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NEST PLUS NEST Pulse User Manual

1. Recommended Parameters Vector CLOSE PNO CLOSE REF PNO CLOSE 1 AND REF PNO CLOSE 2 PNO CLOSE This indicator can be used to spot market turning points When the oscillator remains at the same high point for two consecutive periods in the positive range consider selling Conversely when the oscillator remains at a low point for two consecutive periods in the negative range consider buying 25 FractalChaosOsc illator FractalChaosOscillato r Periods A buy signal is generated when the oscillator tops and a sell signal is generated when the oscillator bottoms FCO 21 gt REF FCO 21 1 The chaotic nature of stock market movements explains why it is sometimes difficult to distinguish daily NEST Pulse User Manual www plus omneysindia com Page 89 of 133 Indicator Signature Description Sample script Remarks Recommended Parameters Periods 21 charts from monthly charts if the time scale is not given The patterns are similar regardless of the time resolution Like the chambers of the nautilus each level is like the one before it but the size is different To determine what is happening in the current level of resolution the fractal chaos oscillator can be used to examine these patterns 26 RainbowOscillat or
2. www plus omneysindia com Page 13 of 133 Back testing Back testing helps you to analyze his strategy and test it out by applying it on historical data before going live with it If you re not satisfied with the outcome as indicated by the backtest for a particular strategy you can modify the expression for that strategy and backtest it again until the results appear satisfactory To back test a strategy right click on the chart click on Scripts select the script name that you want to back test and click on Backtest It will indicate buy sell signals generated if any for that script in the chart window An upward green arrow indicates a Buy signal while a downward red arrow indicates a Sell signal NEST Pulse User Manual www plus omneysindia com Page 14 of 133 The user can also view comprehensive details of the Back Test by right clicking on the Intraday Chart and selecting Back Test Details The Back Test Details window as illustrated below provides details with respect to the outcome of the strategy entered evaluated on historical data Corresponding to the user s parameters getting triggered the action is taken and profit loss calculated which the user can use as a reference to check whether the back test was successful or he would like to use a different methodology NEST Pulse User Manual www plus omneysindia com Page 15 of 133 The Backtest Trade Report section
3. RainbowOscillator Ve ctor Levels MA Type The rainbow oscillator is calculated based upon multiple time frames of a moving SET R RBO CLOSE 3 SIMPLE R gt 0 8 AND When the market is rising and the trend is up the least smoothed line is at NEST Pulse User Manual www plus omneysindia com Page 90 of 133 Indicator Signature Description Sample script Remarks average The trend may reverse suddenly when values stay above 0 80 or below 0 20 for two consecutive days Recommended Parameters Vector CLOSE Levels 3 MA Type SIMPLE REF R 1 gt 0 8 Evaluates to true when the Rainbow Oscillator has been above 0 8 for at least two consecutive days the top of the Rainbow the red line and the most smoothed line is at the bottom of the Rainbow the violet line When the market is declining and the trend is down the order of the Rainbow is reversed the most smoothed line is at the bottom and the least smoothed line is at the top As the underlying market price moves up or down the moving averages follow and cross in sequence as the move continues NEST Pulse User Manual www plus omneysindia com Page 91 of 133 Indicator Signature Description Sample script Remarks Price moves away from the Rainbow are seen as potential trend contin
4. The values that are contained inside a function such as the REF function or the TREND function are called arguments Here there are two arguments in the TREND function Argument 1 is the closing price and argument 2 is 30 as in 30 days or 30 periods Only one of two things will occur if you use a function incorrectly will automatically fix the problem and the script will still run or NestPulse will report an error tell you what s wrong with the script and then allow you to fix the problem and try again In other words user input errors will never cause NestPulse to break or return erroneous results without first warning you about a potential problem Let s take CLOSE out of the TREND function and then try to run the script again NEST Pulse User Manual www plus omneysindia com Page 26 of 133 TREND 30 UP The following error occurs Error argument of TREND function not optional We are given the option to fix the script and try again Vector Programming Vector programming languages also known as array or multidimensional languages generalize operations on scalars to apply transparently to vectors matrices and higher dimensional arrays The fundamental idea behind vector programming is that operations apply at once to an entire set of values a vector or field This allows you to think and operate on whole aggregates of data without having to resort to explici
5. Vector CLOSE Periods 14 compares upward movements in closing price to downward movements over a selected period Wilder recommended using 70 and 30 and overbought and oversold levels respectively Generally if the RSI rises above 30 it is considered bullish for the underlying stock Conversely if the RSI falls below 70 it is a bearish signal Some traders identify the long term trend and then use extreme readings for entry points If NEST Pulse User Manual www plus omneysindia com Page 108 of 133 Indicator Signature Description Sample script Remarks the long term trend is bullish then oversold readings could mark potential entry points 39 MassIndex MassIndex Periods The Mass Index identifies price changes by indexing the narrowing and widening change between high and low prices Interpretation According to the inventor of the Mass Index reversals may occur when a 25 period Mass Index rises above 27 or falls below 26 5 Recommended Parameters Periods 25 MI 25 gt 27 It is used to identify trend reversals The Mass Index is a range oscillator that uses changes in trading price and provides unique market reversal forecasts that other indicators may miss The Mass Index attempts to identify reversals by comparing the tr
6. after a small reversal from the opposite direction Recommended Parameters Vector CLOSE Periods 20 Standard Deviations 2 MA Type EXPONENTIAL followed by pikes and hollows inside the band a reverse of trend may occur 4 the price movement that has started from one of the band s lines usually reaches the opposite one The last observation is useful for forecasting price guideposts NEST Pulse User Manual www plus omneysindia com Page 79 of 133 Indicator Signature Description Sample script Remarks 14 BollingerBands Middle BollingerBandsMiddl e Vector Periods Standard Deviations MA Type Refer Point 13 CLOSE gt BBM CLOSE 20 2 EXPONENTIAL Evaluates to true when the close is greater than a 20 day Bollinger Band Middle calculated by 2 standard deviations using an exponential moving average Refer Point 13 15 MovingAverage EnvelopeTop MovingAverageEnvel opeTop Periods MA Type Shift Moving Average Envelopes consist of moving averages calculated from the underling price shifted up and down by a fixed percentage Moving Average Envelopes or trading bands can be imposed CLOSE gt MAET 20 SIMPLE 5 Evaluates to true when the close is greater than a 20 day Moving Average Envelope Top calculated
7. depending upon their upward or downward movements PVT is used to determine the balance between a stock s demand and supply This indicator shares similarities with the On Balance Volume index Interpretation The Price and Volume Trend index generally precedes actual price movements The premise is that well informed investors are buying Evaluates to true when PVT is trending upwards strength of trends and warn of reversals PVT is a leading indicator for future price movements PVT more accurately demonstrates the flow of money The Price Volume Trend is an oscillator which attempts to measure the strength of trends based upon volume and price change The Price Volume Trend is used in conjunction with the price plot Prices are expected to rise when there is a bullish divergence between the Price NEST Pulse User Manual www plus omneysindia com Page 114 of 133 Indicator Signature Description Sample script Remarks when the index rises and uninformed investors are buying when the index falls Recommended Parameters Vector CLOSE Volume Trend and the closing price and prices are expected to fall if there is a bearish divergence 44 PositiveVolumeI ndex PositiveVolumeIndex Vector The Positive Volume Index puts focus on periods when v
8. strength CCI fits into the momentum category of oscillators 52 ParabolicSAR ParabolicSAR Min AF Max AF Author Welles Wilder developed the Parabolic SAR This indicator is always in the market whenever a position is closed an opposing position is taken The Parabolic SAR indicator is most often used to set trailing price stops CROSSOVER CLO SE PSAR 0 02 0 2 TRUE Evaluates to true when the close recently crossed over the Parabolic SAR The Parabolic SAR provides excellent exit points You should close long positions when the price falls below the SAR and close short positions when the price rises above the SAR NEST Pulse User Manual www plus omneysindia com Page 123 of 133 Indicator Signature Description Sample script Remarks Interpretation A stop and reversal SAR occurs when the price penetrates a Parabolic SAR level Recommended Parameters Min AF Accumulation Factor 0 02 Max AF Accumulation Factor 0 2 If long i e the price is above the SAR the SAR will move up every period regardless of the direction the price is moving The amount the SAR moves up depends on the amount that prices move Parameters Minimum acceleration factor Min AF The values used for initializing and stepping the acceleration factor NEST Pulse User
9. www plus omneysindia com Page 23 of 133 organization allows the beginning programmer to see results immediately while learning at his or her own pace NestPulse is the engine that drives the scripting language in your trading software It is a non procedural scientific vector programming language that was designed specifically for developing trading systems A script is simply a set of instructions that tells the NestPulse engine to do something useful such as provide an alert when the price of one stock reaches a new high crosses over a moving average or drops by a certain percentage There are many uses Introduction Important Concepts NestPulse is a powerful and versatile programming language for traders The language provides the framework required to build sophisticated trading programs piece by piece without extensive training or programming experience The following script is a very simple example that identifies markets that are trading higher than the opening price LAST gt OPEN It almost goes without saying that the purpose of this script is to identify when the last price is trading higher than the open price it is nearly as plain as English Just as a spoken language gives you many ways to express each idea the NestPulse programming language provides a wide variety of ways to program a trading system Scripts can be very simple as just shown or extremely complex consisting
10. Because VIDYA is a derivative of linear regression it quickly adapts to volatility Parameters R2Scale is a value CLOSE gt VIDYA CLOSE 30 0 65 Evaluates to true when the close is greater than a 30 day VIDYA with an R2 of 0 65 The VIDYA exhibits a trend following character as do other moving averages For this reason interpretations similar to those used for the moving averages can also be applied here NEST Pulse User Manual www plus omneysindia com Page 73 of 133 Indicator Signature Description Sample script Remarks specifying the R Squared scale to use in the linear regression calculations Mr Chande recommends a value between 0 5 and 0 8 default value is 0 65 9 R squared R2 Vector Periods R Squared is the coefficient of determination for the supplied vector over the specified periods The values oscillate between 0 and 1 R2 CLOSE 30 lt 0 1 Evaluates to true when the coefficient of determination is less than 0 1 R squared shows the strength of trend The more closely prices move in a linear relationship with the passing of time the stronger the trend When using momentum based indicators only trade overbought oversol d levels if you have determined that prices are trendless NEST Pulse User Manual www p
11. we could write SUMIF CLOSE gt REF CLOSE 1 1 05 VOLUME The result will be a vector containing a running sum of volume for each day where the closing price closed up at least 5 SUM SUM Vector Periods The SUM function not to be confused with the SUMIF function outputs a vector containing a running sum as specified by the Periods argument Example SUM CLOSE 10 The script returns a vector of sums based on a 10 period window AVG AVERAGE Vector Periods AVG Vector Periods NEST Pulse User Manual www plus omneysindia com Page 38 of 133 Returns a vector containing a running average as specified by the Periods argument The AVERAGE function can also be referenced by AVG for short Example AVERAGE CLOSE 10 AVG CLOSE 10 Both scripts return a vector of averages based on a 10 period window MAX MAX Vector Periods Returns a vector containing a running maximum as specified by the Periods argument The values represent the maximum value for each window Example MAX CLOSE 10 Returns a vector of maximum values based on a 10 period window MIN MIN Vector Periods Returns a vector containing a running minimum as specified by the Periods argument The values represent the minimum value for each window Example MIN CLOSE 10 Returns a vector of minimum values based on a 10 period window MAXOF MAXOF Vector1 Vector2 Vector3 Vector8
12. CLOSE lt Bottom 0 98 Historical Volatility and Trend This trading system buys or sells on increasing volume and lessening volatility The concept is that trends are more stable if volatility has been decreasing and volume has been increasing over many days NEST Pulse User Manual www plus omneysindia com Page 57 of 133 Volume is an important component to this trading system since almost every important turning point in a stock is accompanied by an increase in volume The key element in this trading system is the length of the primary price trend The longer the price trend is the more reliable the signal Also try experimenting with this trading system by substituting the TREND function for volume with the Volume Oscillator function or the Volume Rate of Change function Historical Volatility and Trend Script Buy Signals Buy if volatility is decreasing and volume is increasing with price in an uptrend HistoricalVolatility CLOSE 15 252 2 lt REF HistoricalVolatility CLOSE 15 365 2 15 AND TREND VOLUME 5 UP AND TREND CLOSE 40 UP Sell if volatility is decreasing and volume is increasing with price in a downtrend HistoricalVolatility CLOSE 15 252 2 lt REF HistoricalVolatility CLOSE 15 365 2 15 AND NEST Pulse User Manual www plus omneysindia com Page 58 of 133 TREND VOLUME 5 UP AND TREND CLOSE 40 DOWN Parabolic SAR MA System This system i
