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DeMark
DYO, V new option, plotting Bid, Price Finder MACD cross zero, Matching
amplified scales |
April 13 , 2005
@Ensign_H: Welcome to today's training class with Ensign developers.
@Ensign_H: We hope you have had a good week of trading.
17:02 @Ensign_H: We have harvested a few excellent chart examples from the dacharts site where customers are doing amazing things with Ensign,.
17:02 @Ensign_H: The library of examples is on the Charts button page of our web site.
www.ensignsoftware.com/help/screens.htm
17:02 @Ensign_H: You can scroll down to the middle of the page and see the sections for exceptional charts and for chART Gallery
DeMark TD Sequential DYO
17:02 @Ensign_H: one chart of particular interest to me is the Demark counts shown above and below the bars as in this example.
17:02 @Ensign_H: Last week a user asked about using a DYO to accomplish this, and I deferred at that time answering because of the complexity of the logic.
17:02 @Ensign_H: However, after class, I added a couple of things to the DYO form so that the counts could be obtained without to much difficulty.
17:02 @Ensign_H: permit me to take a couple moments explaining how the counts are obtained, and this will be an article for a Trading Tips newsletter.
17:02 @Ensign_H: Basically the idea is to look at the close now and compare it with the close 4 bars back. This is known as a Momentum of 4 bars for the close. If the momentum is up, then increment the up counter and label the bar with the current bar count. If the momentum is down, then increment the down counter and label the bar with the down bar count. If the momentum is flat, ie close = close(-4) then reset both counters. An up momentum also resets the down counter, and vice versa.
17:02 @Ensign_H: lets see how the DYO implements these ideas.
17:02 @Ensign_H: Line A read bar closes in the Line A array.
17:02 @Ensign_H: Then Line B can use the Momentum function to operate on Line A values, the size of the momentum is the Number value of 4.
17:02 @Ensign_H: So Line B is the 4 bar momentum of Closes., and we store this momentum in a global variable for use in our Up and Down test.
17:02 @Ensign_H: Line C is the test of momentum being above zero... read GV[4], test against zero, and store boolean flag result in gv[3]
17:02 @Ensign_H: GV[1] is our up counter, so when Line C is true it then does Line D which increments the Up Counter.
17:02 @Ensign_H: Content of GV[1] is read, one is added to it, and resaved in GV[1]., and this count is plotted above the high of the bar in blue.
17:02 @Ensign_H: IF line C is not true, then Line E will test for that and store a zero in our up counter via Line F.
17:02 @Ensign_H: So line E and F accomplish a reset of our up counter back to zero to start a new count when it does not increment.
17:02 @Ensign_H: Lines G through J are a mirror image of the logic, but doing the test for down momentum, and either incrementing GV[2] or clearing GV[2] which is our down counter.
17:02 @Ensign_H: now, the user in their posted chart used 2 separate DYOs, one to do just the up counter control and post the count above the high of the bar. The 2nd DYO was used for just the down counter, so that the down count could be posted in a DIFFERENT position, namely below the bars.
17:02 @Ensign_H: because 2 different positions are wanted, 2 different DYOs were uses for each half.
17:02 @Ensign_H: The Marker is key to all this. The BAR selection will print the integer value of the line value. If we had a marker of a Price, it would have shown the same line value in decimal, and 1.00 is not as clean as showing just 1. So that is the value of using the BAR marker for this particular DYO application.
17:02 @Ensign_H: ok, any questions about this DYO example for the Demark momentum count?
17:02 @Ensign_H: To do the example DYO you will need to be on a current version of Ensign Windows..... a version a week old will not do it.
17:02 @Buffy: the template is in yesterdays folder scooter and will also be on dacharts template page
chART
17:02 @Ensign_H: ok, guess we can move on.
17:02 @Ensign_H: Some of the charts in the chART Gallery are fantastic, and many come from TOC..... thanks.
17:02 @Ensign_H: Here is one of his creations.
17:02 @Ensign_H: This was done with studies in Ensign. You might want to browse other examples in the Gallery on the Ensign web site, or look for additional examples posted daily on dacharts site.
17:02 @Ensign_H: I enjoy seeing them, and the one I showed is one of my favorites.
17:02 @Ensign_H: any questions about the art
17:02 @Ensign_H: I see TOC is present in the room, perhaps he has a comment or two about his creations.
17:02 TOC: It was a great learning experience, in understanding the ability to color studies and how they work
Echat Background Color Adjustable
17:02 @Ensign_H: The 4-13 version of Ensign and of eChat have a new property to set the background color of the text area. That is not a big thing, but some may want to change the background color off of the default white.
