Thomas DeMark's newly improved TD Range Expansion Index (TASC, August 1997) comes with the TD Price Oscillator Qualifier, which is designed to find low-risk entry and exit points. Here's my interpretation of TDPOQ, based on the steps outlined in TASC.
"Var" and "Var1" are variables representing low and high ranges of TDREI. I'll post the TDREI formula after the TDPOQ. Both systems are designed for market timing. You'll find the system doesn't test well with low-cap stocks. Test it on the DJ-30, the Nasdaq Composite and the like.
It takes WOW pro 5.0 a long time to process these systems. Be forewarned: A profit test takes longer than two minutes.
Anyway, here's my interpretation of TDPOQ for WOW:
Enter market:
ref(fml("TD Range Expansion Index"),-1)<=-var
and ref(fml("TD Range Expansion Index"),-6)>ref(fml("TD Range Expansion Index"),-1)
and open<=ref(h,-1) and h>ref(h,-1)
I set "var" default at 80 (with the minus in the formula, it comes out to be -80)
ref(fml("TD Range Expansion Index"),-1)>var2
and ref(fml("TD Range Expansion Index"),-6)<ref(fml("TD Range Expansion Index"),-1)
and open>=ref(l,-1) and l<ref(l,-1)
I set "var2") at 95
And here again is a WOW translation of TDREI:
TD1:
h-ref(h,-2)
TD2:
l-ref(l,-2)
TD3:
If((h>=ref(l,-5) or h>=ref(l,-6)) and (l<=ref(h,-5) or l<=ref(h,-6)),1,0)
TD4:
If((Ref(h,-2)>=ref(c,-7) or ref(h,-2)>=ref(c,-8)) and (ref(l,-2)<=ref(c,-7) or ref(l,-2)<=ref(c,-8)),1,0)
TD5:
If(Fml("TD3") + fml("TD4")>=1, fml("TD6"), 0)
TD6:
Fml("TD1") + fml("TD2")
TD7:
Abs(fml("TD1")) + abs(fml("TD2"))
TD Range Expansion Index:
((Fml("TD5") + ref(fml("TD5"),-1) + ref(fml("TD5"),-2) + ref(fml("TD5"),-3) + ref(fml("TD5"),-4))/ (Fml("TD7") + ref(fml("TD7"),-1) + ref(fml("TD7"),-2) + ref(fml("TD7"),-3) + ref(fml("TD7"),-4)))*100 |
