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Double Tops and Double Bottoms
MetaStock Formula
In the February 1998 issue of Technical Analysis of Stocks &
Commodities magazine, Thomas Bulkowski discusses the use of Double
Bottoms as a means of finding profitable trades.
In MetaStock for Windows, you can find both Double Tops and Double
Bottoms with these formulas. There is a caveat however. In the
article, Mr. Bulkowski utilizes the High-Low range in finding Double
Bottoms. These formulas use only the close value, so a few of the
lower priced issues will not produce signals in MetaStock. Overall,
however, these formulas produce most of the major signals he
discusses.
| Double Tops |
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PK:=Zig(C,10,%)<Ref(Zig(C,10,%),-1) AND
Ref(Zig(C,10,%),-1)>Ref(Zig(C,10,%),-2);
TR:=Zig(C,10,%)>Ref(Zig(C,10,%),-1) AND
Ref(Zig(C,10,%),-1)<Ref(Zig(C,10,%),-2);
PK1:=PeakBars(1,C,10);
PK2:=PeakBars(2,C,10);
(ValueWhen(1,PK,Ref(C,-1))/ValueWhen(2,PK,Ref(C,-1))>.96 AND
ValueWhen(1,PK,Ref(C,-1)) / ValueWhen(2,PK,Ref(C,-1))<1.04)
AND PK2-PK1>=10 AND Cross(ValueWhen(1,TR,Ref(C,-1)),C) |
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| Double Bottoms |
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PK:=Zig(C,10,%)<Ref(Zig(C,10,%),-1) AND
Ref(Zig(C,10,%),-1)>Ref(Zig(C,10,%),-2);
TR:=Zig(C,10,%)>Ref(Zig(C,10,%),-1) AND
Ref(Zig(C,10,%),-1)<Ref(Zig(C,10,%),-2);
TR1:=TroughBars(1,C,10);
TR2:=TroughBars(2,C,10);
(ValueWhen(1,TR,Ref(C,-1))/ValueWhen(2,TR,Ref(C,-1))>.96 AND
ValueWhen(1,TR,Ref(C,-1)) / ValueWhen(2,TR,Ref(C,-1))<1.04)
AND TR2-TR1>=10 AND Cross(C,ValueWhen(1,PK,Ref(C,-1))) |
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In MetaStock for Windows, you can find both Double Tops and
Double Bottoms with these formulas. There is a caveat however. In
the article, Mr. Bulkowski utilizes the High-Low range in finding
Double Bottoms. These formulas use only the close value, so a few of
the lower priced issues will not produce signals in MetaStock.
Overall, however, these formulas produce most of the major signals
he discusses.
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