13. Price Rate of Change Historical Volatility Index etc These technical indicators are described in the following chapters TECHNICAL ANALYSIS NestPulse provides many built in technical analysis functions Using only a single line of code you can calculate functions such as Moving Averages Bollinger Bands Japanese Candlesticks and so on A complete list of technical analysis functions is covered in chapter 3 The following is a simple example of how to use one of the most common technical analysis functions the simple moving average LAST gt SimpleMovingAverage CLOSE 20 The script will check if the last price is over the 20 day moving average of the close price The CLOSE variable is actually a vector of closing prices not just the most recent close price You can use the OPEN HIGH LOW CLOSE and VOLUME vectors to create your own calculated vectors using the SET keyword SET Median CLOSE OPEN 2 This code creates a vector containing the median price for each trading day We can use the Median vector inside any function that requires a vector LAST gt SimpleMovingAverage Median 20 And this evaluates to true when the last price is greater than a 20 day moving average of the median price Because functions return vectors functions can also be used as valid arguments within other functions LAST gt SimpleMovingAverage SimpleMovingAverage CLOSE 30 20 This evaluates to true whe
14. Returns a vector containing a maximum value of all specified vectors for up to eight vectors Vector1 and Vector2 are required and vectors 3 through 8 are optional NEST Pulse User Manual www plus omneysindia com Page 39 of 133 Example MAXOF CLOSE OPEN Returns a vector containing the maximum value for each bar which is either the opening price or the closing price in this example MINOF MINOF Vector1 Vector2 Vector3 Vector8 Returns a vector containing a minimum value of all specified vectors for up to eight vectors Vector1 and Vector2 are required and vectors 3 through 8 are optional Example MINOF CLOSE OPEN Returns a vector containing the minimum value for each bar which is either the opening price or the closing price in this example REF REF Vector Periods By default all calculations are performed on the last most recent value of a vector The following script evaluates to true when the last open price the current bar s open price is less than 30 OPEN lt 30 OPEN is assumed to be the current bar s open by default You can reference a previous value of a vector by using the REF function REF OPEN 1 lt 30 And now the script will previous bar s open price was less than 30 The number 1 the second argument tells the REF function to reference values as of one bar ago To reference values two bars ago simply use 2 instead of 1 The valid range for the
15. indicator converges with price Recommended Parameters Vector CLOSE Minimum Tick Value 0 25 in positive territory indicates that buyers are in control If the TVI is trending down it indicates that sellers are in control If the TVI is above zero it indicates that net buying has taken place over the time period displayed If the TVI is below zero it indicates that net selling has taken place over the time period displayed 49 SwingIndex SwingIndex Limit Move Value The Swing Index Wilder is a popular indicator that shows comparative price SI 1 gt 0 Evaluates to true when the Swing Index is in It provides an indication of the real strength and direction of a price NEST Pulse User Manual www plus omneysindia com Page 119 of 133 Indicator Signature Description Sample script Remarks strength within a single security by comparing the current open high low and close prices with previous prices Interpretation The Swing Index is a component of the Accumulation Swing Index Recommended Parameters Limit Move Value 1 positive territory trend by providing a single indicator line which can be analyzed for support and resistance lines 50 AccumulativeSw ingIndex AccumulativeSwingIn dex Limit Move Value The Accumulation
16. Aroon down whereas unstable prices are AroonUp 25 gt 80 AND AroonDown 25 gt 80 Aroon is used to measure the presence and strength of trends When Aroon up and Aroon down are moving together there is no clear trend the price is moving sideways or about to move sideways When the Aroon up is below 50 it is an NEST Pulse User Manual www plus omneysindia com Page 102 of 133 Indicator Signature Description Sample script Remarks determined when both lines are low less than 20 Recommended Parameters Periods 25 indication that the uptrend is losing its momentum while when the Aroon down is below 50 it is an indication that the downtrend is losing its momentum When the Aroon up or Aroon down are above 70 it indicate a strong trend in the same direction while when the value is below 30 it indicates a trend coming in an opposite direction Finally for the Aroon Oscillator the positive value indicates an upward trend or coming NEST Pulse User Manual www plus omneysindia com Page 103 of 133 Indicator Signature Description Sample script Remarks trend and the negative value indicates a downward trend The higher the absolute value of an oscillator the stronger is an indication of a trend 35 Mo
17. CLO SE SMA MP 14 Evaluates to true when the close crossed over the 14 day SMA of the Median Price A Median Price is often used as an alternative way of viewing price action and also as a component for calculating other indicators NEST Pulse User Manual www plus omneysindia com Page 127 of 133 Indicator Signature Description Sample script Remarks 55 TypicalPrice TypicalPrice A Typical Price is an average of one period s high low and close values Interpretation A Typical Price is used as a component for the calculation of several technical indicators CROSSOVER CLO SE SMA TP 14 Evaluates to true when the close crossed over the 14 day SMA of the Typical Price For day trading the Typical Price helps you to get a clear view of what the main thrust of the day s action were 56 WeightedClose WeightedClose Weighted Close is an average of each day s open high low and close where more weight is placed on the close Interpretation The Weighted Close indicator is a simple method that offers a simplistic view of market prices WC gt REF WC 1 Evaluates to true when the weighted close is higher than the previous value The weighted close study is another way of viewing the price data It places a greater emphasis on the clo
18. Manual www plus omneysindia com Page 124 of 133 Indicator Signature Description Sample script Remarks AF It is also called initial Incremental step The default is set to 02 Maximum Acceleration factor Max AF The maximum value that can be used for the acceleration factor AF The default is set to 2 53 Stochastic Momentum Index SMIK K Periods K Smooth K Double Periods D Periods MA Type D MA Type SMID K Periods K Smooth K Double Periods D Periods MA Type D MA The Stochastic Momentum Index developed by William Blau first appeared in the January 1993 issue of Stocks amp Commodities magazine This indicator plots the SMID 14 2 3 9 SIMPLE SIMPLE gt 40 OR SMIK 14 2 3 9 SIMPLE SIMPLE gt 40 Evaluates to true when the Stochastic It is used as a sentiment or trend identification indicator thereby providing a better sense of the overall direction of the market The interpretation of NEST Pulse User Manual www plus omneysindia com Page 125 of 133 Indicator Signature Description Sample script Remarks Type closeness of price relative to the midpoint of the recent high low range Interpretation The Stochastic Momentum Index has two components K SMIK and D SMID K is most often displayed on a
19. NEST Pulse User Manual www plus omneysindia com Page 1 of 133 Omnesys Technologies Pvt Ltd NEST PLUS NEST Pulse User Manual September 2011 NEST Pulse User Manual www plus omneysindia com Page 2 of 133 Document Information DOCUMENT CONTROL INFORMATION DOCUMENT Nest Pulse User Manual VERSION 1 0 0 0 VERSION NOTES This document explains about the features and functionalities of Nest Pulse product KEYWORDS Proprietary Notice This document contains confidential information of Omnesys Technologies Pvt Ltd which is provided for the sole purpose of permitting the recipient to evaluate the deployment document submitted herewith In consideration of receipt of this document the recipient agrees to maintain such information in confidence and to not reproduce or otherwise disclose this information to any person outside the group directly responsible for evaluation of its contents except that there is no obligation to maintain the confidentiality of any information which was known to the recipient prior to receipt of such information from Omnesys Technologies Pvt Ltd or becomes publicly known through no fault of recipient or is received without obligation of confidentiality from a third party owing no obligation of confidentiality to Omnesys Technologies Pvt Ltd NEST Pulse User Manual www plus omneysindia com Page 3 of 133 What is NEST Pulse NEST Pul
20. Page 51 of 133 Sample Script 2 For Bullish Markets Buy Signals A combination of Simple moving average MACD and stochastic SMA CLOSE 2 gt SMA CLOSE 10 AND MACD 6 12 9 SIMPLE gt 0 AND SOPK 9 3 9 SIMPLE gt 80 OR SOPD 9 3 9 SIMPLE gt 80 Exit Long A combination of Simple moving average MACD and stochastic SMA CLOSE 2 lt SMA CLOSE 10 AND MACD 6 12 9 SIMPLE lt 0 AND SOPK 9 3 9 SIMPLE lt 20 OR SOPD 9 3 9 SIMPLE lt 20 NEST Pulse User Manual www plus omneysindia com Page 52 of 133 Price Gap System An upward price gap occurs when a stock opens substantially higher than the previous day s high price This often occurs after an unexpected announcement much better than expected earnings report and so forth A large number of buy orders are executed when the market opens During this time the price may be exaggerated as investors may be buying the stock simply because it shows strength at the opening The price often retreats to fill the gap once orders stop coming in and the demand for the stock subsides The key to this trading system is that reversals usually occur during the first hour of trading In other words if the gap is not filled during the first hour then we may assume that buying will continue NEST Pulse User Manual www plus omneysindia com Page 53 of 133 This trading system is often more successful if volu
21. Signature Description Sample script Remarks of CMO may indicate that prices are trending strongly downwards Recommended Parameters Vector CLOSE Periods 14 21 VolumeOscillato r VolumeOscillator Sh ort Term Periods Long Term Periods MA Type Points or Percent The Volume Oscillator shows a spread of two different moving averages of volume over a specified period of time Offers a clear view of whether or not volume is increasing or decreasing Recommended Parameters Short Term Periods 9 Long Term Periods 21 MA Type SIMPLE Points or Percent PERCENT VO 9 21 SIMPLE PERCENT gt 0 The Volume Oscillator identifies whether the volume trend is increasing or decreasing by using the difference between a longer and a shorter moving average of volume When the Volume Oscillator rises above zero the shorter term volume moving NEST Pulse User Manual www plus omneysindia com Page 85 of 133 Indicator Signature Description Sample script Remarks average has risen above the longer term volume moving average This means that the short term volume trend is higher than the longer term volume trend Rising prices along with increased volume and falling prices along with decreased volume are interpreted to be bullish signals Conversely vo
22. Top NA 19 MomentumOscil lator MomentumOscillator Vector Periods The momentum oscillator calculates the change of price over a specified length of time as a ratio Increasingly high values of the momentum oscillator may indicate that prices are trending strongly upwards The momentum oscillator is closely related to MACD and Price Rate of Change ROC Recommended Parameters MO CLOSE 14 gt 90 Evaluates to true when the momentum oscillator of the close is over 90 Many leading indicators come in the form of momentum oscillators Generally speaking momentum measures the rate of change of a security s price As the price of a security rises price momentum increases The faster the security rises the greater the period over NEST Pulse User Manual www plus omneysindia com Page 82 of 133 Indicator Signature Description Sample script Remarks Vector CLOSE Periods 14 period price change the larger the increase in momentum Once this rise begins to slow momentum will also slow As a security begins to trade flat momentum starts to actually decline from previous high levels However declining momentum in the face of sideways trading is not always a bearish signal It simply means that momentum is returning to
23. a more median level 20 ChandeMoment ChandeMomentumO The Chande CMO CLOSE 14 The security is NEST Pulse User Manual www plus omneysindia com Page 83 of 133 Indicator Signature Description Sample script Remarks umOscillator scillator Vector Periods Momentum Oscillator CMO developed by Tushar Chande is an advanced momentum oscillator derived from linear regression This indicator was published in his book titled New Concepts in Technical Trading in the mid 90 s The CMO enters into overbought territory at 50 and oversold territory at 50 You can also create buy sell triggers based on a moving average of the CMO Also increasingly high values of CMO may indicate that prices are trending strongly upwards Conversely increasingly low values gt 48 Evaluates to true when the CMO of the close is overbought deemed to be overbought when the momentum oscillator is above 50 and oversold when it is below 50 Many technical traders add a nine period moving average to this oscillator to act as a signal line Bullish signals are generated when the oscillator crosses above the signal and bearish signals are generated when the oscillator crosses down through the signal NEST Pulse User Manual www plus omneysindia com Page 84 of 133 Indicator
24. against the dollar demonstrates a strong negative relationship Thus the dollar increase as a rule forecasts a decrease in the gold s price
