Muddy 3 day fail filter
set{x,count(volume 3 days ago above volume 4 days ago,1)*2} and set{y,count(volume 3 days ago above average volume(90),3)} and set{z,x+y} and z is above 1.1 and close 3 days ago had been decreasing over the last 3 days and average volume(90) 3 days ago is above 100000 and close 3 days ago is between 1 and 10 and low 3 days ago is below lower bollinger band(20) 3 days ago and count(close 3 days ago above open 3 days ago,3) is below 2.1 and day change has been below 0 for the last 3 days and set{a,count(volume above volume 1 day ago,1)} and set{toptail,high-open} and set{bottail,close-low} and set{taildelta,bottail-toptail} and set{b,count(taildelta is above 0,1)} and set{c,a+b} and c is above 0 and set{d,count(volume 1 day ago above volume 2 days ago,1)} and set{toptaila,high 1 day ago-open 1 day ago} and set{bottaila,close 1 day ago-low 1 day ago} and set{taildeltaa,bottaila-toptaila} and set{e,count(taildeltaa is above 0,1)} and set{f,d+e} and f is above 0 and set{g,count(volume 2 days ago above volume 3 days ago,1)} and set{toptailb,high 2 days ago-open 2 days ago} and set{bottailb,close 2 days ago-low 2 days ago} and set{taildeltab,bottailb-toptailb} and set{h,count(taildeltab is above 0,1)} and set{i,g+h} and i is above 0 offset is 0
I'm really interested in talking to Muddy about how he analyzes upper and lower tails on candles.... perhaps there is something that can be put into calculator form... I'll update if I ever come upon such information.
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10 comments:
Muddy is the man...so generous with this knowledge and definitely a trader to look up to.
And you too, JV...your blog is awesome and you've given me some great insight that will help me in the long run as a trader
aw shucks Yng, I've learned as much from you as you have from me... keep on keepin' on my brother
Thanks Johhny...
Like I say,if you or anyone else can code that scan to change it from 3 day fail to 2 day fail,we could be able to catch them at an even higher price to begin shorting them.
Because of this huge overall downtrending market it would be even a better advantage.
Here's a quote by the highly respected Brian Shannon from a short selling article Laura just posted on Darkside... "The correct time to sell a stock short is when it is either in, or entering, a downtrend."
Doing date offsets on the 3 day fail shows some wicked nasty downtrend charts.
TLB from the scan shows 15 straight red candles in a row!!
btw,.. a very generous friend of mine,Murknd,wrote the scan off my idea
UPDATE...
I just found the 1 and 2 days fail scan!
Go to Darkside,Laura is hooking up the link now...If not a member over on the link,StockFetcher/Muddy group you'll need to sign up to read the document files but it's free and only takes a minute.
These scans were written when the market was "average",not up big nor down so we were looking for bouncers off the lbb...times have changed dramatically now,these fail scans now point out ones that can just keep riding that lbb down and down...
Make hay while the sun shines,haha
There's a bunch of scans in the document files over there...Some may even be as good as the fail scan in these times...might be worth a look,I'm going in there now to see...sure has been awhile!
Link posted under Important Links.
After you register for the group, find the filters on the left sidebar under Files--Filters--Muddy Fail Filters.
Over on Yng's blog there's a discussion about RMTI and it's bottom shadows(tails)which brings another thing I've looked at through the years...
Looking at RMTI chart as an example the one candle that stands out for me is the 11/13 one.Look for a WHITE CANDLE AT THE LBB WITH A TAIL AT LEAST AS BIG AS THE CANDLE BODY OR BIGGER.
These can and do many times kickstart a rally.
RMTI closed that day at 1.60 and ran as high as 4.50 close 5 days later.
2 other variations of this pattern..
RDN close price candle on 10/10,just under the lbb,white also
DDR close price candle on 10/23,just above lbb BUT bottom shadow(huge too compared to body)piercing the lbb,white also
Now that you pointed that out I'm seeing it everywhere- oh man look at NWA chart, that was a killer signal like 5 or 6 times alone in the past couple months- Muddy strikes again!
Sounds like ripe words for a new scan for long watches.
the funny thing is Muddy and these guys were using these scans years ago, we are all just rediscovering them
Thanks Laura and Muddy for the updated links and scans.. I'm so glad my post reminded everyone of what you already had accomplished...my role here is just to get all the geniuses organized, haha
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