February 2010

TRADESTATION: 350 SWING INDICATOR

Barbara Star’s article in this issue, “The 350 Swing Trade,” outlines several trading systems based on J. Welles Wilder’s relative strength index (Rsi).

Star’s analysis can be performed in TradeStation using two calculations: a three-bar Rsi, and a smoothed three-bar Rsi. Wilder’s Rsi is a study that is built into TradeStation. To get Star’s three-bar Rsi, you change the Rsi indicator’s “Length” input from 14 (its default value) to 3, and set the two inputs named “oversold” and “overbought” both to 50.

EasyLanguage code for Star’s smoothed Rsi (AvgRsi Alert), price bar coloring (RSI_Trend), and swing alert technique is provided below.

Finally, Star outlines a number of trading systems. The swing 350 system is based on the three-bar Rsi. Star suggests combining the smoothed Rsi with any of the following: a trend-establishing moving average; Wilder’s average directional movement indicator (Adx); or Bollinger bands. Strategy code for some of these combinations is also presented here.

To download the adapted EasyLanguage code, go to the TradeStation and EasyLanguage Support Forum (https://www.tradestation.com/Discussions/forum.aspx?Forum_ID=213). Search for the file “Swing350.eld.”

A sample chart is shown in Figure 1.

Figure 1: TRADESTATION, SWING 350 SYSTEM. Here are two charts of Sears Holding Corporation (SHLD) stock. Both charts have their price bars shaded red or green by the RSI Trend PaintBar study. The left chart has Barbara Star’s swing 350 system applied. The lower left-pane shows the standard RSI indicator, configured to use a three-bar RSI length. The right chart shows red and green dots above or below certain price bars. These dots are generated by the AvgRSI Alerts indicator. Trades (up and down arrows) on this chart are generated by the AvgRSI with ADX strategy. The right middle pane displays the AvgRSI indicator. The standard ADX indicator is shown the lower pane on the right side.

This article is for informational purposes. No type of trading or investment recommendation, advice, or strategy is being made, given, or in any manner provided by TradeStation Securities or its affiliates.

PaintBar:  RSI Trend
inputs:  Price( Close ), Length( 3 ) ;
variables:  ColorToUse( 0 ) ;

if RSI( Price, Length ) > 50 then 
	ColorToUse = Green
else
	ColorToUse = Red ;

PlotPaintBar( High, Low, Open, Close, "RSI_3",
 ColorToUse ) ;


Indicator:  AvgRSI
inputs:
	Price( Close ),
	Length( 3 ),
	Smoothing( 3 ),
	RSI_Color( Yellow ),
	RSI_MA_Color( Red ) ,
	MidpointColor( LightGray ) ;

variables:
	RSIValue( 0 ),
	RSI_MA( 0 ) ;

RSIValue = RSI( Price, Length ) ;
RSI_MA = Average( RSIValue, Smoothing ) ;
 
Plot1( RSIValue, "RSI", RSI_Color ) ; 
Plot2( RSI_MA, "RSI_MA", RSI_MA_Color ) ;
Plot3( 50, "MidPoint", MidpointColor ) ;
Plot4( 80, "Upper", MidPointColor ) ;
Plot5( 20, "Lower", MidPointColor ) ;


Indicator:  AvgRSI Alert
inputs:
	Price( Close ),
	Length( 3 ),
	Smoothing( 3 ),
	OffsetPct( 10 ) ;

variables:  
	intrabarpersist OBMultiplier( 0 ),
	intrabarpersist OSMultiplier( 0 ),
	RSI_MA( 0 ) ;

Once
	begin
	OBMultiplier = 1 + 0.01 * OffsetPct ;
	OSMultiplier = 1 - 0.01 * OffsetPct ;
	end ;
	
RSI_MA = Average( RSI( Price, Length ), Smoothing ) ;

if CurrentBar > Smoothing then
	if RSI_MA > 80 then
		Plot1( Close * OBMultiplier, "OverBought" )
	else if RSI_MA < 20 then
		Plot2( Close * OSMultiplier, "OverSold" ) ;


Strategy:  Swing350
inputs:  Price( Close ), Length( 3 ), TrailingAmt( 3 ) ;
variables:  StopPrice( 0 ),	RSIValue( 0 ) ;

