Arthur Hill's 3 Step Setup

williemoe

In a recent webinar Arthur Hill showed his 3 step trading setup with the following conditions:

1. Condition: PPO (25,125,1) is positive
2. Setup: RSI 10 moves below 40
3. Trigger: StochRSI 10 surges above .95

Art said this would be an easy scan to setup but didn't include the scan in the webinar.
Any help would be appreciated.
Thanks,
William

Kevo

Here is what I have for the scan. Scans return results for further inspection. You may want to add global filters at top like [type=stock], country, and volume filters.

The first clause is checking trend. The second clause checks to see that RSI(10) has been at or below 40 for the last 3 days and the current day. You can experiment and take out the first half of the second clause and/or change RSI(10) to RSI(14). The reason I did this is because the setup is a condition and not a signal in itself. Here are the clauses:

and [PPO Line(25,125,1) > 0.0]

and [yesterday's Max(3,RSI(10)) <= 40.0] and [today's RSI(10) <= 40.0]

and [Stoch RSI(10) x 0.95]

quikcoin

To understand: The third clause reads as Stoch RSI(10) crosses the 0.95 line. It is not a multiplier, correct?

Kevo

@quikcoin yes that is correct. The x operator means "crosses above".

Thus, in this case, the computed value of Stoch RSI(10) has crossed above the value of 0.95.

williemoe

Thank you for the scan.
I tweaked it a little here because the RSI 10 doesn't have to be below 40 when the trigger happens:
[type is stock]
and [PPO Line(25,125,1) > 0.0]
and [yesterday's Max(3,RSI(10))

williemoe

The image covered up the scan:
[type is stock]
and [PPO Line(25,125,1) > 0.0]
and [yesterday's Max(3,RSI(10)) <= 40.0]
and[yesterday's Max (3,Stoch RSI(10)) <=0.5]
and [Stoch RSI(10) x 0.85]

From the Apple chart above you can see how the setup and trigger work.
The RSI 10 doesn't have to be below 40 as a condition for the trigger.
Don't know if there is a way to make the scan more effective based on the conditions.
The scan doesn't get to many results - which may be just the overall market condition at this time.
Thanks,
Wm