Experiments in Technical Analysis

[karthikmarar]

Dear Karthik
Hi.

for stop loss, i liked ur "volatility based stop system". i.e.,
3*atr = r (initial risk), as it eliminates the risk of market noise to hit ur stop, if we place stop at 5% below ur entry price, as dave landry suggests. but i would like to add, "always put ur stop,below the recent
pivot low or "3*atr or 2*atr", whichever is lower" and check the pivot low in "weekly chart", which gives a strong support area.

Please will u provide me a formula (AFL) to plot trending stop loss in Amibroker.

Thanks.

Hi Ger06


I have made the AFL for ATR Trail stop requested by you. Save this in you custom Indicator folder and then drag and drop on any chart.

The Features are as follows

1.The ATR multiplication factor can be change from 1 to 3 in steps of 0.25.

2.There is selection provided for selecting either a line plot or a Dots plot from the parameter window. See attached images.

3.Sell Arrows are provided when the close goes below the Trailstop value.

4.Using the condition ATR or value of the last low pivot will keep you longer in the market if the stock moves side ways. I recommend that you use only the ATR value. See the attached charts for reference. For that purpose I have provided a selection in the parameter window whether to use Lower Pivot value or not. Also enclosed the snapshot of the parameter window.

Note: Please note that this afl is prepared for Long conditions only especially if you are using the last low pivot Condition.

Hope this meets your requirement.

Regards

Karthik

 

[karthikmarar]

Ger06

Ooops , I have exceeded the limit for number of files.. . Here is the afl.

regards

Karthik

 

[ger06]

Dear Karthik

I am very much thankful to u for providing the AFL. I was looking this for a long time. I tried myself BUT could not succeed.
The attached charts look very fantastic & I hope, will serve my purpose as I am a Long term investor.

Thanks once again.
Regards..

 

[casoni]

Dear Karthik

I am very much thankful to u for providing the AFL. I was looking this for a long time. I tried myself BUT could not succeed.
The attached charts look very fantastic & I hope, will serve my purpose as I am a Long term investor.

Thanks once again.
Regards..

hello ger06,
u r really lucky... you got the alf so quickly...[.nice indicator ] & ofcourse this will serve your purpose ...

 

[karthikmarar]

Hi ger06


A few more points to note of the ATR trailstop afl.

The Trail top is based on the Chandelier Exit. The Chandelier Exit hangs a trailing stop from either the highest high or the highest close. The distance from the high point to the trailing stop is measured in multiples of Average True Range. Here I have used the High close within the Look back period. The default for the Look back period is set at 20 and can be changed from the Parameter window.

As per request I have included the option for taking the low of ATR value and the last low pivot. So this becomes a combination of Chandelier exit and Last low Exit.

Also note that the ATR period can be changed. The default is 10. Some people prefer to use 21. Choose the appropriate one depending on your style.

Regards

Karthik

 

[smridhi]

Dear Karthik

You are doing a wonderful thing here by making us to learn through your discussions in this thread. Very much thankful for that.

I have attached a graph that shows a visible negative divergence between Nifty EOD and RSI. Is the observation correct? Or am I jumping in to conclusions a bit early? Please guide me.

Regards
Smridhi

 

[karthikmarar]

Hi Smridhi

Thanks for your kind words. Yes your are right. There is a negative divergence between the NIFTY EOD and RSI. The bearish divergence is not only in RSI. It is also in ROC and Trix. I am enclosing the chart.

I am also worried by the lack of volume in the big daddies of the nifty. Also the A/D ratio has dropped to 0.9 from more than 4 of yesterday.
The market breadth is nothing to talk about.

One of my custom Indicators which gave warning much before the big fall in May is also turing negative now. This indiactor had been quite consistanat in many stocks is now going negative. Enclsoing a chart of that indicator just for reference.

So it looks like time for caution. If the nifty closes above 3500 with good volume we will see an uptrend. Till then ....

warm regards

Karthik

 

[karthikmarar]

Ahhh... The great man Saint echoing my thoughts ..

http://www.traderji.com/58855-post3462.html

 

[Saint]

Ahhh... The great man Saint echoing my thoughts ..

http://www.traderji.com/58855-post3462.html

lol ....think you are echoing mine(Beat you to it by an hour!)

We think alike,my friend........

Saint

 

[smridhi]

Dear Karthik

Thank you verymuch for your guidance and taking time to explain through the charts.

Ofcourse thanks for the "Great Saint" encouraging our opinion.

Thanks and Regards
Smridhi