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- Thread starter karthikmarar
- Start date
Asish, Darsh
Please do note that the code uses the zig function which tends to look forward. But this is for only visual presentation and hence should not be problem. By the way my "Mabiuts" also uses the zig function to check for the break of the previous high and it seems to work quite fine.
Following is the code snippet for Ami. Paste in any chart afl and you will get the pivot plots. Please note these is a parameter called "Change %" which may have to be adjusted depending on the stock as we have high and low volatility stocks.
Q=Param("% Change",2,1,10,1);
Z= Zig(C ,q ) ;
HH=((Z<Ref(Z,-1) AND Ref(Z,-1) > Ref(Z,-2)) AND (Peak(z,q,1 ) >Peak(Z,q,2)));
LH=((Z<Ref(Z,-1) AND Ref(Z,-1) > Ref(Z,-2)) AND (Peak(Z,q,1 ) <Peak(Z,q,2)));
HL=((Z>Ref(Z,-1) AND Ref(Z,-1) < Ref(Z,-2)) AND (Trough(Z,q,1 ) >Trough(Z,q,2)));
LL=((Z>Ref(Z,-1) AND Ref(Z,-1) < Ref(Z,-2)) AND (Trough(Z,q,1 ) <Trough(Z,q,2)));
GraphXSpace = 5;
dist = 0.5*ATR(20);
for( i = 0; i < BarCount; i++ )
{
if( HH ) PlotText( "HH", i, H[ i ]+dist, colorYellow );
if( LH ) PlotText( "LH", i, H[ i ]+dist, colorYellow );
if( HL ) PlotText( "HL", i, L[ i ]-dist, colorPink );
if( LL ) PlotText( "LL", i, L[ i ]-dist, colorPink );
}
Please do note that the code uses the zig function which tends to look forward. But this is for only visual presentation and hence should not be problem. By the way my "Mabiuts" also uses the zig function to check for the break of the previous high and it seems to work quite fine.
Following is the code snippet for Ami. Paste in any chart afl and you will get the pivot plots. Please note these is a parameter called "Change %" which may have to be adjusted depending on the stock as we have high and low volatility stocks.
Q=Param("% Change",2,1,10,1);
Z= Zig(C ,q ) ;
HH=((Z<Ref(Z,-1) AND Ref(Z,-1) > Ref(Z,-2)) AND (Peak(z,q,1 ) >Peak(Z,q,2)));
LH=((Z<Ref(Z,-1) AND Ref(Z,-1) > Ref(Z,-2)) AND (Peak(Z,q,1 ) <Peak(Z,q,2)));
HL=((Z>Ref(Z,-1) AND Ref(Z,-1) < Ref(Z,-2)) AND (Trough(Z,q,1 ) >Trough(Z,q,2)));
LL=((Z>Ref(Z,-1) AND Ref(Z,-1) < Ref(Z,-2)) AND (Trough(Z,q,1 ) <Trough(Z,q,2)));
GraphXSpace = 5;
dist = 0.5*ATR(20);
for( i = 0; i < BarCount; i++ )
{
if( HH ) PlotText( "HH", i, H[ i ]+dist, colorYellow );
if( LH ) PlotText( "LH", i, H[ i ]+dist, colorYellow );
if( HL ) PlotText( "HL", i, L[ i ]-dist, colorPink );
if( LL ) PlotText( "LL", i, L[ i ]-dist, colorPink );
}
Ashish,
I am answering your post in a hurry. For the moment, I could not recollect any other example other than a chart posted by another member.
Next paragraph is to the member whose chart I am attaching herewith this post.
--------------------------------------------------------------------
Sir,
My advance apologies to the member who has posted this chart. I hate to point the mistakes of some one else. May be, I myself is wrong and you are right. Whatever it may be, please please do not misunderstand me. If I am wrong, correct me. Anyway, it is not my intention either to belittle you or to doubt your analytical capacity. I myself commit so many mistakes when I am in a hurry. I have committed mistakes and I have been commiting it and I have no hope that today's mistake will be the last one in my life. For that matter, you can refer to my post to Karthik in this thread. Forgive me for posting this chart with this comments. All this is for a good learning purpose. Take in the right spirit.
