AIQ TradingExpert Pro’s Market Log provides traders with a daily snapshot of market conditions and how the market segments are performing. I’ll explain some of the elements here;

Days since the first Expert Rating to the up or down side – currently 20 days into an up rating of 100 – 0. The current rating is 33 – 33 and only ratings of 95 – 0 or 0 – 95 are significant.

Group Score is trending up vs trending down groups in S & P 500 – currently 93 % up.

WAL 13 – 87 and US 31 – 69 are a percentage measure of any stocks in the S & P 500 receiving expert ratings to the upside vs downside. Definitely more down than up ratings.

Market Plot measures the bullish and bearish readings of a basket of indicators for the Dow 30 Index.

Access Plot measures the bullish and bearish readings of a basket of indicators for each of the S & P 500 stocks. It’s the average reading for all 500 stocks for each indicator. This area I highlighted for it’s bearish technical look.

The Dow 30 Index is technically more bullish than the S & P 500 stocks. Next day Wednesday May 22nd, 2013 the Dow fell 80 some points, but the S & P 500 Index fell nearly 14 points. The market Log for 5/22/2013 shows the continued technical weakness in the stocks but less so in the Dow 30 Index.

The AIQ code for finding head & shoulders (H&S) patterns based on Giorgos Siligardos’ article in the May issue of Stocks & Commodities, “Head & Shoulders, Algorithmically (Part 2),” is provided at the following website: www.TradersEdgeSystems.com/traderstips.htm.

I did not directly translate the code given in Siligardos’ article into AIQ EDS code because the AIQ program has chart pattern recognition built in. The code I am providing will find H&S patterns — as well as many other patterns — for either completed or emerging patterns.

In Figure 5, I show an example of a completed H&S topping pattern with the sell signal (red down arrow). The bars after the signal indicate that this trade was immediately profitable. In Figure 2, I show an example of a completed inverse H&S bottoming pattern with a buy signal (red up arrow). The bars after the signal indicate that this trade was immediately profitable.

The code and EDS file can be downloaded from www.TradersEdgeSystems.com/traderstips.htm, and is shown below.

!DETECTING HEAD & SHOULDERS ALGORITHMICALLY
!Author: Giorgos E. Siligardos TASC May 2013
!Coded by: Richard Denning 3/17/2013
!USER DEFINED FUNCTIONS:
C is [close].
Name is description().
!COMPLETED HEAD & SHOULDERS PATTERN-TOPPING:
HS is [Head and Shoulders].
HS_breakoutup if HS > 0.
HS_breakoutdn if HS < 0.
!COMPLETED HEAD & SHOULDERS PATTERN-INVERTED:
iHS is [Inv Head and Shoulders].
iHS_breakoutup if iHS > 0.
iHS_breakoutdn if iHS < 0.
!EMERGING HEAD & SHOULDERS PATTERN-TOPPING:
e_HS is [eHead and Shoulders].
e_HSemerge if e_HS > 0 or e_HS < 0.
!EMERGING HEAD & SHOULDERS PATTERN-INVERTED:
e_iHS is [eInv Head and Shoulders].
e_iHSemerge if e_iHS > 0 or e_iHS < 0.
!REPORTS TO LIST ALL HEAD & SHOULDERS PATTERS:
ShowAll if C>0 and (HS <> 0 or iHS <> 0 
or e_HS <> 0 or e_iHS <>0).

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