2016 Apr: Trading Gap Reversals by Ken Calhoun

[eSignal]

File Name: Gap_reversal.efs

Description:
Trading Gap Reversals by Ken Calhoun

Formula Parameters:

Gap_reversal.efs
Gap Down: 10
Trailing Stop: 0.4

Notes:
The related article is copyrighted material. If you are not a subscriber
of Stocks & Commodities, please visit www.traders.com.

Download File:
Gap_reversal.efs

Gap_reversal.efs


EFS Code:

/*********************************
Provided By:  
eSignal (Copyright c eSignal), a division of Interactive Data 
Corporation. 2016. All rights reserved. This sample eSignal 
Formula Script (EFS) is for educational purposes only and may be 
modified and saved under a new file name.  eSignal is not responsible
for the functionality once modified.  eSignal reserves the right 
to modify and overwrite this EFS file with each new release.

Description:        
    Gap Reversals by Ken Calhoun

Version:            1.00  02/08/2016

Formula Parameters:                     Default:
Gap Down                                10
Trailing Stop                           0.4



Notes:
The related article is copyrighted material. If you are not a subscriber
of Stocks & Commodities, please visit www.traders.com.

**********************************/

var fpArray = new Array();

function preMain(){
    
    setPriceStudy(true);
    var x=0;
    fpArray[x] = new FunctionParameter("GapDown", FunctionParameter.NUMBER);
    with(fpArray[x++]){
        setLowerLimit(1);
        setUpperLimit(100);  
        setDefault(10);
        setName("Gap Down %");
    }
    fpArray[x] = new FunctionParameter("TrlStop", FunctionParameter.NUMBER);
    with(fpArray[x++]){
        setLowerLimit(0.01);        
        setDefault(0.4);
        setName("Trailing Stop");
    }
}

var bInit = false;
var xClose = null;
var xOpen = null;
var xHigh = null;
var xLow = null;
var bIsLong = false;
var bGapFound = false;
var vStopPrice = null;
var bVersion = null;
var vLowOfTheGap = null;
var vGapDown = null;
var vHighestHigh = null;

function main(GapDown, TrlStop){
    
    if (bVersion == null) bVersion = verify();
    if (bVersion == false) return;

    
    if(getBarState() == BARSTATE_ALLBARS){
        bInit = false;
    }

    if (!bInit){
        xClose = close(inv("D"));
        xOpen = open(inv("D"));
        xHigh = high();
        xLow = low();
        bIsLong = false;
        bGapFound = false;
        vGapDown = GapDown/100;
        bInit = true;
    }

    if(xClose.getValue(-1) == null) return;
    var nPrevClose = xClose.getValue(-1);
    var nLow = xLow.getValue(0);
    var nHigh = xHigh.getValue(0);
    var nOpen = xOpen.getValue(0);

    if (day(-1) != day(0) && bGapFound) {
        bGapFound = false;
        bIsLong = false;
    }

    if (bIsLong){
        if (nHigh > vHighestHigh && (nLow - TrlStop) > vStopPrice) {
            vStopPrice = (nLow - TrlStop);
            vHighestHigh = nHigh
        }
        else if (nLow <= vStopPrice){
            bIsLong = false;
            bGapFound = false;
            drawTextRelative(0, AboveBar1, "\u00EA", Color.red, null, Text.PRESET|Text.CENTER, "Wingdings", 10, "Exit"+rawtime(0));
            drawText("Suggested Long Exit at "+formatPriceNumber(vStopPrice),BottomRow1,Color.red,Text.LEFT,"Text Exit"+rawtime(0));
        }
    }
    
    if (bGapFound && !bIsLong && nHigh > vLowOfTheGap) {
        drawTextRelative(0, BelowBar1, "\u00E9", Color.green, null, Text.PRESET|Text.CENTER, "Wingdings", 10, "Long"+rawtime(0));
        drawText("Suggested Long Entry at "+formatPriceNumber(vLowOfTheGap),TopRow1,Color.green,Text.LEFT,"Text"+rawtime(0));
        bIsLong = true;
        vStopPrice = (nLow - TrlStop);
        vHighestHigh = nHigh;
    }

    if( !bIsLong && !bGapFound && day(0)!= day(-1) && (nPrevClose - nOpen) >= (nPrevClose * vGapDown)){
        vLowOfTheGap = nLow + 0.5;
        bGapFound = true;
    }

    return;
}

function verify(){
    var b = false;
    if (getBuildNumber() < 779){
        
        drawTextAbsolute(5, 35, "This study requires version 12.1 or later.", 
            Color.white, Color.blue, Text.RELATIVETOBOTTOM|Text.RELATIVETOLEFT|Text.BOLD|Text.LEFT,
            null, 13, "error");
        drawTextAbsolute(5, 20, "Click HERE to upgrade.@URL=http://www.esignal.com/download/default.asp", 
            Color.white, Color.blue, Text.RELATIVETOBOTTOM|Text.RELATIVETOLEFT|Text.BOLD|Text.LEFT,
            null, 13, "upgrade");
        return b;
    } 
    else
        b = true;
    
    return b;
}