The Trough Bars Ago function returns the number of bars that
have passed since a specified trough occurred. This function is based on the
Trough function. Technically speaking, a trough is the lowest point reached
between a short term down trend and a short term up trend. The identification of
a trough using this function however, is based on the selected data array moving
up a set percentage from its most recent low.
SYNTAX TroughBars(Nth, Data Array, %Minimum Change)
Nth _ The number of the trough you wish to use as the
reference point when counting how many bars have passed since then. For example,
N = 1 would count the number of bars back to the most recent trough in the data
array, and N = 2 would count the number of bars back to the second most recent
Data Array _ The data array searched to identify where the
trough occurred; this is normally the closing price.
% Minimum Change _ The minimum percentage required for a data
array to move away from a low before it is classed as a trough.
The following formula returns the number of bars that have
passed since the most recent occurrence of the closing price having risen 3.5%
from its low.
In the formula above:
Nth = 1
Data Array = C
% Minimum Change = 3.5
A more useful application of this example could be:
This formula will count the number of bars that have passed
since the most recent occasion that the closing price moved up 3.5% from the
low. Additionally, it also checks whether this value is less than 5. This
identifies securities that have recently created a trough and begun to move
Looking at Figure 3.21, we can see this example applied to
the chart as an indicator
Figure 3.21 _ Trough Bars Ago
Construct formulas for the following:
1. Return the number of bars that have passed since the most
recent time that there was a trough in the closing price where there was a 3%
change in price:
article is a snippet from the
MetaStock Programming Study Guide...
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