StockFetcher Forums · Stock Picks and Trading · SPY Channel<< 1 2 >>Post Follow-up
xarlor
565 posts
msg #158274
Ignore xarlor
12/29/2021 11:22:35 AM

For any channel traders out there, looks like we have a new market channel.

The previous channel's bottom is now the new channel's top. The new channel has a 3x4 confirmation (3 upper bounces and 4 lower bounces) so it's fairly strong.



Cheese
1,374 posts
msg #158276
Ignore Cheese
12/29/2021 12:37:25 PM

https://www.stockfetcher.com/forums/Stock-Picks/SPY-Channel/158274
xarlor 12/29/2021 11:22:35 AM

For any channel traders out there, looks like we have a new market channel.
The previous channel's bottom is now the new channel's top.
The new channel has a 3x4 confirmation (3 upper bounces and 4 lower bounces) so it's fairly strong.
====================

Thank you, xarlor.
I am not familiar with trading channel but your post looks interesting.
1. is Investopedia a good place to start reading up on trading channel ?
2. Do you have a filter for beginners to scan and draw channel?

This is all I got at this point
Fetcher[
SYMLIST(SPY)
CHART-TIME 2 YEARS
draw support(165,100,1)
draw low 30 day low
draw resistance(45,15,2)
draw resistance slope(45,15,2)
]





xarlor
565 posts
msg #158278
Ignore xarlor
12/29/2021 1:48:54 PM

Investopedia is ALWAYS a good place to start on anything. Additionally, this site does a good job explaining channels. The following lesson expands on how to trade it using support/resistance. After all, channels are just support and resistance lines. The site is for learning Forex, but most of it applies to stocks as well.

Personally, I like to pair the channels with other indicators. Remember, the more indicators match up, the higher probability trade it is. I find RSI(5) a good pairing for SPY and other slow-moving tickers.

  • If LOW is near the bottom support line and RSI(5) is or has been below 30 recently, it's a good entry.
  • If HIGH is near the top resistance line and RSI(5) is or has been above 80 recently, it's a good exit.

The above applies to bullish channels.

Up to now, I didn't have any filters that find channels (check the second filter below for one). Usually you trade channels on tickers you're very familiar with and can reasonably expect the channel to be respected. However, Linear Regression(60) does a fairly decent job of drawing the channel for you on SF! :D

Fetcher[
symlist(SPY,AAPL,AMZN,TSLA,MSFT,GOOG,FB)
draw RSI(5) line at 80
draw RSI(5) line at 30
draw Center Linear Regression Line(60,1.0)
]



Here's a filter I threw together as I wrote this post. No testing has gone into this, so caveat emptor.

Fetcher[
low touched Bottom Linear Regression Line(60,1.0)
slope of Center Linear Regression Line(60,1.0) > 0.01
RSI(5) < 30 within last 3 days

draw RSI(5) line at 80
draw RSI(5) line at 30
]



Cheese
1,374 posts
msg #158279
Ignore Cheese
12/29/2021 2:24:12 PM

https://www.stockfetcher.com/forums/Stock-Picks/SPY-Channel/158274
xarlor 12/29/2021 1:48:54 PM

Personally, I like to pair the channels with other indicators. Remember, the more indicators match up, the higher probability trade it is. I find RSI(5) a good pairing for SPY and other slow-moving tickers.

If LOW is near the bottom support line and RSI(5) is or has been below 30 recently, it's a good entry.
If HIGH is near the top resistance line and RSI(5) is or has been above 80 recently, it's a good exit.

Usually you trade channels on tickers you're very familiar with and can reasonably expect the channel to be respected. However, Linear Regression(60) does a fairly decent job of drawing the channel for you on SF! :D


THANK YOU very much, xarlor.
You are a real expert !

snappyfrog
661 posts
msg #158281
Ignore snappyfrog
12/30/2021 7:06:28 AM

I know this is about SPY, but I have been trading IWM (Russell 2K) for the last 6 months.
Even though it broke out of the channel near Nov 1st, we are right back into it again.



xarlor
565 posts
msg #158283
Ignore xarlor
12/30/2021 8:06:07 AM

Good call snappyfrog! Here is IWM with RSI(5) confirmation on the channel borders. Matches up pretty good and is textbook channel trading goodness.