RSIValue = RSI( Price, Length ) ;

if MarketPosition = 1 and StopPrice > 0 then
	Sell next bar at StopPrice stop
else if MarketPosition = -1 and StopPrice > 0 then
	BuyToCover next bar StopPrice stop ;

if RSIValue crosses over 50 then 
	begin
	Buy next bar market ;
	StopPrice = Low[1] ;
	Sell next bar at StopPrice stop ;
	end
else if RSIValue crosses under 50 then  
	begin
	SellShort next bar at market ;
	StopPrice = High[1] ;
	BuyToCover next bar StopPrice stop ; 
	end ;

SetStopShare ;
SetDollarTrailing( TrailingAmt ) ;


Strategy:  AvgRSI
inputs:
	Price( Close ),
	RSI_Length( 3 ),
	RSI_Smoothing( 3 ),
	OverSold( 20 ),
	OverBought( 80 ),
 	TrailingAmt( 3 ) ;

variables:
 	RSI_MA( 0 ) ;

RSI_MA = Average( RSI( Price, RSI_Length ),
 RSI_Smoothing ) ;

if RSI_MA crosses over OverSold then 
	Buy next bar market
else if RSI_MA crosses under OverBought then  
	SellShort next bar at market ;

SetStopShare ;
SetDollarTrailing( TrailingAmt ) ;


Strategy:  AvgRSI W/Trend
inputs:
	Price( Close ),
	RSI_Length( 3 ),
	RSI_Smoothing( 3 ),
	TrendLength( 50 ),
	OverSold( 20 ),
	OverBought( 80 ),
 	TrailingAmt( 3 ) ;

variables:
	AvgValue( 0 ),
 	RSI_MA( 0 ) ;

RSI_MA = Average( RSI( Price, RSI_Length ),
 RSI_Smoothing ) ;
AvgValue = Average( Price, TrendLength ) ;

if RSI_MA crosses over OverSold and Close > AvgValue
 then
	Buy next bar market
else if RSI_MA crosses under OverBought and Close < 
 AvgValue then
	SellShort next bar at market ;

SetStopShare ;
SetDollarTrailing( TrailingAmt ) ;


Strategy:  AvgRSI W/BBand
inputs:
	Price( Close ),
	RSI_Length( 3 ),
	RSI_Smoothing( 3 ),
	BollingerLength( 20 ),
	NumDevs( 1 ),
	OverSold( 20 ),
	OverBought( 80 ),
	TrailingAmt( 3 ) ;

variables:
	RSI_MA( 0 ),
	UpperBand( 0 ),
	LowerBand( 0 ) ;
 	
RSI_MA = Average( RSI( Price, RSI_Length ),
 RSI_Smoothing ) ;

UpperBand = BollingerBand( Price, BollingerLength,
 NumDevs ) ;

LowerBand = BollingerBand( Price, BollingerLength,
 -1 * NumDevs ) ;

if RSI_MA crosses over OverSold and Close crosses over
 LowerBand then
	Buy next bar market
else if RSI_MA crosses under OverBought and Close
 crosses under UpperBand then  
	SellShort next bar at market ;

SetStopShare ;
SetDollarTrailing( TrailingAmt ) ;


Strategy:  AvgRSI w/ADX
inputs:
	Price( Close ),
	RSI_Length( 3 ),
	RSI_Smoothing( 3 ),
	ADXLength( 14 ),
	OverSold( 20 ),
	OverBought( 80 ),
 	TrailingAmt( 3 ) ;

variables:
	ADXValue( 0 ),
 	RSI_MA( 0 ) ;

RSI_MA = Average( RSI( Price, RSI_Length ),
 RSI_Smoothing ) ;

ADXValue = ADX( ADXLength ) ;

if ADXValue < 20 then
	if RSI_MA crosses over OverSold then
		Buy next bar market
	else if RSI_MA crosses under OverBought then
    		SellShort next bar at market ;

SetStopShare ;
SetDollarTrailing( TrailingAmt ) ;

—Mark Mills
TradeStation Securities, Inc.
A subsidiary of TradeStation Group, Inc.
www.TradeStation.com

BACK TO LIST

WEALTH-LAB: 350 SWING INDICATOR

We recreated and plotted the 350 swing indicator per the specifications in Barbara Star’s article in this issue, “The 350 Swing Trade,” though the details of applying it in a strategy required a bit of artistic license.

