3-Bar-Reversal-Pattern Strategy

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 StrategyVersion: 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;
}