3-Bar-Reversal-Pattern Strategy

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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 StrategyVersion:            1.0  09/25/2008Notes:     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;}