| StockFetcher Forums · Filter Exchange · Range Contraction/Expansion Filter | << 1 2 3 4 5 ... 12 >>Post Follow-up |
| alf44 2,025 posts msg #38839 - Ignore alf44 modified |
11/12/2005 12:53:50 AM The principles of Contraction and Expansion are a Market phenomenon where prices go from a period of rest (coiling) to a period of strong movement (uncoiling) ! ---------------- Wide Range Days - WR4s & WR7s - (Range Expansion Days) represent an increase in Price Volatility and tend to follow Narrow Range Days - NR4 & NR7s - (Range Contraction Days) ! A WR4 is a day in which today's daily range (today's high price minus low price) is wider than the previous 3 days ! A WR7 is a day in which today's daily range (today's high price minus low price) is wider than the previous 6 days ! The significance of these patterns is that they represent an expansion in Price Volatility. In most cases the day following a WR Day is a classic fading day. Short-term traders can often buy or sell a test of the WR4/WR7 day's High or Low, on the following day for a scalp trade. When tests of prior (intraday and prior days) HIGHS are made you will want to go SHORT. When tests of prior (intraday and prior days) LOWS are made you will want to go LONG. However, a WR Day that Opens in the bottom/20%/top/80%...of it's range and Closes in the top/80%/bottom/20%...of it's range...can be expected to have follow-through at the next days Open. These are somtimes referred to as 80/20 days or 90/10 days (ie. Trend Days)! ----------------- Narrow Range Days - NR4s & NR7s - (Range Contraction Days) represent a decrease in Price Volatility and tend to follow Wide Range Days - WR4s & WR7s - (Range Expansion Days) ! An NR4 is a day in which today's daily range (today's high price minus low price) is narrower than the previous 3 days ! An NR7 is a day in which today's daily range (today's high price minus low price) is narrower than the previous 6 days ! The significance of these patterns is that they represent a decrease in Price Volatility. Range Expansion and an increase in Price Volatility tend to follow an NR Day. A "breakout" mode strategy is often used when the market has had some form of Range Contraction. A Trend Day, or large Range Expansion Day, often follows periods of Range Contraction, or small average daily ranges. When in breakout mode, use strategies to enter in the direction the market is moving, instead of waiting for a reaction in the price. This can be something like a multiple of the previous day's range added/subtracted to the Open. That could be your entry. You could use some multiple of ATR. Whatever your preference and risk tolerance demands. ----------------- Inside Days (IDs) and Outside Days (ODs) are other examples of these Contraction/Expansion Patterns. Also, Windup Patterns (WUps) (that is an Outside Day followed by an Inside Day) are always good to watch out for ! And...Shark Patterns (that is 3 consecutive Inside Days) are another one I like to screen for ! The following scan filter is a sort of "One Stop Shop" for most of the Contraction/Expansion Patterns that I've mentioned here. THIS ONE FILTER will scan for: NR4s, NR7s, WR4s, WR7s, IDs, ODs & WUps ! It can be applied to the entire Universe of Stocks... ...you can run it to scan any of your particular Watch Lists... ...or, you can do as I've done here...run it on the NASDAQ 100 (for example) ! It will return ALL of the patterns I've discussed in this post...and it will do it within the parameters of this ONE FILTER ! ----------------- ----------------- The Shark Pattern is one I will be looking to add to this filter as soon as possible. I'll be trying to tweak this more as time allows but this is at least a good beginning. Please, if anyone sees something I can add to improve on this don't hesitate to mention it ! The WindUp portion of the filter still may need a little work ! I'll look at it more this weekend. Of course, I would be remiss if I didn't mention TRO, cegis et al... It was through watching and learning from them that allowed me to put this thing together ! fwiw Regards, alf44 |
| alf44 2,025 posts msg #38840 - Ignore alf44 |
11/12/2005 1:02:34 AM ...looks like you may have to copy and paste this thing into a separate filter window to get it to run ! The link doesn't appear to be working ! Bummer ! Oh well...cut and paste...it WILL work that way ! Regards, alf44 |
| alf44 2,025 posts msg #38841 - Ignore alf44 |
11/12/2005 1:22:04 AM ...rebooted and tried again (a few times)... ..it doesn't run as it's supposed to UNLESS you click "more" and then cut n paste the entire thing into another window. Don't know why that is but......... Oh well, what are ya gonna do ? Regards, alf44 |
