Home | Trading Alchemy Manual | Alchemy Functions IndexAlchemyBearStrength (Function)AlchemyBearStrength function returns the market's bearish strength based on the Keltner Channel's downside running pattern. A Keltner Channel downside running pattern is defined as a downside penetration of the lower Keltner band by a minimum number of bars. AlchemyBearStrength (FirstBar, Price, Length, Factor, DwnPrice, MinBars, Retest) Parameters |
|
FirstBar |
Specifies the bar number of the first bar calculated |
|
Price |
Specifies a numeric expression representing the price of a bar to be averaged (that is, Close, Open, Volume, and so on) |
|
Length |
Specifies the period of time (in bars) over which an average for the Mid Keltner will be taken |
|
Factor |
A multiplier applied to the current bar’s range. Factor will be positive for the upper band and negative for the lower band |
| DwnPrice | Specifies a numeric expression representing the price of a bar to penetrate the lower Keltner band (that is, Close, Open, Volume, and so on) |
| MinBars | Specifies the minimum number of penetration bars required for a downside running pattern |
| Retest | Specifies the minimum penetration amount of the lower Keltner band for a new downside running pattern to set up |
ReturnsThe function returns a value ranging from 0 (no downside strength) to minimum number of bars, determined in the MinBars input (maximum downside strength). UsageKeltner Channel is a channel that is based on a multiple of average true ranges above and below a moving average. KeltnerChannel is most commonly used with studies or strategies that measure or take advantage of market volatility. It is similar in concept to the BollingerBand function. The
AlchemyBearStrength
function
is
designed
to
assist
traders
with
identification
of
strong
down
trending
markets
and
then
identify
possible
entry
points
in
the
direction
of
the
down
trend.
It
can
provide
possible
entry
points
in
the
direction
of
any
strong
trending
market
in
any
time
frame. When a strong down trend is identified, the function will return a minimum number of bars value. A bearish trend is defined as price penetrating the lower band of the Keltner Channel. Once the trend is identified, possible entries into the direction of the down trend can be taken at the next pullback. The entry zone is defined as the mid-Keltner and upper Keltner Channel band in a bearish trend. The AlchemyBearStrength function is self-adaptive and responds to market volatility to adjust the potential entry points in real time. |