Concentrating on the swing indicator during upward trends determined by a three-pole 50-period Gaussian (more responsive than an exponential moving average), we used the 350 alerts as a setup for both the entries and exits. An entry is triggered when price reaches the highest high of the previous two bars after an Smarsi(3) below 20, whereas the exit occurs at the close of the bar on which the low reaches the lowest low of the previous two bars. This trigger strategy often entered and exited a prospective trade one bar earlier than waiting for the indicator to cross the 20/80 levels in the opposite direction. To protect against unforeseen disasters, we implemented a 5% stop-loss. While the Donchian channels discussed in Star’s article weren’t used in this trading strategy, they are plotted in our sample chart in Figure 2 for reference.

Figure 2: WEALTH-LAB, 350 SWING INDICATOR. This swing strategy works well to capture the meaty part of swings, but in strong trends it can leave you out of the most profitable trades.

WealthScript Code (C#): 

using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using TASCIndicators;

namespace WealthLab.Strategies
{
   public class Swing350 : WealthScript
   {
      private StrategyParameter rsiPer;
      private StrategyParameter smaPer;
      private StrategyParameter donchPer;
      private StrategyParameter gaussPer;
      
      public Swing350()
      {
         gaussPer = CreateParameter("Gaussian Period",50,10,100,5);
         donchPer = CreateParameter("Donchian Period",13,8,21,1);
         rsiPer = CreateParameter("RSI Period",3,2,21,1);
         smaPer = CreateParameter("SMA(RSI)Period",3,2,21,1);
      }
      protected override void Execute()
      {      
         bool longSetup = false;
         bool sellSetup = false;
         
         Font font = new Font("Wingdings", 8, FontStyle.Bold);
         string diamond = Convert.ToChar(0x0077).ToString();
         
         // Create and Plot Indicators
         DataSeries gauss = Gaussian.Series(Close, gaussPer.ValueInt, 3);   // 3 poles
         DataSeries rsi = RSI.Series(Close, rsiPer.ValueInt);
         DataSeries smaRsi = SMA.Series(rsi, smaPer.ValueInt);
         DataSeries upper = Highest.Series(High, donchPer.ValueInt);
         DataSeries lower = Lowest.Series(Low,donchPer.ValueInt);
         DataSeries mid = (upper + lower) / 2d;
         mid.Description = "Mid Donchian";
      
         ChartPane paneRSI = CreatePane(40,true,true);
         PlotSeries(paneRSI, rsi,Color.FromArgb(128,0,128,0), LineStyle.Solid, 1);
         PlotSeriesOscillator(paneRSI, smaRsi,80,20,Color.FromArgb(63,0,0,255),Color.FromArgb(63,255,0,0),Color.FromArgb(255,0,0,128),LineStyle.Solid, 1);
         DrawHorzLine(paneRSI, 50, Color.Pink, WealthLab.LineStyle.Dashed, 2);
         
         PlotSeries(PricePane,gauss,Color.Gray,LineStyle.Solid,1);
         PlotSeries(PricePane,upper,Color.Red,LineStyle.Dashed,1);
         PlotSeries(PricePane,lower,Color.Green,LineStyle.Dashed,1);
         PlotSeries(PricePane,mid,Color.Blue,LineStyle.Solid,1);         
         PlotStops();
         
         
         for(int bar = GetTradingLoopStartBar(1); bar < Bars.Count; bar++)
         {
            bool trendBullish = gauss[bar] - gauss[bar - gaussPer.ValueInt / 2] > 0
                  && gauss[bar] > gauss[bar - 2];
            if (trendBullish) SetBackgroundColor(bar, Color.Azure);
                        
            // Color bars.  OHLC Bar chart recommended!
            if (smaRsi[bar] < 50)
               SetBarColor(bar, Color.Red);
            else if (smaRsi[bar] >= 50)
               SetBarColor(bar, Color.Green);
            
