Marcello
9 posts
msg #113544
- Ignore Marcello |
5/19/2013 3:37:11 AM
At "thepatternsite.com" Bulkowski has tested many different pattern.
I would like to try testing some of them here at SF. But since I am still a rookie "programming" in SF I hope for some help:
I have here choosen doubble bottom trading link: http://thepatternsite.com/DBTradingSetup.html
But as far as I can se I canīt just use the pre-definet "doubble bottom" from SF.
Below I have copied the text from thepatternsite.com (couldīnt get the graph here as well)
If some one could help I would be very happy
Thanks
Marcello
The DB Trading Setup
I programmed my computer to find bottoms that are at least 11 days wide (an 11 day window). That's 5 days before and after price makes a low. I show an example of that in the figure's inset. Price at F trends lower for 5 days until day 6, when it bottoms and forms the lowest low of the bunch. Then price rises for 5 days, with point 6 remaining as the lowest low. I use this procedure for both bottoms. Once price completes 5 days after the second bottom, then the highest high during those 11 days represents the buy signal. When price closes above that high, buy at the open the next day.
In the example, I show F as the highest high. Once price closes above this price, buy at the next day's open.
Here's what to look for.
Price should trend down into the first bottom.
Price forms the first bottom (A) of the double bottom.
Price then rises at least 15% off the first bottom.
Price drops and forms a second bottom (B).
The two valleys should bottom near the same price.
The two bottoms should be spaced at least 20 days apart (but I arbitrarily limit the top end to 120 days).
A buy signals when price closes above the high set during the 11 day window. The Trading Example makes this clearer.
Require at least a 10% profit margin (measured from highest high during the 11 day window to the target price).
Buy at the open the next day after the buy signal.
Once bought in, place a limit order to sell at the highest high price between the two bottoms (the double bottom confirmation price).
Place a stop loss order to sell a penny below the lowest low in the second bottom.
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