HOTTO PCF s. Table of Contents

Transcription

1 Table of Contents BO40V150 11/6/ Volume PCFs 7/1/ AdvStx2Vol...3 DeclStx2Vol...3 PlanA1 PCF...3 KRN63Hotto PCF...3 The SORT PCF...7 NR7 PCF INR5 PCF NR71U PCF 7/19/ NR71D PCF 7/19/ PlanA2Hotto PCF Pivot PCFs...13 BDn63V150 PCF PCF's for support, resistance and pivot point PCFs for Island Tops and Bottoms...15 Island Bottoms 19 Bars...15 Island Tops 19 Bars...15 Leading Edge Scan DAY PCF's AdvStx2Vol and DecStx2Vol...17 AZB PlanA1Hotto PCF KRN2Hotto PCF NegativeKR Day Key Reversal PCF Day Break Down PCF to yield Short Sale Candidates...23 Momentum PCF...23 Confirmd BrkDn PCF Day BreakDown SCAN...24 Candlestick PCFs...25 Bearish Abandoned Baby...25 Bearish Engulfing...25 Bearish Engulfing II...25 Bearish Engulfing Confirmation...25 Bearish Engulfing Equis...25 Bearish Engulfing Equis II...25 Bearish Evening/Doji Star...26 Bearish Hangman...26 Bearish Harami 3 Down...26 Bearish Harami Confirmation...26 Bearish Kicker...26 Bearish Reversal 3 Black Crows...26 Black Candle...26 Black Closing Marubozu...26 Black Marubozu...26 Black Opening Marubozu...26 Black Spinning Top...27 Bullish Abandoned Baby...27 Bullish Engulfing /30

2 Bullish Engulfing Confirmation...27 Bullish Engulfing Downtrend Reversal...27 Bullish Engulfing Equis...27 Bullish Engulfing Equis II...27 Bullish Harami...27 Bullish Harami Confirmation 3 Up...27 Bullish Inverted Hammer...27 Bullish Inverted Hammer II...28 Bullish Kicker # Bullish Kicker # Bullish Kicker # Bullish Kicker # Bullish Kicker # Bullish Morning/Doji Star...28 Bullish Reversal 3 White Soldiers...28 Dark Cloud...28 Dark Cloud Cover...28 Doji...29 Doji Yesterday...29 Doji and Near Doji...29 Hammer...29 Hanging Man...29 Long Black Candle...29 Long White Candle...29 Piercing Line...29 Shooting Star...29 Small Black Candle...29 Small White Candle...29 White Candle...30 White Closing Marubozu...30 White Marubozu...30 White Opening Marubozu...30 White Spinning Top...30 Note: This document was prepared by Tcnet user LoftyB and formatted/pdfd by w2jc. LoftyB wrote: > I've copied all the Hotto PCFs from discussions and reports and > tried to post this as one file on the discussions page, but for some > reason it does not work. 2/30

3 BO40V150 11/6/03 C >= AVGC40 AND C1 < AVGC40.1 AND V >= 1.5 * ( AVGV30.1 ) AdvStx2Vol C > C1 AND V > 2 * AVGV30.1 Volume PCFs 7/1/03 DeclStx2Vol C < C1 AND V > 2 * AVGV30.1 PCFs Here are 2 PCFs that I have written and use daily. I hope to find time to write Papers discussing the theory behind each of them. Some PCF Papers are on Hotto Club Home Page in Reports and Discussions areas. PlanA1 PCF finds Stocks that have made a new 52 Wk High within the last 5 days.. and Closed more than 5% below the Highest High. Note:Used 252 market days to adjust for Market Holidays during the year. (H1 >= MAXH252 OR H2 >= MAXH252 OR H3 >= MAXH252 OR H4 >= MAXH252) AND C <=.95 * MAXH252 KRN63Hotto PCF for finding 63day Negative Key Reversals. Helps Identify ST Tops. H >= MAXH63 AND L < L1 AND C < C1 AND V > 1.50 * AVGV30.1 KR2Hotto PCF [4/18/ :27:00 AM] by hotto Here is the "KR2Hotto" PCF... It will pick up the Stocks that gave Shakeouts yesterday... then Reversed Up... May mean New Life in the Stock's Rally L <= L1 AND H > H1 AND C > C1 AND H1 > H2 AND V > V1 In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only 3/30

4 Short Candidates & PCF [11/27/2002 6:21:40 AM] by hotto Short Sale Candidates Negative Reversals based on Close These reversed off of Rally Highs with increasing Volume The PCF is H >= MAXH63 AND L < L1 AND C < C1 AND V > 1.50 * AVGV30.1 I will add a paper in a few days. Sector Analysis Watchlist & Sort PCF [5/17/2003 4:29:35 PM] by hotto Sector Analysis Watchlist 15 Indexes 5/17/03 I use Sorts to look for Relative Strength within the Market..Rotation. 1. Price Percent Change 30day Brings the groups up to the top that are backbones of the IT Rally. 2. Price Percent Change 5day Bring up the recent Favorites of Mkt Rotation. 3. Custom Sort... from May 1 Swing Low in Mkt... Looking for "SeaChanges"...PPC11day PricePercentChange 11day. Create new PCF using simple formula.. C/(C11+.01) The +.01 Protects against Crash in denominator. After computing the new PCF... you can select it in Sort to bring the best performing Groups for last 11 days to the top. 4/30