            // Draw the Alert diamonds
            if (smaRsi[bar] > 80) 
            {
               AnnotateBar(diamond, bar, true, Color.Red, Color.Transparent, font);
               sellSetup = true;  
            }
            else if (smaRsi[bar] < 20)
            {
               AnnotateBar(diamond, bar, false, Color.Green, Color.Transparent, font);
               longSetup = true;
            }
            
            if (IsLastPositionActive)
            {
               longSetup = false;
               Position p = LastPosition;
               if (Close[bar] < p.RiskStopLevel)
                  SellAtClose(bar, p, "Stop");
               else if (sellSetup)
               {
                  if (Low[bar] < Lowest.Series(Low, 2)[bar - 1])
                     SellAtClose(bar, p, "Swing");
               }
            }
            else if (trendBullish)
            {
               sellSetup = false;
               RiskStopLevel = Highest.Series(High, 2)[bar - 1] * 0.95;
               if (longSetup ) BuyAtStop(bar + 1, Highest.Series(High, 2)[bar - 1]);       
            }
         }         
      }
   }
}

— Robert Sucher
www.wealth-lab.com

BACK TO LIST

WORDEN BROTHERS STOCKFINDER: 350 SWING INDICATOR

The 350 swing trade setup presented by Barbara Star in her article in this issue is easy to set up in StockFinder using a combination of RealCode and indicators from the vast indicator library.

RealCode is based on the Microsoft Visual Basic.Net framework and uses the Visual Basic (VB) language syntax. RealCode is compiled into a .Net assembly and run by the StockFinder application. Unlike the scripting language that some other trading applications use, RealCode is fully compiled and runs at the same machine-language level as the application itself for the highest speed possible while still allowing the flexibility of “run-time development and assembly.”

Here is the code for coloring the price bars based on the value of Wilder’s Rsi:

'# WR = indicator.Library.Wilders RSI

PlotColor = Color.Gray

If WR.Value > 50 Then 
	plotcolor = color.Lime
Else If WR.Value < 50 Then 
	plotcolor = color.Red
End If

Wilder’s Rsi is imported into the code editor using the Import Indicator button. “PlotColor = Color.Gray” is the base color to be used if a price bar does not meet any of the other conditional coloring criteria.

Figure 4: STOCKFINDER, 350 Swing Trade. The candles are colored green when RSI > 50 and red when RSI < 50. The true markers (up/down arrows) are displayed when RSI (3,3) is above 80 (red) or below 20 (green).

The true markers (up/down arrows) on the chart that display when Rsi (3,3) is above 80 or below 20 do not require writing any code. Just click the Add Indicator/Condition button, choose Wilder’s Rsi to add this plot to the chart, and set the Rsi period and average periods to 3. Then right-click on the plot and select “Create condition.” Set the first condition to “Greater than value, 80,” and then repeat, setting the second condition to “Less than value, 20.”

Once you have the Rsi > 80 and Rsi < 20 conditions on the chart, you can right-click on each to turn on the true markers (Figure 4).

To use the indicators, rules, and charts described here, you will need the StockFinder software. To download the software or get a free trial, go to www.StockFinder.com.

—Patrick Argo and Bruce Loebrich
Worden Brothers, Inc.
www.StockFinder.com

BACK TO LIST

AIQ: 350 SWING INDICATOR

The Aiq code is given here for the 350 swing indicator presented in Barbara Star’s article in this issue, “The 350 Swing Trade.”

The coded version that I am presenting here (Tfs, for “three fifty swing”) includes a system that can be used to test the indicator. The system uses only the author’s 350 swing indicator. To test the indicator in comparison to the original Rsi indicator developed by J. Welles Wilder, I devised a simple system based the overbought and oversold levels that Star suggests.

The rules for this long-only system are to go long when the Tfs is below the lower level (20). The long positions are then exited when the Tfs is above the upper level. When the averaging parameter (maLen) is set to 1, the system is using the standard Rsi.

I used the Portfolio Manager module to simulate trading a portfolio of stocks from the Nasdaq 100. I set the capitalization rules to invest 10% into each stock, taking no more than three new trades per day with up to 10 open positions at one time. When there were more than three signals per day, the ones with the highest relative strength values based on the Aiq relative strength report formula were chosen. All trades were simulated as placed “next day market on open.”

