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Studies: Auto Trends features
and properties (1223) |
Article:
Ensign Windows has an Auto Trends feature already, and therefore, it is unnecessary
to try to implement Doctor Siligardos' ideas using Ensign's programming language. (See
Technical Analysis of Stocks & Commodities magazine, Nov 2006 issue). The
author's methods are very similar to the implementation used in Ensign
Windows to implement Auto Trends. Ensign's Auto Trends feature
has addition options that make the tool very flexible and powerful.
Figure 1 - ES continuation contract, 5-minute bars, with Auto Trends
Figure 1 shows the Auto Trend lines as the thicker blue lines, and the optional
parallel Channel lines as the dotted red lines. The candlesticks
illustrate Ensign's Rocket style where the thicker wick (thrust) is on the Open
side of the candle body, and the thinner wick (nose) is on the Close side
of the candle body. The candle bodies are colored based on the Dunnigan
color bars study: Up Bars in green, Down bars in red, Inside Range bars
in blue, and Outside range bars in orange. The variable width of
the candle body is using Ensign's Equi-Volume feature. Fatter candles
indicate periods of higher volume. Skinny candle bodies indicate
periods of lighter volume, which is often the case for the blue inside range
bars.
Figure 2 - Auto Trends Properties Window
Figure 2 shows the Properties for the Auto Trends tool. The
discussion of the properties will be by the reference numbers shown on
the form.
1. The parameters of Minimum Size and Minimum Bars are a filter
for the noise and used to identify the more significant swings on the chart.
2. The Auto Min. Size check box can be checked to have the
program automatically determine appropriate and logical values to use for the
Min. Size parameter regardless of the symbol the tool is used with.
3. Check this box to show the Trend Line using the color and line
style selected. Optional markers can be used with the Trend Line.
4. The Trend Line can be alarmed, so that alert messages are shown
on the form when prices break through the trend line.
5. All trend lines have a slope, and the slopes of the Upward trend
lines can be averaged to plot an upward line with a typical slope. The
slopes for Downward trends lines can be averaged to plot a downward line with
a typical slope.
6. Check this option to add a Channel Line parallel to the Trend
Line that encloses the data between these two lines. Figure 1 shows this
option.
7. Another parallel line can be plotted midway between the Channel
Line and the Trend Line.
8. A Gann 1x1 line can be plotted from the swing tops and bottoms. The
slope of the Gann line is determined automatically using Ensign's Pyrapoint
methodology to square time and price.
9. Support and Resistance lines can be drawn. Resistance lines
connect ascending swing highs. Support lines connect descending
swing lows.
10. Break Out lines can be draw. These lines connect descending
swing highs, and ascending swing lows. See Figure 3 for an example.
Figure 3 - Break Out lines. Support and Resistance lines. Auto
Trend lines have been removed.
Ensign's methodology for implementing automated trend lines is proprietary,
yet very similar to the concepts published in Siligardos' article. Ensign's
tool also works well on semi-log scale charts. Ensign's implementation
goes even further to offer penetration alarms, parallel channel lines, typical
slope lines, Gann 1x1, Support and Resistance, and Break Out lines. Readers
are invited to download Ensign Windows from the Ensign web site at
www.ensignsoftware.com and give the program a
thorough evaluation during a free 7-day trial period.
Last modified 1/23/08 1:33 AM
