Metastock Formulas - W
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Weakness In A Strong Trend

In an up trend, three or four successive lower CLOSES and the EMA(21) is rising.

SimpleX LONG:

C <= Ref(C,-1) AND
Ref(C, -1) <= Ref(C, -2) AND
Ref(C, -2) <= Ref(C, -3) AND
Mov(C, 21, E) > Ref(Mov(C, 21, E), -1)
OR
C <= Ref(C,-1) AND
Ref(C, -1) <= Ref(C, -2) AND
Ref(C, -2) <= Ref(C, -3) AND
Ref(C, -3) <= Ref(C, -4) AND
Mov(C, 21, E) > Ref(Mov(C, 21, E), -1)

SimpleX SHORT:

C >= Ref(C,-1) AND
Ref(C, -1) >= Ref(C, -2) AND
Ref(C, -2) >= Ref(C, -3) AND
Mov(C, 21, E) < Ref(Mov(C, 21, E), -1)
OR
C >= Ref(C,-1) AND
Ref(C, -1) >= Ref(C, -2) AND
Ref(C, -2) >= Ref(C, -3) AND
Ref(C, -3) >= Ref(C, -4) AND
Mov(C, 21, E) < Ref(Mov(C, 21, E), -1)

Rig this up with an OB/OS oscillator and you've got an entry that is, well, at least worth considering.

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Weekly Indicators

MetaStock Weekly Indicators

I had basically put the weekly indicators on daily charts thing on the back burner for the time being, but someone mentioned the subject in an off list e-mail, and I decided that maybe I should post these two indicators. They look right to me, but double check them. Remember, they plot the previous weeks value beginning the first trading day of the following week, and that value remains constant throughout that week. These are designed for backtesting.....so if you just gotta know on this Friday evening what the weekly value of the indicator is going to be for the following week, simply look a weekly chart.

Stochastic: The %K and %K slowing can be coded to accommodate more parameters by using the user Input function, but when you do this the %D always calculates using the default value of the %K slowing, giving erroneous values. So I just left it as is. Youcan plug in your own values...I just used the MetaStock default values as a starting point. I made the %K D as two separate indicators so that you can plot the %D a different color and/or dashed. The Momentum indicator uses the Input function just fine.


{`Wkly Stoch 5 per %K, slowing=3, no %D}

{start week}
sw:=If(DayOfWeek()<=Ref(DayOfWeek(),-1),1,0);
yestClo:=If(sw>0,Ref(C,-1),0);

{lowest low last 5 weeks}
LLow:=(ValueWhen(1,sw>0,
Ref(LowestSince(5,sw>0,L),-1)));

{highest high last 5 weeks}
HHigh:=(ValueWhen(1,sw>0,
Ref(HighestSince(5,sw>0,H),-1)));


{5 per %K, slowing=3}
y:=(ValueWhen(1,sw>0,(yestClo-LLow))+
ValueWhen(2,sw>0,(yestClo-LLow))+
ValueWhen(3,sw>0,(yestClo-LLow)))/

((ValueWhen(1,sw>0,HHigh)+
ValueWhen(2,sw>0,HHigh)+
ValueWhen(3,sw>0,HHigh))-

(ValueWhen(1,sw>0,LLow)+
ValueWhen(2,sw>0,LLow)+
ValueWhen(3,sw>0,LLow)))*100;
y;

{`Wkly Stoch 3 per %D of a 5 per %K, slowing=3}

{start week}
sw:=If(DayOfWeek()<=Ref(DayOfWeek(),-1),1,0);
yestClo:=If(sw>0,Ref(C,-1),0);

{lowest low last 5 weeks}
LLow:=(ValueWhen(1,sw>0,
Ref(LowestSince(5,sw>0=1,L),-1)));

{highest high last 5 weeks}
HHigh:=(ValueWhen(1,sw>0,
Ref(HighestSince(5,sw>0,H),-1)));

{5 per %K, slowing=3}
y:=(ValueWhen(1,sw>0,(yestClo-LLow))+
ValueWhen(2,sw>0,(yestClo-LLow))+
ValueWhen(3,sw>0,(yestClo-LLow)))/

((ValueWhen(1,sw>0,HHigh)+
ValueWhen(2,sw>0,HHigh)+
ValueWhen(3,sw>0,HHigh))-

(ValueWhen(1,sw>0,LLow)+
ValueWhen(2,sw>0,LLow)+
ValueWhen(3,sw>0,LLow)))*100;

{This plots the 3 period %D (ma) of the above.}
z:=(ValueWhen(1,sw>0,y)+ValueWhen(2,sw>0,y)+
ValueWhen(3,sw>0,y))/3;
z

