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Efficiency Ratio

PocketMastermind
PocketMastermind ✭
in Scanning
Does anyone know how to write the syntax for a scan to achieve the following?
I'm looking to screen for stocks with an efficiency ratio as defined by Van K. Tharp of 15 or greater. This is calculated by dividing the difference between the closing price 60 days ago and the most recent closing price, by the ATR. For example, if the difference between the most recent CP and the CP 60 days ago is 13.51 and the ATR is 0.83, the calculation would be 13.51/0.83=16.27
Van K. Tharp suggests this type of screen would be possible with StockCharts, but I have no idea how to write it. Any help is much appreciated.
Thanks!

Comments

  • markd
    markd mod
    This passes syntax and gets 1 result:

    // define the stocks you are interested in
    [group is sp500]

    // test for rising price
    and [close > 60 days ago close]

    // test for Tharp ratio
    and [[close - 60 days ago close ] / ATR(14) > 15]

    I don't know of a way to verify the results, however.

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