5 BO63V150 PCF [5/25/2003 9:26:19 PM] by hotto Here is the "BO63V150" PCF...( 63day BO PCF ) 5/25/03 It will pick up the Stocks that traded at a new 63day High today on 150% of Avg 30day Volume. The 150% Volume is what defines the New High as a "Break Out" for me. (H >=MAXH63) AND V>1.5*(AVGV30.1) In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only Use a Price Sort. Then look for Stocks in the $7 and up range. Stocks in this price range have been moving well lately. Most times, the market likes stocks over 12 or 15. See the paper 63dayKeyReversal PCF in Reports.. for thoughts on the use of 63 days. KRN63Hotto PCF find Short Candidates 06/07/03 Here is the "KRN63Hotto" PCF... 6/07/03 63 Day Negative Key Reversal It will pick up the Stocks that had Failing Rallies after attempting a New 3 Month High...then Reversed Down... May mean Start of New PB. It is suited to picking up ShortSale Candidates.. from groups that the market is just Rotating Out of... during an IT Rally. Or.. Just in Case we begin a bigger Correction. I use 63 trading days, to cover the last Quarter of the market thinking that most important events having to do with short term trading will by now be "in the stock". I am now looking for stocks activity coincident with or at least similar to an IT Rally High. Stock (or Index) must trade at or higher than any time in the last 63 days. Stock must reverse Down during the day, and trade below the prior day's Low of Day. H >= MAXH63 AND L < L1 AND C < C1 AND V > 1.50 * AVGV30.1 In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only For Construction details, see the Paper "63day Key Reversal PCF" posted in Reports. 5/30

6 BUM50b Hotto PCF [6/28/ :04:20 AM] by hotto Here is the "BUM50b" PCF...( Bounce Up off Ma50) 6/28/03 It will pick up the Stocks that traded near ma50 Yesterday OR Today... then Closed Up today. I use BUM50b just after the market has had a sharp PB. from an IT Uptrend. It is the combination of the BUM50b PCF WITH the PPC62 Sort PCF that produces the Powerful SnapBack effect. The BUM50b PCF by itself will give a mix of poor to good results. BUM50b is not an attempt at another Holy Grail Black Box. It is designed for a specific market PB sequence. When the time is right... BUM50b will show you some recent SuperWinners... that have been suddenly oversold... they got caught in a Market Downdraft "Accident". It is up to the Trader to study the Charts, using OBV, Volume considerations, time since last time on NH52 list, knowledge of Group Rotation, etc. to select which of the top 25 or so stocks shown by the PPCxx Sort.. will be the Real SnapBack Winners. Think of the combination of the 2 PCFs as producing a RubberBand effect.. The BUM50b produces the "stretch" of the Rubber Band away from the Strong uptrend Line. (C > AVGC50) AND (C > C1) AND ((L1 < 1.01 * AVGC50 ) OR (L < 1.01 * AVGC50 )) This version catches the case where the "neartouch" of ma50 by the Stock occurred today. In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only 6/30

7 ***** VERY IMPORTANT ***** The SORT PCF Use a Price Percent Change Sort to bring the stocks with the Strongest Momentum up to the top of the Watchlist. I use my PPC62 = "Price Percent Change 62 days" PCF C / ( C ) ' Is the PCF... Note the is to protect against a "Divide by 0" Crash. ( C / C62 ) gives the Ratio of Today's close compared to the Close 62 days ago. For example STAA was near the top of the Sort the evening after the 6/25/03 market. The 6/25 Close = the 3/31 Close = And / 6.04 = That is... STAA gained 75% in value between 3/31 and 6/25. This Sort guarantees that the Stocks near the top of the list have been in Very Strong Uptrends.. and have recently been trading well above the ma50. To implement this Sort PCF... Click on the Words "Sorted by:..." near the Upper Left of the Screen. This will bring up a Menu Box.. with many choices. Pull the slider down until you see PPC62. Click on PPC62. Your Watchlist will now be Sorted for Price Momentum. Click the Up/Down Arrow to the Right of the "Sorted by:..." line.. so the arrow points Down.. That will Sort by.. Highest Momentum Stocks on Top. Press the Home Key on the keyboard. THat will put you at the Top Stock in the Watchlist. Note... Be sure to update this Sort... once a Week. For example.. Next Week.. use PPC66 = C / ( C ). There will be 4 market days this coming Holiday Week. I may add some theory to this paper when time permits. Good luck, Hotto 7/30

8 BUM200b Hotto PCF Here is the "BUM200b" PCF...( Bounce Up off Ma200) 6/29/03 It will pick up the Stocks that traded near ma200 Yesterday OR Today. I use BUM200b after the market has had a deep PB. from an IT Uptrend. It is the combination of the BUM200b PCF WITH the PPC62 Sort PCF that produces the Powerful SnapBack effect. The BUM200b PCF by itself will give a mix of poor to good results. BUM200b is not an attempt at another Holy Grail Black Box. It is designed for a specific market PB sequence. When the time is right... BUM200b will show you some recent SuperWinners... that have been sold off. It is up to the Trader to study the Charts, using OBV, Volume considerations, time since last on NH52 list, knowledge of Group Rotation, etc. to select which of the top 25 or so stocks shown by the PPCxx Sort.. will be the Real SnapBack Winners. Think of the combination of the 2 PCFs as producing a RubberBand effect.. The BUM200b produces the "stretch" of the RubberBand away from the Strong uptrend Line. Generally, when Stocks drop down to their own ma200, there is a bounceeffect... but not always. Volume and OBV will help to determine when severe Selling has come into a Stock, sapping any IT Momentum. Avoid those stocks. (C > AVGC200) AND ( AVGC5.2 > MinL2 ) AND ((L1 < 1.01 * AVGC200 ) OR (L < 1.01 * AVGC200 )) The ( AVGC5.2 > MinL2 ) attempts to make sure that prices have been declining from Above ma200. This PCF needs work to get back to the original intent. BUT... The way it is...it picks up new BOs.. to Over ma200.. Not sure how useful... But sure gives some interesting hits. I will work on this more later.. Out of time now. In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only ***** VERY IMPORTANT ***** The SORT PCF ***** Use a Price Percent Change Sort to bring the stocks with the Strongest Momentum up to the top of the Watchlist. I use my PPC62 = "Price Percent Change 62 days" PCF C / ( C ) ' Is the PCF... Note the is to protect against a "Divide by 0" Crash. ( C / C62 ) gives the Ratio of Today's close compared to the Close 62 days ago. For example STAA was near the top of the Sort the evening after the 6/25/03 market. 8/30

