DETECTING BREAKOUTS FROM CHART FORMATIONS
- Chart Pattern Recognition Software Metastock Indicators Formula Sheet
- Chart Pattern Recognition Software Metastock Indicators Formula Chart
- Chart Pattern Recognition Software Metastock Indicators Formulas
You don’t have to spend countless hours any more looking at stock charts in order to identify profitable patterns.
After years of research I have finally developed the following 6 brand new metastock explorations to detect breakouts mechanically:
Bang For The Buck - Metastock Indicator Formula by MetaStock Programming Study Guide This indicator shows the possible dollar return (on a $10,000 account) for a security on any given period. This is calculated by dividing a $10,000 account by the closing price. Version R, 12/4/09: Fixed a bug in Nr4 and Nr7 pattern recognition that might effect the chart pattern indicator results. Version Q, 11/30/09: Fixed bugs in the chart pattern indicator for counts around holidays and in other routines that if they failed, could eventually cause resource problems.
Flag and pennants
Bear Flags
Rectangles (Upside breakouts)
Rectangles (downside breakouts)
Cup with handle
Break from base (BFB).
Chart Formations Explorations Bundle
$499.00
This package contains all the above metastock explorations, plus one expert and two custom indicators.
I have published four articles on these formations in Technical Analysis of STOCKS & COMMODITIES STOCKS and another three articles on breakouts.
I have since updated my original research with more recent data and used the revised statistical data to develop each exploration code.
When it comes to trading, however, nothing is certain. Identifying a specific chart pattern, doesn’t guarantee any profits because there is a high probability that the stock will fail to perform as expected.
A friend of mine purchased a metastock patttern recognition system plug-in and before using it to trade with real money he had the foresight to test it. To his dismay the test results were disastrous: The profit factor was <1.0 and profitable trades <50%.
Unlike similar systems which only identify specific chart pattern, the explorations above also use a number of indicators and conditions to filter out stocks with a high probability of failing to complete the pattern successfully.
Identifying a pattern and entering a trade, however, is only the first step. Knowing when to exit is equally important.
To calculate the profit target for some of these formations traders have relied on the measuring formula introduced for the first time in Edwards & Magee's Technical Analysis of Stock Trends, in 1948 which involves adding the formation height to the breakout price. My research has revealed, however, that this rather simple method tends to overestimate breakouts from flags and conversely underestimate rectangle breakouts. This is probably because the flag pole height is, by nature, more than double the rectangle height.
I have therefore derived a new, more realistic, measuring formula more appropriate for current market conditions, based on my original research, for trading these formations efficiently.
All explorations, therefore, include the price objective, calculated according to the new measuring formula, a stop loss, in case the stock fails to perform as expected, the risk/reward ratio and other useful statistics.
Terms and Conditions
©2011 Markos Katsanos – All rights reserved
FREQUENTLY ASKED QUESTIONS (FAQ)
Is the flag exploration the same system that you published in your article in Technical Analysis? Are you trying to sell us something that we can get free?
No this is different system. The system in the article detected flags with a constant (13 day) pole and minimum constant pole height whereas the new system takes into volatility and can therfore detect less volatile stocks which ususally have shorter poles and would have been excluded by the original system. Similarly the new rectangle system is completely different from the one that I published in my book. The old system detected only rectangles with up to 2 peaks and troughs whereas the new system will detect rectangles with unlimited number of peaks and troughs.
Are your explorations compatible with Metastock version 8.0?
All explorations are compatible with metastock version 7.2 and higher
Why don't I get any hits?
Check out the messages in the rejects column. If you see 'Results of filter formula not defined on calculation date' or 'Error in filter: Period value out of valid range' you should load more historical data before running the exploration. This is because certain explorations (rectangles and cup&handle look for formations as far as 2 years back. In addition the VFI indicator requires 260 days of data before starting producing results. As a rule of thumb you should load at least 700 days of historical data before running the explorations.
Can we return them for a refund if we are not satisfied with the results?
Is the code password protected ? Can I modify it?
Only the rectangle is password protected. This is because I spent countless hours designing this system and I wouldn't like to see it tomorrow on the Internet. You can modify all other systems
SYSTEM PERFORMANCE
Only if you convince me that you lost money using an exploration properly (ie bought at least 3 stocks and kept them for at least 3 weeks) otherwise anybody can return the installation files but continue using them for free. A sharp market correction during an unexpected geopolitical event (such a war in the Middle East or an earthquake in Japan) doesn't count. Also because a tide lifts all boats using the short explorations to short stocks during a bull market doesn't count either.
You save: $201
$100.00
PRICE LIST
or buy only you favorite chart pattern exploration
Rectangles
$100.00
Break from Base
$150.00
Cup with handle
$130.00
Flags & Pennants
Rectangles (Short)
$140.00
Bear Flags
$80.00
Buy all explorations and save $201 !!
Do you have the explorations in any other programming language except metastock?
No.
You can find below the performance statistics of the Break from Base (BFB) system. I tested the system using Tradesim Enterprise and a portfolio of 2000 US mid and small cap stocks for the 10 year period from 31/1/2001 to 31/1/2011. The trading capital used was $500,000 and $20,000 was allocated to each stock with no margin. The maximum number of open positions was 30 stocks, the commission charged was $9 per transaction, the minimum trade size was $2000 and positions were limited to a maximum of 10% of the traded volume. All Trades were held for 14 trading days and exited on the 15th day. No other exit conditions were used except a chandelier stop loss exit .
Unfortunately, because of the metastock formula language limitations, I couldn't back-test the pattern recognition systems. I can assure you ,however, from trading these systems personally that they are all profitable provided you follow these simple rules: Do not trade the long systems during a bear market and the short systems during a bull market.
Yearly profits of the BFB exploration tested on 2000 US stocks for the 10 year period from 1/31/2001-1/31/2011 with an initial capital of $500,000 and holding each stock for 15 days.
Performance of the BFB exploration tested on 2000 US stocks for the 10 year period from 1/31/2001-1/31/2011 holding each stock for 15 days.
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- Quick and easy workflow in the new Explorer.
- Easy to find your past scan results data in the Exploration Results Report window.
- Increase workflow even more when using multiple monitors.
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- Create a list of your favourite back testing scans and run them all against your data for maximum results.
- No more wasting time trying to find the indicators you use most as the system by default stores the past 20 used indicators.
- Local Data of charts can now be edited.
- Scan for candlestick patterns.
- New Sector Stat templates & Indicators.
- Dynamic tool makes drawing Support & Resistance lines far more easy.
Watch this video to see what's new in MetaStock 17.
Chart Pattern Recognition Software Metastock Indicators Formula Sheet
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Data subscription includes historical database of prices going back to 1985.
Chart Pattern Recognition Software Metastock Indicators Formula Chart
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Chart Pattern Recognition Software Metastock Indicators Formulas
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