When IBD declares market in correction, the d day counts are not used by IBD until a follow-through day (i.e. 2nd confirmation day) occurs which changes market outlook to uptrend. However this script keeps counting D days until you specify a new 2nd confirmation day. When this occurs, the D day count in the script is intended to be in sync with IBD again.
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FYI, a cluster of breadth thrusts from the indicator I shared have fired off in the last week
Nice
I guess I need to spend some time studying the indicators you mentioned
For breadth thrusts, you always want to use daily. In a nutshell, they're basically looking for weak buying pressure switching to extremely high buying pressure in a short period of time. It's used to check if a new bull market is starting. So using this with your ibd dist days, should be a damn good comboNice
What is the trading time frame typically used for your thrust indicators?
On the distribution day count front, SPX generated a red warning on 9/10/2020 while NASDAQ generated a red warning on 9/16/2020. However, I believe there was a discrepancy on NASDAQ D day on 9/17 between this script and IBD. IBD counted a Nasdaq distribution but the script did not. This is because of the difference of the volume data provided by TOS. Overall, I believe Dist Day counts from the script and IBD are in red alarming area.
IBD uses distribution days as one of the topping indicators and the follow-through (2nd confirmation) day as the bottom to upturn indicator. Their market outlook is intended for the intermediate to long term.
Right, breadth thrust is market bottom as well for long term. Not for "trading"
My mannnn! Thanks so much for the update
Did you do a comparison by chance of using the Nasdaq vs the NYSE for observing dist days? I'm curious if that may be better considering how heavy the QQQ lead has been this year.
I haven't done that although IBD does use Nasdaq as the main index. I think they give Nasdaq a little more weight in their market outlook. I don't know how to quantify the weight and apply in a script.
#-------------------------------------------------------------------------------------
# Follow-through signals (FTD) are more likely to fail if distribution days
# occur in the first few days of a new uptrend. This is one key red flag.
# Quantification in script is implemented with a concept of critical score (critScore):
# critScore = 3 for the 1st 5 days after FTD
# critScore = 2 on the 6th, critScore = 1 on 7th day, critScore = 0 after 7th day
# Total Distribution days = critScore + regular D-day count
# critScore is used only if there is at least one D-day in the 1st 5th day after FTD
#-------------------------------------------------------------------------------------
def daysAfterFTD = CountTradingDays(distributionRstDay, GetYYYYMMDD());
def critScore = if daysAfterFTD <= 5 then 3 else
if daysAfterFTD <= 6 then 2 else
if daysAfterFTD <= 7 then 1 else 0;
def totalNdDaysC = totalNdDays + if totalNdDays > 0 then critScore else 0;
# Actual distribution day count is shown but color depends on totalNdDaysC
addLabel(yes, "NewDdays =" + concat("",totalNdDays ),
if totalNdDaysC <=2 then Color.Green
else if totalNdDaysC <= 4 then Color.ORANGE
else Color.RED);I think I found an issue in counttradingdays() and have a resolutions now.
#-------------------------------------------------------------------------------------
# Follow-through signals (FTD) are more likely to fail if distribution days
# occur in the first few days of a new uptrend. This is one key red flag.
# Quantification in script is implemented with a concept of critical score (critScore):
# critScore = 3 for the 1st 5 days after FTD
# critScore = 2 on the 6th, critScore = 1 on 7th day, critScore = 0 after 7th day
# Total Distribution days = critScore + regular D-day count
# critScore is used only if there is at least one D-day in the 1st 5th day after FTD
#-------------------------------------------------------------------------------------
def ftdBar = if GetYYYYMMDD() == distributionRstDay then barnumber() else 0;
def lastFtdBar = highestall(ftdBar);
def daysAfterFTD = lastBar - lastFtdBar;
def critScore = if daysAfterFTD <= 0 then 0 else
if daysAfterFTD <= 5 then 3 else
if daysAfterFTD <= 6 then 2 else
if daysAfterFTD <= 7 then 1 else 0;
def totalNdDaysC = totalNdDays + if totalNdDays > 0 then critScore else 0;
#addLabel(yes, "critScore =" + concat("", critScore) + concat("DayC", totalNdDaysC), Color.GRAY);
# Actual distribution day count is shown but color depends on totalNdDaysC
addLabel(yes, "NewDdays =" + concat("",totalNdDays ),
if totalNdDaysC <=2 then Color.Green
else if totalNdDaysC <= 4 then Color.ORANGE
else Color.RED);If you find any FTD script, please let us know.
# Add an indication of 1st rally day to start FTD count
# in a market correction period
# pink rally day is a day satisfying the following conditions:
# 1). Close above ½ of daily TRUE range and below prior day close
# 2). Low is the lowest during the market correction,
# including future lows if available
# resolution of each 1st rally day is set to about 2 weeks
def rDayInterval = round(25/2, 0);
def futureLow = if isNaN(prLo[-rDayInterval]) then futureLow[1]
else prLo[-rDayInterval];
def futureCls = if isNaN(cls[-rDayInterval]) then futureCls[1]
else cls[-rDayInterval];
# market correction is currently defined as down 8% from top
def mktCr = prLo <= highest(high, 25) * .92;
def prRng = TrueRange(prHi, cls, prLo); #prHi - prLo;
def pinkRday = cls > (prLo + (prHi - prLo)/2) and cls < cls[1] and
prLo <= lowest(prLo[1],rDayInterval) and
prLo <= lowest(futureLow, rDayInterval);
def realRday = cls > cls[1] and
cls <= lowest(futureCls, rDayInterval) and
cls[1] <= lowest(cls[1], rDayInterval) and
!pinkRday[1];
def RallyDay1 = (mktCr or mktCr[1]) and (pinkRday or realRday);
AddChartBubble(RallyDay1, vol, "R1", color.LIGHT_GREEN);What help are you looking for?
I just read about it. So any literature on what it is..Does this code work and I would like to confirm I have the code installed correctly....
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