In Figure 6, I show a comparison of the equity curve for the Tfs versus the equity curve for the standard Rsi over the test period from December 31, 1998, through December 8, 2009. The red line is the equity curve from the original Rsi system, while the blue line is the Tfs system. Clearly, Barbara Star’s Tfs indicator was the better performer during this period.

Figure 6: AIQ SYSTEMS, SYSTEM EQUITY CURVE COMPARISON, TFS VS. RSI. Here is a comparison of the equity curve for the 350 swing indicator (TFS) system (blue line) versus the equity curve for the standard RSI system (red line) during the period 12/31/1998 to 12/8/2009 trading long only using the NASDAQ 100 list of stocks.

The code can be downloaded from the Aiq website at www.aiqsystems.com and also from www.TradersEdgeSystems.com/traderstips.htm.

! THE 350 SWING TRADE 
! Author: Barbara Star, TASC February 2010
! Coded by: Richard Denning 12/08/09
! www.TradersEdgeSystems.com

! PARAMETERS:
   rsiLen is 3.
   maLen is 3.
   upperLine is 80.
   lowerLine is 20.

! RSI WILDER INDICATOR:
!  Wilder averaging to exponential averaging:
!  ExponentialPeriods = 2 * WilderPeriod - 1.
   U 	is [close]-val([close],1).
   D 	is val([close],1)-[close].
   rsiLen1	is 2 * rsiLen - 1.
   AvgU 	is ExpAvg(iff(U>0,U,0),rsiLen1).
   AvgD 	is ExpAvg(iff(D>=0,D,0),rsiLen1).
   rsi 	is 100-(100/(1+(AvgU/AvgD))).

! 350 SWING INDICATOR:
   rsiMA	is simpleavg(rsi,maLen).

! Simple system to test the rsiMA indicator:
   buy 	if rsiMA > upperLine.
   sell	if rsiMA < lowerLine.

! Rule for color study:
   Green 	if rsiMA > 50.
   Red 	if rsiMA < 50.

! Signal indicator (plot as single line indicator):
   rsiSignal  is iff(buy,1,iff(sell,-1,0)). 

—Richard Denning
richard.denning@earthlink.net
for AIQ Systems

BACK TO LIST

STRATASEARCH: 350 SWING INDICATOR

The idea of breaking from the traditional 14-day Rsi with its 80/20 crossover points is a good one. If fact, one of the prebuilt indicators that comes with StrataSearch allows users to test a variety of Rsi approaches using different lookback periods and crossover points. As author Barbara Star implies in her article in this issue, “The 350 Swing Trade,” different market conditions require different Rsi implementations, so testing a variety of parameters is a worthwhile idea.

Star doesn’t provide a specific trading system in her article, but she does provide both a primary and supporting indicator that can be used alongside other evaluation criteria. This works quite well in StrataSearch, since users are able to run automated searches for trading systems. Using the 350 swing trade formulas as a base, users can see which supporting indicators will work best alongside them.

During our testing of roughly 25,000 indicator combinations, we were able to find some systems based on the 350 swing trade that worked quite well, so this month’s tip is certainly a welcome addition.

As with all other Traders’ Tips, additional information, including plug-ins, can be found in the Shared Area of the StrataSearch user forum. This month’s plug-in provides a prebuilt chart, strategy, and trading rules for use in the automated search for winning systems.

A sample chart is shown in Figure 8.

Figure 8: STRATASEARCH, 350 Swing Trade. The bottom panel shows the 350 swing indicator plotted as a line crossing above and below 50. The 350 swing alert can be seen as a crossover in the center panel, and as arrows in the top price panel.

//*********************************************************
// 350 Swing Indicator
//*********************************************************
Entry String:
CrossAbove(RSI(3), 50)

Exit String:
CrossBelow(RSI(3), 50)

//*********************************************************
// 350 Swing Alert
//*********************************************************
Entry String:
MOV(RSI(3), 3, simple) < 20

Exit String:
MOV(RSI(3), 3, simple) > 80

—Pete Rast
Avarin Systems, Inc.
www.StrataSearch.com

BACK TO LIST

NINJATRADER: 350 SWING INDICATOR

The 350 swing indicator as presented by Barbara Star in her article in this issue, “The 350 Swing Trade,” has been implemented as an indicator available for download at www.ninjatrader.com/SC/February2010SC.zip.

