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Explosive Move Predictor (EMP) Scanner by Linda B Raschke for Amibroker (AFL)

Rating:
4 / 5 (Votes 3)
Tags:
amibroker, scanner

Explosive Move Predictor (EMP) scanner. Concept by Linda B Raschke

Conditions for an EMP day :
1. Identify a trading day with the narrowest daily range of the last four days.
2. Then identify an inside day which has a higher low than the previous day’s low and a lower high than the previous
day’s high.
3. The day in which both these conditions are fulfilled sets up an EMP day.

Here are the rules for entry:
>. The next day only, place a buy-stop one tick above and a sell-stop one tick below the EMP bar.
>. On entry day only, if we are filled on the buy side, enter an additional sell-stop one tick below the EMP bar.
This means that if the trade is a loser, not only will we get stopped out with a loss, we will reverse and go short.
(The rule is reversed if initially filled on the short side.)
>. Trail a stop to lock in accrued profits.
>. If the position is not profitable within two days and you have not been stopped out, exit the trade MOC (market
on close.) Our experience has taught us that when the setup works, it is usually profitable immediately.
Setting up realistic targets :
>. Take a 8 day ATR ( Average True Range)
>. Add this value with the high of the EMP day to have the target price in case of a buy breakout
>. Subtract this value from the low of the EMP day to have the target in case of a sell breakdown.
>. Chase the trade with a trailing stoploss of the high or low of the previous bar as the case may be

Indicator / Formula

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Explosive Move Predictor (EMP) scanner. Concept by Linda B Raschke

EMP_1_Day=(HHV(H,1)-LLV(L,1))<(Ref(HHV(H,2), -1)-Ref(LLV(L,2), -1)) AND (HHV(H,1)-LLV(L,1))<(Ref(HHV(H,3), -2)-Ref(LLV(L,3), -2)) AND (HHV(H,1)-LLV(L,1))<(Ref(HHV(H,4), -3)-Ref(LLV(L,4), -3)) AND High<Ref(High,-1) AND Low>Ref(Low,-1);
EMP_1_DayCOLOR=IIf(EMP_1_Day,colorBrightGreen,colorWhite);

Filter = 1;

AddColumn(EMP_1_Day,"EMP_1_Day",1,colorBlack,EMP_1_Daycolor);

1 comments

1. mradia

HI
IF POSSIBLE PLEASE ADD uppar and lower expected target in AFL
thanks

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