Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software to help readers more easily implement some of the strategies presented. Some of the tips here were contributed by the authors of articles in this issue.
Internet users will also find these and some previous
Traders' Tips on our Website at http://www.traders.com/S&C_homepg.html. For easiest access to the Traders' Tips listings, use the search engine at www.traders.com by typing 'Traders Tips' into the search field box..
OMEGA RESEARCH EASYLANGUAGE
In 'Catching DJIA Breakouts' in this issue, I discuss the
strategy of buying markets that are breaking out to new highs, and present the results of buying breakouts in the Dow Jones Industrial Average (DJIA).
In EasyLanguage, you can create a Boolean variable or a ShowMe study to simply test whether the two conditions of a breakout are met. However, I thought it more useful to have the function return the number of bars since the last time a new high was achieved. The only time a number other than zero is returned is when it is a true breakout (the function will return a zero either when no new high is achieved or when a new high has been achieved, but it has not been a breakout of look_bak length or greater).
The EasyLanguage code for this function, which I have
called Breakout_Range2, follows: ...