25. for a smoother representation of the underlying price or indicator CLOSE gt SMA CLOSE 30 Evaluates to true when the close is greater than a 30 day SMA Many traders watch for short term averages to cross above longer term averages to signal the beginning of an uptrend Short term averages e g 15 period SMA act as levels of support when the price experiences a pullback Support levels become stronger and more NEST Pulse User Manual www plus omneysindia com Page 66 of 133 Indicator Signature Description Sample script Remarks significant as the number of time periods used in the calculations increases 2 Exponential Moving Average EMA Vector Periods An Exponential Moving Average is similar to a Simple Moving Average An EMA is calculated by applying a small percentage of the current value to the previous value therefore an EMA applies more weight to recent values A Moving Average is most often used to average values for a CLOSE gt EMA CLOSE 30 Evaluates to true when the close is greater than a 30 day EMA This type of moving average reacts faster to recent price changes than a simple moving average The 12 and 26 day EMAs are the most popular short term averages and they are used to create indicators like the moving average converg
26. omneysindia com Page 132 of 133 Indicator Signature Description Sample script Remarks MA Type SIMPLE 62 CorrelationAnal ysis CorrelationAnalysis V ector1 Vector2 Correlation analysis is used to determine the relationship between two vectors Interpretation The function returns a value indicating the relationship between two Vectors The Vectors may contain price indicator values or other values Recommended Parameters Vector1 Any Vector Vector2 Any Vector CA CLOSE SMA CLOSE 14 gt 0 Evaluates to true when the close price movement highly correlates with the 14 day SMA movement Correlation Analysis compares a stock to any indicator or another stock and demonstrates how like or dislike they are to one another One can use correlation analysis in two main ways for defining connection between two securities and for defining the ability of an indicator to forecast the situation on the market Also correlation analysis is useful for measuring the NEST Pulse User Manual www plus omneysindia com Page 133 of 133 Indicator Signature Description Sample script Remarks connection between two securities As it often happens that one security s price causes or forecasts the price of another security For instance the correlation coefficient of gold
27. overriding the script by clicking on the Buy or Sell options provided next to the Stop option In case you click on Buy it will get replaced by the Exit option Similarly if you click on Sell it will get replaced by the Exit option to exit any positions taken manually To view details of action taken right click on the Running Scripts window and click on Open Report NEST Pulse User Manual www plus omneysindia com Page 21 of 133 All orders placed in this manner will be visible in the Order Book F3 window You can distinguish orders placed through Nest Pulse from other orders from the Remarks column in the Order Book All Order Book features such as modification cancellation order history and so on are applicable to orders placed through Nest Pulse as well NEST Pulse User Manual www plus omneysindia com Page 22 of 133 Programming the Language This guide contains short examples that demonstrate how to perform common basic tasks such as identifying securities within a specific price range increase in volatility crossing over of an indicator and so forth You can cut and paste many of these examples right into the NestPulse programming area in your software Also this guide contains a reference of functions properties and constants supported by the NestPulse language as well as hands on trading system examples This method of NEST Pulse User Manual
28. provides details such as the Total number of trades number of profitable and loss making trades largest profit loss net profit loss and so on to better help in analysing the applicability of a strategy Going Live with your Strategy Live Script Going live with your strategy means that whenever your condition as set in the Buy Sell Buy Exit Sell Exit expressions is met corresponding orders will start getting placed in the Live Market NEST Pulse User Manual www plus omneysindia com Page 16 of 133 In case you re using Nest Pulse with an Investor Client login you will be prompted to confirm the order every time a condition is triggered Unless you confirm the order to get placed it will not In case you re using Nest Pulse Dealer with a Dealer login you have the option to select whether the orders are to be placed automatically or you should be prompted to confirm the order before placing This is explained further below To take your strategy to the live market right click on the chart click on Scripts select the scrip which you want to go live with and click on Live You then need to fill in your order details and set order preferences NEST Pulse User Manual www plus omneysindia com Page 17 of 133 Execution Period can be set to define the Start Time and End Time during which the orders should get placed Product Type would help to select the product type that has be
29. system depends on how well the trading system s rules perform on a trade by trade basis Traders spend much of their time optimizing their trading systems in order to increase profits and reduce risks In the case of a basic Moving Average Crossover system this is accomplished by modifying the parameters of the moving averages themselves A trader may optimize a trading system by means of back testing The back testing feature of NestPulse allows you to back test your trading systems and modify parameters to achieve the maximum amount of profit and minimum amount of risk Refer to your trading software documentation for details NEST Pulse User Manual www plus omneysindia com Page 49 of 133 Moving Average Crossover System The Moving Average Crossover System is perhaps the simplest of all trading systems This system uses two moving averages to generate signals A buy signal is generated when a short term moving average crosses over a longerterm moving average and sells when a short term moving average crosses below a long term moving average The number of signals generated by this trading system is proportional to the length and type of moving averages used Short term moving averages generate more signals and enter into trades sooner than longer term moving averages Unfortunately a very short term moving average crossover system will also generate more false signals than a longer term system wh
30. the previous closing price Forecast defines the trend s upward or downward declivity and stretches those results into the future For instance when prices are moving upwards TSF tries to define the upward declivity of the price compared to the ongoing price and stretch that calculation forward a lot of analysts think that once NEST Pulse User Manual www plus omneysindia com Page 76 of 133 Indicator Signature Description Sample script Remarks prices shift above or fall below the indicator line prices will likely move back to the line The TSF indicator also defines if a change in direction happened monitoring the ongoing trend 12 Intercept Intercept Vector Periods Returns the linear regression intercept for the last period s Y value based on the linear regression calculation over the specified number of periods Intercept CLOSE 30 gt REF CLOSE 1 Evaluates to true when the intercept is higher than the previous closing price Interpretations similar to those used for the Slope and forecast can also be applied here 13 BollingerBandsT op BollingerBandsTop V ector Periods Standard Deviations Bollinger bands rely on standard deviations in order to adjust to CLOSE gt BBT CLOSE 20 2 EXPONENTIAL The fo
31. the OR to compare Boolean expressions the order of the expressions is important Example TRUE TRUE OR TRUE FALSE TRUE And FALSE TRUE OR TRUE FALSE FALSE XOR The XOR operator is used to perform a logical exclusion on two expressions where the expressions are Null or are of Boolean subtype and have a value of True or False The XOR operator can also be used a bitwise operator to make a bit by bit comparison of two integers If both bits are the same in the comparison both are 0 s or 1 s then a 0 is returned Otherwise a 1 is returned Example TRUE XOR FALSE TRUE And FALSE XOR FALSE FALSE NOT The NOT operator is used to perform a logical negation on an expression The expression must be of Boolean subtype and have a value of True or False This operator causes a True expression to become False and a False expression to become True Example NOT TRUE FALSE TRUE And NEST Pulse User Manual www plus omneysindia com Page 47 of 133 NOT TRUE TRUE FALSE EQV The EQV operator is used to perform a logical comparison on two expressions I e are the two expressions identical where the expressions are Null or are of Boolean subtype and have a value of True or False The EQV operator can also be used a bitwise operator to make a bit by bit comparison of two integers If both bits in the comparison are the same both are 0 s or
32. www plus omneysindia com Page 100 of 133 Indicator Signature Description Sample script Remarks Volatility Oscillator adjusts with respect to volatility independent of long term price action The most popular interpretation is to sell when the indicator tops out and to buy when the indicator bottoms out Recommended Parameters Periods 10 Rate of Change 10 MA Type SIMPLE volatility One method assumes that market tops are generally accompanied by increased volatility and that the latter stages of a market bottom are generally accompanied by decreased volatility Another method assumes that an increase in the Volatility indicator over a relatively short time period indicates that a bottom is near e g NEST Pulse User Manual www plus omneysindia com Page 101 of 133 Indicator Signature Description Sample script Remarks a panic sell off and that a decrease in volatility over a longer time period indicates an approaching top e g a mature bull market 34 Aroon AroonUp Periods AroonDown Periods The Aroon indicator was developed by Tushar Chande in the mid 1990 s This indicator is often used to determine whether a stock is trending or not and how stable the trend is Trends are determined by extreme values above 80 of both lines Aroon up and
33. 1 s then a 1 is returned Otherwise a 0 is returned The order of the expressions in the comparison is not important Example TRUE EQV TRUE TRUE And TRUE EQV FALSE FALSE MOD The MOD operator divides two numbers and returns the remainder In the example below 5 divides into 21 4 times with a remainder of 1 Example 21 MOD 5 1 And NEST Pulse User Manual www plus omneysindia com Page 48 of 133 Trading Systems A trading system is basically a set of rules that determine entry and exit points for any given stock Traders often refer to these points as trade signals A trading system is objective and mechanical The purpose is to provide a strategy to produce profits greater than losses by controlling your trades for you This chapter provides hands on learning by teaching the trader how to translate trading system rules into script form using real trading systems as examples Trading systems usually include one or more technical indicators in their implementation For example a Moving Average Crossover system would buy when a short term moving average crosses above a long term moving average and sell when a short term moving average crosses below a long term moving average Trading systems may have any number of rules such as don t buy unless volume is trending upwards or exit if Parabolic SAR crosses the close etc The actual profitability of a trading
34. 3 of 133 Example LOG10 26 28 The script outputs 1 42 RND The RND function returns a random number from 0 to a maximum value Example RND 100 Outputs a random number from 0 to 100 Operators Equal The equal operator is used to assign a value to a variable or vector or to compare values When used for assignment a single variable or vector on the left side of the operator is given the value determined by one or more variables vectors and or expressions on the right side Also the SET keyword must precede the variable name when the operator is used for an assignment SET A 123 SET B 123 A B TRUE Greater Than gt The gt operator determines if the first expression is greater than the second expression Example SET A 124 SET B 123 A gt B TRUE NEST Pulse User Manual www plus omneysindia com Page 44 of 133 Less Than lt The lt operator determines if the first expression is less than the second expression Example SET A 123 SET B 124 A gt B TRUE Greater Than Or Equal To gt The gt operator determines if the first expression is greater than or equal to the second expression Example SET A 123 SET B 123 A gt B TRUE And SET A 124 SET B 123 A gt B TRUE Less Than Or Equal To lt The lt operator determines if the first expression is less than or equal to the second
35. 5 UP OR TREND MACD 13 26 9 SIMPLE 5 UP NEST Pulse User Manual www plus omneysindia com Page 62 of 133 Narrow Trading Range Breakout Stocks that remain bound by narrow trading ranges often tend to continue in the direction of their breakout That is to say if a stock remains in a narrow range between 40 and 45 for an extended period then breaks above 50 it is likely to continue rising for the foreseeable future The premise being that the longer a stock remains in a tight range the more difficult it is becomes to breakout of the trading range Therefore when the breakout occurs the uptrend should continue Narrow Trading Range Script Define a 2 trading range over 50 days FIND STOCKS WHERE MAX CLOSE 50 lt CLOSE 1 01 AND MIN CLOSE 50 gt CLOSE 0 98 AND NEST Pulse User Manual www plus omneysindia com Page 63 of 133 Filter out inactive securities CLOSE REF CLOSE 1 AND REF CLOSE 1 REF CLOSE 2 AND REF CLOSE 2 REF CLOSE 3 Outside Day System An Outside Day occurs when the current bar s high price is higher than the previous bar s high price and the current bar s low price is lower than the previous bar s low price The close must be opposite of the trend if the trend is up the close must be lower than the open Outside days occur frequently and may be used as part of a short term trading strategy Outside days tha
36. Periods argument is 1 250 unless otherwise noted NEST Pulse User Manual www plus omneysindia com Page 40 of 133 TREND TREND Vector The TREND function can be used to determine if data is trending upwards downwards or sideways This function can be used on the price open high low close volume or any other vector The TREND function returns a constant of either UP DOWN or SIDEWAYS Example TREND CLOSE UP AND TREND VOLUME DOWN TREND is often the first function used as a means of filtering securities that are not trending in the desired direction CROSSOVER Many technical indicators such as the MACD for example have a signal line Traditionally a buy or sell signal is generated when the signal line crosses over or under the technical indicator The CROSSOVER function helps you one series has crossed over another For example we can find the exact point in time when one moving average crossed over another by using the CROSSOVER function SET MA1 SimpleMovingAverage CLOSE 28 SET MA2 SimpleMovingAverage CLOSE 14 CROSSOVER MA1 MA2 TRUE The script above will evaluate to true when the MA1 vector most recently crossed over the MA2 vector And we can reverse the script to the MA1 vector crossed below the MA2 vector CROSSOVER MA2 MA1 TRUE NEST Pulse User Manual www plus omneysindia com Page 41 of 133 Math Functions Note that all math functions retur
