Finding multibagger stocks opening with a gap consequently, eg, jai corp

ravi_s_ghosh · #1 25th February 2008, 04:43 PM

Can someone help me create an amibroker exploration that would search those stocks that opening and closing above earlier day's price and thus forming a bullish gap and/or opening and closing below earlier day's price adn thus forming a bearish gap. This kind of gaps appear very frequently and mostly every day in some stocks which make them multibagger. For example, jai corp from august to october was showing this pattern and now horizon is showing this. With this screerer, it will be easy to find such stocks and take a position in them early in the ride.

The formula would be

day's low > (day-1)'s high [for extremely bullish stocks]
or
day's high < (day-1)'s low [for extremely bearish stocks]

Its a pretty simple code, but I dont know how to do it in afl. Please help me out.

ravi_s_ghosh · #2 25th February 2008, 06:39 PM

I was finally able to create this indicator. Find the afl attached. After downloading the file, delete the extension ".txt" so the file Gap and Circuit.afl.txt becomes Gap and Circuit.afl

Please give feed back and help enhance this.

Quote:

//Gap and Circuit
//Coded by Ravi S Ghosh
//It is an exploration that scans those scrips that open and close above earlier day's price for 2 consecutive days thus forming a bullish pattern (long candidates) or those scrips open and close below earlier day's price for 2 consecutive days thus forming a bearish pattern (shorting candidates). Usually, these stocks hit circuits. This kind of gaps appear very frequently and mostly every day in some stocks which make them multibagger. I have tried to create "sell" for long positions and "cover" for short positions, but I feel they are inadequate. Please suggest improvements in this exploration.

Buy = Low > Ref( High , -1 )
AND Close == High
AND Ref( Low , -1 ) > Ref( High , -2 )
AND Ref( Close , -1 ) == Ref( High , -1 );

Sell = Low < Ref( High , -1 )
AND Ref( Low , -1 ) > Ref( High , -2 );

Short = High < Ref( Low , -1 )
AND Close == Low
AND Ref( High , -1 ) < Ref( Low , -2 )
AND Ref( Close , -1 ) == Ref( Low , -1 );

Cover = High > Ref( Low , -1 )
AND Ref( High , -1 ) < Ref( Low , -2 );

ravi_s_ghosh · #3 26th February 2008, 10:34 AM

On Feb 25th, I found 3 stocks that qualify based on the above criteria for buying:
Jaypee Hotel
Dhanus Technologies
Pudumjee Agro

But even after placing Market orders on 26th feb, I'm unable to get my orders filled. There weren't any shares for sale..!!!!!!! can someone help me out on how to get my orders filled.

chourasia amit · #4 26th February 2008, 11:28 AM

hi
please guide me more on this a I donot have any software
is amibroker exploration a software or indicator and how this coding can be useful ?
Thanks
Amit

ravi_s_ghosh · #5 26th February 2008, 08:05 PM

The above attachment is an indicator. you need amibroker software to use the above indicator to find out those stocks mentioned above.

ravi_s_ghosh · #6 27th February 2008, 09:26 AM

problem in the above formula:

The above formua finds stocks which meet the condition on consecutive days. Whereas the better thing would be to find stocks which meet the same condition frequently since it will include some other stocks which did not show the above feature on consecutive days. How can one add "frequency" in an afl??