Fetcher[
symlist(IWM)
draw RSI(5) line at 80
draw RSI(5) line at 30
set{LONG1,count(RSI(5) < 35,1)}
set{LONG2,count(low <= 212,1)}
set{LONG,LONG1 * LONG2}

set{SHORT1,count(RSI(5) > 75,1)}
set{SHORT2,count(high >= 233,1)}
set{SHORT,SHORT1 * SHORT2}

LONG > -1
SHORT > -1
chart-time 1 year
]



Cheese
1,374 posts
msg #158284
Ignore Cheese
12/30/2021 12:33:33 PM


/*
https://www.stockfetcher.com/forums/Stock-Picks/SPY-Channel/158274
==============================
*/

snappyfrog and xarlor,
A BIG THANK YOU to BOTH OF YOU

I hope you don't mind my combined filter posted below. It has helped me with my Channel Trading learning.
Perhaps, it may help other beginners.

Fetcher[
/* ********************************************* xarlor *********************************************** */

symlist(IWM,SPY)
draw RSI(5) line at 80
draw RSI(5) line at 30
set{LONG1,count(RSI(5) < 35,1)}
set{LONG2,count(low <= 212,1)}
set{LONG,LONG1 * LONG2}

set{SHORT1,count(RSI(5) > 75,1)}
set{SHORT2,count(high >= 233,1)}
set{SHORT,SHORT1 * SHORT2}

LONG > -1
SHORT > -1
chart-time 1 year



draw Linear Regression Line(60,1.0)



/* ********************************************* Joanne Klein *********************************************** */

draw slow stochastic %K(5,1) line at 20
draw slow stochastic %K(5,1) line at 80


/* ********************************************* snappyfrog *********************************************** */
/*
https://www.stockfetcher.com/forums/Filter-Exchange/Murder-Hornets-Scan/157560/0
snappyfrog 9/12/2021 12:40:12 PM
*/

/*Weekly_Daily_MACD*/
set{wk1,cema(close,15)}
set{wk2,cema(close,50)}
set{Weekly_MACD,wk1 - wk2}

set{dy1,cema(close,3)}
set{dy2,cema(close,10)}
set{Daily_MACD,dy1 - dy2}

set{Weekly_and_Daily_MACD,Weekly_MACD + Daily_MACD}
/**************/

draw Weekly_and_Daily_MACD
draw Weekly_MACD on plot Weekly_and_Daily_MACD
draw Weekly_and_Daily_MACD line at 0
]




redversa721
157 posts
msg #158288
Ignore redversa721
12/30/2021 7:16:18 PM

hi guys, Pretty cool stuff. Thanks for some new education.
Xarlor. On your screener. what is the number 212 and 233. are those the channel top and bottom?

is that something you set or can that be derived based on the timeframe

Thanks in advance. That chart with the RSI looks beautiful. I have to look into this. Seems to be a 'algorithmic' way of trading and seems less risky


xarlor
565 posts
msg #158289
Ignore xarlor
12/30/2021 8:30:47 PM

I just put those values in based on the IWM's channel top and bottom. They are hard coded for IWM. As I said, usually you trade channels on tickers you are intimate with. So once you identify such a ticker and channel, you can hard-code a filter to stay on it.

I'm sure you could write a filter to identify the tops and bottoms, but you run the risk of the filter not working when it breaks our of the channel significantly as IWM did.

snappyfrog
661 posts
msg #158290
Ignore snappyfrog
12/30/2021 9:18:07 PM

Thanks xarlor and cheese!

StockFetcher Forums · Stock Picks and Trading · SPY Channel<< 1 2 >>Post Follow-up

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