Conditions/Color Rules
Spotting trading opportunities such
as when studies cross, penetrate through resistance/support levels, or begin to
show signs of momentum, are just a few examples of the filters you
can write using Platts on the Net Version 8.4, powered
by RealTick® Conditions.
Select from the
following:
Introduction to
Conditions
Conditions
enable you to render an array of situations as true or false, creating more
complex rules for buy/sell triggers. Conditions, a series of mathematical
expressions, evaluate relationships between studies, prices, and conditions or
a combination thereof. Conditions can also compare values from previous bars to
more recent ones - for example: if close [x] > close [x-1].
When illustrated on a chart, Platts
on the Net scans through the history and displays conditions as marker
icons wherever a condition is true. In a minder, Platts on the Net updates
conditions in real-time showing whether it is currently true or false.
Color Rules in a
MarketMinder™
Creating a Simple Color Rule
- Click the Choose a Color Rule button from the Display and Analysis Selections dialog
box, then from the Select Color Rule dialog box, click Add New to open the
Color Rule Properties dialog box.
- Select the Condition from the Condition
Study drop-down
list.
Note: You can also Add More Conditions to add new conditions to the
Color Rule.
- After you select a Color from the Color field, the color Rule is created.
Color Rules in Charts
Creating Color Rules for One or More Conditions
Color rules scan for
one or more conditions - identifying met conditions with colors in lieu of
markers. While markers show at what price a condition was met, color rules
identify where a condition was met in a study.
For example, if you're looking for
patterns of accumulation or distribution over time, you can compare the
average volume from different periods and identify when the average volume from
one period is significantly greater than the average period of another.
Example: Average volume of five
periods ago is greater than the average volume of 30 periods ago by 120%:
- Define the components to evaluate.
- Add your studies to the Custom Study Workspace in the Composer dialog.
- Add an Arithmetic study.
- Once the components of the formula are defined,
the condition may be written. Select Add Condition from the input series drop-down menu, and click on Add New... And select your data
elements.
- Click OK and name the condition.
The markers display at what price the
condition is met. Alternatively, adding this condition as a color rule to
volume illustrates the met condition in the volume bars.
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