9 The 6/25 Close = the 3/31 Close = And / 6.04 = That is... STAA gained 75% in value between 3/31 and 6/25. This Sort guarantees that the Stocks near the top of the list have been in Very Strong Uptrends.. and have recently been trading well above the ma200. To implement this Sort PCF... Click on the Words "Sorted by:..." near the Upper Left of the Screen. This will bring up a Menu Box.. with many choices. Pull the slider down until you see PPC62. Click on PPC62. Your Watchlist will now be Sorted for Price Momentum. Click the Up/Down Arrow to the Right of the "Sorted by:..." line.. so the arrow points Down.. That will Sort by.. Highest Momentum Stocks on Top. Press the Home Key on the keyboard. THat will put you at the Top Stock in the Watchlist. Note... Be sure to update this Sort... once a Week. For example.. Next Week.. use PPC66 = C / ( C ). There will be 4 market days this coming Holiday Week. I may add some theory to this paper when time permits. I will work on this more later.. Out of time now. 9/30

10 NR7 PCF [7/12/2003 2:38:50 PM] by hotto THis is the Bare Bones NR7 PCF... Thanks to StockStalker's Presentation on 7/12/03. You may add Volume and Price filters as usual. (( H L ) <= ( H1 L1 )) AND (( H L ) <= ( H2 L2 )) AND (( H L ) <= ( H3 L3 )) AND (( H L ) <= ( H4 L4 )) AND (( H L ) <= ( H5 L5 )) AND (( H L ) <= ( H6 L6 )) I used PPC36 to Sort for the Best Trends since the last IT Rally Inflection point on 5/20/03. PPC36 = C / ( C ). Good Trading, Thanks again to StockStalker for sharing. Hotto INR5 PCF [7/13/2003 2:05:46 PM] by hotto This is the Bare Bones INR5 PCF... Thanks to StockStalker's Presentation on 7/12/03. You may add Volume and Price filters as usual. (( H L ) <= ( H1 L1 )) AND (( H L ) <= ( H2 L2 )) AND (( H L ) <= ( H3 L3 )) AND (( H L ) <= ( H4 L4 )) AND ( H < H1 ) AND ( L > L1 ) Note: The ( H< H1 ) AND ( L > L1 ) terms provide the "Inside Day" requirement. I used PPC36 to Sort for the Best Trends since the last IT Rally Inflection point on 5/20/03. Good Trading, Thanks again to StockStalker for sharing. 10/30

11 NR71U PCF 7/19/03 [7/19/2003 6:39:33 PM] by hotto This is the NR7 PCF..modified to look for NR7's a day earlier.. THEN. followed by an Up day. You may add Volume and Price filters as usual. (( H1 L1 ) <= ( H2 L2 )) AND (( H1 L1 ) <= ( H3 L3 )) AND (( H1 L1 ) <= ( H4 L4 )) AND (( H1 L1 ) <= ( H5 L5 )) AND (( H1 L1 ) <= ( H6 L6 )) AND (( H1 L1 ) <= ( H7 L7 )) AND ( C > C1 ) AND ( H > H1) NR71D PCF 7/19/03 This is the NR7 PCF..modified to look for NR7's a day earlier.. THEN. followed by a Down day. You may add Volume and Price filters as usual. (( H1 L1 ) <= ( H2 L2 )) AND (( H1 L1 ) <= ( H3 L3 )) AND (( H1 L1 ) <= ( H4 L4 )) AND (( H1 L1 ) <= ( H5 L5 )) AND (( H1 L1 ) <= ( H6 L6 )) AND (( H1 L1 ) <= ( H7 L7 )) AND ( C < C1 ) AND ( L < L1) Following is the Basic NR7 PCF...7/12/03 (( H L ) <= ( H1 L1 )) AND (( H L ) <= ( H2 L2 )) AND (( H L ) <= ( H3 L3 )) AND (( H L ) <= ( H4 L4 )) AND (( H L ) <= ( H5 L5 )) AND (( H L ) <= ( H6 L6 )) Thanks to StockStalker's Presentation on 7/12/03. I used PPC41 to Sort for the Best Trends since the last IT Rally Inflection point on 5/20/03. 11/30

