for this approach.

“Predictive” – Possible??? My use of the term relates to the idea that in many cases there will be signs in the data prior to the surge, that the stock is about to surge. This is apart from the unexpected changes due to announcements etc, etc and the general chaos. To quote from Incredible Charts "Twiggs Money Flow warns of breakouts and provides useful trend confirmation. It is based on the observation that buying support is normally signaled by: • increased volume and • frequent closes in the top half of the daily range." But do these parameters signify more than a trend confirmation??? Note: The image is an ideal selection to illustrate the concept - not an ideal buy signal. Referring to the image the closing price occurs in the lower half of the range as the stock price falls, but in the three days prior to the surge the closing price moves up the range. There are also changes in the relative volume (not shown) and in the total range / spread (the relative size of the bar). My draft indicator picks up the trend in these parameters and surges upward for 3 days prior to the price increase. (Of course nothing is perfect blah, blah and you would use other info etc.). The dream is that this is a general pattern that reflects modern market behaviour and patterns. (VSA looks at similar patterns, though I have little experience with VSA). An indicator that detects signals of a price rise in the days prior to the surge is “predictive” or that is the dream anyway.

Thanks blowfish for your details reply. I'll have a look at all the indicators you have mentioned. Thanks again. Cheers PS. I love the names !!!

Have you noticed that most of the technical indicators are very old, most being developed more than 20 years ago, and many 50 years ago, well before the age of computers. There are two issues here: 1. computers provide a fundamental shift in the way indicators can be developed. 2. Computers have fundamentally changed the way the entire market functions and behaves because computers provide instant information. If you look at the details of the derivation of the indicators that all of us use you will see that most are very primitive and simplistic, despite heir widespread use. I have been looking for new modern indicators that provide better predictive power. My idea is to focus on parameters that change just before a stock starts a new surge. Sure there are many sudden announcements etc. that are unpredictable. But often there will be signals in the few days prior to a rise that are partially due to the way that the market behaves and the effect of some new activity or interest in the stock. I have been focusing on the following parameters used to provide a buy signal: Increase/decrease in Volume Close in the top half of the daily range The size of the daily range Gaps i.e. sudden increase in mean daily price compared with yesterday’s mean. I have been developing an index that uses a combination of these parameters. So far the results look promising and the index gives a signal one to four days before the price surges. I would be interested on your comments about these and other signal parameters and new indicator methods that attempt to do the same thing.

Sorry - can you please spell this out - it's unclear to me. Thanks

My followup research has confrmed that stochastic (various indices) produces more 'false signals' that cannot be distinguished from the main signals. Cheers

I have had another look at stochastic and Slow stochastic, but they appear to give too many 'false signals' for swing trading, though the signals earlier earlier than MACD. Cheers

Thanks for the reply - I'll try your suggestions Cheers

I am a relative newcomer and I have been using a system which uses MACD crossovers + price/volume changes to search for stock. I then use a chart that includes MACD + histogram and Twiggs Money Flow + ROC to choose when to buy and sell. [Twiggs is a modified Chaikin Money Flow]. The signals are a simultaneous rise in Twiggs and ROC + a change in histogram trend (or MACD crossover) for Buy Signal and simultaneous Falls + change in histogram trend for the sell signal. (See chart) I would be interested in any comments you may have on this system. The MACD crossover is generally too late as a signal - hence the use of the histogram trend. Multicollinearity is reduced with this system as:- ROC(price) is a momentum indicator MACD is a trend indicator Twiggs Money Flow is a Volume Indicator The system is not mechanical but requires interpretation using the top display. I use a filter (MACD + Volume and Price changes) to select potential stocks and then use the display to narrow down the choice and further information to buy and sell. It is a short-term system (5 to 10 days or more).