Once it has been downloaded, from within the NinjaTrader Control Center window, select the menu File→Utilities→Import NinjaScript and select the downloaded file. This indicator is for NinjaTrader version 6.5 or greater.

You can review the indicator’s source code by selecting the menu Tools→Edit NinjaScript→Indicator from within the NinjaTrader Control Center window and selecting “RSI_MA_350.”

NinjaScript indicators are compiled Dlls that run native, not interpreted, which provides you with the highest performance possible.

A sample chart implementing the strategy is in Figure 10.

Figure 10: NINJATRADER, 350 SWING INDICATOR. This sample screenshot shows the 350 swing indicator applied to a daily chart of Boeing (BA).

—Raymond Deux & Austin Pivarnik
NinjaTrader, LLC
www.ninjatrader.com

BACK TO LIST

WAVE59: 350 SWING INDICATOR

In her article in this issue, “The 350 Swing Trade,” Barbara Star describes a 350 swing indicator, which is a smoothed three-period Rsi used more as a trend indicator than an overbought/oversold indicator.

Figure 14 is a weekly chart of the Dow Jones Industrial Average showing the 350 swing indicator in action. Just as Star describes, it picks up termination points in trends very quickly, needing only three bars after the March lows to identify the uptrend.

FIGURE 14: WAVE59, 350 SWING INDICATOR. The 350 swing indicator picks up termination points in trends very quickly, needing only three bars after the March lows to identify the uptrend.

The following script implements this indicator in Wave59. As always, users of Wave59 can download these scripts directly using the QScript Library found at https://www.wave59.com/library.

Indicator:  SC_Star_350
input:thickness(2),up_color(green),dn_color(red),rsi_color(red),zero_color(blue);

# calculate smoothed 3-period RSI
Rsi = rsi(close,3);
Avg = average(rsi,3);

# Plot everything
plot1 = avg;
color1 = rsi_color;
plot2 = 50;  
plot3 = 80;
plot4 = 20;
color2, color3, color4 = zero_color;
style3, style4 = ps_dot;

# Plot Colorbars
if (avg > 50) colorbar(barnum, up_color, thickness);
if (avg < 50) colorbar(barnum, dn_color, thickness); 

—Earik Beann
Wave59 Technologies Int’l, Inc.
www.wave59.com

BACK TO LIST

TRADE NAVIGATOR: 350 SWING INDICATOR

Trade Navigator offers everything needed for recreating the highlight bars and indicators presented by Barbara Star in her article in this issue, “The 350 Swing Trade.”

Here we will show you how to recreate the custom highlight bars and indicators using the following TradeSense code, then add them to any chart in Trade Navigator.

First, open the Trader’s Toolbox, click on the Functions tab and click the New button. Enter the description “BarColorUp 350.” Then enter the following formula:

RSI (Close , 3 , False) > 50

Click the Verify button. Click the Save button, type a name for your new function and click OK.

Repeat these steps for the BarColorDown 350, TagUp, TagDown, and Rsi Ma functions using the following formulas for each:

BarColorDown 350
RSI (Close , 3 , False) < 20

TagUp
MovingAvg (RSI (Close , 3 , False) , 3) < 20

TagDown
MovingAvg (RSI (Close , 3 , False) , 3) > 80

RSI Ma
MovingAvg (RSI (Close , 3 , False) , 3)

To create a chart, go to the “Add to chart” window by clicking on the chart and typing “A” on the keyboard.

Click on the HighlightBars tab, find the BarColorUp 350 highlight bar in the list, and either double-click on it or highlight the name and click the “Add” button. Repeat these steps to add BarColorDown 350, TagUp, and TagDown.

Next, click on the Indicators tab, find the Rsi Ma indicator in the list and either double-click on it or highlight the name and click the “Add” button. Repeat these steps to add the Rsi. Rsi already exists in Trade Navigator as a predefined function.

Click on the chart and type the letter “E.” Highlight each highlight bar/marker or indicator and change it to the desired color in the chart settings window. When you have them the way you want to see them, click OK.