12 PlanA2Hotto PCF Here is the "PlanA2Hotto" PCF... 7/26/03 It finds Stocks that Have made a new 52 Wk High within the last 15 days.. and Closed more than 5% below the Highest High. Note:Used 253 market days to adjust for Market Holidays during the year. Requires Upward Market Momentum to be useful. For use during IT Rallies...The Momentum Phase... after the Impulse Rally has passed the first test... and the New Highs List is Expanding... See 4/19/03 Saturday Chat. C <=.95*MaxH15 AND MaxH14.1 >= MaxH253 In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only Generally, the assumption is made that a Stock that has made a NH52 within the last 15 days has Good Upward Momentum. Other things should be used to confirm the Upward Momentum... such as Confirming OBV at the High Close... and Volume patterns around the High Day. For example, Beware Stocks where the Volume is Explosive ( Much Larger than the Volume on any recent Up day) on the First Day Down after the High. PlanA2 PCF is not a "black box" system... It just gives candidates with certain characteristics. You must add other criteria to make your selection. This simple PCF does not replace the many hours of IT Rally study we have done over the last month... and the many more hours we have invested in the study of OBV, bases, BOs, ABC PBs, etc. PlanA2 was developed for this particular IT Rally. I noticed that the snapbacks take longer to develop than I observed in IT Rallies during the 1990s. It may have to do with the doubt inflicted during the 2+ Year Bear Market. PlanA2 15 day time.. allows time for an ABC PB.. or an NR7 to develop.. or a Bum50b to occur. That suggests how to use PlanA2... at least how I use it. PlanA2 produces MANY hits in this IT Rally... Unfiltered.. over for full market. By setting up the PCFs Bum50b NR7 NR71U KR2 Bum20b on Tabs.. the Good Stuff from PlanA2 can be revealed very quickly. Click on a favorite Tab.. like Bum50b.. get Downarrow on Sort.. hit Home Key.. to get to top.. Now you have a group of Stocks with built in Snapback effect at top.. Now.. look for some "True"s.. under KR2 NR7 NR71U.. to find stocks ready to go. With some practice.. this "Slot machine" will pay off. I think of the "True"s.. as "cherries" on a Slot Machine. Good luck, Hotto See the "PlanA1 PCF" paper posted in Hotto Club Reports. 12/30

13 Pivot PCFs [7/30/2003 1:53:23 PM] by CraigS PP = (H+L+C)/3 R1 = ((2*((H+L+C)/3))L) S1 = ((2*((H+L+C)/3))H) R2 = ((((H+L+C)/3)((2*((H+L+C)/3))H))+((2*((H+L+C)/3))L)) S2 = (((H+L+C)/3)(((((H+L+C)/3)((2*((H+L+C)/3))H))+((2*((H+L+C)/3))L)) ((2*((H+L+C)/3))H))) BDn63V150 PCF [8/31/2003 4:34:47 PM] by hotto Here is the "BDn63V150" PCF...( 63day BrkDn PCF ) 8/31/03 It will pick up the Stocks that traded at a new 63day Low today on 150% of Avg 30day Volume. The 150% Volume is what defines the New 63day Low as a "Break Down" for me. (L <= MINL63) AND V>1.5*(AVGV30.1) In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only Use a Price Sort. Then look for Stocks in the $7 and up range. Stocks in this price range have been moving well lately. Most times, the market likes stocks over 12 or 15. See the paper 63dayKeyReversal PCF in Reports..( from November 2002). for thoughts on the use of 63 days. Note I thought this PCF had been posted. I could not find it. So here it is. Recently, the imbalance between the Hit count in BO63V150 vs BDn63V150 ( opposite Range Breakouts ).. is indicative of the steady uptrend. ( many more 63day BOs up than down). Sometime.. that will change.. worth keeping an eye on. Good Trading, Hotto 13/30

14 PCF's for support, resistance and pivot point. [10/10/2003 2:06:29 PM] by Cobratrader There are other ways to calculate the pivot point, this is one method. (these pcf's calculate today's numbers) (to run these at the end of day for tomorrows trading, change all the h1, l1 & c1's to h,l & c) Pivot: (h1 + l1 + c1) / 3 R1: (h1 + l1 + c1) / 3 * 2 l1 R2: (h1 + l1 + c1) / 3 + h1 l1 S1: (h1 + l1 + c1) / 3 * 2 h1 S2: (h1 + l1 + c1) / 3 h1 + l1 14/30

15 PCFs for Island Tops and Bottoms [10/13/ :57:31 AM] by tinasdtrader Hello Hotto Traders: On Friday we were chatting about Island Tops and Bottoms. An Island Top is bearish it occurs when a stop gaps up (ultimately an exhaustion gap), leaves one or more bars, then gaps down. An Island Bottom is bullish, stock gaps down, leaves one or more bars, then gaps up. The trade can either be taken on the island day, or wait for the stock to make the first move, pull back, then take the trade when resumes the preferred direction. The island is not valid if the gap fills before end of day. Below is the code I have written to find islands between 19 bars. Generally, I look for those where the island is between one day and two weeks, thus the code as it is. However, if you want to look for islands beyond nine days, just follow the pattern of the code to add more days: Island Bottoms 19 Bars L > H1 AND L2 > H1 OR L3 > H2 OR L4 > H3 OR L5 > H4 OR L6 > H5 OR L7 > H6 OR L8 > H7 OR L9 > H8 Island Tops 19 Bars L1 > H AND L1 > H2 OR L2 > H3 OR L3 > H4 OR L4 > H5 OR L5 > H6 OR L6 > H7 OR L7 > H8 OR L8 > H9 CAUTION: I do not recommend blindly trading islands. I do recommend first testing many of them to learn their temperament and which are the best ones to trade. I am very discriminating about the ones I choose. I'd estimate that only about one in 10 that come up in my scan I would actually trade. I avoid trading islands on "gappy" stocks. Stocks that gap a lot on a regular basis can just as quickly go the opposite direction. An example of a gappy stock is CEO. Many foreign stocks tend to be gappy. I also avoid low volume stocks, not just for islands but in general. I typically choose stocks that trade 200k shares per day or higher (over the past 90 days to avoid 1day or 1week wonders). Ideally, the island top or bottom would have other strong technical indications that it will follow through, such as: Pattern inside a Pattern i.e. the Island Top is coming off a double or triple top, head and shoulders top, rising wedge, or other high probability shorting setup. Vice versa for island bottoms. EXAMPLE: EL gapped down 8/14/03 out of a very tight double top. Island top inside a double top = double bearish. 15/30

