Power Trend

[Docbrown83]

Hey guys,

There is an indicator by John Muchow called a "Power Trend". The concept was designed by Investor’s Business Daily and to mimic the trading style of IBD’s Founder, William O’Neil. Knowing that there is a Power Trend in play can be helpful to gauge how aggressive to be with your trades.

"Here are the primary considerations for a market to be considered in a Power Trend.

1. Low above the 21-day EMA for 10 consecutive days.
2. 21-day above the 50-day SMA for five days, without a break below the 50-day.
3. 50-day in an uptrend.
4. If the criteria above are met, for a power trend to begin, it must be an up day.

Once the 21-day crosses below the 50-day that is a sign the trend may be coming to an end. Mike also mentioned there are “circuit-breaker rules” that can end a PT before the 21-day to 50-day crossover.

It should be noted, I am using the Nasdaq for all the charts that follow." However, he has also used this for individual stocks as well.

Any help in creating something like this would be awesome!!!

here is something for reference:

https://playthetrade.com/tradingvie...rend-indicator-how-to-spot-powerful-uptrends/

 

[halcyonguy]

Hey guys,

There is an indicator by John Muchow called a "Power Trend". The concept was designed by Investor’s Business Daily and to mimic the trading style of IBD’s Founder, William O’Neil. Knowing that there is a Power Trend in play can be helpful to gauge how aggressive to be with your trades.

"Here are the primary considerations for a market to be considered in a Power Trend.

1. Low above the 21-day EMA for 10 consecutive days.
2. 21-day above the 50-day SMA for five days, without a break below the 50-day.
3. 50-day in an uptrend.
4. If the criteria above are met, for a power trend to begin, it must be an up day.

Once the 21-day crosses below the 50-day that is a sign the trend may be coming to an end. Mike also mentioned there are “circuit-breaker rules” that can end a PT before the 21-day to 50-day crossover.

It should be noted, I am using the Nasdaq for all the charts that follow." However, he has also used this for individual stocks as well.

Any help in creating something like this would be awesome!!!

here is something for reference:

https://playthetrade.com/tradingvie...rend-indicator-how-to-spot-powerful-uptrends/

rule 3, how do you define an uptrend?
rule 4, how do you define an up day?

try to be more precise in posts.
in rule 2 and 3, you left out the function,.. 21 day what? 50 day what?

 

[halcyonguy]

@MerryDay
i want to check the ethics of making this before posting something.
he is asking for a study, that is a protected pine study.
the pine author printed out the rules that the study follows.
i think people can make studies from rules, that are legitimately aquired?

power trend , pine
https://www.tradingview.com/script/CzyVIdMM-Power-Trend-Pro-Spot-Powerful-Uptrends/

 

[MerryDay]

@MerryDay
i think people can make studies from rules, that are legitimately aquired?

power trend , pine
https://www.tradingview.com/script/CzyVIdMM-Power-Trend-Pro-Spot-Powerful-Uptrends/

The Tradingview study is based on IBD's William O'Neil famous and very public trading style, as such, the few rules that the author shared publically can be used to create a study. However, I don't it will be possible to replicate the chart from these few shared rules as there is a lot more involved.

 

[Docbrown83]

@MerryDay
i want to check the ethics of making this before posting something.
he is asking for a study, that is a protected pine study.
the pine author printed out the rules that the study follows.
i think people can make studies from rules, that are legitimately aquired?

power trend , pine
https://www.tradingview.com/script/CzyVIdMM-Power-Trend-Pro-Spot-Powerful-Uptrends/

Hi Halyonguy,

The rules are what I'm following. Merryday is correct that it is based off of IBD's William O'Neil's work(and I actually did not even look at the indicator from tradingview, hence the initial link I had posted was just basing an indicator to be made from the rules provided from the following:

https://playthetrade.com/tradingvie...rend-indicator-how-to-spot-powerful-uptrends/

 

[Chemmy]

Hey, so I looked over this and thought it could be interesting -- this is my initial attempt at replicating the powertrend, using the rules provided.