------------------------------------------------------------------------
See the chart of RNRL. One can easily come to the conclusion that is written on the chart. So many of us will be exploring the opportunity to go short, if it is viewed as descending triangle as viewed by the member here. But consider the following points
1. See the daily candle on 22/01/2008 and candles leading to it from 09/01/2008. Give particular attention to candles starting from 18/01/2008. Seller had made merry up to 22/01/2008, that day included.
2. Look what happened thereafter. Next pivot high on daily chart is on 07/02/2008. You can regard the rally leading upto it (i.e. from 22/01/08 to 07/02/2008) as short covering rally.
3. Pay close attention to what happened next. How price has moved? Does it show that seller are still having vigour? No it does not. Does it show that buyers have come back with strength. Again answer is no.
4. But the point is, look how many days it has taken to move from Rs. 169/- (on 07/02/08) to near about Rs. 100/- (today, i.e. on 11/04/2008).
5. Pay attention to the movement from the low pivot formed on 13/02/2008 (at Rs. 110.20/-) up to today. See how the daily price range narrowed and how the volume has been decreasing on downdays and increasing on the updays.
6. When you take all these points together, message conveyed is that sellers are tired and buyers and recouping their lost breath.
7. In such a situation, I will think several times before going short. More often than not, I will not go short, even if descending triangle is broken on the downside. Because, possibility is that it may be a false breakout and I may be stopped out. Of course, price range and volume just before the breakout and at the time of break out will have the final say.
8. This is what I meant in my earlier post. It happens (it happened to me also I am not claiming that I am immune to commiting errors). Why it happened? Because, we are looking only at the descending triangle ignoring the events that are leading to it.
I hope this clarifies your doubts.
Again my sincere apologies to the member who has posted the RNRL chart (which I have copied here) in some other thread.
Thanks and regards
R. S. Iyer
I am answering your post in a hurry. For the moment, I could not recollect any other example other than a chart posted by another member.
Next paragraph is to the member whose chart I am attaching herewith this post.
--------------------------------------------------------------------
Sir,
My advance apologies to the member who has posted this chart. I hate to point the mistakes of some one else. May be, I myself is wrong and you are right. Whatever it may be, please please do not misunderstand me. If I am wrong, correct me. Anyway, it is not my intention either to belittle you or to doubt your analytical capacity. I myself commit so many mistakes when I am in a hurry. I have committed mistakes and I have been commiting it and I have no hope that today's mistake will be the last one in my life. For that matter, you can refer to my post to Karthik in this thread. Forgive me for posting this chart with this comments. All this is for a good learning purpose. Take in the right spirit.
------------------------------------------------------------------------
See the chart of RNRL. One can easily come to the conclusion that is written on the chart. So many of us will be exploring the opportunity to go short, if it is viewed as descending triangle as viewed by the member here. But consider the following points
1. See the daily candle on 22/01/2008 and candles leading to it from 09/01/2008. Give particular attention to candles starting from 18/01/2008. Seller had made merry up to 22/01/2008, that day included.
2. Look what happened thereafter. Next pivot high on daily chart is on 07/02/2008. You can regard the rally leading upto it (i.e. from 22/01/08 to 07/02/2008) as short covering rally.
3. Pay close attention to what happened next. How price has moved? Does it show that seller are still having vigour? No it does not. Does it show that buyers have come back with strength. Again answer is no.
4. But the point is, look how many days it has taken to move from Rs. 169/- (on 07/02/08) to near about Rs. 100/- (today, i.e. on 11/04/2008).
5. Pay attention to the movement from the low pivot formed on 13/02/2008 (at Rs. 110.20/-) up to today. See how the daily price range narrowed and how the volume has been decreasing on downdays and increasing on the updays.
6. When you take all these points together, message conveyed is that sellers are tired and buyers and recouping their lost breath.