16 Strong indicators confirming the trend change and/or divergent against price. News, earnings, guidance, sector driving the price in the preferred direction. Major indexes helping push the price in the preferred direction. In summary I recommend trading islands with caution and having additional confirmation with indicators or chart patterns to give the move a higher probability. Happy Trading. Sincerely, Tina (tinasdtrader) Leading Edge Scan [11/1/ :43:15 PM] by Dennis4Cash A simple scan to find stocks that have closed up 8% or more on good volume, for fading at the open. ((C / C1) 1) * 100 >= 8 CONDITIONS price minimum of $3 volume surge 16/30

17 10 DAY PCF's AdvStx2Vol and DecStx2Vol [11/10/ :55:16 AM] by AZB111 Using everything Hotto has taught us, the following 2 pcfs list stocks that have shown up on his AdvStx2Vol and DecStx2Vol sorts any time over the past 10 dyas. Using this one pcf may replace his method of building separeate watchlists for each of these pcfs for each of the past 10 days. Now all the past 10 days of data is shown in 2 simple sorts. For added benefit, build these into 2 watchlist colums and code them red and green to quickly SEE all the good advancers and bad decliners. DECLINING ON 2 X VOLUME ANY TIME OVER THE PAST 10 DAYS (C < C1 AND V > 2 * AVGV30.1) OR (C1 < C2 AND V1 > 2 * AVGV30.2) OR (C2 < C3 AND V2 > 2 * AVGV30.3) OR (C3 < C4 AND V3 > 2 * AVGV30.4) OR (C4 < C5 AND V4 > 2 * AVGV30.5) OR (C5 < C6 AND V5 > 2 * AVGV30.6) OR (C6 < C7 AND V6 > 2 * AVGV30.7) OR (C7 < C8 AND V7 > 2 * AVGV30.8) OR (C8 < C9 AND V8 > 2 * AVGV30.9) OR (C9 < C10 AND V9 > 2 * AVGV30.10) OR (C10 < C11 AND V10 > 2 * AVGV30.11) ADVANCING ON 2 X VOLUME ANY TIME OVER THE PAST 10 DAYS (C > C1 AND V > 2 * AVGV30.1) OR (C1 > C2 AND V1 > 2 * AVGV30.2) OR (C2 > C3 AND V2 > 2 * AVGV30.3) OR (C3 > C4 AND V3 > 2 * AVGV30.4) OR (C4 > C5 AND V4 > 2 * AVGV30.5) OR (C5 > C6 AND V5 > 2 * AVGV30.6) OR (C6 > C7 AND V6 > 2 * AVGV30.7) OR (C7 > C8 AND V7 > 2 * AVGV30.8) OR (C8 > C9 AND V8 > 2 * AVGV30.9) OR (C9 > C10 AND V9 > 2 * AVGV30.10) OR (C10 > C11 AND V10 > 2 * AVGV30.11) 17/30

18 AZB111 11/11/2003 8:38 AM For even more use, combine the AdvStx2Vol scan with Hotto's B063V150 scan to get this pcf... And, for even more strength, and to reduce the volume of hits a little, change his volume criteria from 1.50 * Vol to 2 * vol ADVANCING STOCKS OR 63 DAY BREAKOUT ALL ON TWICE THE NORMAL VOLUME ANYTIME DURING THE PAST 10 DAYS... ((C > C1 AND V > 2 * AVGV30.1) OR (C1 > C2 AND V1 > 2 * AVGV30.2) OR (C2 > C3 AND V2 > 2 * AVGV30.3) OR (C3 > C4 AND V3 > 2 * AVGV30.4) OR (C4 > C5 AND V4 > 2 * AVGV30.5) OR (C5 > C6 AND V5 > 2 * AVGV30.6) OR (C6 > C7 AND V6 > 2 * AVGV30.7) OR (C7 > C8 AND V7 > 2 * AVGV30.8) OR (C8 > C9 AND V8 > 2 * AVGV30.9) OR (C9 > C10 AND V9 > 2 * AVGV30.10) OR (C10 > C11 AND V10 > 2 * AVGV30.11)) 0R ( ((H >= MAXH63) AND V > 2 * (AVGV30.1)) OR ((H1 >= MAXH63.1) AND V1 > 2 * (AVGV30.2)) OR ((H2 >= MAXH63.2) AND V2 > 2 * (AVGV30.3)) OR ((H3 >= MAXH63.3) AND V3 > 2 * (AVGV30.4)) OR ((H4 >= MAXH63.4) AND V4 > 2 * (AVGV30.5)) OR ((H5 >= MAXH63.5) AND V5 > 2 * (AVGV30.6)) OR ((H6 >= MAXH63.6) AND V6 > 2 * (AVGV30.7)) OR ((H7 >= MAXH63.7) AND V7 > 2 * (AVGV30.8)) OR ((H8 >= MAXH63.8) AND V8 > 2 * (AVGV30.9)) OR ((H9 >= MAXH63.9) AND V9 > 2 * (AVGV30.10)) OR ((H10 >= MAXH63.10) AND V10 > 2 * (AVGV30.11)) ) AZB111 18/30