37. Swing Index Wilder is a cumulative total of the Swing Index which shows comparative price strength within a single security by comparing the current open high low and close prices with TREND ASI 1 gt UP Evaluates to true when the Accumulative Swing Index is trending upwards It defines short term swing points It indicates the real strength and direction of the market The accumulative swing index is used to gain a better long term picture than NEST Pulse User Manual www plus omneysindia com Page 120 of 133 Indicator Signature Description Sample script Remarks previous prices Interpretation The Accumulation Swing Index may be analyzed using technical indicators line studies and chart patterns as an alternative view of price action Recommended Parameters Limit Move Value 1 using the plain swing index which uses data from only two bars If the long term trend is up the accumulative swing index is a positive value Conversely if the long term trend is down the accumulative swing index is a negative value If the long term trend is sideways non trending the accumulative swing index fluctuates between positive and negative values This indicator is used to analyze futures but can be applied to NEST Pulse User Man
38. a particular element in the vector using a traditional programming language you would write SET A MedianAverage n Using NestPulse you would write SET A REF MedianAverage n The main difference other than a variation in syntax is that traditional languages reference the points in a vector starting from the beginning or 0 if the vectors are zero based NestPulse on the other hand references values backwards from the end This is most convenient since the purpose of NestPulse is of course to develop trading systems It is always the last most recent value that is of most importance To get the most recent value in the MedianAverage vector we could write SET A REF MedianAverage 0 NEST Pulse User Manual www plus omneysindia com Page 28 of 133 Which is the same as not using the REF function at all Therefore the preferred way to get the last value the most recent value in a vector is to simply write SET A MedianAverage The last value of a vector is always assumed when the REF function is absent To get the value as of one bar ago we would write SET A REF MedianAverage 1 Or two bars ago SET A REF MedianAverage 2 The TREND Function Stock traders often refer to trending as a state when the price of a stock has been increasing up trending or decreasing down trending for several days weeks months or years The typical investor or trader would avoid ope
39. ading range between High amp low prices for each period A bulge in NEST Pulse User Manual www plus omneysindia com Page 109 of 133 Indicator Signature Description Sample script Remarks the index line signals reversals This occurs when the 25 periods Mass Index rises above 27 and falls back below 26 5 By calculating a 9 days exponential moving average go long if there is a reversal bulge amp EMA points downwards whereas go short if there is reversal bulge and EMA points upward 40 HistoricalVolatili tyIndex HistoricalVolatilityInd ex Vector Periods Bar History Standard Deviations Historical volatility is the log normal standard deviation The Historical Volatility Index is based on the book by Don Fishback HVI CLOSE 15 30 2 lt 0 01 High values of HVI indicate that the stock is volatile while low values of HVI indicate that the stock is either NEST Pulse User Manual www plus omneysindia com Page 110 of 133 Indicator Signature Description Sample script Remarks Odds The Key to 90 Winners The formula for a 30 day historical volatility index between 1 and 0 is Stdev Log Close Close Yesterday 30 Sqrt 365 Some traders use 252 instead of 365 for the bar history that is used by the square root function The Log value is a natural log I
40. aken for a scrip 2 Sell Script Expression to define when a short sell position should be taken for a scrip 3 Buy Exit Script Expression to define when to exit a long buy position by selling that position 4 Sell Exit Script Expression to define when to exit a short sell position by buying that position NEST Pulse User Manual www plus omneysindia com Page 12 of 133 This can be done either by entering the strategy using the edit boxes provided or by using the Make Expression function Select the required parameters for Vector Period Indicator and click on Update LHS to update the left hand side of the final equation Select a math function and again the desired parameters to complete the expression by clicking on Update RHS To set additional conditions like AND OR and so on you can select the condition under Rel drop down Select the parameters for Vector Period and Function and click on Update RHS to complete your expression In case you do not wish to set a condition for all expressions you would have to type in 0 in the edit boxes for those expressions Only the expression for which you set any condition would generate orders provided that condition is met Save your template by entering any name in the Saved Templates option and click on Save You re now ready to backtest go live or edit your strategy NEST Pulse User Manual
41. an a 30 day TMA As with other moving averages the triangular moving average can be used to identify a trend by using the slope of the average or lack of slope in a ranging market However due to the additional smoothing triangular moving averages tend to be smoother and have more waves than standard moving NEST Pulse User Manual www plus omneysindia com Page 70 of 133 Indicator Signature Description Sample script Remarks averages Interestingly triangular moving averages often appear more responsive to direction changes even though the additional smoothing actually moves the dominant input value to the middle of the input series which would decrease responsiveness 6 Weighted Moving Average WMA Vector Periods A Weighted Moving Average places more weight on recent values and less weight on older values A Moving Average is most often used to CLOSE gt WMA CLOSE 30 Evaluates to true when the close is greater than a 30 day WMA The linearly weighted moving average was one of the first responses to placing a greater importance on recent data NEST Pulse User Manual www plus omneysindia com Page 71 of 133 Indicator Signature Description Sample script Remarks average values for a smoother representation of the un
42. an also place orders for the strategy with the same parameters for multiple accounts mapped to him In case of trading for multiple accounts you can save an account list by clicking on Save and Load this list anytime while going live with any strategy Once you click on Submit orders will start getting placed either automatically or after confirmation depending on user type and order settings whenever the condition specified in the Script is met with NEST Pulse User Manual www plus omneysindia com Page 19 of 133 Controlling a Live Script You can view details for all scripts that you have gone live with by clicking on Pulse Running Scripts under the Nest Plus menu Alternatively you can right click on the chart and select Show Running Scripts All the scripts that are in Live mode will appear as illustrated below From this window you can pause resume a script place manual buy sell square off orders view reports for all orders placed along with total number of trades largest profit loss net profit loss and so on To stop a script right click on the Running Scripts window and click on Maximized Mode to exit maximized mode You will be able to view an option to stop the strategy Click on it to pause an active script and to resume a paused script NEST Pulse User Manual www plus omneysindia com Page 20 of 133 You can also place orders manually
43. by 5 When prices rise above the upper band or fall below the lower band a change in direction may occur when the price penetrates the band after a small reversal from the NEST Pulse User Manual www plus omneysindia com Page 80 of 133 Indicator Signature Description Sample script Remarks over an actual price or another indicator Recommended Parameters Periods 20 MA Type SIMPLE Shift 5 using a simple moving average opposite direction 16 MovingAverage EnvelopeBottom MovingAverageEnvel opeBottom Periods MA Type Shift Refer Point 15 CLOSE gt MAEB 20 SIMPLE 5 Evaluates to true when the close is greater than a 20 day Moving Average Envelope Bottom calculated by 5 using a simple moving average Refer Point 15 17 PrimeNumberBa ndsTop PrimeNumberBandsT op This novel indicator identifies the nearest prime number for the high and low and plots the two series as CLOSE gt PNBT Evaluates to true when the close is greater than the Prime Number NA NEST Pulse User Manual www plus omneysindia com Page 81 of 133 Indicator Signature Description Sample script Remarks bands Bands Top 18 PrimeNumberBa ndsBottom PrimeNumberBandsB ottom Refer Point 17 CLOSE gt PNBB Evaluates to true when the close is greater than the Prime Number Bands
44. chart as a solid line and D is often shown as a dotted line The most widely used method for interpreting the Stochastic Momentum Index is to buy when either component rises above 40 or sell when either component falls below 40 Another way to interpret the Stochastic Momentum Index is to buy when Momentum Index is in oversold territory the SMI is virtually identical to that of the Stochastic Oscillator The most basic pattern to trade from is to buy when the SMI falls below 40 and then returns above it Sell when the SMI rises above 40 and then falls back below that level Another trading signal is buy when the SMI rises above the moving average and sell when the SMI falls below the moving average NEST Pulse User Manual www plus omneysindia com Page 126 of 133 Indicator Signature Description Sample script Remarks K rises above D or sell when K falls below D Recommended Parameters K Periods 14 K Smoothing 2 K Double Periods 3 D Periods 9 MA Type SIMPLE D MA Type SIMPLE 54 MedianPrice MedianPrice A Median Price is simply an average of one period s high and low values Interpretation A Median Price is often used as an alternative way of viewing price action and also as a component for calculating other technical indicators CROSSOVER
45. d markets It is important to remember that overbought does not necessarily imply time to sell and oversold does not necessarily imply time to buy A NEST Pulse User Manual www plus omneysindia com Page 97 of 133 Indicator Signature Description Sample script Remarks 20 and oversold when R is in a range of 80 to 100 Recommended Parameters Periods 14 security can be in a downtrend become oversold and remain oversold as the price continues to trend lower Once a security becomes overbought or oversold traders should wait for a signal that a price reversal has occurred One method might be to wait for Williams R to cross above or below 50 for confirmation Price reversal confirmation can also be accomplished by using other indicators or NEST Pulse User Manual www plus omneysindia com Page 98 of 133 Indicator Signature Description Sample script Remarks aspects of technical analysis in conjunction with Williams R 32 Williams Accumulation D istribution WilliamsAccumulatio nDistribution Another indicator developed by trader Larry Williams the Accumulation Distribution indicator shows a relationship of price and volume When the indicator is rising the security is said to be accumulating Conversely when the indicator i
46. d volume in relation to the time interval selected to plot a chart Point Figure Point and figure chart style is used in technical analysis to attempt to predict financial market prices This type of chart does not plot price against time instead it plots price against changes in direction by plotting a column of Xs as the price rises and a column of Os as the price falls Renko Renko is a type of chart that is only concerned with price movement time and volume are not included A renko chart is constructed by placing a brick in the next column once the price surpasses the top or bottom of the previous brick by a predefined amount This type of chart is supposed to be effective for traders to identify key support resistance levels Kagi The Kagi chart style is used for tracking price movements and to make decisions on purchasing stock It uses a series of vertical lines to illustrate general levels of supply and NEST Pulse User Manual www plus omneysindia com Page 6 of 133 demand for certain assets This type of chart is independent of time and only changes direction once a predefined reversal amount is reached Three line Break A Three Line Break chart consists of vertical lines boxes connected to each other The direction of the lines is drawn based on price movements With this type of chart the time relation trading volume and chart information such as high and low prices are not taken
47. derlying price or indicator The popularity of this moving average has been diminished by the exponential moving average but none the less it still proves to be very useful 7 WellesWilder Smoothing WWS Vector Periods The Welles Wilder s Smoothing indicator is similar to an exponential moving average The indicator does not use the standard exponential moving average formula Welles Wilder described 1 14 of today s value 13 14 of yesterday s average as a 14 day exponential moving average This indicator CLOSE gt WWS CLOSE 30 Evaluates to true when the close is greater than a 30 day WWS It is slow to reflect price changes compared with other moving averages Wilder s Smoothing is used as a part of Wilder s RSI NEST Pulse User Manual www plus omneysindia com Page 72 of 133 Indicator Signature Description Sample script Remarks is used in the manner that any other moving average would be used 8 VIDYA Volatility Index Dynamic Average VIDYA Vector Periods R2Scale VIDYA Volatility Index Dynamic Average developed by Mr Tuschar Chande is a moving average derived from linear regression R2 A Moving Average is most often used to average values for a smoother representation of the underlying price or indicator
