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December 2014 Stocks and Commodities Traders Tips


Detecting Flags in Intraday Charts

AIQ Version:

Original article by Markos Katsanos
AIQ Code by Richard Denning

The AIQ program has a chart pattern recognition module that operates only in the daily mode. I provide the code to access the Flag, completed pattern and also code for the emerging flag patterns.

In Figure 1, I show a chart of G-III Apparel Group Ltd which has a flag pattern that completed on 6/25/14 (green up arrow) when the price broke above the down sloping flag top. Although the volume was above average on the breakout the follow through was lacking.

Note that I did not code exits for the pattern as the built in exits can be used to experiment with the flag pattern entry. Note also that the AIQ version of flags does not match the exact version for the intraday flags that are defined by the author.

Captions:
Figure 1 – G-III Apparel Group Ltd (GIII) with completed flag pattern (green up arrow).

EDS Code:
Flags & Pennants.EDS
(right click and choose Save As)


 

Traders Studio Version :

Original article by Markos Katsanos
Traders Studio Code by Richard Denning

The following code files are contained in the download from the websites:

  • Function POLE: returns a “1” if, based on the inputs, a sharp run up has occurred, otherwise returns a “0”
  • Function FLAG: returns a “1” if, based on the inputs, a flag has formed, otherwise returns a “0”
  • Function FLAG_BREAKUP: returns a “1” if, based on the inputs, a breakout from a flag has occurred on the current bar, otherwise returns a “0”
  • System HIGH_FLAG_sys: long only buy next bar at market after flag breakout then exit using one of three exits (time, profit target or stop loss)

Note that the parameters were taken from the author’s intraday testing and may not be the desired ones for daily bar trading.

Note that this cannot be used to trade intraday as TradersStudio does not as yet have a real time module although historical intraday testing can be done on saved intraday data.

In Figure 1, I show a chart of Autodesk (ADSK) with a flag breakout trade that exited at the profit target.

Captions:
Figure 1 – Flag breakout trade that reached the profit target on Autodesk (ADSK).

Traders Studio Code:
Flags Dec 2014.zip
(right click and choose Save As)

 

 

 

 

 

 

 

 

 

 

 

 

 

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