19 PlanA1Hotto PCF [5/10/ :12:23 AM] by hotto Here is the "PlanA1Hotto" PCF... 5/9/03 It finds Stocks that Have made a new 52 Wk High within the last 5 days.. and Closed more than 5% below the Highest High. Note:Used 252 market days to adjust for Market Holidays during the year. Requires Upward Market Momentum to be useful. For use during IT Rallies...The Momentum Phase... after the Impulse Rally has passed the first test... and the New Highs List is Expanding... See 4/19/03 Saturday Chat. Improved Version... runs faster... thanks to SirPoolPlayer for combining the tests for New Highs. Adjusted again on Sunday,5/11/03, at 1:15pmET. gives same result as the "Original Version". C <=.95*MaxH5 AND MaxH4.1 >= MaxH252 Original Version... (H1 >= MAXH252 OR H2 >= MAXH252 OR H3 >= MAXH252 OR H4 >= MAXH252) AND C <=.95 * MAXH252 In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only Generally, the assumption is made that a Stock that has made a NH52 within the last 5 days has Strong Upward Momentum. Other things should be used to confirm the Upward Momentum... such as Confirming OBV at the High Close... and Volume patterns around the High Day. For example, Beware Stocks where the Volume is Explosive ( Much Larger than the Volume on any recent Up day) on the First Day Down after the High. PlanA1 PCF is not a "black box" system... It just gives candidates with certain characteristics. You must add other criteria to make your selection. This simple PCF does not replace the many hours of IT Rally study we have done over the last month... and the many more hours we have invested in the study of OBV, bases, BOs, ABC PBs, etc. I will add some theory and pointers to this paper when time permits. Good luck, Hotto 19/30

20 KRN2Hotto PCF NegativeKR [5/18/ :20:22 PM] by hotto Here is the "KRN2Hotto" PCF... 5/18/03 2 Day Key Negative Reversal It will pick up the Stocks that gave Failing Rallies yesterday... then Reversed Down... May mean Start of New Correction Just in Case we begin a Correction.. Some Short Sale Candidates. H >= H1 AND L < L1 AND C< C1 AND L1 < L2 In the Scan that you write to use this PCF, you can add filters...like Volume screens... like Volume greater than 200K. 2. Price screens... like Price greater than NASDAQ stocks only 20/30

21 63 Day Key Reversal PCF [11/3/ :14:06 AM] by hotto Key Reversal (63 day) PCF In Spring, 2002, I developed the following PCF for use in the TcNet environment. It accomplishes my definition of a "63 Key Reversal". I use 63 trading days, to cover the last Quarter of the market thinking that most important events having to do with short term trading will by now be "in the stock". I am now looking for stocks activity coincident with a "market low". Stock (or Index) must trade at or lower than any time in the last 63 days. Stock must reverse during the day, and trade above the prior day's High of Day. Stock must close Up on the day. Volume must be 150% of the Average Daily Volume over the last 30 days. The PCF is as follows: ( also posted in a note on ASI ). L <= MINL63 AND H > H1 AND C > C1 AND V > 1.50 * AVGV30.1 Key Reversal (63 day) SCAN. After writing the PCF for yourself, name it "Hotto63KR" or some other name as a PCF then create a SCAN and select "Hotto63KR" as one of the tests. To reduce the number of hits, add a price filter to the SCAN like price > 5 and/or, add an absolute Volume filter to the SCAN like Volume > 50K or add some other filters. Key Reversal (63 day) PCF construction details. Note the absense of any parenthesis. There are none necessary in this logical statement. The TcNet compiler reads it correctly. And every set of parethesis causes a stack operation by the compiler and takes lots of processor time. There are other Logical Statements that do require use of parenthisis. Such as (C + C1 + C2)/3 to obtain the Average closing price over last 3 days. Note the AVGV30.1, which does NOT include today's Volume in the computation avoids the case where today's breakout volume is abnormally high We really Would like to catch a stock that has avgerage volume of 25K shares, but has Reversal Volume of 2M shares. That would be a Big market statement. Note the MINL63 Not MINL63.1 saves processor time. If today's Low is not the 63 day Low, then the L <= MINL63 will not be satisfied. If you omit the "=" in the statement "L <= MINL63", then you will miss a stock where today's low exactly repeats the 63 day low set earlier in the time frame. Key Reversal (63 day) PCF pitfalls. Several Traders have copied this PCF Some were successful Others reported getting "Syntax Error" when they ran the PCF. Thanks to zippie, kmack, Mstcnuser, Anthony372, and etep, I was able to identify the points where a Trader may introduce a "Syntax Error". Some have missed the "L" in the term MINL63 That will cause a Syntax Error report. Others have missed the 2nd "V" int the term "AVGV30.1" That too will cause a Syntax Error report. If you have trouble with other Errors, please TCMAIL me with them. Note The spaces in the Logical Statement are not significant I tested the code with all spaces removed, as well as with some included The results are the same The TcNet compiler parser is able to read the logical 21/30

22 statement correctly. I included spaces in the statement presented to improve readability. Key Reversal (63 day) PCF motivation. I have been involved in TcNet Chat for only about 3 months. In that time, I have learned many valuable things from other Traders willing to share knowledge. One AH chat session in September hit on the topic of stock selection. I inadvertantly referred to "my PCF". An alert Trader asked me for my PCF "come on share". I did. Since then, many Traders have asked me about the PCF. I posted it in chat a few times. Some Traders had difficulty getting it right. Hence the LONG explanation above. ***** A modification to the PCF to get Last Weeks KeyReversals L5<=MINL63.5 AND H5>H6 AND C5>C6 AND V5>1.5*AVGV30.6 I tested it it works. Suggests many other avenues to explore. 63 Day BreakOut PCF I posted it in a note on the stock "CXT" I intend to write a paper about it soon, and post it as a Report in the "hotto" club. Good luck, Hotto 22/30

