The Long Haul Filter study is a thinkScript implementation of Donald Pendregast's stock criteria, adapted for usage in the Stock Hacker Scanning Tool. In Stock hacker, you can use it as a study filter in order to select a suitable stock for the Long Haul strategy.
The selection criteria are listed below (original values described by Mr. Pendergast are kept; however, everything is customizable via input parameters):
- The Relative Strength Index (RSI) calculated for the stock is less than 5 (oversold level);
- Its close price is greater than the average;
- Its average volume is greater than 1,000,000;
- Its Beta is greater than 1;
- Its last actual earnings value is greater than estimated ("earnings surprises").
||Defines the length for the calculation of the Relative Strength Index (RSI).|
||The type of moving average to be used in the calculation of the RSI: simple, exponential, weighted, Wilder's, or Hull.|
||Defines the oversold level for the RSI.|
||Defines the length of the close price average.|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull.
||Defines the minimum value of average volume.|
||Defines whether or not to check for "earnings surprises" (last actual earning value is greater than estimated).|
||Defines the minimum value of stock's Beta.|
||A boolean plot that has a value of 1 (true) for symbols that satisfy the filter criteria.|
1. "A Trading Method For The Long Haul" by Donald W. Pendergast Jr. Technical Analysis of Stocks & Commodities, 2014, Bonus Issue.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.