48. ds A Variable Moving Average is similar to an exponential moving average except that it adjusts to volatility A Moving Average is most often used to average values for a smoother representation of the underlying price or indicator CLOSE gt VMA CLOSE 30 Evaluates to true when the close is greater than a 30 day VMA A VMA is an EMA that s able to regulate its smoothing percentage based on market inconstancy automatically Its sensitivity grows by providing more weight to the ongoing data as it generates a better signal indicator for short and long term markets A Variable Moving Average regulates its sensitivity and lets it function better in any market NEST Pulse User Manual www plus omneysindia com Page 69 of 133 Indicator Signature Description Sample script Remarks conditions by using automatic regulation of the smoothing constant 5 Triangular Moving Average TMA Vector Periods The Triangular Moving Average is similar to a Simple Moving Average except that more weight is given to the price in the middle of the moving average periods A Moving Average is most often used to average values for a smoother representation of the underlying price or indicator CLOSE gt TMA CLOSE 30 Evaluates to true when the close is greater th
49. e Log10 Recommended Parameters Vector CLOSE Periods 15 Bar History 30 Standard Deviations 2 flat or trending steadily 41 ChaikinMoneyFl ow ChaikinMoneyFlow Periods The Chaikin Money Flow oscillator is a CMF 15 gt 20 AND The indicator often warns of break outs NEST Pulse User Manual www plus omneysindia com Page 111 of 133 Indicator Signature Description Sample script Remarks momentum indicator that spots buying and selling by calculating price and volume together This indicator is based upon Accumulation Distribution which is in turn based upon the premise that if a stock closes above its midpoint high low 2 for the day then there was accumulation that day and if it closes below its midpoint then there was distribution that day Interpretation A buy signal is generated when the indicator is rising and is in positive territory A sell signal is REF CMF 15 1 gt 20 Evaluates to true when the Chaikin Money Flow Index is bullish amp provides useful trend confirmation When price is trading in a range volume may indicate in which direction a breakout is most likely to occur Higher volume at peaks means that an upward breakout is more likely Higher volume at troughs indicates that a downward breako
50. e Index NEST Pulse User Manual www plus omneysindia com Page 9 of 133 On Balance Volume Parabolic SAR Performance Index Positive Volume Index Price Oscillator Price ROC Price Volume Trend Prime Number Bands Prime Number Oscillator Rainbow Oscillator Relative Strength Index Simple Moving Average Standard Deviation Stochastic Momentum Index Stochastic Oscillator Swing Index Time Series Moving Average Trade Volume Index Triangular Moving Average TRIX True Range Typical Price Ultimate Oscillator Variable Moving Average Vertical Horizontal Filter VIDYA Moving Average NEST Pulse User Manual www plus omneysindia com Page 10 of 133 Volume Oscillator Volume ROC Weighted Close Weighted Moving Average Welles Wilder Smoothing Williams R Williams Accumulation Distribution Write your own Strategy Scripts Using NEST Pulse you can create your own strategies using the technical indicators discussed above for buying selling an instrument Right click on a chart Scripts Add New Script to write your strategy NEST Pulse User Manual www plus omneysindia com Page 11 of 133 A strategy can be written with four expressions 1 Buy Script Expression to define when a long buy position should be t
51. en enabled similar to placing of normal buy sell orders F1 F2 You need to define the quantity to be placed per opportunity that is whenever a condition is met Order Type would need to be set as Limit Market as per preference In case of selecting a Limit order you can decide a pre defined limit or let the limit price be decided based on the signal price which is when the buy sell signal was given For placing limit orders based on signal price tick on the check box Place from Signal Price Select whether the price should be picked as the Close Open High or Low for the interval during which signal was given by selecting the option from the Pick drop down option You can also provide an offset that needs to be added to or subtracted from the signal price NEST Pulse User Manual www plus omneysindia com Page 18 of 133 In case of a dealer login additional features will be available wherein you can decide whether the orders should get placed automatically or should require confirmation before getting sent to the exchange As mentioned earlier for an investor client the order confirmation will always be asked before it gets placed The dealer can tick on the check box for Confirm before Place to get an order prompt on every instance when a condition is met and untick the checkbox Confirm before Place to allow orders to get placed automatically The dealer c
52. ence NEST Pulse User Manual www plus omneysindia com Page 67 of 133 Indicator Signature Description Sample script Remarks smoother representation of the underlying price or indicator divergence MACD and the percentage price oscillator PPO In general the 50 and 200 day EMAs are used as signals of long term trends 3 Time Series Moving Average TSMA Vector Periods A Time Series Moving Average is similar to a Simple Moving Average except that values are derived from linear regression forecast values instead of regular values A Moving Average is most often used to average values for a smoother representation of the underlying price or indicator CLOSE gt TSMA CLOSE 30 Evaluates to true when the close is greater than a 30 day TSMA The time series moving average differs greatly from other types of moving averages in that the current value follows the recent trend of the data not an actual average of the data Because of this the value of this function can be greater or less than all of the values being used if the NEST Pulse User Manual www plus omneysindia com Page 68 of 133 Indicator Signature Description Sample script Remarks trend of the data is generally increasing or decreasing 4 Variable Moving Average VMA Vector Perio
53. expression Example SET A 123 SET B 123 A lt B TRUE And NEST Pulse User Manual www plus omneysindia com Page 45 of 133 SET A 123 SET B 124 A lt B TRUE Not Equal lt gt or Both the and the lt gt inequality operators determine if the first expression is not equal to the second expression Example SET A 123 SET B 124 A B TRUE AND The AND operator is used to perform a logical conjunction on two expressions where the expressions are Null or are of Boolean subtype and have a value of True or False The AND operator can also be used a bitwise operator to make a bit by bit comparison of two integers If both bits in the comparison are 1 then a 1 is returned Otherwise a 0 is returned When using the AND to compare Boolean expressions the order of the expressions is not important Example TRUE TRUE AND FALSE FALSE TRUE And TRUE TRUE AND FALSE TRUE FALSE OR The OR operator is used to perform a logical disjunction on two expressions where the expressions are Null or are of Boolean subtype and have a value of True or False NEST Pulse User Manual www plus omneysindia com Page 46 of 133 The OR operator can also be used a bitwise operator to make a bit by bit comparison of two integers If one or both bits in the comparison are 1 then a 1 is returned Otherwise a 0 is returned When using
54. f trading system can be developed using the NestPulse programming language with minimal effort If a system can be expressed in mathematical terms or programmed in any structured procedural language such as C VB or Java for example you can rest assured that the same formulas can also be programmed using the NestPulse programming language Sometimes technical analysis formulas can be very complex For example technical analysis functions exist that require recursive calculations and complicated IF THEN ELSE structures as part of their formula These complex trading systems are traditionally developed in a low level programming language This chapter outlines how NestPulse can be used to perform these same calculations in a much simpler way by means of vector operations and simulated control structure Conditional IF Function IF Condition True part False part The conditional IF function allows you to design complex Boolean logic filters If you paste the following script into the Script area in your trading software application you will see a column NEST Pulse User Manual www plus omneysindia com Page 34 of 133 of numbers that oscillate between 1 and 1 depending on when the closing price is greater than the opening price SET A IF CLOSE gt OPEN 1 1 The first argument of the IF function is a logical test The second argument is the value that will be used if the c
55. ice data for a given stock Such data can be viewed and analyzed in many different ways depending on how the chart is plotted Chart Styles Chart styles define how the chart must be plotted for any given data Following are the chart styles that the user can use to view charts in NEST Pulse Line Chart A line chart displays information as a series of data points connected by straight line segments Bar Chart A bar chart is a chart with rectangular bars with lengths proportional to the values that they represent NEST Pulse User Manual www plus omneysindia com Page 5 of 133 Candle Chart A candlestick chart is a combination of a line chart and a bar chart in that each bar represents the range of price movement over a given time interval Standard A standard chart is an OHLC chart that represents price movement for a financial instrument over a given time interval such that it uses vertical lines for High and Low and horizontal intercepts for Open and Close prices Standard HLC This chart style is similar to the Standard chart style except that with this type of chart Open price is disregarded and only High Low and Close are illustrated Price Styles Price Styles define what data is used and how this data is used to plot charts Following are the price styles that the user can use to view charts in Nest Pulse Standard A standard price style simply uses market data for price an
56. ile a very long term system will generate fewer false signals but will also miss a larger proportion of profits This difficult balance applies to nearly every trading system and is the core subject of numerous books on technical analysis One solution to this problem is to use a secondary technical indicator to confirm entry and or exit signals A popular technical indicator used primarily for exit signals is the Parabolic SAR The following script uses a 20 60 EMA for entries and a Parabolic SAR for exits NEST Pulse User Manual www plus omneysindia com Page 50 of 133 Moving Average Crossover System Script Buy Signals 20 period EMA crosses over the 60 period EMA CROSSOVER EMA CLOSE 20 EMA CLOSE 60 Sell Signals 20 period EMA crosses under the 60 period EMA CROSSOVER EMA CLOSE 60 EMA CLOSE 20 Exit Long The close crosses above the Parabolic SAR CROSSOVER CLOSE PSAR CLOSE 0 02 0 2 Exit Short The close crosses below the Parabolic SAR CROSSOVER PSAR CLOSE 0 02 0 2 CLOSE Sample Script 1 For Bullish Markets Buy Signals 10 period EMA crosses over the 30 period EMA and a positive MACD EMA CLOSE 10 gt EMA CLOSE 30 AND MACD 6 12 9 EXPONENTIAL gt 0 Exit Long 30 period EMA crosses over the 10 period EMA and a negative MACD EMA CLOSE 10 lt EMA CLOSE 30 AND MACD 6 12 9 EXPONENTIAL lt 0 NEST Pulse User Manual www plus omneysindia com
57. ines It is often easier to read a script where the code is broken into multiple lines The following script will work exactly as the previous example but is somewhat easier to read LAST gt OPEN OR VOLUME gt REF VOLUME 1 2 It is good practice to structure your scripts to make them as intuitive as possible for future reference In some cases it may be useful to add comments to a very complex script A comment is used to include explanatory remarks in a script NEST Pulse User Manual www plus omneysindia com Page 25 of 133 Whenever the pound sign is placed at the beginning of a line the script will ignore the words that follow The words will only serve as a comment or note to make the script more understandable Evaluates to true when the last price is higher than the open or the volume is 2 X s the previous volume LAST gt OPEN OR VOLUME gt REF VOLUME 1 2 The script runs just as it did before with the only difference being that you can more easily understand the design and purpose of the script Functions The NestPulse language provides many built in functions that make programming easier When functions are built into the core of a programming language they are referred to as primitives The TREND function is one example TREND CLOSE 30 UP In this example the TREND function tells NestPulse to identify trades where the closing price is in a 30 day uptrend
58. into account Three Line Break charts are especially useful for detecting changes in trends Equivolume The equivolume chart style is a price plot that incorporates volume into each period An Equivolume box consists of three components price high forming the upper boundary price low forming the lower boundary and volume depicted by the width This makes it easier to verify volume for reversals big moves support resistance breaks and climaxes Candle volume A candle volume chart style combines the features of candle stick and equivolume charts With this type of chart the open and close during an interval form the upper and lower boundary for the chart the high and low are marked by the wicks or lines similar to a candle stick and the volume is depicted by the width of the chart Heiken Ashi The Heikin Ashi chart is constructed like a regular candlestick chart except that it plots the Close as the average price of the current bar and the Open as the mid point of the previous bar It is one of many techniques used in conjunction with candlestick charts to improve the isolation of trends and to predict future prices NEST Pulse User Manual www plus omneysindia com Page 7 of 133 Technical Indicators A technical indicator is a series of data points that are derived by applying a formula to the price data of a security Price data includes any combination of the open high low or cl
59. ld reduce that to SET Y LOOP Y CLOSE 3 1 SUBTRACT 2 Valid operators are ADD SUBTRACT MULTIPLY and DIVIDE COUNTIF COUNTIF Condition Returns a vector representing the total number of times the specified condition evaluated to TRUE Example COUNTIF CROSSOVER SimpleMovingAverage CLOSE 14 CLOSE The script returns a vector with increasing values expressing the number of times the 14 day Simple Moving Average crossed over the closing price LASTIF LASTIF Condtion Similar to COUNTIF except LASTIF returns a vector containing the number of days since the last time the specified condition evaluated to TRUE The count is reset to zero each time the condition evaluates to TRUE NEST Pulse User Manual www plus omneysindia com Page 37 of 133 Example LASTIF CLOSE lt REF CLOSE 1 The script returns a vector that increases in value for each bar where the closing price was not less than the previous closing price When the condition evaluates to TRUE meaning the closing price was less than the previous closing price the reference count is reset to zero SUMIF SUMIF Condtion Vector Last in the IF function lineup is the SUMIF function This function outputs a running sum of all values in the supplied Vector wherever the supplied Condition evaluates to TRUE For example if we wanted a vector containing the sum of volume for all the days where the closing price closed up 5
