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J hook pattern stock scan

nickonicko ✭
in Scanning
Good morning group, I have not been on in a while, wow have things changed!
Need your help in figuring out a scan that I am trying to master. Difficult scan to say the least! It's described as a " J-Hook pattern. I will try to post an example.Any answers would be greatly appreciated. Thanks Nicko.
example.... below

https://ton.twitter.com/1.1/ton/data/dm/735252083008536579/735252083033640960/Zy7LiJzE.jpg

Comments

  • markdmarkd mod
    Hi @nicko , I can't open that link. Could you post the chart via permalink (bring up the chart on SC, click the permalink link, copy the the url and use the "url" option (the chain icon on the menu above this comment window) to paste it into your reply comment.
  • nickonicko ✭
    https://ton.twitter.com/1.1/ton/data/dm/735252083008536579/735252083033640960/Zy7LiJzE.jpg

  • nickonicko ✭
    Mark, I hope that worked for you, thanks, Nicko
  • markdmarkd mod
    Nope, sorry. I have security software on my machine - probably blocking it.
  • nickonicko ✭
    edited May 2016
    http://stockcharts.com/h-sc/ui?s=CDNL&p=D&b=5&g=0&id=p02197825545&a=460594707
    Mark, sorry,try this I think I got it right! LOL!
  • markdmarkd mod
    Which part of it do you want to capture? The breakout, or the whole thing?
  • nickonicko ✭
    I would like to enter in at the lowest possible point,
    Is it possible to capture the whole thing? ( a scan )
    Breakout ( a scan) ?
    Am I asking too much? Sorry, I want to see the difference in both scans. Maybe one would fit my need better.Thank you Mark,I know you helped me out before with some scans and they were great! I love this one if I can get it! Much appreciated! Nicko
  • markdmarkd mod
    I don't really have time to write and test the whole thing, but I can outline an approach.

    The thing is, the J-hook seems to be a completed pattern. The only hint that it is going to occur is the initial depression. So you would scan for that - probably in an up trend, but there is no guarantee it's going to develop into a new leg. The other option is to scan for the break out after a depression. That probably has a better chance, although you give up the initial gain.

    So, to put the odds in your favor, you would first scan for a rising MA ( MA > x days ago MA). Then for a strong situation, you would scan for close above the rising MA.

    To scan for the depression, you could use stochastics or price channels, say Fast Stoch %K(10,1) less than 50 within the last maybe 7 days - so min(7, K10) < 50 (you have to provide the exact syntax-I'm just outlining). You could also try min(7, low) < 3 days ago max(Lower Price Chan(10), or something like that.

    Then you need the breakout, probably best on a closing basis. So something like close x 1 day ago max(15, close).

    You would have to play with the parameters to see what works. Probably no matter what you do you will get some junk. But that's OK if you also get what you want.

  • nickonicko ✭
    Mark thank you for all the effort you put forth...I will play around with it. If I have a successful scan I will show ya! Your willingness to try for me means a lot! You always helped me out in the past.
  • nickonicko ✭
    Mark, do I need to go back further? I find the J pattern...but NOT the breakout.https://ton.twitter.com/1.1/ton/data/dm/745943860103225347/745943860262510592/1tBybxpy.jpg
  • markdmarkd mod
    Hi Nicko, could you create a link from the "permalink" option under the chart, and then copy and paste the url link from the window at the top of the browser page?

    I can't open your link, either because of my security software or because I'm not on twitter.

    And can you be more specific - do you need to go back further - not sure what you are referring to. Thanks. Also, post the scan code that found the chart. Maybe I can tweak it.
  • nickonicko ✭
    [type = stock] AND [Daily SMA(20,Daily Volume) > 200000] and [country is US] and [Close < 2.00] and [Open > .0007] and [PPO Hist(12,26,9) < 0] and [ADX Line(14) > 30.0] and [Full Stoch %K(14,3,3) < 20.0] and [MFI(14) < 60] and [today's MFI(14) > yesterday's MFI(14)]
  • nickonicko ✭
    http://stockcharts.com/h-sc/ui?s=ETRM&p=D&b=5&g=0&id=p72250280506
  • nickonicko ✭
    I want to capture the beginning of the J-hook before it happens...then test it waiting for a candle confirmation.
  • markdmarkd mod
    OK. I think you need to specify that the stock is in an uptrend. A dip in a downtrend is likely to be a continuation of the down trend, rather than a pause in the up trend, which is what I think the J-hook is intended to capture.

    This code captures the dip with Price Channel and non-default parameters for Fast Stochastics, and then the breakout with a close above the Upper Price Channel. If you want to get in before the breakout, comment out the last line.

    Also notice I commented out your price limits because it didn't get any decent hits today.
    You can un-comment those conditions for back testing to see how it works. Not all hits are really "clean", but some good ones do pop up.

    // begin J-hook scan

    [type = stock]
    AND [Daily SMA(20,Daily Volume) > 200000]
    and [country is US]
    // and [Close < 2.00]
    // and [Open > .0007]

    // Next two clauses say "trend is up"
    // 50 MA is rising
    and [sma(50,close) > 10 days ago sma(50,close)]

    // prices are above the rising 50 MA
    and [close > sma(50, close)]


    // Next two clauses say price has dipped for at least a few days

    // highs have been below the 10 day upper price channel for at least 5 days
    and [1 day ago Upper Price Chan(10) = 5 days ago Upper Price Chan(10)]

    // close has been below the mid point of its 10 day range in the last 10 days
    and [min(10, Fast Stoch %K(10,1)) < 50]

    // This clause says price broke out today
    and [close x Upper Price Chan(10)]

    // end scan

    Run the scan as of prior day's close for testing, not intraday.
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