Scan for pullbacks within an Uptrend (Arthur Hill method)

IntelligentValue

I’m wondering if anyone has figured out a way to scan for pullbacks within a larger uptrend, as advocated by Arthur Hill in his June 19 Market Message? I can easily scan for simultaneous positive PPO and pullbacks of RSI(10) below 40. However, identifying a new rise in the StochRSI above .95 at some indeterminant date in the future has me stumped. I guess the question boils down to, "How do I identify the attainment of a third criteria at some unknown date after the attainment of two previous coincident criteria?" Thank you.

markd

I think you would put the results of your first scan in a list, and then scan the list after each new bar for the final condition.

IntelligentValue

Thanks markd. Hmmm... I just wonder if there is a more comprehensive, single-scan approach.

markd

You would write it to capture the trigger condition, then you would have a grouped series of "or" statements to capture the set up conditions for one day ago, two days ago, three days ago, etc. as far back as you think the total combination of conditions is valid.

On the other hand, you might just want to capture the first two conditions (the set up) and then, as long as the trend is up, enter on a stop above the low of the set up bar after a close beneath it. or if there a longer decline after the set up, enter on a stop above the lowest low (in other words, each time a lower low is made, move your buy stop just above it). Waiting to enter after the trigger puts you under water almost immediately in several instances, unless you put in a close stop loss. But if you do that, in several instances you miss the gain. If the trend is up, you want to capture the bar that is the trigger as a gain.

36kashili

Interesting. Thanks

IntelligentValue

Thanks Mark, I'll give it a try.