60. le on slow days shrewd investors will quietly buy or sell the stock 46 OnBalanceVolu me OnBalanceVolume V ector The On Balance Volume index shows a relationship of price and volume in the form of a momentum index TREND OBV CLO SE UP Evaluates to true when OBV is trending upwards The basic assumption regarding OBV analysis is that OBV changes precede price changes The NEST Pulse User Manual www plus omneysindia com Page 116 of 133 Indicator Signature Description Sample script Remarks Interpretation On Balance Volume generally precedes actual price movements The premise is that well informed investors are buying when the index rises and uninformed investors are buying when the index falls Recommended Parameters Vector CLOSE theory is that smart money can be seen flowing into the instrument by a rising OBV When the public then moves into the instrument both the instrument and the OBV will surge ahead 47 PerformanceInd ex PerformanceIndex V ector The Performance indicator calculates price performance as a normalized value or percentage Interpretation A Performance indicator shows the price of a security as a normalized value If PFI CLOSE gt 45 Evaluates to true when the performance index is over 45 Trade Vol
61. llowing traits are particular to the Bollinger Band NEST Pulse User Manual www plus omneysindia com Page 77 of 133 Indicator Signature Description Sample script Remarks MA Type changing market conditions When a stock becomes volatile the bands widen move further away from the average Conversely when the market becomes less volatile the bands contract move closer to the average Tightening of the bands is often used as an early indication that the stock s volatility is about to increase Bollinger Bands as with most bands can be imposed over an actual price or another indicator When prices rise above the upper band or fall below the lower band a change in Evaluates to true when the close is greater than a 20 day Bollinger Band Top calculated by 2 standard deviations using an exponential moving average 1 abrupt changes in prices tend to happen after the band has contracted due to decrease of volatility 2 if prices break through the upper band a continuation of the current trend is to be expected 3 if the pikes and hollows outside the band are NEST Pulse User Manual www plus omneysindia com Page 78 of 133 Indicator Signature Description Sample script Remarks direction may occur when the price penetrates the band
62. lume increasing as prices fall or volume decreases as prices rise is interpreted as a bearish signal 22 PriceOscillator PriceOscillator Vecto Similar to the Volume PO CLOSE 9 14 This indicator is a NEST Pulse User Manual www plus omneysindia com Page 86 of 133 Indicator Signature Description Sample script Remarks r Short Term Periods Long Term Periods MA Type Oscillator the Price Oscillator is calculated based on a spread of two moving averages The Price Oscillator is basically a moving average spread Buying usually occurs when the oscillator rises and selling usually occurs when the oscillator falls Recommended Parameters Vector CLOSE Short Term Periods 9 Long Term Periods 14 MA Type SIMPLE SIMPLE gt 0 Evaluates to true when the Price Oscillator is in positive territory trend following system majority of traders follow a very simple rule of buying when the shorter average crosses above the longer average and conversely when the shorter average crosses below the longer average a sell signal is triggered Another method is to fade the signals and go in the opposite direction This generally works better in choppy markets as the moving averages are not permitted to trend due to a range bound NEST Pulse User Manual www plus omne
63. lus omneysindia com Page 74 of 133 Indicator Signature Description Sample script Remarks or weakening i e a low or lowering r squared value Because in a strong trending market prices can remain overbought or oversold for extended periods 10 Slope Slope Vector Periods Returns the linear regression slope value for the data being analyzed over the specified number of periods Values oscillate from negative to positive numbers SLOPE CLOSE 30 gt 0 3 Evaluates to true when the slope is greater than 0 3 If a price trend rises or descends the linear regression slope suggests the possible angle of an uptrend downtrend basing on the current price It is thought that if the price differs from the linear regression line it gets too strained and starts motion in NEST Pulse User Manual www plus omneysindia com Page 75 of 133 Indicator Signature Description Sample script Remarks direction to the line Thereby this monitor allows us to understand the moment of price trend change 11 Forecast Forecast Vector Periods Returns the linear regression forecast for the next period based on the linear regression calculation over the specified number of periods Forecast CLOSE 30 gt REF CLOSE 1 Evaluates to true when the forecast is higher than
64. me is around twice the fiveday average of volume Example The script returns securities that have gapped up by 2 and closed near the high When the market opens on the following day the strategy would be to buy stock after the first hour of trading if the strength sustained A stop loss order would be set at the day s low A conservative profit objective would normally be half the percentage of the gap or 1 in this case Price Gap Script Buy Signals A 2 gap up in price over the previous day on high volume LOW gt REF HIGH 1 1 02 AND VOLUME gt SMA VOLUME 5 2 Sell Signals A 2 gap down in price over the previous day on high volume HIGH lt REF LOW 1 0 98 AND VOLUME gt SMA VOLUME 5 2 NEST Pulse User Manual www plus omneysindia com Page 54 of 133 Exit Long Use a profit objective roughly the size of the gap with a stop loss Exit Short Use a profit objective roughly the size of the gap with a stop loss Bollinger Bands System Bollinger bands are similar to moving averages except they are shifted above and below the price by a certain number of standard deviations to form an envelope around the price And NEST Pulse User Manual www plus omneysindia com Page 55 of 133 unlike a moving average or a moving average envelope Bollinger bands are calculated in such a way that allows them to widen and contract based on market volatility P
65. n a vector For example ABS CLOSE OPEN returns a vector of the ABS value of CLOSE OPEN one record per bar The RND function returns a vector of random values one for each bar and so forth ABS The ABS function returns the absolute value for a number Negative numbers become positive and positive numbers remain positive Example ABS CLOSE OPEN The script always evaluates to a positive number even if the opening price is greater than the closing price SIN The SIN function returns the sine for a number angle Example SIN 45 The script outputs 0 851 COS COS returns the cosine for a number angle Example COS 45 The script outputs 0 525 NEST Pulse User Manual www plus omneysindia com Page 42 of 133 TAN The TAN function returns the tangent for a number angle Example TAN 45 The script outputs 1 619 ATN Returns the arctangent for a number Example ATN 45 The script outputs 1 548 EXP EXP raises e to the power of a number The LOG function is the reverse of this function Example EXP 3 26 The script outputs 26 28 LOG Returns the natural logarithm of a positive number The EXP function is the reverse of this function Also see LOG10 Example LOG 26 28 The script outputs 3 26 LOG10 Returns the base 10 logarithm of a positive number Also see LOG NEST Pulse User Manual www plus omneysindia com Page 4
66. n the last price is greater than the 20 day moving average of the 30 day moving average of the close price NEST Pulse User Manual www plus omneysindia com Page 32 of 133 Crossovers You may be familiar with the term crossover which is what happens when one series crosses over the top of another series as depicted in the image on the right Many technical indicators such as the MACD for example have a signal line A buy or sell signal is generated when the signal line crosses over or under the technical indicator The CROSSOVER function helps you one series has crossed over another For example we can find the exact point in time when one moving average crossed over another by using the CROSSOVER function SET MA1 SimpleMovingAverage CLOSE 28 SET MA2 SimpleMovingAverage CLOSE 14 CROSSOVER MA1 MA2 TRUE NEST Pulse User Manual www plus omneysindia com Page 33 of 133 The script above will evaluate to true when the MA1 vector most recently crossed over the MA2 vector And we can reverse the script to the MA1 vector crossed below the MA2 vector CROSSOVER MA2 MA1 TRUE Primitive Functions amp Operators Primitives The built in functions of NestPulse also known as primitives These important functions define the NestPulse programming language and provide the basic framework required to build complex trading systems from the ground up Literally any type o
67. ngt h or weakne ss in the market often well ahead of the final turning point based on the assump NEST Pulse User Manual www plus omneysindia com Page 106 of 133 Indicator Signature Description Sample script Remarks component rises above 80 or sell when either component falls below 20 Another way to interpret the Stochastic Oscillator is to buy when K rises above D and conversely sell when K falls below D Recommended Parameters K Periods 9 K Slowing Periods 3 D Periods 9 MA Type SIMPLE tion that when an instrum ent is rising it tends to close near the high and when an instrum ent is falling it tends to close near its lows 38 RelativeStrength Index RelativeStrengthInde x Vector Periods The RSI is popular indicator developed by RSI CLOSE 14 gt 55 The Relative Strength Index NEST Pulse User Manual www plus omneysindia com Page 107 of 133 Indicator Signature Description Sample script Remarks trader Welles Wilder The RSI is a popular indicator that shows comparative price strength within a single security Interpretation The most widely used method for interpreting the RSI is price RSI divergence support resistance levels and RSI chart formations Recommended Parameters
68. ning a new long position of a stock that has been in a downtrend for many months NestPulse provides a primitive function aptly named TREND especially for detecting trends in stock price volume or indicators TREND CLOSE 30 UP This tells NestPulse to identify trades where the closing price is in a 30 day uptrend Similarly you could also use the TREND function to find trends in volume or technical indicators the volume has been in a downtrend for at least 10 days TREND VOLUME 10 DOWN the 14 day CMO indicator has been up trending for at least 20 days TREND CMO CLOSE 14 20 UP NEST Pulse User Manual www plus omneysindia com Page 29 of 133 It is useful to use the TREND function for confirming a trading system signal Suppose we have a trading system that buys when the close price crosses above a 20 day Simple Moving Average The script may look similar to this Gives a buy signal when the close price crosses above the 20 day SMA CROSSOVER CLOSE SimpleMovingAverage CLOSE 20 TRUE It would be helpful in this case to narrow the script down to only the securities that have been in a general downtrend for some time We can add the following line of code to achieve this AND TREND CLOSE 40 DOWN TREND tells us if a vector has been trending upwards downwards or sideways but does not tell us the degree of which it has been trending We can use the REF function in o
69. of many hundreds of lines of instructions But for most systems scripts usually consist of just a few lines of code The examples outlined in the first section of this guide are relatively short and simple but provide a foundation for the development of more complex scripts NEST Pulse User Manual www plus omneysindia com Page 24 of 133 Boolean Logic The scripts shown in this first section may be linked together using Boolean logic just by adding the AND or the OR keyword for example Script 1 evaluates to true when the last price is higher than the open price LAST gt OPEN Script 2 evaluates to true when volume is two times the previous day s volume VOLUME gt REF VOLUME 1 2 You can aggregate scripts so that your script returns results for securities that are higher than the open and with the volume two times the previous volume LAST gt OPEN AND VOLUME gt REF VOLUME 1 2 Likewise you can change the AND into an OR to find securities that are either trading higher than the open or have a volume two times the previous volume LAST gt OPEN OR VOLUME gt REF VOLUME 1 2 Once again the instructions are nearly is plain as the English language The use of Boolean logic with the AND and OR keywords is a very important concept that is used extensively by the NestPulse programming language Program Structure It does not matter if your code is all on a single line or on multiple l
70. olume increases from the previous period Interpretation The interpretation of the Positive Volume Index is that the majority of investors are buying when the index rises and selling when the index falls Recommended Parameters Vector CLOSE TREND PVI CLOS E UP Evaluates to true when PVI is trending upwards It tries to determine what smart investors are doing When trading volume is high it is thought that inexperienced investors are involved Whereas on slow days shrewd investors quietly buy or sell the stock 45 NegativeVolume NegativeVolumeInde The Negative Volume TREND NVI CLOS The index tries to NEST Pulse User Manual www plus omneysindia com Page 115 of 133 Indicator Signature Description Sample script Remarks Index x Vector Index is similar to the Positive Volume Index except it puts focus on periods when volume decreases from the previous period Interpretation The interpretation of the Negative Volume Index is that well informed investors are buying when the index falls and uninformed investors are buying when the index rises Recommended Parameters Vector CLOSE E UP Evaluates to true when NVI is trending upwards determine what smart investors are doing It is believed that when volume is high uninformed investors will sell Whi
