Greatest Swing Value

In his book “Long Term Secrets to Short Term Trading”,Larry Williams introduces the concept of Greatest Swing Value or GSV.The technique trys to catch the reversal day of a short term trend.

The basic idea involves volatility breakout and it is about the concept of failed swing.The critical element is to only take a buy signal after down days and sell after up days.

Example for uptrend:

(i)If today close is greater than the close of five days ago(uptrend),we look at those previous “n” days where C>O(updays) and then for each day with that characteristic we calculate the down swing(the difference between Open and Low)

(ii)Then we calculate the average down swing(“avds”),multiply it for a factor(1.8),and subtract it to tomorrow open:

a:=O-1.8*Ref(avds,-1)

(iii)If tomorrow price drop down “a” level,we’ll sell

Example for downtrend:

(i)If today close is minor than the close of five days ago(downtrend),we look at those previous “n” days where C<O(downdays) and then for each day with that characteristic we calculate the up swing(the difference between High and Open)

(ii)Then we calculate the average up swing(“avus”),multiply it for a factor(1.8),and add it to tomorrow open:

b:=O+1.8*Ref(avus,-1)

(iii)If tomorrow price break up “b”,we’ll buy

I hope I was clear and I hope to find someone that can translate in BC language this technique.

Thanks