23 112 Day Break Down PCF to yield Short Sale Candidates ( Useful until ). ******3 Variations****** After the collapse of the Hospital Group (MG525), I wondered whether there were any other Groups or Stocks which are falling badly right now. I put together this PCF to find Stocks which have broken below both the October 10 Low, and the July 23 Low. This would pick up stocks that are showing new extreme weakness, since we are currently in a 20% Rally up from the October Low. Could pick up: 1. Stocks or Groups that may suffer due to the Republican Election Victory. 2. Stocks that are showing Individual Weakness for some Fundamental reason. I chose 112 days, so that it will be useful until the end of December, 2002, and still pick up New BreakDowns below the July 23 Lows. Today, , I could have used 77 days to cover that time period, but then it would have had to be modified repeatedly in the days ahead to reach back to July 23. 1****** The PCF is as follows: ( also posted in a note on CXT ). L <= MinL112 Rewritten: L (lessthan sign) (equals sign) MinL112 2****** To turn this into a Momentum Short Finder PCF, add a Volume Requirement to the scan. Momentum PCF L<=MinL112 AND V>1.5*AVGV30.1 This PCF can be used Intraday, for example at 12:00 ET to get some lateintraday Short candidates. 3****** To turn this into a "Confirmed" BreakDown ShortFinder, change to a Close test. Confirmd BrkDn PCF C<=MinL111.1 AND V>1.5*AVGV30.1 Theory is Highvolume Breakdown Closing below Previous Low Confirms that Previous Low. It now affords some Overhead Resistance Protection on Upside Reversal LowVolume Bounce. Can set StopLoss based on that "Confirmed Low". 23/30

24 112 Day BreakDown SCAN After writing the PCF for yourself, name it "Hotto112BD" or some other name as a PCF then create a SCAN and select "Hotto112BD" as one of the tests. To reduce the number of hits, add a price filter to the SCAN like price > 8 and/or, add an absolute Volume filter to the SCAN like Volume > 50K or add some other filters 112 Day Construction & Pitfall notes see corresponding notes on the 63 day Key Reversal PCF paper posted If you have problems, suggestions, or comments, please post a comment below. Good Luck. Hotto ps. After the kind comments to my paper last week, I was motivated to add this little PCF. 24/30

25 Candlestick PCFs [4/27/2003 3:43:04 PM] by hotto Candlestick PCFs... Collected together by Rickski, and passed to Hotto Club. In his own words... I "borrowed" these from other club members, other websites, and from books. I cannot attest to their accuracy, so the caveat "use at your own risk" applies. If nothing else, I had some exercise cutting and pasting. Neither Rickski nor I guarantee either their correctness, nor usefulness. But, I pass them along. Perhaps you can test them, or Members with experience using Candlestick PCFs can provide updates. Post any comments below. See also for other PCFs, and another source for verification. Thanks Rickski! Hotto Bearish Abandoned Baby ((C1 = O1) AND (C2 > O2) AND (O > C) AND (L1 > H2) AND (L1 > H)) Bearish Engulfing ((C1 > O1) AND (O > C) AND (O >= C1) AND (O1 >= C) AND ((O C) > (C1 O1))) Bearish Engulfing II (AVGC5.1 > (1.1 * AVGC5.6)) AND ((MAXH10 = H1) OR (MAXH10 = H)) AND (C1 > O1) AND (C < O1) AND (O > C1) AND ((2 * (C1 O1)) < (O C)) AND (AVGV10.1 > 250) Bearish Engulfing Confirmation ((C2 > O2) AND (O1 > C1) AND (O1 >= C2) AND (O2 >= C1) AND ((O1 C1) > (C2 O2)) AND (O > C) AND (C < C1)) Bearish Engulfing Equis (C1 > O1) AND (O > C) AND (O >= C1) AND (O1 >= C) AND ((O C) > (C1 O1)) AND (STOC9.1 > 90) Bearish Engulfing Equis II (STOC9.1.1 > 90) OR (STOC9.1.2 > 90) AND (V > AVGV70) AND ((C C60) > 15) 25/30

26 Bearish Evening/Doji Star ((C2 > O2) AND ((C2 O2) / ( H2 L2) >.6) AND (C2 < O1) AND (C1 > O1) AND ((H1 L1) > (3 * (C1 O1))) AND (O > C) AND (O < O1)) Bearish Hangman (AVGC5.1 > (1.1 * AVGC5.6)) AND (C < O) AND (O = H) AND (MAXH10 = H) AND (C L) >= (2 * (O C)) AND (AVGV10.1 > 250) Bearish Harami 3 Down ((C1 > O1) AND (O > C) AND (O <= C1) AND (O1 <= C) AND ((O C) < (C1 O1))) Bearish Harami Confirmation ((C2 > O2) AND (O1 > C1) AND (O1 <= C2) AND (O2 <= C1) AND ((O1 C1) < (C2 O2)) AND (O > C) AND (C < C1) AND (O < O1)) Bearish Kicker C4 < C3 AND C3 < C2 AND C2 < C1 AND C < C1 Bearish Reversal 3 Black Crows (O > C * 1.01) AND (O1 > C1 * 1.01) AND (O2 > C2 * 1.01) AND (C < C1) AND (C1 < C2) AND (O > C1) AND (O < O1) AND (O1 > C2) AND (O1 < O2) AND (((C L) / (H L)) <.2) AND (((C1 L1) / (H1 L1)) <.2) AND (((C2 L2) / (H2 L2)) <.2) Black Candle (O > C ) Black Closing Marubozu ((O > C) AND (C = L)) Black Marubozu ((O > C) AND (H = O) AND (C = L)) Black Opening Marubozu ((O > C) AND (O = H)) 26/30