As you can see, I added rules for both up and down signals -- I did find that this works a bit better on lower time frames (3min pictured above), though I did add an MTF option. Anyone is welcome to improve on this if they want, as I mainly just threw this together, and i imagine there are definitely ways to make this look smoother.

Also, if it turns out that this post breaks rules or something please let me know and I'll remove, it seemed a bit ambiguous from the above discussion.

## First attempt at powertrend from tradingview by Chemmy
## Powertrend inspiration based off of IBD's William O'Neil's work

input ema_len = 21;
input sma_len = 50;
input use_chart_time = no;
input agg = aggregationPeriod.DAY;

#//MTF
def ll;
def hh;
def cc;

if use_chart_time
then {
    ll   = low;
    hh  = high;
    cc = close;
} else {
    ll = low(period = agg);
    hh = high(period = agg);
    cc = close(period = agg);
}


def offset = TickSize() * (HighestAll(hh) - LowestAll(ll)) * 1;
def na = Double.NaN;

## Init Averages
def emaavg = ExpAverage(cc, ema_len);
plot ema = emaavg;

def smaavg = SimpleMovingAvg(cc, sma_len);
plot sma = smaavg;

## 1 - Low is above the 21-day for at least 10 days
def emaup = (ll[10] > ema[10]) and (ll[9] > ema[9]) and (ll[8] > ema[8]) and (ll[7] > ema[7]) and (ll[6] > ema[6]) and
            (ll[5] > ema[5]) and (ll[4] > ema[4]) and (ll[3] > ema[3]) and (ll[2] > ema[2]) and (ll[1] > ema[1]);

def emadn = (ll[10] < ema[10]) and (ll[9] < ema[9]) and (ll[8] < ema[8]) and (ll[7] < ema[7]) and (ll[6] < ema[6]) and
            (ll[5] < ema[5]) and (ll[4] < ema[4]) and (ll[3] < ema[3]) and (ll[2] < ema[2]) and (ll[1] < ema[1]);

plot emaupp = if emaup then ema else na;


## 2 - Close up for the day
def closeup = cc > cc[1];
def closedn = cc < cc[1];

## 3 - 21 Day is above the 50 day SMA for at least 5 days
def emaover = (ema[5] > sma[5]) and (ema[4] > sma[4]) and (ema[3] > sma[3]) and (ema[2] > sma[2]) and (ema[1] > sma[1]) ;
def emaunder = (ema[5] < sma[5]) and (ema[4] < sma[4]) and (ema[3] < sma[3]) and (ema[2] < sma[2]) and (ema[1] < sma[1]) ;

## 4 - 50 Day is in an uptrend (not sure the best way to do this)
def smaup = ((sma[5] + sma[4] + sma[3])/3) < ((sma[2] + sma[1] + sma)/3);
def smadn = ((sma[5] + sma[4] + sma[3])/3) > ((sma[2] + sma[1] + sma)/3);

## Up/Down Conditions
def up = emaup and closeup and emaover and smaup;
plot upsig = if up then hh + offset else na;
upsig.setpaintingstrategy(paintingstrategy.points);
upsig.setlineweight(3);
upsig.assignvaluecolor(color.cyan);

def dn = emadn and closedn and emaunder and smadn;
plot dnsig = if dn then ll - offset else na;
dnsig.setpaintingstrategy(paintingstrategy.points);
dnsig.setlineweight(3);
dnsig.assignvaluecolor(color.red);

ema.assignvaluecolor(if up then color.light_green else if dn then color.pink else color.gray);
sma.assignvaluecolor(if up then color.green else if dn then color.red else color.gray);

 

[TETRIZ]

Thank you to Coder - samer800
This has been successfully coded here https://usethinkscript.com/threads/ibd-powertrend-for-thinkorswim.19153/