17:02 @Ensign_H: on eChat the Setup | Property form will have a new color panel you click on to select a different color. In Ensign you have Chat room open and then click menu Windows | Set Window Color to make the change.
Volume Bars New Option
www.ensignsoftware.com/whatsnew.htm
17:05 @Ensign_H: let me explain the 3rd item lists about Constant Volume charts.
17:06 @Ensign_H: we had some who wanted to compare our constant volume bars with other products like eSignal and TradeStation. we observe that in these 2 competing products they do their constant volume bars differently..... the difference being that the do not roll the excess volume from one bar to the next.
17:08 @Ensign_H: Thus if the bar is to have 500 volume, and the count is currently at 490, and a tick with a volume of 50 is received, they add the whole 50 to the current bar which was not yet to 500. Thus the current bar volume becomes 490+50 = 540
17:09 @Ensign_H: Ensign's approach on constant volume is to take 10 from the tick to finish of the bar at 490, so its volume is 500, and then roll the excess of 40 to the next bar to begin the next bar.
17:10 @Ensign_H: because some want our volume bars to be more like eSignals or TS, we have added a check box option to accomplish that.
17:10 @Ensign_H: On our Setup | Charts form, there is now a new property option you can check or uncheck to select whichever characteristic you prefer. Keep it like we originally implemented the rollover, or change it to be like eSignal's volume bars.
17:11 TOC: so do nothing to keep it the same, correct?
17:13 @Ensign_H: correct TOC, do nothing keeps it the same as the original
17:11 tt2: I prefer the Ensign approach too but options are always welcome for comparison
17:11 @Ensign_H: Our implementation would act this way to roll excess..... say the volume bar is for 500 volume, and a big trade of 2000 comes in.
17:12 @Ensign_H: well we would finish off the current bar, add a bar with 500 and deduct from the 2000, add another bar with 500 volume and deduct form the 2000. we keep adding constant volume bars until the big volume is distributed, and any fraction part left over is the beginning of a new bar.
17:13 amg: so, in a sense, no "hidden" volume
17:14 @Ensign_H: kind of like Original Recipe for chicken or Coke.
17:14 @Ensign_H: correct amg.... on the volumes for eSignal and TS you see a jagged line for their volume bar volumes.
:14 @Ensign_H: This is because the threshold of 500 is treated as a minimum.
17:15 @Ensign_H: a new bar starts when the last bar has a volume of 500 or more. and the example given earlier shows how the volumes would be of random amounts, but all equal to or above the threshold, which in my examples has been 500.
Plotting Bid/Ask
17:17 @Ensign_H: let me now discuss the 6th item on the What's New list about plotting BID>
17:18 @Ensign_H: some forex traders with the IB feed have expressed a desire to plot the BID instead of the last because on the IB feed the bid updates frequently and the Last infrequently.
17:18 @Ensign_H: So, the current version will permit the user to select which is plotted. To plot the BID append to the end of the Forex symbol the following (BID).
17:19 @Ensign_H: example symbol for the Ideal exchange is EUR/USD(BID)
17:19 @Ensign_H: example symbol for the IdealPro exhange is EUR/USD-(BID) where the - character causes the exchange to be IdealPro instead of Ideal.
Coloring Sections with 3 colors
17:20 @Ensign_H: ok, guess that is all I have to cover.... and we can have Q&A session now.
17:21 @Ensign_H: if too many ask at once, we will resort to coloring your nick to be called on
17:22 @Buffy2: the coloring dyo problem I had last night you had no solution for correct? If you did I missed it and can use reg alerts to do
17:22 @Ensign_H: not sure I understood your DYO question, so please ask again buffy and we can answer yea or nay
17:23 @Buffy2: adding the slope for 2 mas gives a number - if that number is above 30 want to color it green - if below -30 color it red - no color in between that range - lets color section six
17:24 @Ensign_H: ok, 1 moment
17:25 @Ensign_H: The section coloring can be a dual color, meaning the True state coloring can be form one DYO line and the False state coloring from the next adjacent DYO line. These are choices shown on the Line Logic drop down list - in your case you have 3 states, or 3 colors, so you will have to resort to using your alerts to do this
17:26 @Buffy2: thank you
Disconnecting Ensign from Feed
17:26 TOC: @Ensign_H, Howard, at the end of the day, I need to stop Globex data from coming, What is the best way to disconnect from data feed. I use DTNiq
17:27 @Ensign_H: TOC your easiest way is to change Setup | Connection state to another vendor selection, such as to Ensign Internet then Ensign will disconnect from IQFeed and the IQFeed icon will be removed from the system tray
17:27 TOC: ok...TY
Price Finder for MACD Crossing Zero
17:30 hobo: Howard how would you create a dyo where the price finder finds price where macd histogram crosses zero? was thinking of displaying those like a price histogram
17:31 @Ensign_H: hobo, in the DYO you have a line that resolves to a boolean flag from the macd spread such as is it above or below zero - then the PriceFinder can find the price that makes the flag state change \that is the price that causes it to cross zero.
