Dear friends,
I have created a system based in Renko and Stochastic. I think is really powerfull because it can detect the up and dowtrends and it filters very well when market goes lateral.
I have tested the system with blue chip stocks with high volume also in index and all is ok. It works poorly with low level stocks.
First of all open a daily chart in Metastock and put the prices in Renko style. Best renko brick size will be what Metastock calculates by default.
Note that in this kind of chart, only price matters, not the time.
Next, add a Stochastic indicator with K% (Time=8, Slowing= 3) and %D (Time=3 Style=invisible) values. Draw horizontal lines +20, +40, +60, +80.
Rules are :
If stochastic rises to more than 60 and renko turns white, then BUY
If stochastic falls to less than 40 and renko turns black, then SELL
If stochastic rises to 60 or more but falls under 60 again, and when falls renko turns black, then SELL
If stochastic falls to 40 or less but rises over 40 again, and when rises renko turns white, then BUY
Well, you can test by yourself and realize that is a great system, but I would like to go further. Id like to test it in the Metastocks System Tester so I search in google and I found this indicator:
http://forum.equis.com/forums/thread/27380.aspx
Bulli Renkoline
==================================
K:= LastValue( Fml( "Bulli RenkBoxSize") ) ;
RenkoLine:=If(Cum(1)=1,CLOSE,
If(PREV>=0,
If(CLOSE<PREV-2*K,-(PREV-2*K),
Floor(Max(C-PREV,0)/K)*K+PREV),
If(CLOSE>Abs(PREV)+2*K,-PREV+2*K,
Floor(Max(Abs(PREV)-C,0)/K)*K+PREV)));
RL:=Abs(RenkoLine);
RL;
BW:=If(Cum(1)=1,0,
If(RL>Ref(RL,-1),+1,If(RL<Ref(RL,-1),-1,PREV)));
BW;0;
=============================
It works great showing renko signal as a indicator .
Actual problem is how to create a Stochastic indicator that uses the non-time-frame wich Renko chart uses.
Next problem will be how to create a System Tester for this system.
Does anybody with Metastock code skills could help me out?
Regards.
Bricomatica
I have created a system based in Renko and Stochastic. I think is really powerfull because it can detect the up and dowtrends and it filters very well when market goes lateral.
I have tested the system with blue chip stocks with high volume also in index and all is ok. It works poorly with low level stocks.
First of all open a daily chart in Metastock and put the prices in Renko style. Best renko brick size will be what Metastock calculates by default.
Note that in this kind of chart, only price matters, not the time.
Next, add a Stochastic indicator with K% (Time=8, Slowing= 3) and %D (Time=3 Style=invisible) values. Draw horizontal lines +20, +40, +60, +80.
Rules are :
If stochastic rises to more than 60 and renko turns white, then BUY
If stochastic falls to less than 40 and renko turns black, then SELL
If stochastic rises to 60 or more but falls under 60 again, and when falls renko turns black, then SELL
If stochastic falls to 40 or less but rises over 40 again, and when rises renko turns white, then BUY
Well, you can test by yourself and realize that is a great system, but I would like to go further. Id like to test it in the Metastocks System Tester so I search in google and I found this indicator:
http://forum.equis.com/forums/thread/27380.aspx
Bulli Renkoline
==================================
K:= LastValue( Fml( "Bulli RenkBoxSize") ) ;
RenkoLine:=If(Cum(1)=1,CLOSE,
If(PREV>=0,
If(CLOSE<PREV-2*K,-(PREV-2*K),
Floor(Max(C-PREV,0)/K)*K+PREV),
If(CLOSE>Abs(PREV)+2*K,-PREV+2*K,
Floor(Max(Abs(PREV)-C,0)/K)*K+PREV)));
RL:=Abs(RenkoLine);
RL;
BW:=If(Cum(1)=1,0,
If(RL>Ref(RL,-1),+1,If(RL<Ref(RL,-1),-1,PREV)));
BW;0;
=============================
It works great showing renko signal as a indicator .
Actual problem is how to create a Stochastic indicator that uses the non-time-frame wich Renko chart uses.
Next problem will be how to create a System Tester for this system.
Does anybody with Metastock code skills could help me out?
Regards.
Bricomatica
