Help coding Joseph Stowell 3 bar net, cup, cap.

hockeycoachdoug

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Joseph Stowell was a trader back in the 80-90's trading US Bond futures. Mostly by hand with charts and pencil and ruler, but his 3 bar net line indicator is still a great indicator for current trend. Here is a link that best describes everything 3Bar Net Line . I would like some help coding a paintbar study for TOS. Red bars when below 3 bar net line, and green when above. This would be a useful indicator as a confirmation you are trading in the right direction. I would love having the cups and caps also coded showing signal arrows or something. Any help is greatly appreciated.
 

XeoNoX

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interesting study, if you dont mind, take the following with a grain of salt.
The max drawdown is pretty wicked, i admire how in the example he held up to 400+ days on based on what appears to be more of a technical strategy. Over 1 year hold on just a technical strategy in my opinion is pretty "gutsy". I must say though that this strategy although it appears profitable from his example .... the rate of return isn't too impressive. End of day you really have to ask yourself if you would stomach the hold on a 15+% drawdown on a non derivative financial instrument(s). Too bad they didnt list the period of recovery. Not sure if you noted the diversity of his portifolio, its well diversified with this strategy and didnt account for the reasons/fundamentals (if even considered) of why he chose the instruments he chose.
 
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hockeycoachdoug

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#xeoNoX- thank you for sharing your thoughts. I agree this is not a method to be used on it's own, but rather as a confirmation to existing signals. That's why I thought that making it a paintbar study would make it an easy confirmation that you were taking a trade in right direction. Anybody else care to share their thoughts?
 

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