Testing new triple-screen setup using pcf’s in TeleChart.
The first filter, look for a positive long term trend using weekly data. The filter looks for a positive slope on the weekly MACD Histogram using:
(XAVGC26 - XAVGC12) -
(XAVGC26.4 - XAVGC12.4)Â > 0
The first term represents today MACD bar and the second, the MACD bar 5 days ago. I need the difference between the two to be positive to find bullish long-term trends.Â Â
The second filter, looks a daily data and uses the Elder’s Force Index. If the FI turns negative on an uptrend day, it may be a buying opportunity. The formula looks like:
((((V*(C-C1))+(V1*(C1-C2)))/2) < 0) AND ((((V1*(C1-C2))+(V2*(C2-C3)))/2) > 0)
The first term indicates a negative FI for the current day. The second term indicates a positive FI value prior to that. Additional positive days could be added also.Â Â
This is setup in one Scan which run at night after the market closes, generating a list of stocks with bullish long-term trends but with a daily downtrend. I weed out some of the less interesting ideas by taking out low volume instruments using another pcf:
(AVGV126 > 1000) AND
(V > AVGV63)
During the following trading day, I simply have to look in that list for intraday breakouts on any of those stocks. I setup another pcf which looks at the current price and compares it to yesterday’s high.Â Â
C > H1
If try, I have my third buy signal. TC2007 is not the right tool for the third scan, a limit order directly with the broker would work best or any other realtime market scanner but I am currently paper trading so I run this other scan to find ideas.Â Â
This is my first test on a triple-screen. I plan on setting up various triples using different indicators and comparing results.