Metastock Expert Advisor - Pivot Analysis

[karthikmarar]

Dear Alok

I dont know about real time since I dont day trade. For EOD data the expert will marks the pivots for the past data correctly. However the last leg of the trend is more preditive as the ZIGZAG indicator (based on which the indicator is made) does the the same. Only after a pivot is clearly made it is marked. Otherwise the pivots dont keep changing for EOD data. Ofcourse the expert calls for many refinements. Like all indicators the expert gives guidelines only. Do point out the drawbacks so that we can try to improve it and it is useful to all. Hope I was able to clarify your question.

Thanks

regards

karthik

 

[alokdaga]

Dear Alok

I dont know about real time since I dont day trade. For EOD data the expert will marks the pivots for the past data correctly. However the last leg of the trend is more preditive as the ZIGZAG indicator (based on which the indicator is made) does the the same. Only after a pivot is clearly made it is marked. Otherwise the pivots dont keep changing for EOD data. Ofcourse the expert calls for many refinements. Like all indicators the expert gives guidelines only. Do point out the drawbacks so that we can try to improve it and it is useful to all. Hope I was able to clarify your question.

Thanks

regards

karthik

Thanks a lot

I will come back on this. I can be much grateful if you could summarise rules for me for pivot trading.

Regards

Alok

 

[karthikmarar]

Thanks a lot

I will come back on this. I can be much grateful if you could summarise rules for me for pivot trading.

Regards

Alok

Dear Alok

Actually Pivot is widely used concept in day trading. It involves calculating the Pivot, Resistance level R1,R2 and Support Level S1,S2. It is different from what we are trying to do in our Expert Advisor

Pivots are points where the trend is changing. In our case what we are trying to do is identify the peaks and bottoms in the trend (or the Pivots). Based on these Pivots we are trying to identify starting of an intermediate UP TREND.

The idea is like this. When the Trend is up it make peaks are which are higher the previous ones. Also the bottoms / Troughs are higher than the previous ones. In other words the trend make Higher Highs (HH) and Higher Lows (HL).

In the same manner in a down Trend the peaks and troughs are Lower than the previous ones. That is the Trend makes Lower Highs (LH) and Lower Lows (LL).

So far so good .. How does this help?

Normally in after a Downtrend we get a series of LH and LL. Then the Trend may consolidate and an Up trend may start which should provide a series of HH and HL.
So the point when the trend makes HH after a LH provides an indication the Trend MAY change. It is an alert only and not an indication to Buy. The trend change has to be CONFIRMED with other factors like volume, Resistance etc.

The same approach can be used to locate Up Trend, which resumes after a brief consolidation.

What our Expert Advisor does is to marks the HH, HL, LH and LL. It also marks the Alert points. Of course it is not perfect, but found it useful in most cases.

Hope my Blah..Blah will be helpful. I just put down what I know and use. I am not an expert myself. I am learner myself. Share your ideas and we will learn together.

regards

karthik

 

[Saint]

Dear Alok

Actually Pivot is widely used concept in day trading. It involves calculating the Pivot, Resistance level R1,R2 and Support Level S1,S2. It is different from what we are trying to do in our Expert Advisor

Pivots are points where the trend is changing. In our case what we are trying to do is identify the peaks and bottoms in the trend (or the Pivots). Based on these Pivots we are trying to identify starting of an intermediate UP TREND.

The idea is like this. When the Trend is up it make peaks are which are higher the previous ones. Also the bottoms / Troughs are higher than the previous ones. In other words the trend make Higher Highs (HH) and Higher Lows (HL).

In the same manner in a down Trend the peaks and troughs are Lower than the previous ones. That is the Trend makes Lower Highs (LH) and Lower Lows (LL).

So far so good .. How does this help?

Normally in after a Downtrend we get a series of LH and LL. Then the Trend may consolidate and an Up trend may start which should provide a series of HH and HL.
So the point when the trend makes HH after a LH provides an indication the Trend MAY change. It is an alert only and not an indication to Buy. The trend change has to be CONFIRMED with other factors like volume, Resistance etc.

The same approach can be used to locate Up Trend, which resumes after a brief consolidation.

What our Expert Advisor does is to marks the HH, HL, LH and LL. It also marks the Alert points. Of course it is not perfect, but found it useful in most cases.

Hope my Blah..Blah will be helpful. I just put down what I know and use. I am not an expert myself. I am learner myself. Share your ideas and we will learn together.

regards

karthik

Splendid,karthik........nice explanation!

