Description
The Long Haul Filter study is a thinkScript implementation of Donald Pendregast's stock criteria, adapted for usage in the Stock Hacker Scanning Tool. In Stock hacker, you can use it as a study filter in order to select a suitable stock for the Long Haul strategy.
The selection criteria are listed below (original values described by Mr. Pendergast are kept; however, everything is customizable via input parameters):
- The Relative Strength Index (RSI) calculated for the stock is less than 5 (oversold level);
- Its close price is greater than the average;
- Its average volume is greater than 1,000,000;
- Its Beta is greater than 1;
- Its last actual earnings value is greater than estimated ("earnings surprises").
Input Parameters
| Parameter | Description |
|---|---|
rsi length
|
Defines the length for the calculation of the Relative Strength Index (RSI). |
|
|
The type of moving average to be used in the calculation of the RSI: simple, exponential, weighted, Wilder's, or Hull. |
rsi oversold level
|
Defines the oversold level for the RSI. |
average length
|
Defines the length of the close price average. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
volume limit
|
Defines the minimum value of average volume. |
check earnings surprises
|
Defines whether or not to check for "earnings surprises" (last actual earning value is greater than estimated). |
beta limit
|
Defines the minimum value of stock's Beta. |
Plots
| Plot | Description |
|---|---|
LongHaulScreen
|
A boolean plot that has a value of 1 (true) for symbols that satisfy the filter criteria. |
Further Reading
1. "A Trading Method For The Long Haul" by Donald W. Pendergast Jr. Technical Analysis of Stocks & Commodities, 2014, Bonus Issue.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.