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Author: Ruslan Lagutin

How to use Offsets in your Alerts or Backtests

TrendSpider now supports offsets in alert and backtest templates. This post will explain how offsets work and when you should use them.

What are offsets?

Offsets allow you to compare events that occurred in the past or in a sequence. This is useful with lagging indicators such as the Ichimoku Cloud’s Chikou Span line which is set-back by 26 candles. Without an offset option, you would not be able to create an accurate signal from this indicator because you would be comparing a past-value against a present-value.

Offsets also allow you to compare events that occurred in sequence, compare conditions which may have been met at different times, together in one alert.

Blue Raindrops: Potentially Effective for Identifying Support/Resistance & Reversals Levels

On Raindrop Charts, the color of a Raindrop depends on the relative position of the Left and Right mean (VWAP) prices to each other. The logic is similar to Japanese Candlesticks or Bars: It’s red if Right is less than Left, and green if Right is greater than Left.

Unlike other charts, there is a particular special case worth noting in Raindrop Charts when the VWAP price of each side of the Raindrop happen to be equal (or approximately equal; see more below).

We call this type of Raindrop a Blue Doji Raindrop:

Blue raindrop.

As I mentioned, we believe this Raindrop is very special.

Analysis Shows Stock Prices Tend to Cluster

One of my favorite parts of my job is to mess around with market data. Eventually, I found myself with a scatter plot comparing the price versus volume for Walmart Inc. (NYSE: WMT).

This chart was built with two-and-a-half years worth of ten minute candles, with each point representing one candle. The X-axis represents the average price, calculated as [(High + Low)/2], and the Y-axis represents the volume of each candle.