Saint

 

[alokdaga]

Dear Alok

Actually Pivot is widely used concept in day trading. It involves calculating the Pivot, Resistance level R1,R2 and Support Level S1,S2. It is different from what we are trying to do in our Expert Advisor

Pivots are points where the trend is changing. In our case what we are trying to do is identify the peaks and bottoms in the trend (or the Pivots). Based on these Pivots we are trying to identify starting of an intermediate UP TREND.

The idea is like this. When the Trend is up it make peaks are which are higher the previous ones. Also the bottoms / Troughs are higher than the previous ones. In other words the trend make Higher Highs (HH) and Higher Lows (HL).

In the same manner in a down Trend the peaks and troughs are Lower than the previous ones. That is the Trend makes Lower Highs (LH) and Lower Lows (LL).

So far so good .. How does this help?

Normally in after a Downtrend we get a series of LH and LL. Then the Trend may consolidate and an Up trend may start which should provide a series of HH and HL.
So the point when the trend makes HH after a LH provides an indication the Trend MAY change. It is an alert only and not an indication to Buy. The trend change has to be CONFIRMED with other factors like volume, Resistance etc.

The same approach can be used to locate Up Trend, which resumes after a brief consolidation.

What our Expert Advisor does is to marks the HH, HL, LH and LL. It also marks the Alert points. Of course it is not perfect, but found it useful in most cases.

Hope my Blah..Blah will be helpful. I just put down what I know and use. I am not an expert myself. I am learner myself. Share your ideas and we will learn together.

regards

karthik

Hey Karthik,

It explains a lot.

Thanks

Alok

 

[AJAY]

alok,
the behavior of zigzag is totally unpredictable. it is not advisable to take intraday trades using zigzag. the last leg of zigzag is dynamic. the previous moves in zigzag become history where we can't go back to take trades.
if discussed in detail, it is definitely not suggestable to use zigzag to take decisions. And moreover it is highly subjective with regard to the percentage we use to apply it to a particular asset class and even for the individual assets in the same class.
For visual inspection, the indicator looks pretty.
I really appreciate the efforts of karthikmarar for giving us a very good expert which is really catching up the pivots. I observed that the expert is looking pretty in 60 min. charts. Ofcourse i haven't tested it. but visually the stops can be taken at the previous tops or bottoms as per the expert.
karthikmarar! pl. continue your efforts and help the forum in getting good understanding. i also invite all the other members to actively participate and contribute.
AJAY

 

[karthikmarar]

Dear Ajay

Thanks for the encouragement.

Few Clarifications...

Actually the Expert was never meant for Intraday charts. In fact I dont know anything about intraday Trade.

I agree that the last leg of the ZigZag Indicator is Dynamic which I had mentioned in one of the posts.

Also I had mentioned about the the percentage. I found 2% to be working well in most cases, 4% is better for some the large movement stocks and 5% seems to be okay for weekly charts.

In fact I was trying to make the expert in such a way that we can enter the percentage. It involved creating a custom ZigZag indicator with input function. But I faced problem with the peak and trough functions. You seem to possess a very good knowledge of metastock. Can you suggest a way out. also please suggest a better way to indentify the pivots without using ZigZag function.

regards

karthik

 

[SRJC]

Hi Karthik

The pivot analysis does not work with metastock 8 pro. Why?
Or it will work with only Metastock end of day software.

Thanks

SRJC

 

[jamesalex_us]

Hi Karthik

The pivot analysis does not work with metastock 8 pro. Why?
Or it will work with only Metastock end of day software.

Thanks

SRJC

SRJC

The expert was meant to be used only on EOD Data as the pivot plotting by this expert is not for intra-day as it uses the Zig/Zag funtions.

To plot pivot points on intra-day charts get pivot calculator or pivot formula and make an expert which can solve your problem if you are day trader.

Any further help required in programming or want pivot formula, send me an email.

Regards
James Alex
Trend is your FRIENd, FOLLOW it.

 

[Jedixs]

I have formula for zig zag....Buys...But I want to write the reverse version of it...I mean I want write sell formula...Would u pls help...

here is the buy signal formula...But I need sell signalformula..

Cross(
-0.1,If(LLV(If(Abs((Ref(C,-1) - Ref(Zig(C,12,%),-1))),>,0,0,1) *
(If(Ref(Zig(C,12,%),-3),<,Ref(Zig(C,12,%),-4),1,0)) * (-1),14),<,-0.5,-1,0) *
If(MACD(),>=,Mov(MACD(),6,E),1,0))