27 Black Spinning Top ((O > C) AND ((H L) > (3 * (O C))) AND (((H O) / ( H L)) <.4) AND (((C L) / ( H L)) <.4)) Bullish Abandoned Baby ((C1 = O1) AND (O2 > C2) AND (C > O) AND (L2 > H1) AND (L > H1)) Bullish Engulfing ((O1 > C1) AND (C > O) AND (C >= O1) AND (C1 >= O) AND ((C O) > (O1 C1))) Bullish Engulfing Confirmation ((O2 > C2) AND (C1 > O1) AND (C1 >= O2) AND (C2 >= O1) AND ((C1 O1) > (O2 C2)) AND (C > O) AND (C > C1)) Bullish Engulfing Downtrend Reversal ((MINL10 = L1) OR (MINL10 = L)) AND (C1 < O1) AND (C > O1) AND (O < C1) AND ((2 * (O1 C1)) < C O) AND (AVGC5.6 > (1.1 * AVGC5.1))) AND (AVGV10.1 > 250) Bullish Engulfing Equis (O1 > C1) AND (C > O) AND (C >= O1) AND (C1 >= O) AND ((C O) > (O1 C1)) AND (STOC9.1 < 10) Bullish Engulfing Equis II (STOC9.1.1 < 10) OR (STOC9.1.2 < 10) AND (V > AVGV70) AND ((C C60) < ( 15)) Bullish Harami ((O1 > C1) AND (C > O) AND (C <= O1) AND (C1 <= O) AND ((C O) < (O1 C1))) Bullish Harami Confirmation 3 Up ((O2 > C2) AND (C1 > O1) AND (C1 <= O2) AND (C2 <= O1) AND ((C1 O1) < (O2 C2)) AND (C < O) AND (C > C1) AND (O > O1)) Bullish Inverted Hammer (((H L) > 3 * (O C)) AND ((H C) / ( H L) > 0.6) AND ((H O) / ( H L) > 0.6)) 27/30

28 Bullish Inverted Hammer II (C > O) AND (C = H) AND (O L) >= (2 * (C O)) AND (MINL10 = L) AND (AVGC5.6 > (1.1 * AVGC5.1)) AND (AVGV10.1 > 250) Bullish Kicker #1 (C4 > C3) AND (C3 > C2) AND (C2 > C1) AND (C > C1) Bullish Kicker #2 (O1 > C1) AND (O >= O1.05) AND (C > O) Bullish Kicker #3 (O1 > C1) AND (O >= O1) AND (C > O) Bullish Kicker #4 (O2 > C2) AND (O1 >= O2.05) AND (C1 > O1) Bullish Kicker #5 (O1 > C1) AND (O >= O1) AND (C >= O) Bullish Morning/Doji Star ((O2 > C2) AND ((O2 C2) / ( H2 L2) >.6) AND (C2 > O1) AND (O1 > C1) AND ((H1 L1) > (3 * (C1 O1))) AND (C > O) AND (O > O1)) Bullish Reversal 3 White Soldiers (C > O * 1.01) AND (C1 > O1 * 1.01) AND (C2 > O2 * 1.01) AND (C > C1) AND (C1 > C2) AND (O < C1) AND (O > O1) AND (O1 < C2) AND (O1 > O2) AND (((H C) / (H L)) <.2) AND (((H1 C1) / (H1 L1)) <.2) AND (((H2 C2) / (H2 L2)) <.2) Dark Cloud (C1 > O1 * 1.01) AND (O > C) AND (O > H1) AND (C > O1) AND (((C1 + O1) / 2) > C) AND (C > O1) AND ((AVGC13 AVGC13.4) > 0) Dark Cloud Cover ((C1 > O1) AND (((C1 + O1) / 2) > C) AND (O > C) AND (O > C1) AND (C > O1) AND ((O C) / ( (H L)) >.6)) 28/30

29 Doji (O = C ) Doji Yesterday (O1 = C1 ) Doji and Near Doji (ABS(O C ) <= ((H L ) * 0.1)) Hammer (((H L) > 3 * (O C)) AND ((C L) / ( H L) > 0.6) AND ((O L) / ( H L) > 0.6)) Hanging Man (((H L) > 4 * (O C)) AND ((C L) / ( H L) >= 0.75) AND ((O L) / ( H L) >=.075)) Long Black Candle ((O > C ) AND ((O C ) / ( H L) >.6)) Long White Candle ((C > O) AND ((C O) / ( H L) >.6)) Piercing Line ((C1 < O1) AND (((O1 + C1) / 2) < C) AND (O < C) AND (O < C1) AND (C < O1) AND ((C O) / ( (H L)) > 0.6)) Shooting Star (((H L) > 4 * (O C)) AND ((H C) / ( H L) >= 0.75) AND ((H O) / ( H L) >= 0.75)) Small Black Candle ((O > C) AND ((H L) > (3 * (O C)))) Small White Candle ((C > O) AND ((H L) > (3 * (C O)))) 29/30

30 White Candle (C > O) White Closing Marubozu ((C > O) AND (C = H)) White Marubozu ((C > O) AND (H = C) AND (O = L)) White Opening Marubozu ((C > O) AND (O = L)) White Spinning Top ((C > O) AND ((H L) > (3 * (C O))) AND (((H C) / ( H L)) <.4) AND (((O L) / ( H L)) <.4)) 30/30