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Indicators
Examples and interpretation of many commonly used
indicators.
Custom
Formulas
Custom explorations, indicators and trading systems.
Price
Charts
Examples and interpretation of all charts used in
technical analysis.
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MetaStock
Indicator - Gap
Trading
Here is the
gap-trading system code for use in Equis
International's MetaStock software. For practical
reasons, the system has been defined as an
indicator rather than a system, showing the
cumulated profit.
dn:=
1.0;
up:= 1.0;
gap:= 100*(OPEN - Ref(CLOSE, -1))/Ref(CLOSE,
-1);
prf:= If(gap>=up, OPEN-CLOSE, If(gap<=-dn,
CLOSE-OPEN,0));
Cum(prf); |
"Gaps typically reflect the highly charged
emotional feelings of the crowd. For
example, if a gap appears on the upside, it
is telling us that buyers are so motivated
they are prepared to pay more for a security
today than they did throughout yesterday's
trading session.
"Downside gaps let us know that sellers are so fearful they
are willing to liquidate at prices well
below yesterday's trading range."
Taken from Introduction to Technical
Analysis --by Martin Pring, McGraw-Hill,
1998, pp. 127, |
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