{`Wkly Momentum for DAILY Chart }

{This plots WEEKLY Momentum on DAILY charts. -Ken 4/16/99}

n:=Input("Periods",1,20,10);
{start week}
sw:=If(DayOfWeek()<=Ref(DayOfWeek(),-1),1,0);

(ValueWhen(1,sw>0,Ref(C,-1))/
ValueWhen(n+1,sw>0,
Ref(C,-1)))*100

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Weekly Pivot Point

{Weekly Pivot Point Projection 8/4/99}

Dw:=If(DayOfWeek()<=Ref(DayOfWeek(),-1),1,0);
{Weekly Typical Price}
PP1:=If(Dw=1,
{then}(Ref(HighestSince(1,Dw=1,H),-1)+
Ref(LowestSince(1,Dw=1,L),-1) +
Ref(C,-1))/3,
{else}0);
{Weekly High}
Wh1:=If(Dw=1,
{then}Ref(HighestSince(1,Dw=1,H),-1),
{else}0);
{Weekly Low}
Wl1:=If(Dw=1,
{then}Ref(LowestSince(1,Dw=1,L),-1),
{else}0);
Wh:=ValueWhen(1,Wh1>0,Wh1);
Wl:=ValueWhen(1,Wl1>0,Wl1);
PP:=ValueWhen(1,PP1>0,PP1);
{Resistance 1}
R1:=(2*PP)-Wl;
{Support 1}
S1:=(2*PP)-Wh;
{Resistance 2}
R2:=(PP-S1)+R1;
{Support 2}
S2:=PP-(R1-S1);
R2;
R1;
S1;
S2;

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Weekly Trix Moving Average Test

COLA: TRIX(3)
COLB: REF(TRIX(3),-1)
COLC: MOV(TRIX(3),8,TIMESERIES)
COLD: REF(MOV(TRIX(3),8,TIMESERIES),-1)
COLE: C

Filter enabled:yes

when(cola,>,colc)and when(colb,<,cold)and when(cola,<,0)and when(cola,>,-2)

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Wilders ATR From Equis

{The actual ATR does not use a simple moving average. Welles Wilder uses his own smoothing (a modified exponential average) which is the function named "Wilders" in MetaStock. Try your formula this way:}

periods:=Input("ATR Periods?",1,100,10);
TH:=If(Ref(C,-1) > H,Ref(C,-1),H);
TL:=If(Ref(C,-1) < L,Ref(C,-1),L);
TR:=TH-TL;
Wilders(TR,periods)

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WillSpread by Larry Williams

The Larry Wiliams' indicator named WillSpread is quite easy to plot in MetaStock for Windows version 6.5. Using version 6.5 of MetaStock for Windows, please follow these steps.

• Plot the underlying commodity.
• Drag the Spread Indicator from the indicator quick list to this commodity chart.
• Select either Tbonds or Tbills as the security to use to spread. I recommend you plot this in a new inner window.
• Drag the Price Oscillator from the indicator quick list and drop it on the SPREAD plot, not the price plot. The parameters Mr. Williams' uses are 7 and 11 time period exponential moving averages. You also want to use "points" as the method. This plot is the WillSpread indicator.
• At this point, you may change the Spread Indicator plot's color to match the background of the chart, or perhaps move the WillSpread indicator to a separate inner window.

If you save this first effort as a template, perhaps named WillSpread, you are able to apply this template to any commodity you wish and the indicator will be automatically calculated against that commodity.

You may also use the "Next Security" function within MetaStock for Windows to view each of your commodities by setting the options for next security to "Keep line studies". If you apply this template to the first commodity in your futures folder, you may then use the right arrow to move down the folder contents. Each new commodity will have the WillSpread calculated as it is loaded.

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Working with DMI

{Smoothed DMI Index (20 Period Moving Average)}

Mov(PDI(14)-MDI(14),20,S)


OPEN LONG:
close>hhv(low,21)


CLOSE LONG:
close<llv(high,21)

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Writing Metastock Explorations

MetaStock is a marvellous program for traders, but can appear complicated and intimidating at first. In reality, it's easy and fun, if you take it slowly, step by step.

Let's consider a common trader's question: "How can MetaStock help me find all the stocks where the 3 day moving average has just crossed above the 10 day moving average?"

MetaStock's Explorer tool allows you to search all the stocks in the ASX, and within a minute or two (depending on your computer's speed!) generate a list of all stocks meeting this particular criteria.

Here's a step by step guide for beginners:

1. Open up your Explorer tool in MetaStock by clicking on the little "binoculars" symbol in the upper right field of your screen, or find it under Tools in the drop-down menu.