7. In such a situation, I will think several times before going short. More often than not, I will not go short, even if descending triangle is broken on the downside. Because, possibility is that it may be a false breakout and I may be stopped out. Of course, price range and volume just before the breakout and at the time of break out will have the final say.
8. This is what I meant in my earlier post. It happens (it happened to me also I am not claiming that I am immune to commiting errors). Why it happened? Because, we are looking only at the descending triangle ignoring the events that are leading to it.
I hope this clarifies your doubts.
Again my sincere apologies to the member who has posted the RNRL chart (which I have copied here) in some other thread.
Thanks and regards
R. S. Iyer
Last edited:
Asish,
Only time will tell whether my analysis is right or the observation and analysis of the member who has posted RNRL chart is right. I may be wrong also. But please ponder over the points highlighted by me. See whether you can draw any other conclusion than the one arrived at by me when all of them are considered. Also see whether you can have a different view point. I have not done multi timeframe analysis as it is not relevant to the point we are discussing here. Just explore whether you can analyse the daily chart of RNRL in a different manner. Because, our member has analysed only daily chart and has come up with the descending triangle. That is why I have restricted my comments imposing limitations upon myself that only daily chart is available to me.
Thanks and regards
R. S. Iyer
Only time will tell whether my analysis is right or the observation and analysis of the member who has posted RNRL chart is right. I may be wrong also. But please ponder over the points highlighted by me. See whether you can draw any other conclusion than the one arrived at by me when all of them are considered. Also see whether you can have a different view point. I have not done multi timeframe analysis as it is not relevant to the point we are discussing here. Just explore whether you can analyse the daily chart of RNRL in a different manner. Because, our member has analysed only daily chart and has come up with the descending triangle. That is why I have restricted my comments imposing limitations upon myself that only daily chart is available to me.
Thanks and regards
R. S. Iyer
U
I personally dislike & dont advocate using these hind-sight functions ,however as requested i am putting the input code,this has to be placed as the 1st Line & all 2 is to be replaced by 'a',in case of your Mabiuts i have replaced the Dynamic function with other function.
a:= Input("% Change",0,25,2);
a:= Input("% Change",0,25,2);
I recollect the words of the a leading trader here. He gives an example and explains the point somewhat like this.
"Majority of us see that a driver is driving the car. i.e. car is moving because driver is driving it. But majority fail to see that under the hood there are gears, shafts, piston etc. working in harmony with one another so as to produce the basic force that causes the car to move. When we learn each and every component of the car and how it works, we will be less interested in the driver and we will be in a better position to say whether it will move or not. Similarly, chart in a stock market is only a driver to the car. Understanding the market mechanics as to what causes the price to move is more important. Once one understands this, then he will no longer require chart."
It is extremely difficult to gather and understand the wisdom stated here. It took long time to me to reconcile to this aspect. Still trying to understand it in bits and pieces. I think the ultimate hallmark of a successful trader is what is explained above. It was explained much more beautifully than what I have written above. I could not locate the exact post. So I am unable to copy paste it here. But this is the summary of what is stated in that post.
Hope this helps
Thanks and regards
R. S. Iyer
"Majority of us see that a driver is driving the car. i.e. car is moving because driver is driving it. But majority fail to see that under the hood there are gears, shafts, piston etc. working in harmony with one another so as to produce the basic force that causes the car to move. When we learn each and every component of the car and how it works, we will be less interested in the driver and we will be in a better position to say whether it will move or not. Similarly, chart in a stock market is only a driver to the car. Understanding the market mechanics as to what causes the price to move is more important. Once one understands this, then he will no longer require chart."
It is extremely difficult to gather and understand the wisdom stated here. It took long time to me to reconcile to this aspect. Still trying to understand it in bits and pieces. I think the ultimate hallmark of a successful trader is what is explained above. It was explained much more beautifully than what I have written above. I could not locate the exact post. So I am unable to copy paste it here. But this is the summary of what is stated in that post.
Hope this helps
Thanks and regards
R. S. Iyer