wrong screening in cdl patterns

wrong screening in cdl patterns

felik
2010-05-22 04:58:50

just checked the new version though its performing daily screening for candl patterns but results are wrong for eg. i screened for hammer (and i used both options of hammer from the indicators)for 21/05/2010 . It gave results likeKPIT/ PIDILITE/ HINDALCO/ PFIZER/ TATA CHEM etc and it missed mahindra & mahindra finance AND GLENMARK WHICH HAD A TRUE HAMMER (MEANS LOWER SHADOW ATLLEAST TWICE THE SIZE OF BODY MEANS DIFFERENCE OF OPEN AND CLOSE).
So why did it miss GLENMARK ?? and gave others which were not hammer .Is it possibl to rewrite the hammer candle formula so that we get the stocks where the true condition of hammer is satisfied (MEANS LOWER SHADOW ATLLEAST TWICE THE SIZE OF BODY MEANS DIFFERENCE OF OPEN AND CLOSE)??????????

WEEKLY cdl pattern screening not giving results wen time frame is changed to weekly.
It does not give result in screening if CLOSE IS EQUAL TO 50/200/ XYZ SMA OPTION IS choosen THOUGH GIVES RESULTS FOR GRATER THEN OR LESS THEN xyz SMA
Chart window shows sma values but wat sma?? it does not show eg. MOVING AVERAGE 120.25 INSTEAD OF MOVING AVERAGE20DAYS 120.25 AND SCREENING RESULT GRAPHS DO NOT OPEN IN DEFAULT LAY OUT

QuantShare
2010-05-22 08:04:05

Please do not use capitalized words

- Here are the Hammer Candle rules:
1- Small real body
2- Long lower shadow
3- No, or very short, upper shadow
4- Body below or near the lows of the previous candle

Mahindra & Mahindra Finance and GLENMARK did not pass because of rule 3 or rule 4.
There are several implementations of the Hammer; here are two other implementations:

Hammer 1:
a = (((high-low) > 3*(open-close)) AND ((close-low) / (0.001 + high - low) > 0.6) AND ((open - low) / (0.001 + high - low) > 0.6));

Hammer 2:
a = iff(absolute((high + low) / 2) < Ref(ema(close,10),1), iff(Min(open,close) > high - ((high - low) / 3),iff(close < Ref(close,1),iff(open < Ref(open,1), 1,0),0),0),0);

- Close prices are almost never equal to SMA values (Simple Moving Average)
If you want to close price to be near 50-bar moving average then use:
absolute(close - sma(50)) < threshold

- To update the indicator name, you have to change the description parameter of the "Plot" function.

- Graphs do open in default layout. To update the default layout, right click on a chart and select "Set current layout as default".

felik
2010-05-23 01:12:19

Thanks for ur reply and wont use capital words in fture threads.But can u please explaint these hammer rules in anguage also so that it becomes clear that wat do they mean (and if i have to modift them then i am able to modify them because it wud also help in writing rules for different objectives)

Regards

QuantShare
2010-05-24 08:08:57

If you want to use a different Hammer implementation, use the following one:

(((high-low) > 3*(open-close)) AND ((close-low) / (0.001 + high - low) > 0.6) AND ((open - low) / (0.001 + high - low) > 0.6));

felik
2010-05-24 22:57:07

Hi
i tried the hammer rulein screener as a = (((............................. but it said error in formula . Then i sellected edit rulle from chart and tried to type the mentioned hammer rule as a new rule but again it said error ??? cud it be due to not giving space between >,+ and AND Plz help.

Regards

felik
2010-05-24 23:00:32

I Graphs do open in default layout. To update the default layout,I right clicked on a chart and selected "Set current layout as default".but even then the graph wen opened from screened stock list they did not open in default.

felik
2010-05-24 23:07:56

Hi just wanted to inform u thati have solved hammer rule problem with help from editor so dont reply for hammer

thanks & regards

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