Program 90 | Finding extreme oscillator 'hooks' - video Dailymotion

Markplex

This TradeStation EasyLanguage program is designed to assist traders in identifying potential trade entry zones by analyzing key oscillator behavior. The script monitors several popular momentum indicators—including %R, MACD Histogram, Commodity Channel Index (CCI), and Stochastic Oscillator—for the formation of "hooks" or pivot points that occur beyond overbought or oversold thresholds. The values of the overbought and oversold levels are set using user inputs.  A hook is defined here as a local turning point in the oscillator's movement, signaling a possible shift in momentum. When two such hooks occur consecutively in the same extreme zone (either overbought or oversold), the oscillator is flagged with a visual plot on the chart. If the oscillator subsequently crosses back through the overbought or oversold line within a user defined number of bars, an additional plot is drawn.  A 'hook' is marked with a cross and a crossover of the oversold line with a dot.  By highlighting these recurring patterns, this tool aims to give traders an early visual cue of potential momentum reversals. It’s not a standalone trading signal, but rather a contextual aid to support broader technical analysis and decision-making.  See https://markplex.com/easylanguage-programs/program-90-finding-extreme-oscillator-hooks/

Transcript

00:00Hello and welcome to program 90 in this series of tutorials and programs focused on TradeStation

00:08Easy Language. In this program we're going to be looking for what I've called hooks in the behavior

00:14of an oscillator and what a hook is is basically a pivot so you can see some hooks here and what

00:20the program does is for a particular oscillator it looks for a hook and then it looks for another

00:27hook within a user specified number of bars if that hook occurs we draw a signal across and if

00:38the oscillator then subsequently crosses below or in the example of in this case a green cross above

00:47these overbought oversold lines then it draws another point and the program allows you to specify

00:56several oscillators and in fact what you would do for each oscillator you'd reapply the program to the

01:04chart to show you which oscillators are available if we just go quickly into the program you'll see

01:11that these have got various codes so one MACD two MACD average four percentage are so just going looking

01:19at the first one here if we double click on that and we look at the inputs we'll see that we've got

01:25which osc is four so just going back to our chart of which osc values four would be percentage are and

01:34then obviously depending on which of these you select you would need to make sure that the other

01:39inputs to do with that oscillator were filled in appropriately so in this case we would just need

01:44to concern ourselves with this one if you were looking at a MACD you would need to concern yourself

01:49with these ones etc and I think they're fairly self-explanatory which ones you need to set up

01:54the other inputs that are important are the user specifies the overbought and the oversold

02:00levels and they're going to vary quite significantly between the different oscillators

02:05and the other ones max bars between this is the number of bars that are allowed between

02:11the hooks and then the max bars before break that is the number of the maximum number of bars

02:19that are allowed before the last hook and across over the overbought or oversold now obviously this is

02:26not a tool that could be necessarily used standalone it's rather an aid to support broader technical

02:38analysis and decision making another thing that you might wish to do is for example again looking at

02:46this example you might say well I want to change the the colors of particular plots so you might wish to

02:55change the color of the plot itself perhaps we want to go for a lilac color but you might also wish to

03:06change the color of the indicators so if we again go to the program and you can see that you could for

03:15example change the low cross at the moment it's green we could make that into a light pink

03:25color and same for these dots and if you decided having done that format edit studies and

03:36you had made some changes perhaps also the style you might have for example the the low cross at the

03:43moment is set up as a cross high cross also as a cross and overbought oversold as lines

03:54and then the breaks as points and if you decided to change those you could do that also but when

04:03you've made these changes if you click on default then that will default these values for future

04:09future times that you apply the program to a chart so as you verify the program so again just going back

04:17to the values if in this case we're looking at user input of four which means that we're concerned about the

04:25percent our length value as well as the overbought oversold max bars between max bars before break but for

04:34example if you are analyzing macd then you would need to modify these values potentially the other values would be

04:42entirely irrelevant and similarly for tsi rsi cci and so forth also in terms of these being applied to the chart if we click on

04:54each one and we go to scaling you'll see where this is applied so it's applied to sub graph two if we went to the next one

05:04double click scaling

05:09that is applied actually to sub graph six the next one scaling

05:16sub graph graph three so you can get the idea about applying several copies of the program to the chart so that you can see

05:24several different oscillators at the same time so hopefully this will be something that might interest you if so i will make a version

05:34available for download for a nominal fee and that will be unprotected so you can look at the code

05:40change it copy it use it in other programs if you wish and please also consider joining goldpass

05:48thank you

05:53you

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Program 90 | Finding extreme oscillator 'hooks'

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