Selected Exploration

Expansion Pivots Buy

The Expansion Pivot buy pattern must fulfil the following criteria. Todays trading range must be larger than that of the previous nine trading days. Yesterdays or todays price has to have been under its 50 day moving average and then broken above it violently. A long entry is made on the following trading day, 1/8 of a point above the highest price of the preceding day. The protective stop is set one point under the closing price on the breakout day. This pattern is useful in recognizing the end of a sideways movement. A wide range often means that institutional investors are active in the market. A rise in volume at this time adds credence to the pattern.

Exploration Code

(copy and paste into the Metastock Exploration Builder):
Column A: Close
Column B: {Breakout}(H-L)>ATR(9)
Column C: {Signal}Ref(C,-2)<=Mov(C,50,S) and Ref(C,-1)>Mov(C,50,S) OR Ref(C,-1)<=Mov(C,50,S) and C>Mov(C,50,S)
Column D: {entry}HHV(H,2)+.125
Column E: {Stop}If(Ref(C,-2)<=Mov(C,50,S) and Ref(C,-1)>Mov(C,50,S),Ref(C,-1)-1,If(Ref(C,-1)<=Mov(C,50,S)and C>Mov(C,50,S),C-1,0))
Column F:
Filter: ColB and ColC