FuriousThug
256 posts
msg #66706
- Ignore FuriousThug |
8/27/2008 3:15:13 AM
But seriously...I'm not sure how you'd code something so broad as Ws or Ms. What are there, like, 16 variations or so of each of Merrill's patterns?
Might be easier to give folks a particular variation and let them try to figure it out...are you an H&S fan? A triangle fan? What's your W?
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MoneyFetcher
22 posts
msg #66720
- Ignore MoneyFetcher |
8/27/2008 11:58:29 AM
FuriousThug
8/27/2008 3:15:13 AM
But seriously...I'm not sure how you'd code something so broad as Ws or Ms. What are there, like, 16 variations or so of each of Merrill's patterns?
Might be easier to give folks a particular variation and let them try to figure it out...are you an H&S fan? A triangle fan? What's your W?
Isn't a W pattern also known as a double bottom? Did I misunderstand?
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FuriousThug
256 posts
msg #66721
- Ignore FuriousThug |
8/27/2008 2:21:15 PM
A double bottom is the most common of the W patterns which are more broadly referred to as 5-point patterns. A W (or M) can be trending in either direction and are delineated by price swings determined by each stock's volatility. There's a taxonomy of the W and M patterns that range from strongly rising or falling to flat patterns and are often used with Bollinger Bands to project the volatility of moves.
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haskellb2006
22 posts
msg #66731
- Ignore haskellb2006 |
8/28/2008 12:48:54 AM
well perfect W for me is when the second leg is a retrace of about 70 percent... so a W with the right bottom higher than the left bottom ...
So that rules out a true double bottom.....I have tried the DB filter and frankly I didnt care for it....plus W patterns occur all the time IE: uptrending and downtrending .......
if I were to add anything else, it would be the length of time between the bottom points, like for example 15 days...something like that...
HB
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haskellb2006
22 posts
msg #66732
- Ignore haskellb2006 |
8/28/2008 1:02:51 AM
I guess another way to think of the W is a simple ABC pattern, with the 'C' identified at a preset level of retracement like
50% or .618 or .707
That would be a really cool way to locate potential W's and then do a visual scan of the list.
The whole concept has been done in other charting program indicators , like Presavento Gartley patterns ect.
I just have not found a way to scan for them.
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FuriousThug
256 posts
msg #66734
- Ignore FuriousThug |
8/28/2008 2:11:46 AM
So, right bottom higher than left bottom narrows it down a bit...
W4 & W5 are equivalent to narrowing triangles.
W9 & W10 (as well as W13 and W15) are all H&S variations
W14 and W16 are basically uptrends with higher highs.
I think eyeballs might still be the best filtering mechanic for finding Ms and Ws...then again, I'm not one of the coding wizards here.
FT
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