You can save your new chart as a template to use for other charts. Once you have the chart set up, go to the Charts dropdown menu, select “Templates” and then “Manage chart templates.” Click on the New button, type in a name for your new template, and click OK.

Genesis Financial Technologies has provided a library called “350 Swing Trade” that includes a template with the custom highlight bars and indicators as a special file named “SC1002,” downloadable through Trade Navigator.

—Michael Herman
Genesis Financial Technologies
www.GenesisFT.com

BACK TO LIST

ENSIGN WINDOWS: 350 SWING INDICATOR

This implementation of Barbara Star’s 350 swing indicator in Ensign Windows does not require any code to color the chart bars. Instead, the flexibility built into every study is utilized to color the chart bars via Ensign Window’s color bar marker.

An Rsi study has been added to the chart and its property form has been configured as shown in Figure 17. The key to Ensign’s solution is the “Zones study mode” selection, which displays multiple rows for each study line. In the top section showing the Rsi line, the top row is what will display when the Rsi line value is above 50.00. The line color is the leftmost red color square. The marker selection is Ensign’s color bar marker, which uses the rightmost green color square to color the chart bars.

FIGURE 17: ENSIGN WINDOWS, RSI Property Form

The third row of the top section is what will display when the Rsi line is below 50.00. The line color is red, and the color bar marker color is also red. As shown in the sample chart for Shld, the bars have been colored green or red based on the Rsi value.

Ensign Windows also has Bollinger bands, Donchian channels, average true range, study alerts, and the ability to implement the swing trading ideas featured in Star’s article.

—Howard Arrington
Ensign Software, Inc.
www.ensignsoftware.com

BACK TO LIST

eSIGNAL: 350 SWING INDICATOR — ARTICLE CODE

Code in eSignal’s Eds language for Barbara Star’s 350 swing indicator and related techniques from her article in this issue, “The 350 Swing Trade.”

RSI 3
var xRSI = null;
var bInit = false;
var bCharts = false;

function preMain() {
	setStudyTitle("RSI 3");
	setShowCursorLabel(true);
	setShowTitleParameters(true);
	setPriceStudy(false);
	
  setStudyMin(0);	
  setStudyMax(100);
	
	setCursorLabelName("RSI 3", 0);
	setDefaultBarFgColor(Color.red, 0);
	setPlotType(PLOTTYPE_LINE, 0);
	setDefaultBarThickness(2, 0);
	
	var fp1 = new FunctionParameter("nLength", FunctionParameter.NUMBER);
	fp1.setName("RSI Length");
	fp1.setDefault(3);
	
}
function main(nLength) {
	if (!bInit) {
		xRSI = rsi(nLength);
    addBand(25, PS_SOLID, 1, Color.grey, "25");
    drawTextAbsolute(-2,28,"25",Color.black,null,null,"Arial",10,"T25");
    
    addBand(50, PS_SOLID, 1, Color.black, "50");
    drawTextAbsolute(-2,53,"50",Color.black,null,null,"Arial",10,"T50");
    
    addBand(80, PS_SOLID, 1, Color.grey, "80");
    drawTextAbsolute(-2,83,"80",Color.black,null,null,"Arial",10,"T80");
		bInit = true;
	}

	var nRSI = xRSI.getValue(0);
	if (nRSI == null) return;
		
	return nRSI;

}


350 SWING INDICATOR
debugClear();
var bNewBar = false;
var bAlert = false;
var xRSI = null;
var bInit = false;

function preMain() {
	setStudyTitle("350 Swing Indicator");
	setPriceStudy(true);
	setColorPriceBars(true);
	setDefaultPriceBarColor(Color.black);
	
	setShowCursorLabel(false);
	
	var fp1 = new FunctionParameter("nRSILength", FunctionParameter.NUMBER);
	fp1.setName("RSI Length");
	fp1.setDefault(3);
	
	var fp2 = new FunctionParameter("cUpColor", FunctionParameter.COLOR);
	fp2.setName("Bar Color UP");
	fp2.setDefault(Color.green);
	
	var fp3 = new FunctionParameter("cDownColor", FunctionParameter.COLOR);
	fp3.setName("Bar Color DOWN");
	fp3.setDefault(Color.red);
	