71. ondition evaluates to TRUE Conversely the third argument is the value that will be used if the condition evaluates to FALSE The logical test may be any value or expression that can be evaluated to TRUE or FALSE For example CLOSE OPEN is a logical expression if the close price is the same as the opening price the expression evaluates to TRUE Otherwise the expression evaluates to FALSE LOOP Function LOOP Vector1 Vector2 Offset1 Offset2 Operator LOOP provides simulated control structure by means of a single function call Consider the following SET X CLOSE SET X REF X 1 X This script simply adds the previous close to the most current close REF X 1 is evaluated once This is expected behavior for a vector programming language vectors are calculated independently in a stepwise fashion and are not recursive Now by changing CLOSE to 0 logically we would expect X to equal the previous X value plus one and therefore expect REF X 1 to be evaluated once for each record in the vector SET X 0 SET X REF X 1 X Although we are looking at the exact same formula because we are initializing X with a scalar and X is not related to any existing vector we would now expect X to be calculated as a series 1 2 3 4 5 6 n NEST Pulse User Manual www plus omneysindia com Page 35 of 133 We are now exceeding the limits of a vector programming language by requiring control structu
72. or assessing NEST Pulse User Manual www plus omneysindia com Page 94 of 133 Indicator Signature Description Sample script Remarks oscillator rises when prices are trending upwards under low volume and likewise the Ease of Movement oscillator falls when prices are trending downwards under low volume Recommended Parameters Vector CLOSE Periods 21 the strength of a trend The Ease of Movement indicator produces a buy signal when it crosses above zero indicating that prices are moving upward more easily a sell signal is given when the indicator crosses below zero indicating that prices are moving downward more easily 30 Wilder s directional movement system ADX Periods ADXR Periods DIP Periods DIN Periods TRSUM Periods DX Periods The Welles Wilder s Directional Movement System contains five indicators ADX DI DI DX and ADXR A buy signal is given when DI crosses over DIP 14 gt 60 This evaluates to true if the DI for 14 ticks is more than 60 This summarizes an uptrend in The ADX Average Directional Movement Index is an indicator of how much the market is trending either up or down the higher NEST Pulse User Manual www plus omneysindia com Page 95 of 133 Indicator Signature Description Sample script Remarks DI a
73. ose over a period of time Some indicators may use only the closing prices while others incorporate volume and open interest into their formulas The price data is entered into the formula and a data point is produced A technical indicator offers a different angle from which to analyze the price action and can provide unique perspective on the strength and direction of the underlying price action Double click on any of the indicators that you wish to apply to a chart Following are the indicators that you can use in NEST Pulse to not just study and analyze price data but also act on them Accumulative Swing Index Aroon Aroon Oscillator Bollinger Bands NEST Pulse User Manual www plus omneysindia com Page 8 of 133 Chaikin Money Flow Chaikin Volatility Chande Momentum Oscillator Commodity Channel Index Comparative RSI Detrended Price Oscillator Directional Movement System Ease of Movement Exponential Moving Average Fractal Chaos Bands Fractal Chaos Oscillator High Minus Low High Low Bands Historical Volatility Linear Regression Forecast Linear Regression Intercept Linear Regression R Squared Linear Regression Slope MACD MACD Histogram Mass Index Median Price Momentum Oscillator Money Flow Index Moving Average Envelope Negative Volum
74. r of market volatility It is also frequently used as a component to other VHF CLOSE 21 lt 0 2 Evaluates to true if the vertical horizontal filter for the closing price of last 21 days is less than 0 2 A value higher than 0 2 signifies a start of The VHF indicator determines the trend of prices to help to decide which indicators to use The higher the VHF the higher the degree of trending and the more you should be using trend following NEST Pulse User Manual www plus omneysindia com Page 93 of 133 Indicator Signature Description Sample script Remarks technical indicators Recommended Parameters Vector CLOSE Periods 21 an uptrend indicators Rising VHF indicates a developing trend falling VHF indicates that prices may be entering a congestion phase Vertical Horizontal Filter does not itself generate trading signals but determines whether signals are taken from trend or momentum indicators 29 EaseOfMoveme nt EaseOfMovement Ve ctor Periods The Ease of Movement oscillator displays a unique relationship between price change and volume The Ease of Movement EOM CLOSE 21 gt 0 Evaluates to true when the Ease of Movement is in positive territory It highlights the relationship between volume and price changes and is particularly useful f
75. rder to determine the range in which the data has been trending To find the change from the most current price and the price 40 bars ago we could write SET A LAST REF CLOSE 40 Price Gaps and Volatility Although the TREND function can be used for identifying trends and the REF function can be used for determining the degree in which a stock has moved it is often very useful to identify gaps in prices and extreme volume changes which may be early indications of a change in trend We can achieve this by writing NEST Pulse User Manual www plus omneysindia com Page 30 of 133 Returns true when the price has gapped up LOW gt REF HIGH 1 Or Returns true when the price has gapped down HIGH lt REF LOW 1 You can further specify a minimum percentage for the price gap Returns true when the price has gapped up at least 1 LOW gt REF HIGH 1 1 01 And with a slight variation we can also the volume is either up or down by a large margin the volume is up 1000 VOLUME gt REF VOLUME 1 10 Or by the average volume the volume is up 1000 over average volume VOLUME gt SimpleMovingAverage VOLUME 30 10 We can also measure volatility in price or volume by using any one of the built in technical indicators such as the Volume Oscillator Chaikin Volatility Index Coefficient of Determination NEST Pulse User Manual www plus omneysindia com Page 31 of 133
76. re Anytime we assign a variable to itself such as SET X F X we are expecting F X to be recursive In the first example we write SET X CLOSE CLOSE is a variable not a function and does not have any relationship with X Our expectations change when we initialize X with anything other than an existing vector The LOOP function overcomes this inherent limitation by simulating a structured programming construct the for loop iteration LOOP Vector1 Vector2 Offset1 Offset2 Operator Vector1 is the vector to initialize the calculation from Offset1 is the offset where values are referenced in Vector1 for the incremental calculation and Offset2 is the offset where values are referenced from in Vector2 Example 1 X Vector1 is a series from 5 25 to 11 25 If we write LOOP X 2 1 0 MULTIPLY the vector returned will contain values initialized by X offset by 1 and multiplied by 2 Example 2 In the case of SET X REF X 1 Vector1 is X and Vector2 is 1 Since we re adding the value of 1 not a vector to X in the following example Offset2 is set to zero SET X LOOP X 1 1 0 ADD And now X contains the series 1 2 3 4 5 6 n Example 3 SET X REF CLOSE 1 SET Y REF Y 3 X 2 Because Y requires control structure we must instead write SET X REF CLOSE 1 SET Y LOOP Y X 3 0 SUBTRACT 2 NEST Pulse User Manual www plus omneysindia com Page 36 of 133 We cou
77. rices usually stay contained within the bands One strategy is to buy or sell after the price touches and then retreats from one of the bands A move that originates at one band usually tends to move all the way to the other band Another strategy is to buy or sell if the price goes outside the bands If this occurs the market is likely to continue in that direction for some length of time The Bollinger band trading system outlined in this example uses a combination of both trading strategies The system buys if a recent bar touched the bottom band and the current bar is within the bands and also buys if the current high has exceeded the top band by a certain percentage The system sells based on the opposite form of this strategy Bollinger Bands Script Buy Signals Buy if a previous value was below the low band and is now above SET Bottom BBB CLOSE 20 2 EXPONENTIAL SET Top BBT CLOSE 20 2 EXPONENTIAL REF CLOSE 1 lt REF Bottom 1 AND CLOSE gt Bottom OR Also buy if the close is above the top band plus 2 CLOSE gt Top 1 02 Sell Signals Sell if a previous value was above the high band and is now below SET Bottom BBB CLOSE 20 2 EXPONENTIAL SET Top BBT CLOSE 20 2 EXPONENTIAL NEST Pulse User Manual www plus omneysindia com Page 56 of 133 REF CLOSE 1 gt REF Top 1 AND CLOSE lt Top OR Also sell if the close is below the bottom band minus 2
78. s a variation of a standard moving average crossover system Normally a Parabolic SAR is used only as a signal for exit points however in this trading system we use the crossover of two exponential moving averages to decide if we should buy or sell whenever the Parabolic SAR indicator crosses over the close The Parabolic SAR can be used in the normal way after the trade has been opened Profits should be taken when the close crosses the Parabolic SAR This example shows how to use Boolean logic to find securities that match the condition either for the current trading session or the previous trading day NEST Pulse User Manual www plus omneysindia com Page 59 of 133 Parabolic SAR MA Script Buy Signals Buy if the Mas crossed today or yesterday and if the PSAR crossed today or yesterday FIND STOCKS WHERE CROSSOVER CLOSE PSAR 0 02 0 2 OR CROSSOVER REF CLOSE 1 PSAR 0 02 0 2 AND CROSSOVER EMA CLOSE 10 EMA CLOSE 20 OR CROSSOVER REF EMA CLOSE 10 1 REF EMA CLOSE 20 1 Sell Signals Sell if the Mas crossed today or yesterday and if the PSAR crossed today or yesterday FIND STOCKS WHERE CROSSOVER PSAR 0 02 0 2 CLOSE OR CROSSOVER PSAR 0 02 0 2 REF CLOSE 1 AND CROSSOVER EMA CLOSE 20 EMA CLOSE 10 OR CROSSOVER REF EMA CLOSE 20 1 REF EMA CLOSE 10 1 NEST Pulse User Manual www plus omneysindia com Page 60 of 133 MACD Momentum Sy
79. s falling the security is said to being distributing Prices may reverse when the indicator converges with price WAD lt 1 Evaluates to true when Williams Accumulation Distribution is below 1 The Williams Accumulation Distri bution Indicator tries to find underlying relationships between the close high and low prices It tracks the buying pressure and selling pressure Williams Accumulation Distribution WAD tracks buying pressure accumulation and selling pressure NEST Pulse User Manual www plus omneysindia com Page 99 of 133 Indicator Signature Description Sample script Remarks distribution on a security With accumulation most of the volume is associated with upward price movement With distribution most of the volume is associated with downward price movement 33 ChaikinVolatility ChaikinVolatility Peri ods Rate of Change MA Type The Chaikin Volatility Oscillator is a moving average derivative of the Accumulation Distribution index This indicator quantifies volatility as a widening of the range between the high and the low price The Chaikin CV 10 10 SIMPLE lt 25 It measures volatility as the trading range between high and low for each period There are two ways to interpret this measure of NEST Pulse User Manual
80. se is a trading tool that allows a trader to trade based on technical analysis using advanced charts and over 40 technical indicators It allows the user to write his own strategies back test them and on satisfactory results execute them in the live market NEST Pulse makes it easy for the user to not just identify opportunities based on several technical indicators but also trade on those opportunities In case the user is not comfortable with taking a given strategy to the live market backtesting will help in studying how the strategy would have worked on historical feeds for that day whether the strategy would have been profitable or not and the efficiency of trades Getting Started with NEST Pulse Once you have subscribed to the NEST Pulse service you can start using it by logging into your NEST Trader application and Launching Nest Plus The first step to start using NEST Pulse is to invoke charts This can be done by selecting any given scrip in the Market Watch and using the shortcut key Shift P An intraday chart as illustrated below would get displayed NEST Pulse User Manual www plus omneysindia com Page 4 of 133 How to use Charts Charts are graphical representation of market data such as price and volume of stocks and other financial instruments plotted sequentially over time Charts help you in studying price movements and apply various technical indicators at the same time to analyze pr
81. sell signal is given when Di crosses over DI Recommended Parameters Periods 21 progress the ADX line the more the market is trending and the more suitable it becomes for a trend following system This indicator consists of two lines DI and DI the first one being a measure of uptrend and the second one a measure of downtrend Detailed information about this indicator and formulas can be found in Welles Wilder s book New Concepts in Technical Trading Systems The standard NEST Pulse User Manual www plus omneysindia com Page 96 of 133 Indicator Signature Description Sample script Remarks Directional Movement System draws a 14 period DI and a 14 period DI in the same chart panel ADX is also sometimes shown in the same chart panel 31 Williams R WilliamsPctR Periods Developed by trader Larry Williams the Williams R indicator measures overbought oversold levels This indicator is similar to the Stochastic Oscillator The outputs range from 0 to 100 Interpretation The market is considered overbought when the R is in a range of 0 to WPR 14 lt 80 Evaluates to true when Williams R is oversold Williams s R has proven very useful for anticipating market reversals It identifies overbought or oversol
82. sing price rather than the high or low This process creates a single line chart It provides clear and concise picture of the market 57 PriceRateOfCha PriceRateOfChange V The Price ROC shows PROC CLOSE 12 The ROC displays NEST Pulse User Manual www plus omneysindia com Page 128 of 133 Indicator Signature Description Sample script Remarks nge ector Periods the difference between the current price and the price one or more periods in the past Interpretation A 12 day Price ROC is most often used as an overbought oversold indicator Recommended Parameters Vector CLOSE Periods 12 gt 0 AND REF PROC CLOSE 12 1 lt 0 Evaluates to true when the Price ROC recently shifted into positive territory the wave like motion in an oscillator format by measuring the amount that prices have changed over a given time period This cyclical action is the result of the changing expectations as bulls and bears struggle to control prices 58 VolumeRateOfC hange VolumeRateOfChang e Vector Periods The Volume Rate of Change indicator shows whether or not volume is trending in one direction or another Interpretation Sharp Volume ROC increases may signal price breakouts VROC VOLUME 12 gt 0 AND REF VROC VOLU ME 12 1 lt 0 Evaluates to true when the Vol