2. You will be presented with the Explorer screen showing a list of ready-made Equis Explorations plus various options to view or edit them. More about these later. Look instead at the list of options to the right.

3. Choose the "New" button and click. You've just starting writing your own MetaStock Exploration! MetaStock gives it the name "<New Exploration>" but let's rename it "Moving Average Crossover" for the sake of this exercise.

4. Note that the Explorer screen has an upper section labelled "Notes" and then, just below, seven columns, with tabs, labelled "A" to "F," plus "Filter." For now we're just going to work with the "Filter" column. Click on its tab and you're ready to write a MetaStock formula in this column.

5. Enter the following without the quotation marks: "Cross( Mov(c,3,s) , Mov(c,10,s) )" but don't worry about the *spaces* between letters and punctuations marks, nor about capitalisation.

6. Here's a quick explanation to ponder, before we go further. What you've just entered under MetaStock Explorer's Filter is a much more simple formula than you realise! It means only "Crossover A over B" or "Crossover 3 over 10" in ordinary English. MetaStock writes this as "Cross( A , B )" where A and B are other MetaStock formulas, any formulas you like. In this case, we're putting two different moving averages in the place of A and B. MetaStock writes the English language phrase "Moving Average of the past 3 days" as "mov(c,3,s)" and the second moving average is exactly the same, with the numeral 10 substituted for the 3.

7. Your first MetaStock Exploration is now finished. Click "OK" in the lower left of the Explorer field to save it and you will quickly find your own "Moving Average Crossover" Exploration added to those already on MetaStock's ready-made list.

8. Next, click on the "Explore" button and MetaStock will prompt you for the path to the place on your computer where you have all your ASX (or other) data. Choose which securities you want to scan. I suggest that you choose them all to start with, and save this as a "List" named "All" so that when you make more Explorations you won't have to go through this step again. You can just choose the "All" list whenever you want to scan stocks. (Take note at this point that MetaStock has excellent assistance for you under its "Help" tab as well as one of the best software manuals ever written.)

9. MetaStock will quickly verify that your stocks are where you say they are, and prompt you for an "OK". Once you do this, you can watch a nifty screen where MetaStock outlines its search for all the stocks that match your search (Filter) criteria. How long this process takes depends once again on the speed of your computer!

10. When Explorer is finished you should choose the "Report" option to find a filtered list of all the stocks which *today* have their 3 day moving average rising above their 10 day moving average. MetaStock allows you to open each or all of these stocks in full screen pages for further analysis.

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WRO and WSO Indicators

In the May 1998 issue of STOCKS & COMMODITIES, a Traders' Tip provided MetaStock formulas for calculating support and resistance levels and the WRO and WSO support and resistance oscillators. The Traders' Tip was based on my article, "Automated Support And Resistance," also in that issue. Since then, I've received many E-mail messages from STOCKS & COMMODITIES readers about it. While the method was well received, the formulas provided were a bit confusing and could use some clarification. Further, execution was slow and screening of large numbers of stocks was difficult. Since then, I have
developed a faster and improved method for computing these indicators.

To begin, the support levels S1 through S6 and the resistance levels R1 through R6 are separate indicators (12 in all), and each should be entered using the custom indicator option in the indicator builder.

S1 Indicator:
ValueWhen(1, Ref(L,-4) = LLV(L,9), Ref(L,-4))

S2 Indicator:
ValueWhen(2, Ref(L,-4) = LLV(L,9), Ref(L,-4))

S3 Indicator:
ValueWhen(3, Ref(L,-4) = LLV(L,9), Ref(L,-4))

S4 Indicator:
ValueWhen(4, Ref(L,-4) = LLV(L,9), Ref(L,-4))

S5 Indicator:
ValueWhen(5, Ref(L,-4) = LLV(L,9), Ref(L,-4))

S6 Indicator:
ValueWhen(6, Ref(L,-4) = LLV(L,9), Ref(L,-4))

R1 Indicator:
ValueWhen(1, Ref(H,-4) = HHV(H,9), Ref(H,-4))

R2 Indicator:
ValueWhen(2, Ref(H,-4) = HHV(H,9), Ref(H,-4))

R3 Indicator:
ValueWhen(3, Ref(H,-4) = HHV(H,9), Ref(H,-4))

R4 Indicator:
ValueWhen(4, Ref(H,-4) = HHV(H,9), Ref(H,-4))

R5 Indicator:
ValueWhen(5, Ref(H,-4) = HHV(H,9), Ref(H,-4))

R6 Indicator:
ValueWhen(6, Ref(H,-4) = HHV(H,9), Ref(H,-4))

These 12 indicators should be individually plotted with the price data as points, not lines (click on each and change the style to the one on the bottom of the style menu). The color red is recommended for the support levels S1 through S6 and the color blue for the resistance levels R1 through R6. Entering these formulas and changing the style takes a bit of time, but once done, they can be saved as a template and easily applied to anotherstock.

