Short strategy

ratbhatt
ratbhatt ✭
in Market and Breadth Indicators
Hello,

I had a good success with my Swing long strategy and was tinkering with short setup. The requirements are as below:
Short
Close < 24 day Ema.
Close crosses down MA(high, 10) from up.
RSI 4 < 50.
Macd 3,12 histogram current period less than previous period .
Adx 5 > 35

What I am struggling with is the MACD Histogram settings. What I have written so far is below


// set stock universe
[Country is US]

and

[type = stock] AND [group is not ETF] and [name not contains "Trust"] and [name not contains "Notes Due"] and [name not contains "Shares"] and [name not contains "Fund"]

and

[ TODAY CLOSE < EMA (24, CLOSE)] AND
[ TODAY CLOSE x SMA(10, HIGH)] AND

[RSI(4) < 50] AND

[MACD Hist(12,3) < 1 day ago MACD Hist(12,3)] AND

[ADX Line(5) > 35.0]

AND [SCTR > 70]

RANK BY SCTR

Is this correct? specifically for the MACD HISTOGRAM piece?

Comments

  • ratbhatt
    ratbhatt ✭
    Also the crossover of TODAY CLOSE x SMA(10, HIGH is slightly confusing since I want to scan for stocks whose price is falling from SMA (10, HIGH) and not the other way around where it is catching rising price crossover. I hope I am able to explain.
  • ratbhatt
    ratbhatt ✭
    ok, I reversed this part and now indicates the falling price instead or rising, but still not getting any results with all the conditions in place.

    [ SMA(10, HIGH) x TODAY CLOSE ] AND
  • markd
    markd mod
    edited September 2017
    Although the scan passes syntax, MACD Hist usually takes 3 parameters. The default is 12,26,9. So for instance

    and [MACD Hist(12,26,9) < 1 day ago MACD Hist(12,26,9)]

    Apparently, you are using different parameters, which is OK. But if you use only 2, the scan engine probably assumes 12 is the first EMA, 3 is the second EMA, and the third parameter is 0 for the Signal line (the ema of the difference of the first two emas), so there wouldn't be a Signal line. If there is no Signal line, there is no difference between Line and Signal, so no Hist, so Hist would never be less than 1 day ago Hist.
  • ratbhatt
    ratbhatt ✭
    okay @markd . thank you so much. I will correct that one. Many thanks

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