XTL (ASX) Hot Copper Charting and Chat

Originally posted by wilfran1pm: ↑

Toastman if you can define the scan rules precisely I can write the code, in Amibroker afl or Metastock that is. In fact I did go through the process of coding my version of some of the VSA SOS and SOW indicators some time ago. Its a project that is at this stage at the back of my list of things to do.
An example of what I did back then follows. Its the description and code for the VSA SOS called a Shakeout.

The Shakeout (xSOS08)

Purpose: The Professionals have to buy at lower prices and will do anything to get the price down so they can continue to accumulate the market. This Shakeout is nearly always seen on bad news and often marks the start of the next leg up of a trend.

Identification: The Shakeout is the reverse of the Upthrust.

An Average to Wide Spread bar that closes in the middle to the High of the bar. The close must be in the upper half of the bar. The Spread must be greater than 1.5 times the fifteen point simple moving average of the value of the High minus the Low (refer to the xSpread Indicator).

The Low of the bar must be lower than the other Lows near it. The test is that the Low must be lower than the past five Lows.

The majority of the range (spread) of the bar must be below the Close of the previous bar. Two Thirds of the range of the Shakeout bar must be below the Close of the previous bar.

The Volume must be above Average to High Volume.

View attachment 1344223

Notes: The Shakeout bar is also referred to as the “Gotcha” bar. Effectively it is a wide range Test.

When a Shakeout is seen in an uptrend, maybe after a period of sideways consolidation, it is a very strong buy opportunity.

The next bar should close up to confirm the signal. It is a strong signal in an Uptrend or after a selling climax.

Go long after Shakeout confirmation (next bar up) or wait for a Test. This is a very strong buy signal.

Metastock Indicator Formula:

{xSOS08_Shakeoutup (20110722-01)}

{This the primary VSA Shakeout Indicator}

xVavg:=Mov(VOLUME,15,S);
xSR:=FmlVar("xSpread","XS");
xSRavg:=FmlVar("xSpread","XAS");

xSHKup:=If(
CLOSE1.5*xSRavg AND
LOW=(HIGH-LOW)/2+LOW AND
VOLUME>Ref(xVavg,-1)
,0.5,0);

xSHKup;

The xSpread reference is a call to another indicator/formula that applies the VSA rules regarding the spread of the bar.

As you can see by the date in the code title, I wrote this back in July 2011. I've been meaning to transfer this code over to Amibroker for about 7 years now. Oh how time flies by.

Hopefully someone may find this of interest.

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Hi @wilfran1pmand @Toastman – yes very interested in hearing about any progress withdeveloping these types of indicators. Although I use Trading View, and codedsome indicators in Pinescript - (well more accurately I’ve copied other people’scode and then modified, combined and kludged it into my own!) the languageother platforms use appears close enough to be able to translate into Pine andfrom Pine into Metastock I assume, especially if the logic that goes with it isclear.

I’ve been learningabout No Demand and No Supply bars this week and thought I’d have a go atcoding alerts for these. I’m not experienced enough yet and these just don’tjump out from the chart at me like some things like shakeouts, springs andupthrusts for example. I’m thinking an alert for these would be useful as anearly warning signal for stocks I hold or on my watchlist, as from what I cansee they appear to show up regularly just before pullbacks, shakeouts and trendchanges.

Have done a lotof googling but I need some help with checking the definition and logic – here’swhat I have so far:
No Demand bar:
Volume lessthan the 2 previous bars.
Narrow spreadup bar, during up trend.Closing middleor lower.
Confirmation =down bar following the No Demand bar.

No Supply bar:
Volume lessthan the 2 previous bars.
Narrow spreaddown bar, during down trend.
Closing middleor higher.
Confirmation =up bar following the No Supply bar.

I’d reallyappreciate some help from one of you charting black belts on this thread with defininga “narrow spread” bar!? For example could it be something like “x% (10%/20%??)less than average spread for previous x number of bars (2/3/10??).And how manybars should I allow for confirmation? I’m picturing an alert for when a “potential”No Supply or No Demand bar shows up, and another alert if confirmed.

If I can getthis working, I’ll post a chart with results and the code for anyone interestedin using it.

Thanks,Rooster.