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NMP System

Article/Author: "Mutated Variables, Volatility AND A New Market Paradigm", Walter T. Downs, Ph.D., S&C Magazine, Traders Tips, 06/1998

Download: Nmp.ela

File Includes:
Strategy - NMP System
Function - NewMarketParadigm
Indicator - NewMarketParadigm C
Indicator - NewMarketParadigm E
PaintBar - NMP Contraction
PaintBar - NMO Expansion
Strategy - NMP System--original

Category: Strategy

Description:

Inputs:
Price
Length
StdDevUp
StdDevDn

EasyLanguage Code:
INPUTS: PRICE(CLOSE), LENGTH(28), STDDEVUP(2), STDDEVDN(-2);

VARS: NMPC(0), NMPE(0), NMPT(0), TRIGGER(0);

{*1.}
IF NEWMARKETPARADIGM(PRICE, LENGTH, STDDEVUP, STDDEVDN) = 1 THEN
NMPC = NMPC + 1
ELSE
NMPC = 0; {CONTRACTION PHASE}

IF NEWMARKETPARADIGM(PRICE, LENGTH, STDDEVUP, STDDEVDN) = 2 THEN
NMPE = NMPE + 1
ELSE
NMPE = 0; {EXPANSION PHASE}

IF NEWMARKETPARADIGM(PRICE, LENGTH, STDDEVUP, STDDEVDN) = 3 THEN
NMPT = 1
ELSE
NMPT = 0; {TRANSITION PHASE}
{REVERSAL TRADERS WILL BE USING THIS PHASE, SO I LEFT IT IN, ALTHOUGH I DON'T USE IT.
NO COUNTER IS IMPLEMENTED, BUT ONE COULD CERTAINLY DO THAT -- WD}

{*2.}
CONDITION1 = NMPE > 1; {2 CONSECUTIVE NMPE RANGES QUALIFY AS AN EXPANSION PHASE. -- WD}

IF CONDITION1 THEN BEGIN
TRIGGER = 1;
END;

{*3.}
IF TRIGGER = 1 THEN BEGIN
BUY HIGHEST(HIGH, 10) + 1 POINT STOP;
SELL LOWEST(LOW, 10) + 1 POINT STOP;
END;

{COPYRIGHT 1998 TECHNICAL ANALYSIS, INC.}