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From Terms to Technical Tools
MetaStock Formula
In Walter Downs’ article "From Terms To Technical Tools" he
introduces the Point of Balance Oscillator, two conditions to colour
bars and two system tests. All of these can be created quite easily
in MetaStock 6.5. To create the Point of Balance Oscillator, choose
Indicator Builder from the Tools menu, click on the New button, and
enter the following formula:
| Point of Balance
Oscillator |
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n := Input("Time
Periods",1,100,12)/2;
POBC1 := (HHV(CLOSE, n) + LLV(CLOSE,n))/2;
POBC2 := (HHV(POBC1, n) + LLV(POBC1,n))/2;
POBC3 := (HHV(POBC2, n) + LLV(POBC2,n))/2;
POBC4 := (HHV(POBC3, n) + LLV(POBC3,n))/2;
POBC5 := (HHV(POBC4, n) + LLV(POBC4,n))/2;
POBC6 := (HHV(POBC5, n) + LLV(POBC5,n))/2;
POBC7 := (HHV(POBC6, n) + LLV(POBC6,n))/2;
POBC8 := (HHV(POBC7, n) + LLV(POBC7,n))/2;
POBC9 := (HHV(POBC8, n) + LLV(POBC8,n))/2;
POBC10 := (HHV(POBC9, n) + LLV(POBC9,n))/2;
AV := (POBC1 + POBC2 + POBC3 + POBC4 + POBC5 + POBC6 + POBC7
+ POBC8 + POBC9 + POBC10) / 10;
POBCOsc := 100 * ((CLOSE - AV) / (HHV(CLOSE, 10)-LLV(CLOSE,
10)));
POBCOsc |
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To highlight bars based on the Bull Fear and Bear Fear
conditions discussed in the article, choose Expert Advisor from
the Tools menu, click on the New button and enter the following
expert:
| Bull Fear and Bear Fear
Expert - Highlights |
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| Name: Bull Fear |
Condition:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
CLOSE > BullFear |
| Color: Blue |
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| Name: Bear Fear |
Condition:
n := 12 {Time periods};
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
CLOSE < BearFear |
| Color: Red |
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To test the two systems discussed in the article, choose System
Tester from the Tools menu and enter both of the following
systems:
| Bull and Bear Fear
System Test - Signal Formulas |
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Enter Long:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
Cross(CLOSE,BullFear) |
Enter Short:
n := 12 {Time periods};
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
Cross(BearFear,CLOSE) |
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| Four-Bar Fear System
Test - Signal Formulas |
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Enter Long:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
Cross(CLOSE,BullFear) AND Ref(Sum(CLOSE < BullFear AND
CLOSE > BearFear,4),-1) = 4 |
Close Long:
LOW < Ref(LLV(LOW,3),-1) |
Enter Short:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
Cross(BearFear,CLOSE) AND Ref(Sum(CLOSE < BullFear AND
CLOSE > BearFear,4),-1) = 4 |
Close Short:
HIGH > Ref(HHV(HIGH,3),-1) |
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After entering the systems click on the Options button in the
System Tester dialog, go to the Testing tab and change the Trade
Price to Open and set the Trade delay to one.
Following is the formula for the moving averages discussed in the
article, but not contained in the Traders Tip published in TASC.
Please note, this formula will plot all three moving averages, but
will not plot them in three different colours.
| Moving Averages Formula
for MetaStock |
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TP:=Input("Time
Periods",1,100,12);
BLF:=((HHV(H,TP)+LLV(H,TP))/2);
BRF:=((HHV(L,TP)+LLV(L,TP))/2);
POB:=((BLF-BRF)/2)+BRF;
BLF;
BRF;
POB |
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