Take Japanese candle pattern analysis to a new level with this MetaStock add-on from the author of 'Candlestick. John Murphy's Chart Pattern Recognition. Bottom line-it is no easy task to teach a computer software program to recognize chart. With the MetaStock Formula. John Murphy Chart Pattern Recognition.
Free Metastock DataExplorations are the most useful feature of the Metastock platform as you can scan a large database of stocks in less than a minute. Another advantage of using explorations, not available in other similar software, is that you can run multiple explorations at once and select the day's best trades in less than 10 minutes. All systems include an exploration, the user's manual and appropriate custom indicators. Because of the limitations of the metastock formula language and in order to develop the pattern recognition code, I used certain metastock functions (like the lastvalue) which can't be used for back testing. Forex Price Chart Pattern Recognition SoftwareThe system code can therefore be used only with explorations and not in the system tester as it will produce results that are not attainable in real trading. In order to back test them I had therefore to translate the metastock code in the afl language and test the chart formation systems using Amibroker. A detailed description and performance of each system is available by selecting the system on the menu bar at the left. The systems are compatible with all versions of metastock. You can purchase each system separately or as a bundle at a significant discount by selecting it from the list below. Why don't I get any hits? Check out the errors at the rejects column. If you see 'Results of filter formula not defined on calculation date' you will need to load more records. You can find the required amount of data for each system in the manual. Of course this depends on market conditions as well. The MF Bearish system will produce very few trades in a bull market and the MF bullish system fewer trades in a bear market. You should therefore run the explorations on as many stocks as possible. If you are an active trader or if your stock list contains less than 500 stocks you should try the BFB or the Sperandeo systems which usually produce > 20 trades per day in a bull market. Do the explorations work with FOREX? Not all systems work if there is no volume.This is because certain systems use volume indicators to filter the results. They do work though with FOREX futures. The systems that can be used with FOREX are only the Rectangle, Head & Shoulders and the Flag (Long only system). Is the code password protected? Can I modify it? No, it is not password protected. Does the Head and Shoulders system perform just as well with all stocks? This particular system performs equally well on all stocks. Other systems like the BFB, Flag, Cup & Handle and Sperandeo Systems performed better when tested on small cap stocks (Russell 2000). On the other hand the Rectangle, BTD and RS systems performed better when tested on large cap stocks (Russell 3000 or SP-500 componenets). Metastock Trading SoftwareI've just received the Metastock Add-in by John Murphy of TA of Futures Markets Fame. There are two explorations which identify head and shoulders tops/bottoms, double/triple tops/bottoms and ascending/descending/symmetrical triangles. The small booklet that accompanies the software is refreshingly honest about how difficult it is to define and identify patterns and there are three tables of results for 3 selected years (with varying market conditions) that give an average hit rate of around 50%. This can be improved by the user by judicious selection of patterns. For current market there is one signal. SMWH - double top breakout My first thoughts on the software are positive. Darth, I too have used John Murphy's CPR in the past. On the odd occasions that it does identify chart patterns, they are certainly definitive patterns. Metastock Professional SoftwareOne small qualm I have though is that I do truly believe that it is near impossible to mathematically quantify all permutations of a group of chart patterns. With all the variations in time horizon, depth and width, I prefer to keep the process of identifying chart patterns manual. I do like to automate my filtering for breakout patterns (or other dpending on current market charachter). From that point, after having a short-list of possible candidates, I will visually assess the chart pattern situation (as the chart pattern will generally dictate my entry and exit strategies). Irrespective, it's always good to have another tool in your arsenal, and like they say, if it leads to just one good trade, then it's paid itself off!
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January 2019
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