If you are interested only in computing the WRO and WSO indicators, then these formulas can be entered as shown here. It is not necessary to compute S1 through S6 or R1 through R6, since the new formulas are now self-contained. The new WRO and WSO formulas also contain max and min functions to ensure that the change for each level is either zero or 1. This avoids a rare but occasional error when the price change is very large over a short period.

WSO Indicator:
L1:=ValueWhen(1,Ref(L,-4)=LLV(L,9),Ref(L,-4));
L2:=ValueWhen(2,Ref(L,-4)=LLV(L,9),Ref(L,-4));
L3:=ValueWhen(3,Ref(L,-4)=LLV(L,9),Ref(L,-4));
L4:=ValueWhen(4,Ref(L,-4)=LLV(L,9),Ref(L,-4));
L5:=ValueWhen(5,Ref(L,-4)=LLV(L,9),Ref(L,-4));
L6:=ValueWhen(6,Ref(L,-4)=LLV(L,9),Ref(L,-4));
L1M:= Max(0,Min(1,Int(L1/C)));
L2M:= Max(0,Min(1,Int(L2/C)));
L3M:= Max(0,Min(1,Int(L3/C)));
L4M:= Max(0,Min(1,Int(L4/C)));
L5M:= Max(0,Min(1,Int(L5/C)));
L6M:= Max(0,Min(1,Int(L6/C)));
100*(1-(L1M+L2M+L3M+L4M+L5M+L6M)/6)

WRO Indicator:
L1:=ValueWhen(1,Ref(H,-4)=HHV(H,9),Ref(H,-4));
L2:=ValueWhen(2,Ref(H,-4)=HHV(H,9),Ref(H,-4));
L3:=ValueWhen(3,Ref(H,-4)=HHV(H,9),Ref(H,-4));
L4:=ValueWhen(4,Ref(H,-4)=HHV(H,9),Ref(H,-4));
L5:=ValueWhen(5,Ref(H,-4)=HHV(H,9),Ref(H,-4));
L6:=ValueWhen(6,Ref(H,-4)=HHV(H,9),Ref(H,-4));
L1M:= Max(0,Min(1,Int(L1/C)));
L2M:= Max(0,Min(1,Int(L2/C)));
L3M:= Max(0,Min(1,Int(L3/C)));
L4M:= Max(0,Min(1,Int(L4/C)));
L5M:= Max(0,Min(1,Int(L5/C)));
L6M:= Max(0,Min(1,Int(L6/C)));
100*(1-(L1M+L2M+L3M+L4M+L5M+L6M)/6)

The WRO and WSO oscillators are generally plotted together on a separate scale from the price plot. It is helpful to add horizontal lines at zero and 100 on this same scale. Horizontal lines can be added by clicking on the indicator and selecting "horizontal lines" from the Indicator Properties menu.

These formulas run much faster (by 40 times) than the earlier formulas, and theyХve been tested successfully with both end-of-day data and real-time data using MetaStock Professional Version 6.51.

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Weekly High Low Wave

if(H,>,ref(hhv(H,40),-1),1, if(L,<,ref(llv(L,40),-1), -1,0))

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Weekly Oscillator Segment

mov(oscp(43,86,S,%),43,S)

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Weekly Price Oscillator

mov(oscp(10,20,S,%),10,S)

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Wilder's Volatility

In his book New Concepts in Technical Trading Systems, J. Welles Wilder Jr. talks about volatility and describes his Volatility Index and Volatility System. Both of these can be performed in MetaStock™ for Windows. This document describes how to construct both the index and the system.

The Volatility Index (VI) is described by Wilder as:

VI Today = (13 * VI Prev + TR1) / 14 *where TR1 is today's true range.

He defines the true range as the greatest of the following:

1. The distance from today's high to today's low

2. The distance from yesterday's close to today's high, or

3. The distance from yesterday's close to today's low.

In MetaStock version 5.0 or higher you would use the following function.

VI Today = ATR(14)

The Volatility System is:

Enter Long

Cross(C,Ref(LLV(C,7),-1)+(Ref(ATR(7),-1)*3))

Enter Short

Cross(Ref(HHV(C,7),-1)-(Ref(ATR(7),-1)*3),C)

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