}
function main(nRSILength, cUpColor, cDownColor) {

	if (!bInit) {
		xRSI = rsi(nRSILength);
		bInit = true;
	}
	
	var nRSI = xRSI.getValue(0);
	if (nRSI == null) return;

	
	if (nRSI > 50) 
    setPriceBarColor(cUpColor);
	else if (nRSI < 50) 
    setPriceBarColor(cDownColor);
	else 
    setPriceBarColor(Color.black);
	
}


RSI MA

var xRSI = null;
var xMA = null;
var bInit = false;

function preMain() {

	setStudyTitle("RSI MA");
	setShowTitleParameters(true);

	setStudyMin(0);
	setStudyMax(100);

	setCursorLabelName("RSI MA", 0);
	setDefaultBarFgColor(Color.darkgrey, 0);
	setPlotType(PLOTTYPE_LINE, 0);
	setDefaultBarThickness(2, 0);
	
	var fp1 = new FunctionParameter("nRSILength", FunctionParameter.NUMBER);
	fp1.setName("RSI Length");
	fp1.setDefault(3);
	
	var fp2 = new FunctionParameter("nMALength", FunctionParameter.NUMBER);
	fp2.setName("MA Length");
	fp2.setDefault(3);
}
function main(nRSILength, nMALength) {
	if (!bInit) {
		xRSI = rsi(nRSILength);
		xMA = sma(nMALength, xRSI);
		
    addBand(20, PS_SOLID, 1, Color.grey, "20");
    drawTextAbsolute(-2,23,"20",Color.black,null,null,"Arial",10,"20");
    
    addBand(80, PS_SOLID, 1, Color.grey, "80");
    drawTextAbsolute(-2,83,"80",Color.black,null,null,"Arial",10,"80");
    
		bInit = true;
	}
	
	var nMA = xMA.getValue(0);
	if (nMA == null) return;
	
	return nMA;

}


350 SWING ALERT
debugClear();
var bNewBar = false;
var bAlert = false;
var xRSI = null;
var xRT = null;
var bInit = false;

function preMain() {
	setStudyTitle("350 Swing Alert");
	setPriceStudy(true);
	
	setDefaultPriceBarColor(Color.black);
	
	setShowCursorLabel(false);
	
	var fp1 = new FunctionParameter("nRSILength", FunctionParameter.NUMBER);
	fp1.setName("RSI Length");
	fp1.setDefault(3);
	
	var fp2 = new FunctionParameter("nMALength", FunctionParameter.NUMBER);
	fp2.setName("MA Length");
	fp2.setDefault(3);
	
	var fp3 = new FunctionParameter("cUpColor", FunctionParameter.COLOR);
	fp3.setName("Signal Color UP");
	fp3.setDefault(Color.green);
	
	var fp4 = new FunctionParameter("cDownColor", FunctionParameter.COLOR);
	fp4.setName("Signal Color DOWN");
	fp4.setDefault(Color.red);
	
	var fp5 = new FunctionParameter("SignalSize", FunctionParameter.NUMBER);
	fp5.setName("Diamond Size");
	fp5.setDefault(10);
}
function main(nRSILength, nMALength, cUpColor, cDownColor, SignalSize) {

var ci = getCurrentBarIndex();

	if (!bInit) {
		xRSI = rsi(nRSILength);
		xMA = sma(nMALength, xRSI);
		xRT= rawtime();
		bInit = true;
	}
	
	var nMA = xMA.getValue(0);
	if (nMA == null) return;
	
	var nRT = xRT.getValue(0);
	
	if (nMA >= 80) 
    drawTextRelative (0, AboveBar2, "\u0075", cDownColor, null, Text.PRESET | Text.CENTER | Text.ONTOP, "Wingdings",SignalSize , "tagDown" + nRT );
	else 
    removeText("tagDown" + nRT);

  if (nMA <= 20) 
    drawTextRelative (0, BelowBar2, "\u0075", cUpColor, null , Text.PRESET | Text.CENTER | Text.ONTOP, "Wingdings",SignalSize , "tagUp" + nRT);
  else
    removeText("tagUp" + nRT);
	
}

—Barbara Star
star4070@aol.com

BACK TO LIST