Traders' Tips from TASC Magazine
Bridging the Gap, Linking Point & Figure and Bar Charts
Robert Busby’s article, “Bridging the Gap, Linking Point & Figure and Bar Charts” was published in the January 2005 issue. The charts and analysis he describes are part of the features added to the version 9.0 of MetaStock released last year. Below is a Point & Figure chart of IBM. The red resistance and green support lines indicators based on the movement of the Point & Figure chart.
As you can see in upper portion of the image below, this is the same chart as a bar chart. The support and resistance trend lines have been carried over and plot the same values. The black line over the prices is the current box from the Point & Figure chart. Further, we have attached on a Point & Figure Expert Advisor which is coloring the price bars red when a column of O’s is being drawn and blue when the Point & Figure chart is drawing a column of X’s. Also, a ribbon is drawn at the bottom of the chart showing when the long term trend of Point & Figure chart is bullish or bearish, based on the interaction of the chart and the support and resistance trend lines.
Steve Palmquist’s article, “Trading Moving Average Pullbacks,” introduces his MAPS system. An exploration to search for these signals can be created in MetaStock with the following steps:
- Select Tools >the Explorer.
- Click New to open the Exploration Editor.
- Enter a name for the exploration.
- Select the Filter , in the middle on the right-hand side.
- Click in the larger window and type in the formula:
LLV(C,5)>Ref(HHV(C,20),-20) AND Sum( C < Mov(C,30,S),30)=0 AND ((C-Mov(C,30,S))<(0.015*C))
- Click OK to close the editor
The securities found by this exploration will be possible candidates for MAPS trades. The entry rules say to buy tomorrow if the security trades above the current day’s high.
A system test for MAPS can be created as follows:
- Select Tools >the Enhanced System Tester.
- Click New.
- Enter a name for the system.
- Select the Buy Order tab and enter the following formula:
setup:=LLV(C,5)>Ref(HHV(C,20),-20) AND Sum(C< Mov(C,30,S),30)=0 AND ((C-Mov(C,30,S))<(0.015*C));
Ref(setup,-1) AND H>Ref(H,-1)
- Select the Sell Order tab and enter the following formula:
- Click the Stops button.
- In the Stops window, select the Inactivity tab.
- Set the Positions to "Long" and the Method to "Percent".
- Set the Minimum Change to "9999".
- Set the Periods to "3".
- Click OK to close the Stops window
The above system uses a function for the Sell condition that is only available in MetaStock version 8.0 or later. If you are using a version of MetaStock that is earlier than 8.0, then replace step 5 above with the steps below:
- Affine transformation
- Anticipating Moving Average Crossovers
- At Last! A Trend-Friendly Oscillator
- Average True Range or Standard Deviation
- Balance of Market Power
- Between Price and Volume
- Bollinger Band Targets
- BONUS ISSUE:Mutual Fund Screen
- Boosting Profitability - the AIM Indicator
- Bridging the Gap, Linking Point & Figure and Bar Charts
- Buff Up Your Moving Averages
- Bull and Bear Balance Indicator
- Candlestick Filtering
- Coding Candlesticks (II)
- Confirming the Price Trend
- Creating Multi-Colored Indicators in MetaStock
- Darvas-Style Trading and Something Darvas
- Deviation Oscillator
- Directional Breakout
- Ehlers Filters
- Elastic Volume Weighted Moving Average
- Finding Key Reversals
- Fisher Transform
- FVE - %b
- FVE - lin reg slope
- FVE - Storz's divergence
- FVE w/ linear regression slope
- High Low Strategy
- High Tech Mesa Adaptive Moving Averages
- Hilbert Indicators Tell You When to Trade
- Holding Overnight Positions
- Hot Zones
- How Smooth is Your Data Smoother
- Ichimoku Charts
- Index of Chart Sentiment
- Laguerre Filter
- Laguerre RSI
- MACD of Relative Strength
- Moving Average Crossovers
- Moving Average:Long on Talk, Sort on Action
- Now's The Time To Trade Crude
- Pivot point Strategy
- Profit with ETFs
- Quicken Your Averages
- Red-Green Strategy
- Refining the Hilbert Indicator
- Relative Performance Charting
- RSI Bands
- Squelch Those Whipsaws
- sRSI - Original
- sRSI - Using Wilders
- Tandem Studies on Market Movement
- Targeting Your Pattern
- TC 2000 Scans
- The Average Peak Excursion
- The Cocked Gun Revisited
- The Inverse Fisher Transform
- The Self-Adjusting RSI
- The Truth about Volatility
- The Wilson Relative Price Channel
- Thrust Oscillator
- Trade Against the Gap
- Trade Into the Gap
- Trade the Swing Price
- Trend Continuation Factor
- Trend Quality Indicator
- Trend Trigger Factor
- TrendIV & Volume - Buy Signal
- TrendIV & Volume - Sell Signal
- Triggering Your Trading System
- Using Money Flow to Stay with the Trend
- Using Volume to Detect Shifts In Power
- Volatility System
- VWAP for Support and Resistance
- When and When not to Trade