83. stLowValue Peri ods Returns the lowest value of the low price over the specified number of periods Interpretation Used as a component for calculation by many other technical indicators Recommended Parameters LOW LLV 21 Evaluates to true when the low is the lowest low in the past 21 bars NA NEST Pulse User Manual www plus omneysindia com Page 131 of 133 Indicator Signature Description Sample script Remarks Periods 21 61 StandardDeviati ons StandardDeviations Vector Periods Standard Deviations MA Type Standard Deviation is a common statistical calculation that measures volatility Many technical indicators rely on standard deviations as part of their calculation Interpretation Major highs and lows often accompany extreme volatility High values of standard deviations indicate that the price or indicator is more volatile than usual Recommended Parameters Vector CLOSE Periods 21 Standard Deviations 2 SDV CLOSE 21 2 SIMPLE gt REF SDV CLOSE 21 2 SIMPLE 10 Evaluates to true when 21 period Standard Deviations are greater than 10 days ago It is used to measure the volatility High values of standard deviations indicate that the price or indicator is more volatile than usual NEST Pulse User Manual www plus
84. stem In this trading system we use an exponential moving average and the TREND function to identify market inertia and we use the Moving Average Convergence Divergence MACD indicator to detect market momentum As you may know the MACD indicator reflects the change of power between traders who are on the long side and traders who are on the short side When the trend of the MACD indicator goes up it indicates that the market is predominated by bulls and when it falls it indicates that bears have more influence This is known as market momentum This system buys when both inertia a TREND of the EMA and momentum the MACD are both in favor of rising prices The system sells when the reverse is true Exit signals are generated whenever either signal turns to the opposite direction MACD Momentum Script Buy Signals Buy if both momentum and inertia are favorable NEST Pulse User Manual www plus omneysindia com Page 61 of 133 TREND EMA CLOSE 20 15 UP AND TREND MACD 13 26 9 SIMPLE 5 UP Sell Signals Sell if both momentum and inertia are favorable TREND EMA CLOSE 20 15 DOWN AND TREND MACD 13 26 9 SIMPLE 5 DOWN Exit Long Signal Exit if either momentum or inertia become unfavorable TREND EMA CLOSE 20 15 DOWN OR TREND MACD 13 26 9 SIMPLE 5 DOWN Exit Short Signal Exit if either momentum or inertia become unfavorable TREND EMA CLOSE 20 1
85. t loops of individual scalar operations As an example to calculate a simple moving average based on the median price of a stock over 30 days in a traditional programming language such as BASIC you would be required to write a program similar to this For each symbol For bar 30 to max Average 0 For n bar 30 to bar median CLOSE OPEN 2 Average Average median Next MedianAverages bar Average 30 Next bar Next symbol Nine to ten lines of code would be required to create the MedianAverages vector But with NestPulse you can effectively accomplish the same thing using only one line NEST Pulse User Manual www plus omneysindia com Page 27 of 133 SET MedianAverage SimpleMovingAverage CLOSE OPEN 2 30 And now MedianAverage is actually a new vector that contains the 30 period simple moving average of the median price of the stock at each point It is not uncommon to find array programming language one liners that require more than a couple of pages of BASIC Java or C code The REF Function At this point you may be wondering what REF and TREND are These are two of the very useful primitives that are built into the NestPulse language The REF function is used whenever you want to reference a value at any specific point in a vector Assume the MedianAverage vector contains the average median price of a stock In order to access
86. t occur after a strong uptrend as shown in this chart indicate market indecision and may signal a reversal or temporary correction in price NEST Pulse User Manual www plus omneysindia com Page 64 of 133 Depending on market direction outside days can be either bullish or extremely bearish If the reversal occurs at the stock s resistance level it is interpreted as bearish If it occurs at the stock s support level it is interpreted as bullish Outside Day Script Buy Signals Find outside days LOW lt REF LOW 1 AND HIGH gt REF HIGH 1 AND HIGH gt REF HIGH 1 AND CLOSE lt OPEN AND Outside days are more significant if the previous bar is shorter in height HIGH LOW gt REF HIGH 1 REF LOW 1 1 5 AND The trend should be up TREND CLOSE 30 UP Sell Signals Find outside days LOW lt REF LOW 1 AND HIGH gt REF HIGH 1 AND HIGH gt REF HIGH 1 AND CLOSE lt OPEN AND HIGH LOW gt REF HIGH 1 REF LOW 1 1 5 AND NEST Pulse User Manual www plus omneysindia com Page 65 of 133 The trend should be down for a sell signal TREND CLOSE 30 DOWN Indicator Signature Description Sample script Remarks 1 Simple Moving Average SMA Vector Periods The Simple Moving Average is simply an average of values over a specified period of time A Moving Average is most often used to average values
87. turns the high price minus the low price for each bar This indicator is often used as a component for other technical indicators but can be used with a moving average to show the change in price action over time SET A SMA HML 14 A gt REF A 10 Evaluates to true when the height of each bar has been increasing over the past several bars NA NEST Pulse User Manual www plus omneysindia com Page 105 of 133 Indicator Signature Description Sample script Remarks 37 Stochastic Oscillator SOPK K Periods K Slowing Periods D Periods MA Type The Stochastic Oscillator is a popular indicator that shows where a security s price has closed in proportion to its closing price range over a specified period of time Interpretation The Stochastic Oscillator has two components K the SOPK function and D the SOPD function K is most often displayed on a stock chart as a solid line and D is often shown as a dotted line The most widely used method for interpreting the Stochastic Oscillator is to buy when either SOPK 9 3 9 SIMPLE gt 80 OR SOPD 9 3 9 SIMPLE gt 80 Evaluates to true when the Stochastic Oscillator is in oversold territory The stochastic indicator is a momen tum oscillato r that can warn of stre
88. ual www plus omneysindia com Page 121 of 133 Indicator Signature Description Sample script Remarks stocks as well 51 CommodityChan nelIndex CommodityChannelI ndex Periods MA Type Donald Lambert developed the CCI indicator Although the purpose of this indicator is to identify cyclical turns in commodities it is often used for securities Interpretation This indicator oscillates between an overbought and oversold condition and works best in a sideways market Recommended Parameters Periods 21 MA Type SIMPLE CCI 12 SIMPLE gt 0 AND REF CCI 12 SIMPLE 1 lt 0 Evaluates to true when the CCI has just moved into positive territory The CCI is a versatile indicator capable of producing a wide array of buy and sell signals CCI can be used to identify overbought and oversold levels A security would be deemed oversold when the CCI dips below 100 and overbought when it exceeds 100 From oversold levels a buy signal might be given when the CCI moves back above 100 From overbought levels a sell signal might be given when the CCI NEST Pulse User Manual www plus omneysindia com Page 122 of 133 Indicator Signature Description Sample script Remarks moved back below 100 CCI also help identify price reversals price extremes and trend
89. uations leading to a greater Rainbow width while price moves towards or into the Rainbow are seen as potential reversals leading to a contraction of the Rainbow width The depth that price penetrates into the Rainbow can be used to judge the strength of the move 27 TRIX TRIX Vector Periods RIX is a momentum oscillator that shows the rate of change of TRIX CLOSE 9 gt 0 9 Evaluates to true The TRIX can help identify turning points The simplest NEST Pulse User Manual www plus omneysindia com Page 92 of 133 Indicator Signature Description Sample script Remarks an exponentially averaged closing price Interpretation The most common usage of the TRIX oscillator is to buy when the oscillator rises and sell when the oscillator falls Recommended Parameters Vector CLOSE Periods 9 when TRIX is in overbought territory rule of trading decision making while following the trend is to buy when TRIX changes direction from decreasing to increasing And to sell when TRIX changes direction from increasing to decreasing 28 VerticalHorizont alFilter VerticalHorizontalFilt er Vector Periods The Vertical Horizontal Filter VHF identifies whether a market is in a trending or a choppy movement phase The VHF indicator is most commonly used as an indicato
90. ume Index Performance index are helpful for comparing the price movements of different securities NEST Pulse User Manual www plus omneysindia com Page 117 of 133 Indicator Signature Description Sample script Remarks the Performance indicator shows 50 then the price of the underlying security has increased 50 since the start of the Performance indicator calculations Conversely if the indictor shows 50 then the price of the underlying security has decreased 50 since the start of the Performance indicator calculations Recommended Parameters Vector CLOSE 48 TradeVolumeInd ex TradeVolumeIndex V ector Minimum Tick Value The Trade Volume index shows whether a security is being accumulated or distributed similar to TVI CLOSE 0 25 gt 0 Evaluates to true when the Trade Volume Index is The TVI helps identify whether buyers or sellers are in control If the TVI is trending up it NEST Pulse User Manual www plus omneysindia com Page 118 of 133 Indicator Signature Description Sample script Remarks the Accumulation Distribu tion index Interpretation When the indicator is rising the security is said to be accumulating Conversely when the indicator is falling the security is said to being distributing Prices may reverse when the
91. ume ROC recently moved into positive territory With most markets the volume can be expected to within a constant range over time When volume moves outside this range and begins to trend either upwards or downwards then a NEST Pulse User Manual www plus omneysindia com Page 129 of 133 Indicator Signature Description Sample script Remarks Recommended Parameters Vector VOLUME Periods 12 capitulation of one sort or another can be expected Using this breakout from the average the VROC is best used as a confirmation indicator to other studies If the volume for the current period is higher than n period ago the rate of change will be a plus number If volume is lower the ROC will be minus number This allows looking at the speed at which the volume is changing NEST Pulse User Manual www plus omneysindia com Page 130 of 133 Indicator Signature Description Sample script Remarks 59 HighestHighValu e HighestHighValue Pe riods Returns the highest value of the high price over the specified number of periods Interpretation Used as a component for calculation by many other technical indicators Recommended Parameters Periods 21 HIGH HHV 21 Evaluates to true when the high is the highest high in the past 21 bars NA 60 LowestLowValu e Lowe
92. ut is more likely NEST Pulse User Manual www plus omneysindia com Page 112 of 133 Indicator Signature Description Sample script Remarks generated when the indicator is falling and is in negative territory Recommended Parameters Periods 15 42 ComparativeRel ativeStrength ComparativeRelative Strength Vector1 Vector2 The Comparative Relative Strength index compares one vector with another Interpretation The base vector is outperforming the other vector when the Comparative RSI is trending upwards Recommended Parameters CRSI CLOSE VOLUME gt 1 Evaluates to true when the trend in price has outpaced the trend in volume Comparative Relative Strength is often used to compare a security s performance with a market index It is also useful in developing spreads i e buy the best performer and short the weaker issue Vector1 CLOSE Vector2 Any 43 PriceVolumeTre nd PriceVolumeTrend V ector Also known as Volume Price Trend This TREND PVT CLOS E UP It used to determine the NEST Pulse User Manual www plus omneysindia com Page 113 of 133 Indicator Signature Description Sample script Remarks indicator consists of a cumulative volume that adds or subtracts a multiple of the percentage change in price trend and current volume
93. ving Average Convergence Di vergence MACD MACD Short Cycle Long Cycle Signal Periods MA Type The MACD is a moving average oscillator that shows potential overbought oversold phases of market fluctuation The MACD is a calculation of two moving averages of the underlying price indicator Buy and sell interpretations may be derived from crossovers calculated SET A MACDSignal 13 26 9 SIMPLE SET B MACD 13 26 9 SIMPLE CROSSOVER A B TRUE Evaluates to true when the MACD Signal line recently crossed over the MACD The MACD proves most effective in wide swinging trading markets The basic MACD trading rule is to sell when the MACD falls below its signal line Similarly a buy signal occurs when the MACD rises above its signal line It is also popular to buy sell when the NEST Pulse User Manual www plus omneysindia com Page 104 of 133 Indicator Signature Description Sample script Remarks by the MACDSignal function overbought oversold levels of the MACD and divergences between MACD and underlying price Recommended Parameters Long Cycle 26 Short Cycle 13 Signal Periods 9 MA Type SIMPLE MACD goes above below zero The MACD is also useful as an overbought oversol d indicator 36 HighMinusLow HighMinusLow This function re
94. ysindia com Page 87 of 133 Indicator Signature Description Sample script Remarks market 23 DetrendedPrice Oscillator DetrendedPriceOscill ator Vector Periods MA Type Similar to the Price Oscillator except DPO is used when long term trends or outliers make the underlying price difficult to analyze Buying occurs when the oscillator rises Selling occurs when the oscillator falls Recommended Parameters Vector CLOSE Periods 20 MA Type SIMPLE DPO CLOSE 20 SIMPLE gt 0 Evaluates to true when the Detrended Price Oscillator is in positive territory When the Detrended Price Oscillator is above the zero line it means that price is above its moving average a bullish sign Similarly when the Detrended Price Oscillator is below the zero line it means that price is below its moving average a bearish sign The Detrended Price Oscillator is an effective tool for uncovering hidden cycles of overbought and oversold conditions NEST Pulse User Manual www plus omneysindia com Page 88 of 133 Indicator Signature Description Sample script Remarks 24 PrimeNumberOs cillator PrimeNumberOscillat or Vector Finds the nearest prime number from either the top or bottom of the series and plots the difference between that prime number and the series itself

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