Breaching a previous resistance in a downtrend


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Hello,

First off, thank you so much for your videos.  They really have taught me a lot about the TOS platform.

I am looking to develop code that will alert me to the moment that a stock breaks a previous high (a resistance at this point) that was set in a downtrend.  For example: a stock has been trending downward for a given amount of time (lower highs and lower lows), and the stock reverses position and breaks the previous lower high.  This would be similar to an inverse head and shoulders pattern, where the shoulder and head have been defined.  When the trend returns to the neckline after making the head, it breaches the neckline (which was the previous high).  The attached photo exemplifies what I am looking for.

Thanks again,

Jason

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Posted by (Questions: 1, Answers: 1)
Asked on June 28, 2018 10:15 am
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Private answer

Much more difficult than you think.

Let’s look at your description:
“a stock has been trending downward for a given amount of time (lower highs and lower lows), and the stock reverses position and breaks the previous lower high”. This requires clear specifications.

  1. Define how to measure the trend
  2. What is the “given amount of time”
  3. How do you determine the “previous lower high”? It must be pure logic, yes/no. Something a computer would easily understand.
  4. And even before we do that, how do you determine a “lower high” and a “lower low”?

I only write the code. The specifications must be provided by you. The solution to this would be much more complex than something we would provide for free in our Q&A forum. There is some serious work required here. You are welcome to submit this as a project request subject to our rates and terms: https://www.hahn-tech.com/about/

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Posted by (Questions: 37, Answers: 4087)
Answered on June 28, 2018 11:10 am
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Gotcha. I appreciate the timely response.

( at June 29, 2018 11:46 am)