17:32 @Ensign_H: let me see if I already have example like that to show you, 1 moment.
www.ensignsoftware.com/tips/tradingtips63.htm#CCI
33 hobo: I can do it for the macd inflecting but am having problems with the histo zero line,
17:33 @Ensign_H: look at the CCI example, LIne A is the flag being tested, and Line B is the Pricefinder for that line A flag
17:33 @Ensign_H: LIne B is reading the GV[1] written by LIne A... .that is what connects them.
17:34 @Ensign_H: ok, hobo, give me a couple minutes to post an example of macd histogram
17:35 @Ensign_H: so in this chart, with macd,. you want to know price that will cause the GREEN histogram bars to cross the mid-panel zero line?
17:35 hobo: yes
17:37 chubaka: Hobo, that will be the same answer as when the red and blue lines on the chart cross.
17:38 @Ensign_H: here is the solution
17:38 @Ensign_H: chubaka is correct, the MACD flag for Study above it Average is the same as the histogram above or below zero.
17:39 @Ensign_H: So that is our Line A flag, and it saves to [1] so PriceFinder and test [1] for a solution
17:39 @Ensign_H: the Solution is plotted in Red using the stair step curve...and you can see the solution is logical because as the macd lines cross, the solution and the bars also cross.
17:40 @Ensign_H: this is pretty neat stuff you are seeing demonstrated with PriceFinder technology.
Matching amplified scales with average
17:41 Huios1: H, I am trying to plot a 1 and 5 MA on a MACD in the same sub window, I can't seem to get them on the same scale
17:43 @Ensign_H: ok huios, the MACD will auto scale for its own data to be plotted
17:43 @Ensign_H: let me ask a couple questions about the chart - which is window 6, the one with the white and black curve lines - I guess the gray and black lines
17:44 Huios1: yes
17:44 @Ensign_H: should the gray line for 1 period be on top of the histogram bar extremes? ok, show me the property form for the histogram, it has an amplification multiplier
17:47 @Ensign_H: yes see the 8 by the spread, this is plotting the line FOUR TIMES its original value so it shows better on the plot, the spread know about this multiplier, but the Average tool you are using does not - they are plotting on the same scale, but the average value is 1/4th of the amplitude of the bars that plot for the histogram.
17:48 @Ensign_H: now we can probably compensate for this using a DYO instead of an Average tool - give me one moment to show how to use a DYO to do the curve instead of an Average and you wanted a 1 and a 5 period line and I see formula is simple average, ok 1 moment for me to set up and show solution.
17:49 Huios1: yes
17:52 @Ensign_H: ok, this will illustrate the process to use..... the macd is the green histogram and its multiplier is a 6 - so on the DYO I am reading the macd spread on LIne A and saving to GV[1] - for the sake of illustration I am plotting this value in Red and like your Average it is undersized
7:54 @Ensign_H: Line B is taking the value in [1] and multiplying it by the amplitude factor which is the Spread 6 value divided by 2.
17:54 @Ensign_H: the spread multiplier goes in half steps so a 6 is a gain of Times 3.
17:55 @Ensign_H: and you can see the Purple line now plots perfectly on the height of the spread. - now let me do the 5 average for you with another post
17:55 @Ensign_H: any questions so far?
17:55 Huios1: no
17:57 @Ensign_H: since Line B has the right values, correctly scaled, I just did the 5 simple average on it and plotted it in thick Black color.
17:57 Huios1: I got it... thanks
17:57 @Ensign_H: cool ... great....thanks for coming to class today, and you all have a great week.
17:58 123: ty - Don: ty - Huios1: thank you.... just love this software
17:58 chubaka: tks H, always great listening to you
17:58 @Ensign_H: helping some with their examples like this one with Huios are good learning exercises for all - they teach how things might be accomplished in Ensign and of course, there probably is more than one way to do the same thing.
17:58 @Ensign_H: so have a great day, bye
18:00 hobo: ty Howard, very good stuff
18:00 TOC: TY Howard - Buffy2: very good today