| Railwhore 69 posts msg #38846 - Ignore Railwhore |
11/12/2005 1:35:31 PM Click on the Magnifying glass |
| alf44 2,025 posts msg #38847 - Ignore alf44 |
11/12/2005 2:13:56 PM Railwhore, Thanks ! I swear I DID try that last night (err...this morning I should say). It didn't seem to work. Guess I was hallucinating...again ! lol Thanks again ! There seems to be a bit of a glitch in the "Windup" part of the filter. It sometimes indicates a "Windup Pattern" when there isn't one there. I'm trying to work on that but would appreciate any advise you or others can give. I DO like this idea though ! Having ONE FILTER that screens for 7 different patterns ! I'm also adding a few of the things I like to look at...to provide a clearer "context" and "bias" from which to make a trading decision on these patterns. Regards, alf44 |
| alf44 2,025 posts msg #38853 - Ignore alf44 |
11/12/2005 5:48:08 PM ...rather...appreciate any "advice" ! |
| alf44 2,025 posts msg #38927 - Ignore alf44 |
11/16/2005 4:22:36 PM I wanted to follow up on this Range Contraction/Expansion Filter ! The original filter I posted had a bit of a "glitch" in the Windup Pattern part of the filter. Also, as I said...I wanted to ADD the Shark Pattern to the mix of patterns to screen for. Well, the Windup Pattern glitch has been fixed...and, the Shark has been added ! This NEW filter screens for (count'em)...8... that's E-I-G-H-T different congestion/expansion patterns ! lol Very cool ! imo The NEW IMPROVED Range Contraction/Expansion Filter : -------------------- --------------------- I've added the various Indicators I like to watch. Also, the filter as it is posted here is only looking at the NASDAQ 100. You can apply it to whatever Universe of stocks you choose, or to any Watch List you choose. fwiw Also, I have my own version of this thing with a "battery" of Momentum and Trend information columns. In fact, I'm afraid I may have reached the limit on "added columns" that SF will allow. That would be 20...but, I'm waiting for a reply to that question from the SF guys over on the Comments Forum ! Oh well, I'll continue to work and try to improve it. Regards, alf44 |
| freely203 19 posts msg #38947 - Ignore freely203 |
11/17/2005 4:33:06 AM Great Job! I Believe I will benefit alot from this!! Thx very much! |
| alf44 2,025 posts msg #38959 - Ignore alf44 |
11/17/2005 7:47:58 PM freely203, Thanks ! I appreciate the comments ! Regards, alf44 |
| alf44 2,025 posts msg #39403 - Ignore alf44 |
12/6/2005 12:20:27 AM I wanted to (again) follow up on this Range Contraction/Expansion Filter ! As I make further refinements I will continue to update this thread ! I have decided to ADD a doji screen to the other 8 Price Patterns already screened for with this filter ! While a "doji" is not generally considered to be a Contraction/Expansion pattern...very often dojis ARE IDs...ODs...NR4s...NR7s...WR4s or WR7s ! When dojis come at oscillator extremes they can be very powerful Reversal Signals ! When dojis occur at those oscillator extremes they are typically referred to as...well, Dojis (of course)...Stars...Hammers...Inverted Hammers etc... FYI --> I have defined dojis in the criteria as having a High/Low Range greater than 20 cents ... and a Candle Body (ie. Absolute Value of the Close/Open Range) of 10 cents or below (ie. between -.10 and .10) ! By keeping the criteria definition somewhat broad and inclusive...Stars, Dojis, Hammers etc...will ALL have a greater chance of popping up in the screen. Having said that...I still may play around a bit with the "Body" portion of the scan criteria. This NEWEST filter (now that dojis have been included) screens for (count'em)...9...that's N-I-N-E different Congestion/Expansion patterns ! lol They Are: 1) Shark Patterns 2) Inside Days 3) NR4s 4) NR7s 5) dojis <--- 6) WR4s 7) WR7s 8) Outside Days 9) Wind Ups Extremely KEWL !!! imo The "NEWEST" IMPROVED Range Contraction/Expansion Filter : --------------------------- ----------------------- As I said previously, I've added the various Indicators I like to watch. Also, the filter as it is posted here is only looking at the NASDAQ 100. You can apply it to whatever Universe of stocks you choose, or to any Watch List you choose. fwiw Also, I have my own version of this thing with a "battery" of Momentum and Trend information columns. I think this addition of the doji pattern is a nice compliment to the other patterns that are already there. I'll "continue to continue" to work and try to improve it. lol Regards, alf44 |
| StockFetcher Forums · Filter Exchange · Range Contraction/Expansion Filter | << 1 2 3 4 5 ... 12 >>Post Follow-up |
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