3BarReversal.efs
EFSLibrary - Discussion Board
File Name: 3BarReversal.efs
Description:
3-Bar-Reversal-Pattern Strategy
Formula Parameters:
Notes:
This startegy based on 3-day pattern reversal described in "Are Three-Bar Patterns Reliable For Stocks?" article by Thomas Bulkowski, presented in January,2000 issue of Stocks&Commodities magazine.
That pattern conforms to the following rules:
- It uses daily prices, not intraday or weekly prices;
- The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed;
- The last day must have a close above the prior day's high, with no ties allowed;
- Each day must have a nonzero trading range.
Download File:
3BarReversal.efs
EFS Code:
/*********************************
Provided By:
eSignal (Copyright c eSignal), a division of Interactive Data
Corporation. 2008. All rights reserved. This sample eSignal
Formula Script (EFS) is for educational purposes only and may be
modified and saved under a new file name. eSignal is not responsible
for the functionality once modified. eSignal reserves the right
to modify and overwrite this EFS file with each new release.
Description:
3-Bar-Reversal-Pattern Strategy
Version: 1.0 09/25/2008
Notes:
This startegy based on 3-day pattern reversal described in "Are Three-Bar
Patterns Reliable For Stocks?" article by Thomas Bulkowski, presented in
January,2000 issue of Stocks&Commodities magazine.
That pattern conforms to the following rules:
- It uses daily prices, not intraday or weekly prices;
- The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed;
- The last day must have a close above the prior day's high, with no ties allowed;
- Each day must have a nonzero trading range.
Formula Parameters: Default:
**********************************/
function preMain() {
setPriceStudy(true);
setStudyTitle("3BR");
setCursorLabelName("3BR");
setColorPriceBars(true);
setDefaultPriceBarColor(Color.black);
}
function main() {
if(getCurrentBarIndex() == 0) return;
if (!Strategy.isLong()) {
if(open(-2) > close(-2) && high(-1) < high(-2) && low(-1) < low(-2) && low(0) > low(-1) && high(0) > high(-1) + 0.25) {
Strategy.doLong("Long", Strategy.CLOSE, Strategy.THISBAR);
}
}
if (!Strategy.isShort()) {
if(open(-2) < close(-2) && high(-1) > high(-2) && low(-1) > low(-2) && high(0) < high(-1) && low(0) < low(-1) + 0.25) {
Strategy.doShort("Short", Strategy.CLOSE, Strategy.THISBAR);
}
}
if(Strategy.isLong())
setPriceBarColor(Color.lime);
if(Strategy.isShort())
setPriceBarColor(Color.red);
return;
}